Quiz 9

Question 1

What might be an unintended consequence of subsidizing rice in developing countries in which rice is the main staple?

Answer 1

If rice is a Giffen good, you might see decreased nutritional outcomes as people eat more luxury goods and less rice

Question 2

The empirical evidence shows that the elasticity of food consumption with respect to wages is__.

Answer 2

relatively low

Question 3

Why might it be a good thing that people in India are eating less?

Answer 3

India is richer, and its citizens have fewer health issues, are having fewer children, and are engaging in higher-tech work. These factors which are a result of rising wealth, require people to consume fewer calories.

Question 4

What is hidden hunger?

Answer 4

Malnutrition can arise from not eating the right calories, even conditional on the calories consumed. For example, if you only eat corn, but you eat a lot of it, say 2000 calories a day, you can still be deficient in many nutrients not found in corn, leading to malnutrition.