Elaisa Mae V.

Sebastian

BSACC-1 (BLK 1)

ASSIGNMENT 1 FOR MODULE 1

1. Absolute Poverty - occurs when a person's or family's household income falls below a specific
threshold, making it difficult to cover basic needs such as food, shelter, safe drinking water, education,
and healthcare. They're essentially "stuck" in a low-relative-income category.

2. Globalization - The term "globalization" refers to the rising interdependence of the world's
economies, cultures, and populations, as a result of cross-border trade in commodities and services,
technology, and investment, people, and information flows.

3. Gross domestic product – The total monetary or market worth of all finished goods and
services produced inside a country's borders in a certain time period is known as GDP. It serves as a
comprehensive scorecard of a country's economic health because it is a wide measure of entire
domestic production.

4. Gross national income (GNI) - The gross national income (GNI) is the entire amount of
money earned by a country's citizens and enterprises. It's used to track and measure a country's wealth
from year to year. The figure covers the country's gross domestic output as well as income from foreign
sources.

5. Millennium Development Goals (MDGs) - The Millennium Development Goals (MDGs)

are a set of eight goals for improving the lives of the world's poorest people that have measurable
targets and explicit timelines. At the United Nations Millennium Summit in 2000, leaders from 189
countries signed the historic millennium proclamation to achieve these goals and abolish poverty.

6. Development economics - is a branch of economics that focuses on improving fiscal,

economic, and social conditions in developing countries. Development economics considers factors such
as health, education, working conditions, domestic and international policies, and market conditions
with a focus on improving conditions .

7. Freedom - refers to the power to act or change without restriction. Something is "free" if it can
easily alter and is not confined in its current state. A person has the freedom to accomplish things that
will not be hindered by external influences, either in theory or in practice.
8. Traditional economics - economy is one that is based on traditions, history, and long-held
ideas. Economic decisions such as production and distribution are guided by tradition. Traditional
economies rely on agriculture, fishing, hunting, gathering, or a combination of these activities. Instead
than using money, they use barter

9. Why is economics central to an understanding of the problems of

development?

- Economics is the discipline of making decisions on how to allocate limited resources to

limitless wants. Because developing countries have a large number of requirements and little resources,
they must make difficult decisions.

10. How does the concept of “capabilities to function” help us gain insight
into development goals and achievements? Is money enough? Why or why
not?

- "Economic growth cannot be considered as a goal in and of itself." More emphasis on

development must be placed on improving the quality of our lives and the freedom we enjoy. In the
next question, money is clearly insufficient. Development also includes the freedom, self-esteem, and
equality to live, enjoy, and make the best of one's life. Money is just sufficient to increase one's freedom
of choice, not to promote development. Your function abilities should be increased as much as possible
during development.