TEST BANK for Economic Development 13 Edition by Todaro and Smith all chapters 1-15, complete

TEST BANK
Economic Development
13 Edition by Todaro and Smith
all chapters 1-15

,TABLE OF CONTENT
Q Q




1QIntroducingQEconomicQDevelopment:QAQGlobalQPerspective

2QComparativeQEconomicQDevelopment

3QClassicQTheoriesQofQEconomicQGrowthQandQDevelopment

4QContemporaryQModelsQofQDevelopmentQandQUnderdevelopment

5QPoverty,QInequality,QandQDevelopment

6QPopulationQGrowthQandQEconomicQDevelopment:QCauses,Consequences,QandQCon
troversies

7QUrbanisationQandQRural-UrbanQMigration:QTheoryQandQPolicy

8QHumanQCapital:QEducationQandQHealthQinQEconomicQDevelopment

9QAgriculturalQTransformationQandQRuralQDevelopment

10QTheQEnvironmentQandQDevelopment

11QDevelopmentQPolicymakingQandQtheQRolesQofQMarket,QState,QandQCivilQSociety

12QInternationalQTradeQTheoryQandQDevelopmentQStrategy

13QBalanceQofQPayments,QDebt,QFinancialQCrises,QandQSustainableQRecovery:QCasesQ
andQPolicies

14QForeignQFinance,QInvestment,QAid,QandQConflict:QControversiesQandQOpportunities

15QFinanceQandQFiscalQPolicyQforQDevelopment




Chapter 1: Introducing Economic De
Q Q Q Q


velopment: A Global Perspective
Q Q Q

,◼ KeyQConcepts
AsQcuriousQasQstudentsQwhoQregisterQtoQtakeQDevelopmentQEconomicsQmayQbe,QtheirQkno
wledgeQandQexperienceQofQtheQdevelopingQworldQwillQvaryQwidely.QTheQfirstQmainQpointQofQ
ChapterQ1QisQtoQemphasiseQhowQdifferentQlifeQinQtheQdevelopingQworldQis.QNewQinQtheQ13th
QeditionQisQaQsystematicQdescriptionQofQfourQstylisedQstrataQofQlivingQstandardsQfromQextre

meQpovertyQtoQrichQbasedQonQRosling,
Rosling,QandQRoslingQRonnlund’sQbookQFactfulness.QThisQisQfollowedQbyQaQdiscussionQofQth
eQWorldQBank’sQclassificationQofQeconomiesQbyQrangesQofQaverageQnationalQincomeQusingQ
grossQnationalQincomeQ(GNI)Qstatistics.

TheQsecondQpointQisQtoQprovideQanQoverviewQofQtheQnatureQofQdevelopmentQeconomicsQasQ
aQfield.QAQdefenseQofQdevelopmentQeconomicsQasQaQdistinctQfield,QratherQthanQanQagglome
rationQofQotherQeconomicsQsubfields,QisQoffered.QAQmajorQthemeQofQtheQbook,QthatQdevelop
mentQeconomicsQmustQencompassQtheQstudyQofQinstitutionalQandQsocial,QasQwellQasQecon
omic,QmechanismsQforQmodernisingQanQeconomyQwhileQeliminatingQabsoluteQpoverty,QisQin
troduced.

SectionsQ1.5QandQ1.6QlooksQdeeperQintoQtheQmeaningQofQdevelopmentQandQaQviewQofQdevelo
pmentQthatQisQmultidimensional.QAmartyaQSen’sQ“Capabilities”QapproachQisQdiscussedQinQS
ectionQ1.5.QInQSectionQ1.6,QdataQcollectedQinQaQGallupQWorldQPollQonQtheQrelationshipQbetwe
enQhappinessQ(asQmeasuredQbyQGallup’s
lifeQsatisfactionQ“ladder”QquestionQandQrealQperQcapitaQincome)QandQotherQresearchQonQha
ppiness/lifeQsatisfactionQisQdiscussed.QTheQlevelQofQhappinessQisQnotQonlyQrelatedQtoQlevelQ
ofQincomeQbutQtoQotherQfactorsQ suchQ asQ democraticQ freedomsQ andQ theQ qualityQ ofQ socialQ
relationships.Q TheQ roleQ ofQ normative
valuesQinQdevelopmentQeconomics—
aQsubjectQdealingQwithQhumanQmiseryQandQhumanQpotential,QwithQequityQasQwellQasQefficie
ncy,QwithQculturalQchangeQthatQcausesQlossesQasQwellQasQgains,QandQwithQtransfer
asQwellQasQcreationQofQwealth—isQalsoQstressed.

TheQconclusionQisQthatQdevelopmentQisQbothQaQphysicalQrealityQandQaQstateQofQmind.QTheQ
meaningQandQobjectivesQofQdevelopmentQincludeQtheQprovisionQofQbasicQneeds,QreducingQi
nequality,QraisingQlivingQstandardsQthroughQappropriateQeconomicQgrowth,QimprovingQself-
esteemQinQrelationQtoQtheQdevelopedQcountries,QandQexpandingQfreedomQofQchoiceQinQtheQ
marketQandQbeyond.

SectionQ1.7QpresentsQanQinQdepthQexaminationQofQtheQUN’sQSustainableQDevelopmentQGoa
lsQ(SDGs).QThisQincludesQaQmoreQcomprehensiveQlistQofQtheQgoalsQthemselvesQ(appearingQi
nQTableQ1.1)QandQaQdiscussionQofQtheQshortcomingsQofQtheQSDGs.QInQSectionQ1.8,QtheQplan
QofQtheQbookQisQintroducedQthroughQ 32Q criticalQ questionsQ ofQ developmentQ economics.Q

DependingQ onQ theQ amountQ ofQ material
coveredQbyQtheQinstructor,QstudentsQshouldQbeQableQtoQintelligentlyQaddressQmostQofQthese
QquestionsQbyQtheQendQofQtheQcourse.QFinally,QaQcomparativeQcaseQstudyQofQPakistanQandQ

BangladeshQisQpresented.

