ECS 3013 exam 1.docx - 1 Define economic development The...

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1 . Define eco nomic development. The sustained increase in real per capita income, measured typically by long run growth rate of real per capita income. It is the improved ability to meet basic human needs, which includes improved life expectancy, improved literacy, etc Finally, income increases spread to larger parts of the population, reducing poverty and equalizing income distribution. Three cores values of development are: sustenance (the ability to meet basic needs), self- esteem (to be a person), and freedom from servitude (to be able to choose). study of how economics transformed from stagnation to growth and low-income to high- income status, and overcome problems of absolute poverty. o Efficient allocation of existing scarce productive resources and with their sustained growth over time, it deals with the economic, political, and institutional mechanisms Sustained increase in real per capita income with o No increase in the absolute level of poverty o No worsening of the distribution of income o Improvements in the ability to meet basic human needs. 3 objectives of development o increase availability of life-sustaining goods o raise levels of living o expand range of economic and social choices 2.WhatarethelimitationsofusingGNIgrowthasameasureofdevelopment?

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