Lecture #1.

INTRODUCTION TO ECONOMIC DEVELOPMENT

Economics – a social science which deals with the proper allocation and efficient use of
available/scarce resources for the maximum satisfaction of unlimited human wants and needs
(Fajardo, 1990).
Important terms which are significant in the study of economics
 Microeconomics
 Macroeconomics
 Scarcity
 Opportunity cost
 Marginal Theory
What is Economic Development?
In the economic study of the public sector, economic and social development is the process by
which the economic well-being and quality of life of a nation, region, local community, or an
individual are improved according to targeted goals and objectives (Investopedia, December 1,
2021).
Economic Development is the creation of wealth from which community benefits are
realized. It is more than a jobs program, it's an investment in growing your economy and
enhancing the prosperity and quality of life for all residents. Economic development means
different things to different people (Investopedia, December 1, 2021).
What is economic development in simple words?
Economic development is the process by which emerging economies become advanced
economies. In other words, the process by which countries with low living standards become
nations with high living standards. ... Put simply; economic development is all about
improving living standards (Investopedia, December 1, 2021).
Michael Paul Todaro (Development Economist) – Development is not purely an economic
phenomenon but rather a multi- dimensional process involving reorganization and
reorientation of entire economic AND social system. Development is process of improving the
quality of all human lives with three equally important aspects.
What is Economic Growth
Economic growth is an increase in the production of economic goods and services, compared
from one period of time to another. It can be measured in nominal or real (adjusted for inflation)
terms. Traditionally, aggregate economic growth is measured in terms of gross national product
(GNP) or gross domestic product (GDP), although alternative metrics are sometimes used.
Concepts and theories to expect this term:
 National Income Accounting
 Nominal vs. Real Growth rates
 Inflation
 Unemployment
 Balance of Payments
 Economic developments around the world
 Economic Policy
 Business Cycle

Terminal paper in the final period

A written report due for submission two weeks before the final exam.
Group of 2 students within the section.
Topic: Real economic growth rates of a chosen country for the last 5 years. (Discussion
will be provided at the start of the final period.