Question

Answer the questions for the following terms. Please do NOT copy and paste from another question or source. Each key term should constitute two parts.1-) meaning / definition; 2-) explanation using relevant examples and / graphs wherever necessary.

1) Capabilities

2) Millennium Development Goals

3) GDP, GNI, PPP

4) Low-income countries, Middle-income countries, Newly industrialized countries

5) Functional distribution of income

6) Kuznets curve

7) Multi-dimensional poverty

8) Total Poverty Gap

9) Demographic transition

10) Family-planning programs

11) Discount rate

12) Neglected tropical diseases

13) Social benefits of education, Social costs of education

Answer 1

1) Capabilities-

It is nothing but the ability, capacity, power, potential, competence, proficiency, stong point, skills, intelligence in simple words meaning capability meaning understood.

A capability is the ability to do things and to choose for a way of life according to one's personal values. As it applies to human capital, capability represents performing or achieving certain actions/outcomes in terms of the intersection of capacity and ability.

The definition of capabilities is what a person has the ability or knowledge to do. Examples of capabilities include counting to 100, knowing the alphabet and writing out one's own name for a kindergartner.

IN ECONOMICS - Financial capability is the combination of attitude, knowledge, skills, and self-efficacy needed to make and exercise money management decisions that best fit the circumstances of one’s life, within an enabling environment that includes, but is not limited to, access to appropriate financial service

2) Millennium Development Goals-

At the beginning of the new millennium, world leaders gathered at the United Nations to shape a broad vision to fight poverty in its many dimensions. That vision, which was translated into eight Millennium Development Goals (MDGs), has remained the overarching development framework for the world for the past 15 years.

  As we reach the end of the MDG period, the world community has reason to celebrate. Thanks to concerted global, regional, national and local efforts, the MDGs have saved the lives of millions and improved conditions for many more.

What are the 8 Millennium Development Goals?

The eight Millennium Development Goals (MDGs) – which range from halving extreme poverty rates to halting the spread of HIV/AIDS and providing universal primary education, all by the target date of 2015 – form a blueprint agreed to by all the world's countries and all the world's leading development institutions.

The Eight Millennium Development Goals are:

Goal 1: Eradicate extreme poverty and hunger

Goal 2: Achieve universal primary education

Goal 3: Promote gender equality and empower women

Goal 4: Reduce child mortality

Goal 5: Improve maternal HEALTH

Goal 6: Combat HIV/AIDS, malaria and other diseases

Goal 7: Ensure environmental sustainability

Goal 8: Develop a global partnership for development

Despite many successes, the poorest and most vulnerable people are being left behind

• Gender inequality persists
• Big gaps exist between the poorest and richest households, and between rural and urban areas
• Climate change and environmental degradation undermine progress achieved, and poor people suffer the most
• Conflicts remain the biggest threat to human development
• Millions of poor people still live in poverty and hunger, without access to basic services

The successes of the MDG agenda prove that global action works. It is the only path to ensure that the new development agenda leaves no one behind

3) GDP, GNI, PPP :

GDP (gross domestic product) is the sum of the gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

GDP PPP (purchasing power parity) is gross domestic product converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GDP as a U.S. dollar has in the United States. Purchasing power parities (PPPs) are the rates of currency conversion that eliminate the differences in price levels between countries.

GDP (PPP) per capita is GDP on a purchasing power parity basis divided by population. Please note: Whereas PPP estimates for OECD countries are quite reliable, PPP estimates for developing countries are often rough approximations.

GNI (gross national income) is the gross domestic product (GDP) plus net receipts of primary income (employee compensation and investment income) from abroad. GDP is the sum of value added by all resident producers plus any product taxes (fewer subsidies) not included in the valuation of output.

GNI per capita is gross national income divided by the mid-year population.

PPP GNI is gross national income converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GNI as a U.S. dollar has in the United States.

----Definitions from the World Bank, Organisation for Economic Co-operation and Development, and IMF.

4) Low-income countries, Middle-income countries, Newly industrialized countries

A developing country (or a low and middle-income country (LMIC), less developed country, less economically developed country (LEDC), or underdeveloped country) is a country with a less developed industrial base and a low Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreement on which countries fit this category. A nation's GDP per capita compared with other nations can also be a reference point. In general, the United Nations accepts any country's claim of itself being "developing".

Developing countries tend to have some characteristics in common. For example, with regards to health risks, they commonly have low levels of access to safe drinking water, sanitation and hygiene; energy poverty; high levels of pollution (e.g. air pollution, indoor air pollution, water pollution); the high proportion of people with tropical and infectious diseases (neglected tropical diseases); the high number of road traffic accidents; and generally poor infrastructure. Often, there is also widespread poverty, low education levels, inadequate access to family planning services, corruption at all government levels and a lack of so-called good governance. Effects of global warming (climate change) are expected to impact developing countries more than wealthier countries, as most of them have a high "climate vulnerability".

Newly industrialized countries-

The category of the newly industrialized country (NIC) is a socioeconomic classification applied to several countries around the world by political scientists and economists. They represent a subset of developing countries whose economic growth is much higher than other developing countries; and where the social consequences of industrialization, such as urbanization, are reorganizing society.

NICs are countries whose economies have not yet reached a developed country's status but have, in a macroeconomic sense, outpaced their developing counterparts. Such countries are still considered developing nations and only differ from other developing nations in the rate at which a NIC's growth is much higher over a shorter allotted time period compared to other developing nations

5) Functional distribution of income:

In the theory of distribution we are concerned with the functional distribution of income (i.e., how national income is divided among workers, landowners, capitalists) and not with the size distribution of income (i.e., whether the rich are getting richer and the poor poorer).

