ECONOMIC DEVELOPMENT REVIEWER

PRELIM
1. According to Amartya Sen, development can be seen as a process of expanding the real
freedoms that people enjoy.
2. Adverse geography is one of the important features that developing countries tend to
have in common.
3. Among the core values of development, self –esteem is the hardest to earn.
4. Greater social fractionalization is one of the important features that developing countries
tend to have in common.
5. Higher levels of inequality and absolute poverty is one of the important features that
developing countries tend to have in common.
6. Higher population growth rates is one of the important features that developing
countries tend to have in common.
7. In November 2010, the UNDP introduced is New Human Development Index (NHDI),
intended to address some of the criticism of the HDI.
8. In accordance with the World Bank’s income- based country classification scheme, gross
national income (GNI) per capita, the most common measure of the overall level of
economic activity, is often used as a summary index of the relative economic well- being
of the people in different nations.
9. In figure 2.1, the darkest gray is the legend for low- income countries.
10. In reference to page 12 in chapter 1, Economic is a social science.
11. In strictly economic terms, development has traditionally meant achieving sustained rates
of growth of income per capita to enable a nation to expand its output at a rate faster
than the growth rate of its population.
12. Larger rural population but rapid- to –urban migration is one of the important features
that developing countries tend to have in common.
13. Listening to the poor explain what poverty is like their own words is more vivid than
reading descriptions of it.
14. Lower levels of human capital is one of the important features that developing countries
tend to have in common.
15. Lower level of living and productivity is one of the important features that developing
countries tend to have in common.
16. Resolving problems to achieve development is a complicated task.
17. The description of figure 1.1 is World Income Distribution.
18. The father of Economics is most famous for his 1776 book entitled The wealth of
Nations.
19. The source of figure1.1 is the Human Development Report.
20. There are two types of globalization.(indicate the number in words).
21. Underdeveloped financial and other markets is one of the important features that
developing countries tend to have in common.
22. When one is poor , she has no say in public , she feels interior , she has no food, so there
is famine in her house ; no clothing, and no progress in her family. This statement is from
a poor woman from Uganda.
23. Institutions are norms, rules of conduct, and generally accepted ways of doing things.
Economic institution are humanly devised constraints that shape human interaction
including both informal and formal “rules of the game “of economic life in the widely
used framework of Douglass North.
24. Values are principles, standard, or qualities that a society or group, within worthwhile or
desirable.
25. Attitudes are the states of mind or feelings of an individual, group, or society regarding
issues such as material gain, hard work, savings, for the future, and sharing wealth.
26. Political economy goes beyond traditional economics to study, among other things, the
social and institutional processes through which certain groups of economic and political
elites influences the allocation of scarce productive resources now and in the future,
either for their own benefit exclusively or for that of the larger population as well.
27. Developing countries is a synonym for less developed countries.
28. Subsistence economy is an economy in which production is mainly for personal
consumption and the standard of living yields little more than basic necessities of life –
food, shelter, and clothing.
29. Traditional economics is an approach to economic that emphasizes utility, profit, market
efficiency, and determination of equilibrium.
30. Human development Index is an index measuring national socioeconomic development,
based on combining measures of education, health, and adjusted real in –come per capita.
31. World Bank is an organization known as an “ international financial institution” that
provides development funds to developing countries in the form of interest bearing loans,
and technical assistance.
32. Traditional economics is concerned primarily with the efficient, least- cost allocation of
scare productive resources and with the optimal growth of these resources over time soa s
to produce an ever – expanding range of goods and services.
33. Purchasing power parity is the calculation of GNI using common set of international
prices for all goods and services, to provide more accurate comparisons of living
standards.
34. Diminishing marginal utility is the concept that the subjective value of additional
consumption lessens as total consumption becomes higher.
35. Adam smith is the father of Economics.
36. Globalization is the increasing integration of national economies into expanding
international markets.
37. Social system is the organizational and institutional structure of a society, including its
values, attitudes, power structure, and traditions.
38. Value added is the portion of product’s final value added at each stage of production.
39. Development is the process of improving the quality of all human lives and capabilities
by raising people’s level of living, self – esteem, and freedom.
40. Absolute poverty is the situation of being unable to meet the minimum level of income,
food, clothing, healthcare shelter, and other essentials.
41. Development economics is the study of how economies are transformed from stagnation
to growth and from low-income to high income status, and overcome problems of
absolute poverty.
42. Capital stock is the total amount of physical goods existing at a particular time that have
been produces for use in the production of other goods and services.
43. Gross national income is the total domestic and foreign output claimed by residents of a
country. it comprises gross domestic product (GDP)plus factor incomes accruing to
resident from abroad less the income earned in the domestic economy accruing tpo
persons abroad.
44. Gross domestic product is the total final output of goods and services produced by the
country’s economy, within the country’s territory , by Residents ad non-resident,
regardless of its allocation between domestic and foreign claims
45. Lower level of industrialization is one of the important features that developing countries
tend to have in common.
46. More developed countries or MDCs refers to the now economically advanced capitalist
countries of Western Europe, North America, Australia, New Zealand, and japan.
47. Developing countries pertains to countries of Asia , Africa , the middle east, Latin
America, eastern Europe, and the former soviet union, that are presently characterized by
low levels of living and other developing deficits.
48. Least developed countries refers to a United Nations designation of countries with low
income, low human capital, and high economic vulnerability.
49. Political economy refers to the attempt to merge economic analysis with practical
politics – to view economic activity in its political context
50. Lingering colonial impacts such as poor institutions and often external dependence is
one of the important features that developing countries tend to have in common.
