,TEST BANK Economic Development 13/E Michael Todaro
oo oo oo oo oo oo
Chapter 1: Introducing Economic oo o o oo
oo Development: A Global Perspective oo oo oo
Key Concepts oo
As curious as students who register to take Development Economics may be, their knowledge
oo oo oo oo oo oo oo oo oo oo oo oo oo
and experience of the developing world will vary widely. The first main point of Chapter 1
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
is to emphasise how different life in the developing world is. New in the 13th edition is a
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
systematic description of four stylised strata of living standards from extreme poverty to rich
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
based on Rosling,
oo oo oo
Rosling, and Rosling Ronnlund‘s book Factfulness. This is followed by a discussion of the
oo oo oo oo oo oo oo oo oo oo oo oo oo
World Bank‘s classification of economies by ranges of average national income using gross
oo oo oo oo oo oo oo oo oo oo oo oo oo
national income (GNI) statistics.
oo oo oo oo
The second point is to provide an overview of the nature of development economics as a
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
field. A defense of development economics as a distinct field, rather than an agglomeration
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
of other economics subfields, is offered. A major theme of the book, that development
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
economics must encompass the study of institutional and social, as well as economic,
oo oo oo oo oo oo oo oo oo oo oo oo oo
mechanisms for modernising an economy while eliminating absolute poverty, is introduced.
oo oo oo oo oo oo oo oo oo oo oo
Sections 1.5 and 1.6 looks deeper into the meaning of development and a view of development
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
that is multidimensional. Amartya Sen‘s ―Capabilities‖ approach is discussed in Section 1.5. In
oo oo oo oo oo oo oo oo oo oo oo oo oo
Section 1.6, data collected in a Gallup World Poll on the relationship between happiness (as
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
measured by Gallup‘s
oo oo oo
life satisfaction ―ladder‖ question and real per capita income) and other research on
oo oo oo oo oo oo oo oo oo oo oo oo
happiness/life satisfaction is discussed. The level of happiness is not only related to level of
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
income but to other factors such as democratic freedoms and the quality of social
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oorelationships. The role of normative oo oo oo oo
values in development economics—a subject dealing with human misery and human potential,
oo oo oo oo oo oo oo oo oo oo oo
with equity as well as efficiency, with cultural change that causes losses as well as gains, and
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
with transfer
oo oo
as well as creation of wealth—is also stressed.
oo oo oo oo oo oo oo
The conclusion is that development is both a physical reality and a state of mind. The
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
meaning and objectives of development include the provision of basic needs, reducing
oo oo oo oo oo oo oo oo oo oo oo oo
inequality, raising living standards through appropriate economic growth, improving self-
oo oo oo oo oo oo oo oo oo oo
esteem in relation to the developed countries, and expanding freedom of choice in the market
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and beyond.
oo oo
Section 1.7 presents an in depth examination of the UN‘s Sustainable Development Goals
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(SDGs). This includes a more comprehensive list of the goals themselves (appearing in
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Table 1.1) and a discussion of the shortcomings of the SDGs. In Section 1.8, the plan of
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
the book is introduced through 32 critical questions of development economics.
oo oo oo oo oo o o o o o o o o o o o o
Depending on the amount of material
o o o o o o o o o o o o
covered by the instructor, students should be able to intelligently address most of these
oo oo oo oo oo oo oo oo oo oo oo oo oo
questions by the end of the course. Finally, a comparative case study of Pakistan and
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
Bangladesh is presented.
oo oo oo
, Todaro ooand ooSmith, ooEconomic ooDevelopment, oo13e, ooInstructor’s
Manual
Lecture Suggestions oo
It might be best to begin with a discussion of the immense scale of transformation in the
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
ooworld
economy. The late Hans Rosling‘s video ―200 countries, 200 years, 4 minutes‖ (readily
oo oo oo oo oo oo oo oo oo oo oo oo
available on YouTube) can be used to confirm this point in an entertaining way. It might
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
also be helpful to highlight that real gross world product per capita has almost tripled
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
between 1960 and 2018 (implying growth per year of 1.85%) and is 33% higher
oo oo oo oo oo oo o o o o o o o o o o o o o o o o
than it was at the turn of this century
o o o o o o o o o o o o o o o o o o
(implying annual growth of 1.56% from 2000 to 2018). This data can be found on the Saint
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
Louis Federal Reserve‘s website in the Federal Reserve Economic Database (or FRED).
