MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
17th Edition
ISBN: 9780134081168
Author: CASE, Karl E.; Fair, Ray C.; Oster, Sharon E.
Publisher: PEARSON
Question
Chapter 21, Problem 1.1P
To determine

Whether as extreme poverty declines, growth by itself tends to be less successful at lifting additional people out of poverty.

Expert Solution & Answer
Check Mark

Explanation of Solution

The assessment seems to be accurate because this is what seems to be happening in the developing and underdeveloped countries in the world. The underdeveloped as well as the developing countries that are commonly known as the third-world countries are trying to increase economic growth and poverty. They do this through diverting more and more economic resources of the economy toward the alleviation of the poverty and the acceleration of the economic growth.

The idea was very successful in its initial stages, but after a certain level, the additional impact by the economic resources to reduce poverty and increase economic growth started to decline. This is because the impact was not equal to the initial stage impacts. This means that the opportunity cost of the additional resources used for this purpose started to decline in the period. Thus, the assessment seems to be correct.

Economics Concept Introduction

Poverty: Poverty is the lack of a certain minimum amount of money that is required to live a healthy life by an individual.

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Students have asked these similar questions
In this chapter Wheelan also discusses the role of developed economies in alleviating (reducing) poverty in less developed economies. To this purpose, he draws from works of development economists such as William Easterly, Jeffrey Sachs, and others. Of the statements listed below which would Wheelan and the other quoted authors NOT AGREE  to be effective or well-directed economic development strategies to alleviate global poverty?  Group of answer choices   Most of the difference between the huge success of East Asia and the relatively poor performance of South Asia, sub-Saharan Africa, and Latin America can be explained by the differences in their government policies.   Traditional aid projects to the less developed economies have been inflexible and ineffective.   Impoverished nations are caught in a poverty trap, and only capital from developed nations will rescue them.   The primary stumbling block to development in poor countries has been the bad advice they received from the rich…
According to World Bank (2012), in Ethiopia, the poorest 20 percent of population received 9.3 percent of income or consumption and the richest 20 percent of population received 39.4 percent of income or consumption; in South Africa, the poorest 20 percent of population received 2.7 percent of income or consumption and the richest 20 percent of population received 68.2 percent of income or consumption. What conclusion can we reach based on the above statistics?
Mention two factors which cause the rapid growth in population in South Africa
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