ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH
TEST BANK
ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO,
STEPHEN SMITH COMPLETE CHAPTERS 1-15| APPENDIX EXAM
INCLUDED| VERIFIED Q&AS| A+ PASS
Page | 1
,ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH
TABLE OF CONTENT
1. 1 Introducing Economic Development: A Global Perspective
2. 2 Comparative Economic Development
3. 3 Classic Theories of Economic Growth and Development
4. 4 Contemporary Models of Development and Underdevelopment
5. 5 Poverty, Inequality, and Development
6. 6 Population Growth and Economic Development: Causes, Consequences,
and Controversies
7. 7 Urbanisation and Rural-Urban Migration: Theory and Policy
8. 8 Human Capital: Education and Health in Economic Development
9. 9 Agricultural Transformation and Rural Development
10.10 The Environment and Development
11.11 Development Policymaking and the Roles of Market, State, and Civil
Society
12.12 International Trade Theory and Development Strategy
13.13 Balance of Payments, Debt, Financial Crises, and Sustainable Recovery:
Cases and Policies
14.14 Foreign Finance, Investment, Aid, and Conflict: Controversies and
Opportunities
15.15 Finance and Fiscal Policy for Development
Page | 2
,ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH
Chapter 1: Introducing Economic Development: A Global Perspective
Key Concepts
As curious as students who register to take Development Economics may be, their knowledge and
experience of the developing world will vary widely. The first main point of Chapter 1 is to emphasize
how different life in the developing world is. New in the 13th edition is a systematic description of four
stylized strata of living standards from extreme poverty to rich based on Rosling,
Rosling, and Rosling Ronnlund ‘s book Tactfulness. This is followed by a discussion of the World Bank
‘s classification of economies by ranges of average national income using gross national income (GNI)
statistics.
The second point is to provide an overview of the nature of development economics as a field. A defense
of development economics as a distinct field, rather than an agglomeration of other economics subfields,
is offered. A major theme of the book, that development economics must encompass the study of
institutional and social, as well as economic, mechanisms for modernizing an economy while eliminating
absolute poverty, is introduced.
Sections 1.5 and 1.6 looks deeper into the meaning of development and a view of development that is
multidimensional. Amartya Sen ‘s ―Capabilities‖ approach is discussed in Section 1.5. In Section 1.6, data
collected in a Gallup World Poll on the relationship between happiness (as measured by Gallup ‘s
life satisfaction ―ladder‖ question and real per capita income) and other research on happiness/life
satisfaction is discussed. The level of happiness is not only related to level of income but to other factors
such as democratic freedoms and the quality of social relationships. The role of normative
values in development economics—a subject dealing with human misery and human potential, with
equity as well as efficiency, with cultural change that causes losses as well as gains, and with transfer
as well as creation of wealth—is also stressed.
The conclusion is that development is both a physical reality and a state of mind. The meaning and
objectives of development include the provision of basic needs, reducing inequality, raising living
standards through appropriate economic growth, improving self-esteem in relation to the developed
countries, and expanding freedom of choice in the market and beyond.
Section 1.7 presents an in-depth examination of the UN ‘s Sustainable Development Goals (SDGs). This
includes a more comprehensive list of the goals themselves (appearing in Table 1.1) and a discussion of
the shortcomings of the SDGs. In Section 1.8, the plan of the book is introduced through 32 critical
questions of development economics. Depending on the amount of material
covered by the instructor, students should be able to intelligently address most of these questions by the
end of the course. Finally, a comparative case study of Pakistan and Bangladesh is presented.
Page | 3
, ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH
Lecture Suggestions
It might be best to begin with a discussion of the immense scale of transformation in the world
economy. The late Hans Rosling ‘s video ―200 countries, 200 years, 4 minutes‖ (readily available on
YouTube) can be used to confirm this point in an entertaining way. It might also be helpful to highlight
that real gross world product per capita has almost tripled between 1960 and 2018 (implying growth per
year of 1.85%) and is 33% higher than it was at the turn of this century
(implying annual growth of 1.56% from 2000 to 2018). This data can be found on the Saint Louis Federal
Reserve ‘s website in the Federal Reserve Economic Database (or FRED).