oo oo oo oo oo oo oo oo oo oo oo oo
Despite such advances, tremendous disparities continue to exist. In terms of easily accessible
oo oo oo oo oo oo oo oo oo oo oo oo
statistics the PEW Research Centre‘s ―World Population by Income‖ provides an
oo oo oo oo oo oo oo oo oo oo oo
oointeractive map oo
showing the share of economies‘ population who are economically poor, low income, middle
oo oo oo oo oo oo oo oo oo oo oo oo
income, upper middle income, and high income. While regrettably the data provided is
oo oo oo oo oo oo oo oo oo oo oo oo oo
for 2011, it
oo oo oo
echoes what Todaro and Smith point out in the text, that more than 75% of the world‘s
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
population live on $15 or less a day (or about $5,500 per person per year). Several
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
excellent books attempt to give some idea of the range of living standards found throughout
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
the world. For example, The Material World by Peter Menzell. This book presents
oo oo oo oo oo oo o o o o o o o o o o o o o o
o ophotographic profiles of typical families o o o o o o o o
around the world with all of their possessions placed in front of their homes. As one goes
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
from one family to the next the instructor has the opportunity to highlight the important
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
differences between nations and regions and to touch on key issues of growth and
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
development.
oo
One of the key strengths of this chapter is that it does not focus solely on the hard
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oonumbers that oo
supposedly measure development. The discussion of Sen‘s Capabilities approach and the far
oo oo oo oo oo oo oo oo oo oo oo
less than perfect relationship between income and happiness are well worth spending a fair
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
amount of class time exploring. Class time should also be spent discussing the 32
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oocritical questions listed on oo oo oo
pages 21–23 of the text and then asking students to identify 3 or 4 questions that they are
oo oo oo oo oo oo oo oo o o oo oo oo oo oo oo oo oo
particularly interested in exploring. Asking each student to list what they consider to be
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
―critically‖ critical questions on a sheet of paper, collecting their responses, and then trying
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
to direct the rest of the term to addressing the most commonly mentioned critical questions
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
for that class will be helpful
oo oo oo oo oo oo
in further drawing students in and holding their attention throughout the term.
oo oo oo oo oo oo oo oo oo oo oo
At this same point, the instructor might also wish to get some idea of students‘ experiences
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
o traveling to developing countries and, in as subtle a way as is possible, determine how
o oo oo oo oo oo oo oo oo oo oo oo oo oo oo
shaky their understanding of the wider world is. The instructor perhaps could draw on his
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
or her own experiences and give some background as to how he or she first became
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
interested in Development
oo oo oo
Economics. This may – through the kinds of questions asked – help the instructor further
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
gauge students‘ level of sophistication in this area. This is not something that should be or,
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
can, be settled in the first one or two classes and will develop over the course of the term.
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
In many universities, the economic development course will be filled with students who are
oo oo oo oo oo oo oo oo oo oo oo oo oo
not majoring in economics. These students may come from different colleges with majors
oo oo oo oo oo oo oo oo oo oo oo oo oo
such as anthropology, sociology, or political science or business (management, finance, etc.).
