Chapter 19: Q 24. (page 472)
Explain why is it difficult to set aside funds for investment when you are in poverty.
When a person is poor, it is difficult to set aside funds for investing. Whatever little money one has is quickly spent on basic survival essentials such as food, water, clothing, and so forth
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Use the AD/AS model to show how increases in government spending can lead to more inflation.
Using the research skills you have acquired, retrieve the following data from The World Bank database (http://databank.worldbank.org/data/ home.aspx) for India, Spain, and South Africa for 2010–2015, if available:
• Telephone lines
• Mobile cellular subscriptions
• Secure Internet servers (per one million people)
• Electricity production (kWh)
Prepare a chart that compares these three countries. Describe the key differences between the countries.
What are the different policy tools for dealing with cyclical unemployment?
In low-income countries, does it make sense to argue that most of the people without long-term jobs are unemployed?
Using the data in Table 19.3, rank the seven regions of the world according to GDP and then according to GDP per capita
| Region | Population (in millions) | GDP Per Capita | GDP = Population × Per Capita GDP (in millions) | |
|---|---|---|---|---|
| East Asia and Pacific | 2,006 | \(5,536 | \)10,450,032 | |
| South Asia | 1,671 | \(1,482 | \)2,288,812 | |
| Sub-Saharan Africa | 936.1 | \(1,657 | \)1,287,650 | |
| Latin America and Caribbean | 588 | \(9,536 | \)5,339,390 | |
| Middle East and North Africa | 345.4 | \(3,456 | \)1,541,900 | |
| Europe and Central Asia | 272.2 | \(7,118 | \)1,862,384 |
Table 19.3 GDP and Population of Seven Regions of the World
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