Economic Development: Chapter 1 Part I-Questions and Answers Graded A+

Economic Development: Chapter 1 Part I-Questions and Answers Graded A+ Absolute Poverty - ANSWER-a situation of being unable to meet the minimum levels of income, food, clothing, health care, shelter, and other essentials Subsistence Economy - ANSWER-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) Development - ANSWER-the process of improving the quality of all human lives and capabilities by raisin people's levels of living, self-esteem, and freedom Developing Countries - ANSWER-countries that are presently characterized by low levels of living and other development deficits (Asia, Africa, the Middle East, Latin America, Eastern Europe, and the former Soviet Union) Traditional Economics - ANSWER-an approach to economics that emphasizes utility, profit maximization, market efficiency and determination of equilibrium Political Economy - ANSWER-the attempt to merge economics analysis with practical politics to view economic activity in its political context Traditional Economics assumes - ANSWER-economic rationality and a pure materialistic, self-interested orientation toward economic decision making Political economy is concerned with - ANSWER-the relationship between politics and economics, with a special emphasis on the role of power in economic decision making Development economics - ANSWER-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 More developed countries (MDCs) - ANSWER-the now economically advanced capitalist countries of western Europe, North America, Australia, New Zealand, and Japan Development Economics, in addition to being concerned with the efficient allocation of existing scarce productive resources and with their sustained growth over time, it must also deal with - ANSWER-the economic, social, political, and institutional mechanisms necessary to bring about rapid and large-scale improvements in levels of living In many cases, economic calculations are heavily influenced by - ANSWER-political and social priorities Development economics, to a greater extent than traditional neoclassical economics or even political economy, must be concerned with - ANSWER-the economic, cultural, and political requirements for rapid structural and institutional transformations What are essential components of development eonomics? - ANSWER-large government role and some degree of coordinated economic decision making