CHOICES:

a. First statement is TRUE, second is FALSE

b. First statement is FALSE, second is TRUE

c. Both statements are TRUE

d. Both statements are FALSE

1) A. The rate of population growth has a major impact on the nation's economy. B. Practically all income in underdeveloped nations is used to purchase consumer goods, which leaves little, if anything, for savings.*

2) A. Investments in human capital improve productivity and standards of living. B. Women in LDCs typically have literacy rates below those of men.*

3) A. There is a strong positive correlation between economic growth and poverty. B. Population growth is higher in high income countries rather than in low income countries.*

4) A. For any two countries, the one with the bigger per capita GDP will have a more equitable distribution of income. B. As of the present, population growth is a desirable phenomenon.*

5) A. Increases in income often do not lead to substantial increases in investment in children's education and health. B. A social factor of population where women receive education that positively influences fertility rates is women empowerment.

6) A. Public programs are designed to help parents plan and regulate their family size in accordance with their ability to support a family. B. In developing countries, the opportunity cost of an education is relatively low compared to the cost in a highly developed country*

7) A. Higher the education of women, the higher the income, therefore they have a higher taste for having children. B. The greater the curvature of the Lorenz line, the greater the relative degree of inequality.*

8) A. The higher the level of per capita income is, the lower the numbers of the absolutely poor. B. Initial investments in health or education lead to a stream of higher future income.*

9) A. In general, people with more human capital have higher wages, so more schooling and more work experience generally lead to higher wages. B. The smaller the Gini ratio, the more equal the income distribution.*

10) A. In "Income and Wealth Inequality," The government has responded to the rise in income inequality by increasing taxes on the rich and increasing transfers to the poor. B. Trade seems to reinforce existing income inequalities.*

11) A. Gini coefficient is a measure of market efficiency. B. If Income is distributed evenly, the Gini coefficient is equal to one.*

12) A. Studies show that improved education of women in developing countries lead to lower infant mortality. B. Child labor is a widespread problem that applies primarily to children between the ages of 5 and 14.*

13) A. Concentration of resources on higher rather than basic education in developing countries tends to lead to greater inequality. B. Evidence suggests that population growth also has a positive effect on economic growth.*

14) A. In recent years, the fertility rate in developing countries has been declining. B. Projections place world population by 2050 at between 4 and 6 billion.*

15) A. The Malthusian population trap assumes that fertility increase with per capita income. B. Fertility should fall with improved opportunities for women to work in jobs outside the home.*