Remoroza, Earl Daniel BSA 2-16 Economics

Review Questions

1. What is the real meaning of Development?

 Development is a process that creates growth, progress, positive change or the
addition of physical, economic, environmental, social and demographic
components.  The purpose of development is a rise in the level and quality of life
of the population, and the creation or expansion of local regional income and
employment opportunities, without damaging the resources of the environment. 
Development is visible and useful, not necessarily immediately, and includes an
aspect of quality change and the creation of conditions for a continuation of that
change.
2. Which are the most relevant theories of development at present time?
 Public choice theory
 Neo-Classical
 Dualistic Development Thesis
3. Is underdevelopment a domestic or internally induced phenomenon?
 Based on what I’ve read, the underdevelopment of a country is internally
induced phenomenon. Several Theories stated that including Linear Stages
Theories: Harod-Domar Growth Model. It stated that underdevelopment is an
internally induced phenomenon where growth rate depends on a country’s
savings rate and investments. Another theory is the Public-Choice Theory, which
assumes that politicians, bureaucrats' citizens, and states act solely from a self-
interested perspective using their power and authority for their own selfish
ends.
4. Explain the implication of extreme gap between rich and poor countries in the world.
 The growing gap between the rich and poor is undermining the fight against
poverty, damaging our economies and fueling public anger across the globe.
Unequal income distribution is present in this disparity. According to data, the
world’s richest 1% have more than twice as much wealth as 6.9 billion people
(2020). “The economy is good at producing billionaires, but not so good at
producing good jobs and rising incomes for working people.” The second one is
the underfunded public services. Public services are suffering from chronic
underfunding or being outsourced to private companies that exclude the poorest
people. In many countries a decent education or quality healthcare has become
a luxury only the rich can afford (2020). It is true to poor countries.
Philippines, although reach in both natural resources and human resources
remains poor. Healthcare services aren’t enough to attend to and sustain
 Filipinos needs. Some died without seeing doctors because of poverty. People
who live in a rich country have more
benefits than those in poor countries. This is where the standard of rich and poor
in a country differs. An individual may be poor in a rich country, but may be rich
in a poor country.

5. Identify the different sources of national and international economic growth?

 Natural Resources: the quality and/or quantity of land or raw materials.
 Human Resources: the quality and/or quantity of human resources/capital.
 Physical capital and technological factors: the quality and/or quantity of physical
capital.
 Institutional factors such as:
finance and banking system

education system

healthcare

infrastructure

political stability.

References : https://www.sid-israel.org/en/Development-Issues/What-is-Development

https://www.economicsdiscussion.net/economic-growth/economic-growth-of-a-country-4-
main-sources/14759