Low-income countries have a GNI per capita of $1,025 or less. The general characteristics shared by countries at this income level include all of the following except: A) high literacy rates. B) high birth rates.
The majority of the world's population lives in poor countries. d. Poor countries are more urban than wealthy countries. 34. If a student visits a country with a high gini coefficient the population is characterized by: 35. According to modernization theory a. economic development is dependent on technological change.
Thus, macroeconomic policies for low income economies are vastly different from those of the high income economies. The World Bank has made it a priority to combat poverty and raise overall income levels through 2030. One of the key obstacles to achieving this is the political instability that seems to be a common feature of low-income countries.
In low-income countries, all income is often spent on necessities for living and cannot be accumulated or invested in physical or human capital. The students in this photograph learn in an outside “classroom” void of not only technology, but even chairs and desks. (Credit: Rafaela Printes/Flickr Creative Commons)
The amount of low-income housing has increased significantly in recent years due to programs such as Habitat for Humanity and federal housing initiatives. Countries with relatively low-income levels, high rates of absolute poverty, low life expectancy, and high infant mortality rates are low-income nations.
Karl Marx believed that inequality and poverty were inevitable by-products of the exploitation of workers by capitalists.
Food insecurity has decreased in recent years because of decreases in poverty and unemployment rates. Food insecurity has increased in recent years because of increases in poverty and unemployment rates. Most researchers argue that the most frequent cause of homelessness is. a. gender and discrimination.
Marx divided capitalist societies into two categories: the bourgeoisie and the proletariat. b. Marx believed that economic factors alone were not the sole determinants in class and social equality. c. Marx believed that wealth, power, and prestige play roles in people's class positions.
Many economically-challenged or low-income countries are geographically located in Sub-Saharan Africa. Other pockets of low income are found in the former Soviet Bloc, and in parts of Central America and the Caribbean.
For the high-income countries, the challenge of economic growth is to push continually for a more educated workforce that can create, invest in, and apply new technologies. In effect, the goal of their growth-oriented public policy is to shift their aggregate supply curves to the right (refer to The Aggregate Demand/Aggregate Supply Model ). The main public policies targeted at achieving this goal are fiscal policies focused on investment, including investment in human capital, in technology, and in physical plant and equipment. These countries also recognize that economic growth works best in a stable and market-oriented economic climate. For this reason, they use monetary policy to keep inflation low and stable, and to minimize the risk of exchange rate fluctuations, while also encouraging domestic and international competition.
Using this rule here suggests that a Tiger that grows at 6% will double its GDP every 12 years. In contrast, a technological leader, chugging along with per capita growth rates of about 2% per year, would double its income in 36 years.
In the 1980s, other countries began to show signs of convergence. China began growing rapidly, often at annual rates of 8% to 10% per year. India began growing rapidly, first at rates of about 5% per year in the 1990s, but then higher still in the first decade of the 2000s. The underlying causes of these rapid growth rates are known:
Japan’s Prime Minister used fiscal and monetary policies to stimulate his country’s economy, which has worked in only the short run. (Credit: modification of work by Chatham House/Flickr Creative Commons) As other chapters discuss, macroeconomics needs to have both a short-run and a long-run focus.
For this reason, they use monetary policy to keep inflation low and stable, and to minimize the risk of exchange rate fluctuations, while also encouraging domestic and international competition.
Ethiopia and Eritrea recently ended a long-standing war in 2000. Civil and ethnic wars have plagued countries such as Burundi and Liberia. Command economies, corruption, as well as political factionalism and infighting are commonly adopted elements in these low-income countries.