MIDTERM
1. A population divided into deciles would be divided into ten equal numerical groups.
2. A population divided into quintiles would be divided into five groups of equal size.
3. According to International Food Policy Research Institute , the coincidence of severe
and persistent poverty and hunger indicate the presence of poverty traps-
4. According to Amartya Sen , economic development may be far from “the best
contraceptive”’ but social development can be very effective indeed.
5. According to Adam Smith, no society can be flourishing and happy, of which by the far
the greater part of the number are poor and miserable.
6. According to James Grant, the central issue of our time may well turn to be how the
world addresses the problem of ever- expanding human numbers.
7. According to United Nation Millennium Declaration, we will spare no effort to free
our fellow men, women and children from the abject and dehumanizing conditions of
extreme poverty.
8. An estimate 1.374 billion of people live on less than $1.25 per day at 2005 U.S
purchasing power parity, and some 2.6 billion – close to 40% Of the world’s population-
live on less that $2 a day.
9. Economist usually distinguish between two principal measures of income distribution for
both analytical and quantitative purposes :the personal or size distribution of income and
the functional or distributive factor share distribution of income
10. Every year, more than 75 million people are being added to the world’s population.
11. Extreme inequality is generally viewed as unfair.
12. In 2009, the world’s population was estimated to be 6.8 billion people.
13. More than three- quarter of the world’s people live in developing countries; fewer less
than one person in four lives in an economically developed nation.
14. Perhaps the least understood aspect of population growth is its tendency to continue
even after birth rates have.
15. The basic issue however, is not only how to make GNI grow but also who would make it
grow, the few or the many
16. The modern sector enlargement growth typology is where the two sector economy
develops by enlarging the size of its modern sector while maintaining constant wages in
both sectors.
17. The modern sector enrichment growth typology is where the economy grows but such
growth is limited to fixed number of people in the modern sector, with both the numbers
of workers and their wages held constant in the traditional sectors.
18. The symbol for per capita income is Y
19. The traditional sector enrichment growth typology is where all of the benefits of growth
are divided among traditional sectors workers with little or no growth occurring in the
modern sector.
20. The world population is very unevenly distributed by geographic region, by fertility and
morality levels, and by age structure.
21. When people first started to cultivate food through Agriculture some 12,000 years ago the
estimated world population was no more than 5 million.
22. Functional distribution of income ( factors share distribution of income )is the
distribution of income to factors of production without regard to the ownership of the
factors
23. Multidimensional Poverty Index is a poverty measure that identifies the poor using
dual cut-offs for levels and numbers of deprivations , and then multiplies the percentage
of people living in poverty times the per-cent of weighted indicators for which poor
households are deprived on average .
24. Factors of production are the resources or inputs required to produce a good or a
service, such as land, labor, and capital. The correct answer is.
25. is the sum of the difference between the poverty line and actual income levels of all
people living below that line. The correct answer is Total poverty
26. Chapters 1 and 2 introduced the problem that despite significant improvements over the
past half century, extreme poverty remains widespread in the developing world..
27. Decile a 10% portion of any numerical quantity.
28. Quintile a 20% proportion of any numerical quantity.
29. Lorenz curve is a graph depicting the variance of the size distribution of income from
perfect equality The correct answer is: Lorenz curve
30. Kuznets curve is a graph reflecting the relationship between a country's income per capi
and its equality of income distribution.
31. Population pyramid is a graphic depiction of the age structure of the population, with
age cohorts plotted on the vertical axis and either population shares or numbers of males
and females in each cohort on the horizontal axis.
32. Gini coefficient an aggregate numerical measure of income inequality ranging from
( perfect equality ) to 1 (perfect inequality ). The correct answer is : coefficient
33. Natural increase is the difference between the birth rate and the death rate of a given
population.
34. Income inequality is the disproportionate distribution of total national income among
households .
35. Character of economic growth is the distributive implications of economic growth as
reflected in such factors as participation in the growth process and asset ownership.
36. Net international migration is the excess of persons migrating into a country over those
who emigrate from that country
37. Rate of population increase is the growth rate of a population calculated as the natural
increase after adjusting for immigration and emigration
38. Crude birth rate is the number of children born alive each year per 1,000 population
(often shortened to birth rate).
39. Death rate is the number of deaths each year per 1,000 population.
40. Life expectancy at birth is the number of years a new-born child would live if subject to
the mortality risks prevailing for the population at the time of the child's birth.
41. Doubling time is the period that a given population or other quantity takes to increase by
its present size.
42. Demographic transaction is the phasing -out process of population growth rates from a
virtually stagnant growth stage characterized by high birth rates and death rates through a
rapid -growth stage with high birth rates and low death rates to a stable low-growth stage
in which both birth and death rates are low.
43. Hidden momentum of population growth is the phenomenon whereby population
continues to increase even after a fall in birth rates because the large existing youthful
population expands the population's base of potential parents.
44. Headcount index is the proportion of a country's population living below the poverty
line.
45. Youth dependency ratio is the proportion of young people under age 15 to the working
population aged 16 to 64 in a country
46. Absolute poverty is the situation of being unable or only barely able to meet the
subsistence essentials of food, clothing, and shelter.
47. Extreme income inequality leads to economic inefficiency.
48. Personal distribution of income or size distribution of income is the distribution of
income according to size class of persons for example, the share of total income accruing
to the poorest specific percentage or the richest specific percentage of a population
without regard to the sources of that income.
49. Total fertility rate is the number of children that would be born to a woman if she were
to live to the end of her childbearing years and bear children in accordance with the
prevailing age- specific fertility rates
50. Extreme income disparities in undermine social stability and solidarity