Despite such advances, tremendous disparities continue to exist. In terms of easily accessible statistics the
PEW Research Centre ‘s ―World Population by Income‖ provides an interactive map
showing the share of economies ‘population who are economically poor, low income, middle income,
upper middle income, and high income. While regrettably the data provided is for 2011, it
echoes what Todaro and Smith point out in the text, that more than 75% of the world ‘s population live on
$15 or less a day (or about $5,500 per person per year). Several excellent books attempt to give some idea
of the range of living standards found throughout the world. For example, The Material World by Peter
Menzell. This book presents photographic profiles of typical families
around the world with all of their possessions placed in front of their homes. As one goes from one family
to the next the instructor has the opportunity to highlight the important differences between nations and
regions and to touch on key issues of growth and development.
One of the key strengths of this chapter is that it does not focus solely on the hard numbers that
supposedly measure development. The discussion of Sen ‘s Capabilities approach and the far less than
perfect relationship between income and happiness are well worth spending a fair amount of class time
exploring. Class time should also be spent discussing the 32 critical questions listed on
pages 21–23 of the text and then asking students to identify 3 or 4 questions that they are particularly
interested in exploring. Asking each student to list what they consider to be ―critically‖ critical questions
on a sheet of paper, collecting their responses, and then trying to direct the rest of the term to addressing
the most commonly mentioned critical questions for that class will be helpful
in further drawing students in and holding their attention throughout the term.
At this same point, the instructor might also wish to get some idea of students ‘experiences traveling to
developing countries and, in as subtle a way as is possible, determine how shaky their understanding of
the wider world is. The instructor perhaps could draw on his or her own experiences and give some
background as to how he or she first became interested in Development
Page | 4
TEST BANK
ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO,
STEPHEN SMITH COMPLETE CHAPTERS 1-15| APPENDIX EXAM
INCLUDED| VERIFIED Q&AS| A+ PASS
Page | 1
,ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH
TABLE OF CONTENT
1. 1 Introducing Economic Development: A Global Perspective
2. 2 Comparative Economic Development
3. 3 Classic Theories of Economic Growth and Development
4. 4 Contemporary Models of Development and Underdevelopment
5. 5 Poverty, Inequality, and Development
6. 6 Population Growth and Economic Development: Causes, Consequences,
and Controversies
7. 7 Urbanisation and Rural-Urban Migration: Theory and Policy
8. 8 Human Capital: Education and Health in Economic Development
9. 9 Agricultural Transformation and Rural Development
10.10 The Environment and Development
11.11 Development Policymaking and the Roles of Market, State, and Civil
Society
12.12 International Trade Theory and Development Strategy
13.13 Balance of Payments, Debt, Financial Crises, and Sustainable Recovery:
Cases and Policies
14.14 Foreign Finance, Investment, Aid, and Conflict: Controversies and
Opportunities
15.15 Finance and Fiscal Policy for Development
Page | 2
,ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH
Chapter 1: Introducing Economic Development: A Global Perspective
Key Concepts
As curious as students who register to take Development Economics may be, their knowledge and
experience of the developing world will vary widely. The first main point of Chapter 1 is to emphasize
how different life in the developing world is. New in the 13th edition is a systematic description of four
stylized strata of living standards from extreme poverty to rich based on Rosling,
Rosling, and Rosling Ronnlund ‘s book Tactfulness. This is followed by a discussion of the World Bank
‘s classification of economies by ranges of average national income using gross national income (GNI)
statistics.
The second point is to provide an overview of the nature of development economics as a field. A defense
of development economics as a distinct field, rather than an agglomeration of other economics subfields,
is offered. A major theme of the book, that development economics must encompass the study of
institutional and social, as well as economic, mechanisms for modernizing an economy while eliminating
absolute poverty, is introduced.
