ECON101 – Chapter 9: Global Poverty and Exploitation

Twenty question-and-answer flashcards covering key concepts from Chapter 9—Global Poverty and Exploitation, including GNI, GDP composition, NICs, human-capital investment, and major development challenges.

How is Gross National Income (GNI) per-capita calculated?
A) By multiplying a country's GNI by its total population.
B) By dividing a country's GNI by its total population.
C) By subtracting a country's GNI from its GDP.
D) By summing up all private consumption and government spending.

B) By dividing a country’s GNI by its population.

What does the “composition of GDP” refer to?
A) The total monetary value of all finished goods and services produced within a country's borders in a specific time period.
B) It refers to what GDP consists of—the various components that make up total output.
C) The average income earned per person in a given area in a specified year.
D) The policies enacted by a government to influence its economy.

B) It refers to what GDP consists of—the various components that make up total output.

“NICs” is the abbreviation for which group of countries?
A) National Income Countries
B) Newly Independent Corporations
C) Non-Intervening Commonwealths
D) Newly Industrializing Countries

D) Newly Industrializing Countries.

Which of the following regions is NOT typically classified as part of the developing world?
A) Sub-Saharan Africa
B) Latin America
C) Eastern Europe
D) South Asia

C) Eastern Europe.

In development economics, what is meant by “social overhead capital”?
A) Financial capital invested in social welfare programs.
B) Infrastructure such as roads, power grids, ports, and water systems.
C) Capital owned by public social organizations.
D) Investments in human capital, such as education and healthcare.

B) Infrastructure such as roads, power grids, ports, and water systems.

Economic development generally entails which three broad goals?
A) Increasing military spending, promoting single-party rule, and expanding industrial output.
B) Maximizing GDP growth, minimizing inflation, and maintaining trade surpluses.
C) Reductions in poverty, improvements in standards of living, and resolving the conditions that lead to state fragility.
D) Decreasing foreign aid dependency, expanding agricultural production, and limiting urbanization.

C) Reductions in poverty, improvements in standards of living, and resolving the conditions that lead to state fragility.

What characterizes capital-intensive technology, and why might it be unsuitable for some developing countries?
A) It relies heavily on human labor and is generally suitable for job creation in developing nations.
B) It uses a large amount of capital relative to labor; in economies with high unemployment it can worsen joblessness.
C) It primarily uses renewable resources and is environmentally sustainable, making it ideal for all developing nations.
D) It is easily adaptable to various economic conditions and always promotes inclusive growth.

B) It uses a large amount of capital relative to labor; in economies with high unemployment it can worsen joblessness.

On which continent are the six poorest countries in the world located?
A) Asia
B) South America
C) Africa
D) Europe

C) Africa.

Which city is currently regarded as the most heavily populated in the world?
A) Delhi, India
B) Shanghai, China
C) Tokyo, Japan
D) São Paulo, Brazil

C) Tokyo, Japan.

If a nation’s GNI is 100\ million and its population is 2\ million, what is the GNI per-capita?
A) 20\ million
B) 500
C) 50
D) 200\ million

C) 50 (one hundred million divided by two million).

Why are life expectancy and infant-mortality rates considered strong indicators of living standards?
A) They directly reflect a country's economic output and wealth accumulation.
B) They are easily manipulated by governments and international organizations.
C) They avoid many of the measurement problems of national-income data and are easy to interpret.
D) They only measure the health of children and the elderly, not the general population.

C) They avoid many of the measurement problems of national-income data and are easy to interpret.

According to the textbook, which city has the largest population?
A) Delhi, India
B) Shanghai, China
C) Tokyo, Japan
D) São Paulo, Brazil

C) Tokyo, Japan.

According to the textbook, which country has the lowest GNI per-capita among the options given?
A) Brazil
B) India
C) Burundi
D) Vietnam

C) Burundi.

List three forces that are expected to worsen global poverty in the coming years.
A) Rapid technological advancement, increased global trade, and demographic shifts in developed nations.
B) Climate change, the COVID-19 (coronavirus) pandemic, and violent conflict.
C) Decreased globalization, reduced foreign aid, and improved healthcare access.
D) Urbanization, industrialization, and increased educational opportunities.

B) 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?
A) Education
B) Training
C) Healthcare
D) Industry

D) Industry.

True or False: The United States’ GNI per-capita is more than 200 times that of Burundi?
A) True
B) False

A) True.

True or False: High military spending as a share of government expenditure generally leads to peace and development?
A) True
B) False

B) False.

Do life-expectancy and infant-mortality statistics face fewer measurement problems than GNI and GDP figures?
A) Yes
B) No

A) Yes.

In developing countries, does rural-urban migration mainly involve people moving from cities back to rural areas?
A) Yes; this helps balance population distribution.
B) No; migration flows overwhelmingly move from rural areas into urban centers.
C) Migration primarily occurs between different urban centers.
D) Migration is negligible in most developing countries.

B) No; migration flows overwhelmingly move from rural areas into urban centers.

Can investments in human capital raise productivity and improve standards of living?
A) Yes. (True.)
B) No. (False.)
C) Only in developed countries.
D) Only if combined with significant natural resource discoveries.

A) Yes. (True.)