, TodaroQandQSmith,QEconomicQDevelopment,Q13e,QInstructor’sQMa
nual

◼ LectureQSuggestions
ItQ mightQ beQ bestQ toQ beginQ withQ aQ discussionQ ofQ theQ immenseQ scaleQ ofQ transformationQ inQ theQ
world
economy.QTheQlateQHansQRosling’sQvideoQ“200Qcountries,Q200Qyears,Q4Qminutes”Q(readilyQa
vailableQonQYouTube)QcanQbeQusedQtoQconfirmQthisQpointQinQanQentertainingQway.QItQmightQ
alsoQbeQhelpfulQtoQhighlightQthatQrealQgrossQworldQproductQperQcapitaQhasQalmostQtripledQb
etweenQ1960QandQ2018Q(implyingQ growthQ perQ yearQ ofQ 1.85%)Q andQ isQ 33%Q higherQ thanQ i
tQ wasQ atQ theQ turnQ ofQ thisQ century
(implyingQannualQgrowthQofQ1.56%QfromQ2000QtoQ2018).QThisQdataQcanQbeQfoundQonQtheQSa
intQLouisQFederalQReserve’sQwebsiteQinQtheQFederalQReserveQEconomicQDatabaseQ(orQFRED
).

DespiteQsuchQadvances,QtremendousQdisparitiesQcontinueQtoQexist.QInQtermsQofQeasilyQacc
essibleQstatisticsQ theQ PEWQ ResearchQ Centre’sQ “WorldQ PopulationQ byQ Income”Q providesQ
anQ interactiveQ map
showingQtheQshareQofQeconomies’QpopulationQwhoQareQeconomicallyQpoor,QlowQincome,Qm
iddleQincome,Q upperQmiddleQincome,Q andQhighQincome.Q WhileQ regrettablyQtheQ dataQprovid
edQ isQforQ 2011,Qit
echoesQwhatQTodaroQandQSmithQpointQoutQinQtheQtext,QthatQmoreQthanQ75%QofQtheQworld’s
QpopulationQliveQonQ$15QorQlessQaQdayQ(orQaboutQ$5,500QperQpersonQperQyear).QSeveralQexc

ellentQbooksQattemptQtoQgiveQsomeQideaQofQtheQrangeQofQlivingQstandardsQfoundQthroughou
tQtheQworld.QForQexample,QTheQMaterialQ WorldQ byQ PeterQ Menzell.Q ThisQ bookQ presentsQ p
hotographicQ profilesQ ofQ typicalQ families
aroundQtheQworldQwithQallQofQtheirQpossessionsQplacedQinQfrontQofQtheirQhomes.QAsQoneQgo
esQfromQoneQfamilyQtoQtheQnextQtheQinstructorQhasQtheQopportunityQtoQhighlightQtheQimport
antQdifferencesQbetweenQnationsQandQregionsQandQtoQtouchQonQkeyQissuesQofQgrowthQandQ
development.

OneQ ofQ theQ keyQ strengthsQ ofQ thisQ chapterQ isQ thatQ itQ doesQ notQ focusQ solelyQ onQ theQ hardQ number
sQ that
supposedlyQmeasureQdevelopment.QTheQdiscussionQofQSen’sQCapabilitiesQapproachQandQth
eQfarQlessQthanQperfectQrelationshipQbetweenQincomeQandQhappinessQareQwellQworthQspen
dingQaQfairQamountQofQclassQ timeQ exploring.Q ClassQ timeQ shouldQ alsoQ beQ spentQ discussing
Q theQ 32Q criticalQ questionsQ listedQ on

pagesQ21–
23QofQtheQtextQandQthenQaskingQstudentsQ toQidentifyQ3QorQ4QquestionsQthatQtheyQareQpartic
ularlyQinterestedQinQexploring.QAskingQeachQstudentQtoQlistQwhatQtheyQconsiderQtoQbeQ“criti
cally”QcriticalQquestionsQonQaQsheetQofQpaper,QcollectingQtheirQresponses,QandQthenQtryingQ
toQdirectQtheQrestQofQtheQtermQtoQaddressingQtheQmostQcommonlyQmentionedQcriticalQques
tionsQforQthatQclassQwillQbeQhelpful
inQfurtherQdrawingQstudentsQinQandQholdingQtheirQattentionQthroughoutQtheQterm.

AtQthisQsameQpoint,QtheQinstructorQmightQalsoQwishQtoQgetQsomeQideaQofQstudents’Qexperie
ncesQ travelingQtoQdevelopingQcountriesQand,QinQasQsubtleQaQwayQasQisQpossible,Qdetermin
eQhowQshakyQtheirQunderstandingQofQtheQwiderQworldQis.QTheQinstructorQperhapsQcouldQdra
wQonQhisQorQherQownQexperiencesQandQgiveQ someQbackgroundQ asQtoQhowQheQorQsheQfirstQ
becameQinterestedQ inQ Development
Economics.QThisQmayQ–QthroughQtheQkindsQofQquestionsQaskedQ–
QhelpQtheQinstructorQfurtherQgaugeQstudents’QlevelQofQsophisticationQinQthisQarea.QThisQisQn

otQsomethingQthatQshouldQbeQor,Qcan,QbeQsettledQinQtheQfirstQoneQorQtwoQclassesQandQwillQ