The functional distribution of income refers to the amounts of income paid to various individuals or households. A single individual may receive income from more than one factor of production or from one source.

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What is the income distribution size?

Personal or Size Distribution of income. Deals with individuals or households and the total incomes they receive irrespective of how it was earned.

What is functional and personal distribution?

Both of these terms refer to the ways in which income is divided up within an economy. However, functional income distribution refers to the division between groups of people while personal income distribution refers to the division among individuals.

}

6) Kuznets curve

In economics, a Kuznets curve graphs the hypothesis that as an economy develops, market forces first increase and then decrease economic inequality.

One explanation of such a progression suggests that early in development, investment opportunities for those who have money multiply, while an influx of cheap rural labor to the cities holds down wages. Whereas in mature economies, human capital accrual (an estimate of cost that has been incurred but not yet paid) takes the place of physical capital accrual as the main source of growth; and inequality slows growth by lowering education levels because poorer, disadvantaged people lack finance for their education in imperfect credit-markets.

The Kuznets curve implies that as a nation undergoes industrialization – and especially the mechanization of agriculture – the center of the nation’s economy will shift to the cities. As internal migration by farmers looking for better-paying jobs in urban hubs causes a significant rural-urban inequality gap (the owners of firms would be profiting, while laborers from those industries would see their incomes rise at a much slower rate and agricultural workers would possibly see their incomes decrease), rural populations decrease as urban populations increase. Inequality is then expected to decrease when a certain level of average income is reached and the processes of industrialization – democratization and the rise of the welfare state – allow for the benefits from rapid growth, and increase the per-capita income. Kuznets believed that inequality would follow an inverted “U” shape as it rises and then falls again with the increase of income per-capita.

Inequality Income per Capita

7) Multi-dimensional poverty

Multidimensional poverty encompasses the various deprivations experienced by poor people in their daily lives – such as poor health, lack of education, inadequate living standards, disempowerment, poor quality of work, the threat of violence, and living in areas that are environmentally hazardous, among others.

8) Total Poverty Gap

The poverty gap is a ratio showing the average shortfall of the total population from the poverty line—the minimum level of income required to secure the basic necessities for survival. In other words, it reflects the intensity of poverty in a nation.

9) Demographic transition

In demography, demographic transition is a phenomenon and theory which refers to the historical shift from high birth rates and high infant death rates in societies with minimal technology, education (especially of women) and economic development, to low birth rates and low death rates in societies with advanced technology, education and economic development, as well as the stages between these two scenarios. Although this shift has occurred in many industrialized countries, the theory and model are frequently imprecise when applied to individual countries due to specific social, political and economic factors affecting particular populations.

The concept is used to explain how population growth and economic development of a country are connected. The concept of demographic transition has four stages, including the pre-industrial stage, the transition stage, the industrial stage, and the post-industrial stage.

The demographic transition in 5 stages Our World in Data Birth rate Death rate Birth and death rates (per 1,000 people per year) Natural Increase Total Population Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Birth rate High High Falling Low Rising again Death rate High Falls rapidly Falls more slowly Low Low Natural increase Stable or slow increase Very rapid increase Increase slows down Falling and then stable Stable or slow increase Population Pyramid Men Women Men Women Men Women Men Women Men Women The author Max Roser licensed this visualisation under a CC BY-SA license. You find more information at the source: http://www.Our WorldinData.org/world-population growth

10) Family-planning programs

Family planning services are defined as "educational, comprehensive medical or social activities which enable individuals, including minors, to determine freely the number and spacing of their children and to select the means by which this may be achieved".

types of family planning

methods of contraception:

• long-acting reversible contraception, such as the implant or intra uterine device (IUD)
• hormonal contraception, such the pill or the Depo Provera injection.
• barrier methods, such as condoms.
• emergency contraception.
• fertility awareness.
• permanent contraception, such as vasectomy and tubal ligation.

11) Discount rate

-the minimum interest rate set by the US Federal Reserve (and some other national banks) for lending to other banks

-a rate used for discounting bills of exchange.

The basic way to calculate a discount is to multiply the original price by the decimal form of the percentage. To calculate the sale price of an item, subtract the discount from the original price. You can do this using a calculator, or you can round the price and estimate the discount in your head.

12) Neglected tropical diseases-

Viral, parasitic and bacterial diseases that mainly affect the world's poorest people.

Neglected tropical diseases (NTDs)– a diverse group of communicable diseases that prevail in tropical and subtropical conditions in 149 countries – affect more than one billion people and cost developing economies billions of dollars every year. Populations living in poverty, without adequate sanitation and in close contact with infectious vectors and domestic animals and livestock are those worst affected.

Chagas disease

Schistosomiasis

Ascariasis

Dengue fever etc

13) Social benefits of education, Social costs of education

These social benefits include a more-educated and better-informed electorate, lower rates of crime and violence, lower rates of poverty, better health and nutrition, and, generally, a more smoothly functioning society.

A population that is better educated has less unemployment, reduced dependence on public assistance programs, and greater tax revenue. Education also plays a key role in the reduction of crime, improved public health, and greater political and civic engagement.

Both on personal and national levels, education has been shown to increase economic growth and stability. One of the most important benefits of education is how it improves personal lives and helps societies run smoothly. We live longer, fuller, and happier lives as learned and knowledgeable individuals.