Allowing parents to take a longer maternity leave for

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Unformatted text preview: rthquake has on the population size and wage rates. [3 points] In the short term, the death of 30% of Xuli’s citizens would cause the population to shrink, raising wages. Higher wages would lead to lower mortality and higher fertility, eventually moving the population back to its equilibrium point in the long term. 7. Following the earthquake, lawmakers in Xuli put forward a proposal to restore the population by reducing the cost of childbearing. A panel of economists and demographers is put together to debate this proposal. Identify the scholar(s) or theory most closely related to the quotations below. Assume the proposed policy would be permanent and that each name or theory can only be used once. [3 points] “Supporting the policy will help grow our population, which will then be more likely to spur innovation and improve the standard of living for our people.” [Boserup] “Before the disastrous earthquake, Xuli’s population size and rapid growth were not sustainable – continued growth from any policy or intervention will only quicken the depletion of Xuli’s natural resources.” [Ehrlichs] “If we adopt the policy, in the long term, ceteris paribus, we can be sure to have a larger population, and a lower standard of living for our people.” [Malthus] 8. TRUE OR FALSE: If Julian Simon participated in the debate he would argue that population growth is destructive to both the economy and the environment. [1 point] a. True b. False 8. If Xuli maintained a PAYGO pension system and had an aging population, under which of the following scenarios would the childbearing subsidy necessarily improve the financial sustainability of the PAYGO pension system? [1 point] a. Deaths from the earthquake were concentrated among children. b. Deaths from the earthquake were evenly distributed across age groups. c. Deaths from the earthquake were concentrated among workers. d. Deaths from the earthquake were concentrated among the elderly. 8 Name (Last, First): SID: SECTION 4: POPULATION AND THE ENVIRONMENT [15 POINTS] Multiple Choice: [1 point each] 1. Are public sector externalities of childbearing likely to be positive or negative in industrial nations? a. Positive b. Negative c. Neither, there are no public sector externalities to childbearing 2. Which of the following is an example of a laissez faire government policy? a. Fining parents for having more than one child b. Subsidizing contraceptive research c. Allowing parents to take a longer maternity leave for their third child d. Forced sterilization 3. True or False? When there are positive externalities to childbearing, there is a welfare basis for policies that aim to increase fertility, and when there are negative externalities to childbearing, policies that aim to decrease fertility. a. True b. False 4. True or False? Garrett Hardin is a strong advocate for laissez faire government policies. a. True b. False 5. Which is likely to reduce fertility in developing countries? a. Providing education about contraceptives b. Subsidizing contraceptives c. Increasing girls’ education d. Two of the above e. All of the above 6. True or False? The Matlab study in Bangladesh examined how investing in schools decreased fertility, but ignored the role of family planning programs. a. True b. False 7. Circle the correct words to complete this...
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This test prep was uploaded on 03/06/2014 for the course ECON 175 taught by Professor Lee during the Spring '08 term at University of California, Berkeley.

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