The three basic indicators of economic development are income per capita, education, and health.
Economıc Growth and Development (ENG) — Ünite 1 Soru-Cevap
Economıc Growth and Development (ENG) (IKT451U) soru-cevapları.
What is the difference between economic growth and economic development?
While economic growth essentially represents an increase in a country’s per capita output over time, development encompasses a broader set of factors, including improvements in quality of life, health care, justice, education and security.
Who is considered the pioneer of classical economics?
Adam Smith, regarded as the pioneer of classical economics, titled his magnum opus as “The Wealth of Nations”
What areas are included in economic development besides economic growth?
Economic development encompasses a broader set of factors, including improvements in quality of life, health care,
justice, education and security.
justice, education and security.
What is the definition of Nominal GDP and Real GDP?
Nominal GDP: The value of all final goods and services produced in a country in a given period using current prices.
Real GDP: The value of all final goods and services produced in a country in a given period using constant prices.
Real GDP: The value of all final goods and services produced in a country in a given period using constant prices.
How do economic growth and economic development differ in terms of measurement?
Economic growth and development differ with respect to their measurement. Economic growth focuses on a single measure: increasing per capita income. Economic development, on the other hand, encompasses multiple measures. In addition to increasing per capita income, it involves equality in income distribution, poverty, access to basic human needs such as education, nutrition, and housing, among many other development indicators.
How is economic growth measured?
In a simple term, economic growth is measured by calculating the percentage change in gross domestic product (GDP) between two years, and formulated as:
GDP Growth= (GDPt – GDPt-1)/(GDPt-1)x100
GDP Growth= (GDPt – GDPt-1)/(GDPt-1)x100
How the per capita GDP is computed?
The per capita GDP of an economy is obtained by dividing that economy’s GDP by its population. In this way, the average income per person is found.
What is the definition of the Purchasing Power Parity (PPP)?
Purchasing Power Parity (PPP) is the ratio of national currency amounts required to purchase a certain basket of goods and services
What is the basic lack of the GDP Per Capita?
GDP per capita does not provide information about how income is distributed among citizens.
What is the definition of the law of diminishing marginal returns?
Law of diminishing marginal returns: An additional factor of production would bring a smaller increase in the output than the previous one.
What is the definition of the growth convergence?
Growth convergence: Low-income countries tend to grow faster than high income countries.
What are the three basic indicators of economic development?
Which composite indices are valuable in making complex data more comprehensible?
Composite indices such as the human development index (HDI) and the multidimensional poverty index (MPI) are valuable in making complex data more comprehensible .
What does “disempowerment” mean in the context of poverty?
Disempowerment: Lack of control of their own life and dependency on other people or institutions, which results in constrained choices.
When people are poor, they are not only affected by economic factors. What is the some other hidden dimensions?
When people are poor, they are not only affected by economic factors but also some hidden other dimensions as well. These dimensions are defined as follows (Bray et al. 2019):
• Disempowerment: Lack of control of their own life and dependency on other people or institutions, which results in constrained choices.
• Suffering in body, mind, and heart: Due to poverty and lack of control, physical, mental and emotional suffering together with a sense of being unable to change these.
• Struggle and resistance: Survival is an everyday task, requires resisting and counteracting the effects of multiple sufferings from privations, abuse, and lack of recognition.
• Institutional maltreatment: Mistreatment by national and international institutions, resulting in humiliation and harm.
• Social maltreatment: Mistreatment and prejudice by other individuals and informal groups.
• Unrecognized contributions: Lack of appreciation of knowledge and skills and being considered incompetent by the society.
• Lack of decent work: Unable to work in jobs that are safe, secure, regulated, dignified and paid just.
• Insufficient and insecure income: Too little income and no job security to be able to meet the basic needs and social obligations and keep family in harmony and enjoy life.
• Material and social deprivation: Unable to access the goods and services required for a decent life and participate fully in society.
• Disempowerment: Lack of control of their own life and dependency on other people or institutions, which results in constrained choices.
• Suffering in body, mind, and heart: Due to poverty and lack of control, physical, mental and emotional suffering together with a sense of being unable to change these.
• Struggle and resistance: Survival is an everyday task, requires resisting and counteracting the effects of multiple sufferings from privations, abuse, and lack of recognition.
• Institutional maltreatment: Mistreatment by national and international institutions, resulting in humiliation and harm.
• Social maltreatment: Mistreatment and prejudice by other individuals and informal groups.
• Unrecognized contributions: Lack of appreciation of knowledge and skills and being considered incompetent by the society.
• Lack of decent work: Unable to work in jobs that are safe, secure, regulated, dignified and paid just.
• Insufficient and insecure income: Too little income and no job security to be able to meet the basic needs and social obligations and keep family in harmony and enjoy life.
• Material and social deprivation: Unable to access the goods and services required for a decent life and participate fully in society.
What is the three dimensions of the Human Develpoment Index?
Human Development Index consists of three dimensions: health, education and standard of living.
How standard of living is measured?
Standard of living: Gross National Income (GNI) per capita, adjusted for purchasing power parity (PPP).
Which institution developed the Human Development Index?
The Human Development Index (HDI) developed by the United Nations Development Programme (UNDP).
How HDI is interpreted?
Countries with HDI values 0.800 and above are considered as “very high human development achievements” while countries with HDI values below 0.5500 and below are considered as “low human development achievements”.
In between, there are countries with medium human development achievements with the HDI values between 0.550 and 0.699 and countries with high human development achievements with the HDI values between 0.700 and 0.799.
In between, there are countries with medium human development achievements with the HDI values between 0.550 and 0.699 and countries with high human development achievements with the HDI values between 0.700 and 0.799.
What is the poverty trap?
Poverty trap refers to a poverty spiral that is very difficult to get out of due to reasons triggered by poverty.