oo oo oo oo oo oo oo oo oo oo oo oo
They may have had as little as one semester of introductory economics. Given that you are
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
, Todaro ooand ooSmith, ooEconomic ooDevelopment, oo13e, ooInstructor’s
ooteaching an economics
oo Manual class, you may wish to remind the students of this fact and offer
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oowhatever help you can. Given video capture software, you might consider recording some
oo oo oo oo oo oo oo oo oo oo oo oo
ooprimers that then could be made available to students through course management
oo oo oo oo oo oo o o o o o o o o o o
o osoftware such as Blackboard or Moodle. You
o o o o o o o o o o o o
oo oo oo oo oo oo
Chapter 1: Introducing Economic oo o o oo
oo Development: A Global Perspective oo oo oo
Key Concepts oo
As curious as students who register to take Development Economics may be, their knowledge
oo oo oo oo oo oo oo oo oo oo oo oo oo
and experience of the developing world will vary widely. The first main point of Chapter 1
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
is to emphasise how different life in the developing world is. New in the 13th edition is a
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
systematic description of four stylised strata of living standards from extreme poverty to rich
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
based on Rosling,
oo oo oo
Rosling, and Rosling Ronnlund‘s book Factfulness. This is followed by a discussion of the
oo oo oo oo oo oo oo oo oo oo oo oo oo
World Bank‘s classification of economies by ranges of average national income using gross
oo oo oo oo oo oo oo oo oo oo oo oo oo
national income (GNI) statistics.
oo oo oo oo
The second point is to provide an overview of the nature of development economics as a
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
field. A defense of development economics as a distinct field, rather than an agglomeration
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
of other economics subfields, is offered. A major theme of the book, that development
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
economics must encompass the study of institutional and social, as well as economic,
oo oo oo oo oo oo oo oo oo oo oo oo oo
mechanisms for modernising an economy while eliminating absolute poverty, is introduced.
oo oo oo oo oo oo oo oo oo oo oo
Sections 1.5 and 1.6 looks deeper into the meaning of development and a view of development
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
that is multidimensional. Amartya Sen‘s ―Capabilities‖ approach is discussed in Section 1.5. In
oo oo oo oo oo oo oo oo oo oo oo oo oo
Section 1.6, data collected in a Gallup World Poll on the relationship between happiness (as
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
measured by Gallup‘s
oo oo oo
life satisfaction ―ladder‖ question and real per capita income) and other research on
oo oo oo oo oo oo oo oo oo oo oo oo
happiness/life satisfaction is discussed. The level of happiness is not only related to level of
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
income but to other factors such as democratic freedoms and the quality of social
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oorelationships. The role of normative oo oo oo oo
values in development economics—a subject dealing with human misery and human potential,
oo oo oo oo oo oo oo oo oo oo oo
with equity as well as efficiency, with cultural change that causes losses as well as gains, and
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
with transfer
oo oo
as well as creation of wealth—is also stressed.
oo oo oo oo oo oo oo
The conclusion is that development is both a physical reality and a state of mind. The
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
meaning and objectives of development include the provision of basic needs, reducing
oo oo oo oo oo oo oo oo oo oo oo oo
inequality, raising living standards through appropriate economic growth, improving self-
oo oo oo oo oo oo oo oo oo oo
esteem in relation to the developed countries, and expanding freedom of choice in the market
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
and beyond.
oo oo
Section 1.7 presents an in depth examination of the UN‘s Sustainable Development Goals
oo oo oo oo oo oo oo oo oo oo oo oo
(SDGs). This includes a more comprehensive list of the goals themselves (appearing in
oo oo oo oo oo oo oo oo oo oo oo oo oo
Table 1.1) and a discussion of the shortcomings of the SDGs. In Section 1.8, the plan of
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
the book is introduced through 32 critical questions of development economics.
oo oo oo oo oo o o o o o o o o o o o o
Depending on the amount of material
o o o o o o o o o o o o
covered by the instructor, students should be able to intelligently address most of these
oo oo oo oo oo oo oo oo oo oo oo oo oo
questions by the end of the course. Finally, a comparative case study of Pakistan and
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
Bangladesh is presented.
oo oo oo
, Todaro ooand ooSmith, ooEconomic ooDevelopment, oo13e, ooInstructor’s
Manual
Lecture Suggestions oo
It might be best to begin with a discussion of the immense scale of transformation in the
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
ooworld
economy. The late Hans Rosling‘s video ―200 countries, 200 years, 4 minutes‖ (readily
oo oo oo oo oo oo oo oo oo oo oo oo
available on YouTube) can be used to confirm this point in an entertaining way. It might
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
also be helpful to highlight that real gross world product per capita has almost tripled
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
between 1960 and 2018 (implying growth per year of 1.85%) and is 33% higher
oo oo oo oo oo oo o o o o o o o o o o o o o o o o
than it was at the turn of this century
o o o o o o o o o o o o o o o o o o
(implying annual growth of 1.56% from 2000 to 2018). This data can be found on the Saint
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
Louis Federal Reserve‘s website in the Federal Reserve Economic Database (or FRED).
