test review - ECS 3013 Professor Sharmila Vishwasrao The farther you get to the equator the richer you are Expropriation how much the government

test review - ECS 3013 Professor Sharmila Vishwasrao...

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ECS 3013 Professor: Sharmila Vishwasrao The farther you get to the equator, the richer you are. Expropriation- how much the government can take away from a civilian List of Questions for Test 1. (For all theories you should know, main assumptions, basic structure, major conclusions, policy recommendations and criticisms) 1.Define economic development. A. Traditional: sustained increase in real per capita income with a. No increase in the absolute level of poverty b. No worsening of the distribution of income c. Improvements in the ability to meet basic human needs. B. Does GNP measure wellbeing? Sen (1998 Nobel) argues that there may be disparities between measured income and actual benefits because of i. Personal heterogeneity, illness, age, gender. ii. Environmental – heating requirements in the cold, diseases in tropics iii. social climate – crime, violence iv. relative status – what is normal for a society may vary.v. Distribution within a family – gender, age issues.Alternative Definition IFunctioning: What can a person achieve with his possessions? 1. Ability to meet basic needs 2. Self esteem 3. Freedom to choose: development should increase the range of human choices. 2.What are the limitations of using GNI growth as a measure of development? A. GNI- the total domestic and foreign output claimed by residents of a country. It comprises gross domestic product (GDP) plus factor incomes accruing to residents from abroad, less the income earned in the domestic economy accruing to persons abroad. 1. GNI does not count stuff made in a state (country) by a foreign company 2. GNI I an indicator of the level of national Development could be a basis of a country’s performance in the macro level but not on the household level.

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