Sections 1.5 and 1.6 looks deeper into the meaning of development and a view of development that is
multidimensional. Amartya Sen ‘s ―Capabilities‖ approach is discussed in Section 1.5. In Section 1.6, data
collected in a Gallup World Poll on the relationship between happiness (as measured by Gallup ‘s
life satisfaction ―ladder‖ question and real per capita income) and other research on happiness/life
satisfaction is discussed. The level of happiness is not only related to level of income but to other factors
such as democratic freedoms and the quality of social relationships. The role of normative
values in development economics—a subject dealing with human misery and human potential, with
equity as well as efficiency, with cultural change that causes losses as well as gains, and with transfer
as well as creation of wealth—is also stressed.
The conclusion is that development is both a physical reality and a state of mind. The meaning and
objectives of development include the provision of basic needs, reducing inequality, raising living
standards through appropriate economic growth, improving self-esteem in relation to the developed
countries, and expanding freedom of choice in the market and beyond.
Section 1.7 presents an in-depth examination of the UN ‘s Sustainable Development Goals (SDGs). This
includes a more comprehensive list of the goals themselves (appearing in Table 1.1) and a discussion of
the shortcomings of the SDGs. In Section 1.8, the plan of the book is introduced through 32 critical
questions of development economics. Depending on the amount of material
covered by the instructor, students should be able to intelligently address most of these questions by the
end of the course. Finally, a comparative case study of Pakistan and Bangladesh is presented.
Page | 3
, ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH ECONOMIC DEVELOPMENT 13TH EDITION BY MICHAEL TODARO, STEPHEN SMITH
Lecture Suggestions
It might be best to begin with a discussion of the immense scale of transformation in the world
economy. The late Hans Rosling ‘s video ―200 countries, 200 years, 4 minutes‖ (readily available on
YouTube) can be used to confirm this point in an entertaining way. It might also be helpful to highlight
that real gross world product per capita has almost tripled between 1960 and 2018 (implying growth per
year of 1.85%) and is 33% higher than it was at the turn of this century
(implying annual growth of 1.56% from 2000 to 2018). This data can be found on the Saint Louis Federal
Reserve ‘s website in the Federal Reserve Economic Database (or FRED).
Despite such advances, tremendous disparities continue to exist. In terms of easily accessible statistics the
PEW Research Centre ‘s ―World Population by Income‖ provides an interactive map
showing the share of economies ‘population who are economically poor, low income, middle income,
upper middle income, and high income. While regrettably the data provided is for 2011, it
echoes what Todaro and Smith point out in the text, that more than 75% of the world ‘s population live on
$15 or less a day (or about $5,500 per person per year). Several excellent books attempt to give some idea
of the range of living standards found throughout the world. For example, The Material World by Peter
Menzell. This book presents photographic profiles of typical families
around the world with all of their possessions placed in front of their homes. As one goes from one family
to the next the instructor has the opportunity to highlight the important differences between nations and
regions and to touch on key issues of growth and development.
One of the key strengths of this chapter is that it does not focus solely on the hard numbers that
supposedly measure development. The discussion of Sen ‘s Capabilities approach and the far less than
perfect relationship between income and happiness are well worth spending a fair amount of class time
exploring. Class time should also be spent discussing the 32 critical questions listed on
pages 21–23 of the text and then asking students to identify 3 or 4 questions that they are particularly
interested in exploring. Asking each student to list what they consider to be ―critically‖ critical questions
on a sheet of paper, collecting their responses, and then trying to direct the rest of the term to addressing
the most commonly mentioned critical questions for that class will be helpful
in further drawing students in and holding their attention throughout the term.
At this same point, the instructor might also wish to get some idea of students ‘experiences traveling to
developing countries and, in as subtle a way as is possible, determine how shaky their understanding of
the wider world is. The instructor perhaps could draw on his or her own experiences and give some
background as to how he or she first became interested in Development
Page | 4