oo oo oo oo oo oo oo oo oo oo oo oo
Despite such advances, tremendous disparities continue to exist. In terms of easily accessible
oo oo oo oo oo oo oo oo oo oo oo oo
statistics the PEW Research Centre‘s ―World Population by Income‖ provides an
oo oo oo oo oo oo oo oo oo oo oo
oointeractive map oo
showing the share of economies‘ population who are economically poor, low income, middle
oo oo oo oo oo oo oo oo oo oo oo oo
income, upper middle income, and high income. While regrettably the data provided is
oo oo oo oo oo oo oo oo oo oo oo oo oo
for 2011, it
oo oo oo
echoes what Todaro and Smith point out in the text, that more than 75% of the world‘s
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
population live on $15 or less a day (or about $5,500 per person per year). Several
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
excellent books attempt to give some idea of the range of living standards found throughout
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
the world. For example, The Material World by Peter Menzell. This book presents
oo oo oo oo oo oo o o o o o o o o o o o o o o
o ophotographic profiles of typical families o o o o o o o o
around the world with all of their possessions placed in front of their homes. As one goes
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
from one family to the next the instructor has the opportunity to highlight the important
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
differences between nations and regions and to touch on key issues of growth and
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
development.
oo
One of the key strengths of this chapter is that it does not focus solely on the hard
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oonumbers that oo
supposedly measure development. The discussion of Sen‘s Capabilities approach and the far
oo oo oo oo oo oo oo oo oo oo oo
less than perfect relationship between income and happiness are well worth spending a fair
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
amount of class time exploring. Class time should also be spent discussing the 32
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oocritical questions listed on oo oo oo
pages 21–23 of the text and then asking students to identify 3 or 4 questions that they are
oo oo oo oo oo oo oo oo o o oo oo oo oo oo oo oo oo
particularly interested in exploring. Asking each student to list what they consider to be
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
―critically‖ critical questions on a sheet of paper, collecting their responses, and then trying
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
to direct the rest of the term to addressing the most commonly mentioned critical questions
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
for that class will be helpful
oo oo oo oo oo oo
in further drawing students in and holding their attention throughout the term.
oo oo oo oo oo oo oo oo oo oo oo
At this same point, the instructor might also wish to get some idea of students‘ experiences
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
o traveling to developing countries and, in as subtle a way as is possible, determine how
o oo oo oo oo oo oo oo oo oo oo oo oo oo oo
shaky their understanding of the wider world is. The instructor perhaps could draw on his
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
or her own experiences and give some background as to how he or she first became
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
interested in Development
oo oo oo
Economics. This may – through the kinds of questions asked – help the instructor further
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
gauge students‘ level of sophistication in this area. This is not something that should be or,
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
can, be settled in the first one or two classes and will develop over the course of the term.
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
In many universities, the economic development course will be filled with students who are
oo oo oo oo oo oo oo oo oo oo oo oo oo
not majoring in economics. These students may come from different colleges with majors
oo oo oo oo oo oo oo oo oo oo oo oo oo
such as anthropology, sociology, or political science or business (management, finance, etc.).
oo oo oo oo oo oo oo oo oo oo oo oo
They may have had as little as one semester of introductory economics. Given that you are
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
, Todaro ooand ooSmith, ooEconomic ooDevelopment, oo13e, ooInstructor’s
ooteaching an economics
oo Manual class, you may wish to remind the students of this fact and offer
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oowhatever help you can. Given video capture software, you might consider recording some
oo oo oo oo oo oo oo oo oo oo oo oo
ooprimers that then could be made available to students through course management
oo oo oo oo oo oo o o o o o o o o o o
o osoftware such as Blackboard or Moodle. You
o o o o o o o o o o o o
