ECON101 – Chapter 9: Global Poverty and Exploitation

20 question-and-answer flashcards that review the core concepts, data points, and true/false statements highlighted in the Chapter 9 homework quiz on global poverty and exploitation.

How is Gross National Income (GNI) per capita calculated?

By dividing a country’s total GNI by its population.

What does the “composition of GDP” refer to?

The specific goods and services that make up (or constitute) a nation’s GDP.

The acronym “NICs” stands for .

Newly Industrializing Countries.

Which of the following regions is NOT usually classified as part of the developing world?

Eastern Europe.

In development economics, the phrase “social overhead capital” refers to .

Infrastructure (roads, bridges, power grids, water systems, etc.).

Economic development generally entails which three broad goals?

(1) Reducing poverty, (2) improving standards of living, and (3) resolving the conditions that lead to state fragility.

What is meant by a “capital-intensive” technology strategy?

A production method that uses a large amount of capital relative to labor; it has been part of many industrialization plans but may not suit countries with high unemployment.

On which continent are the six poorest countries in the world located?

Africa.

Which city is currently the most heavily populated in the world?

Tokyo, Japan.

If a nation’s GNI is $100 million and its population is 2 million, what is its GNI per capita?

$50.

Why are life expectancy and infant-mortality statistics useful indicators of living standards?

They avoid many measurement problems associated with GNI/GDP and are less distorted by income distribution issues.

According to the textbook, which city has the single largest population?

Tokyo, Japan.

According to the textbook, which country has the lowest GNI per capita?

Burundi.

Poverty is expected to worsen primarily because of which three global challenges?

Climate change, the COVID-19 (coronavirus) pandemic, and violent conflict.

Which of the following is NOT an investment in human capital: education, training, healthcare, or industry?

Industry.

True or False: The GNI per capita of the United States is more than 200 times that of Burundi.

True.

True or False: High levels of military spending as a share of government expenditure usually create peace and foster development.

False.

True or False: Life-expectancy and infant-mortality data suffer from fewer measurement problems than national income statistics such as GNI and GDP.

True.

True or False: In most developing countries, rural-urban migration mainly consists of people leaving cities for quieter rural areas.

False.

True or False: Investing in human capital tends to raise productivity and improve standards of living.

True.