ch 1 What is development

Question 1

5 local conditions of developing countries

Answer 1

informal institutions
underfunctioning markets
welath inequality
dependence on natural resources
high vulnerability

Question 2

economic development (3things)

Answer 2

reduce
poverty, inequality, unemployment

Question 3

3 objectives of development

Answer 3

1) more available life sustaining goods
2)higher income. more jobs, better education
3) expand range of economic and social choices

Question 4

difference between gni and gdp? gni= gdp + — ?

Answer 4

anything residents out of the country makes

Question 5

what are the two parts of gross national income

Answer 5

1) goods+ services made domestically
2) economic output of residents domestic AND abroad

Question 6

definition of PPP

Answer 6

measurement of prices in different countries

Question 7

how to measure PPP

Answer 7

use the price of specific goods to compare the absolute purchasing power of the countries currencies (Big Mac index)

Question 8

how are developing countries classified? by the world bank

Answer 8

based on GNI per capital (how rich residents are per capita) (low 1k),middle,high 12k)

Question 9

what is GDP

Answer 9

Value of goods + services produced within a country

Question 10

how does the UN classify least developing countries(3 things)

Answer 10

1) low income (GNI per capita)
2) high human resource weakness
3) high vulnerability

Question 11

what does UN mean with high human resource weakness criteria? 4things
literally how weak humans are lie what makes a human and a society strong you know mentally and socially and physically

Answer 11

nutrition,health,education,literacy

Question 12

what does the UN mean with economic vulnerability?
(instability of two things and a large part of the economy is a specific industry)

Answer 12

Instable agriculture production,instable exports of good, amount of modern(non-agriculture) activites in GDP (if low its bad),

Question 13

how does WTO classify developing countries?

Answer 13

WTO member each decides what it wants to be. in developing countries criteria you are either a least developed country (LDC) or a net food importing country, importing food is good(EU USA do it)

Question 14

3 dimensions of Human development index

Answer 14

1)llife expectancy
2) education
3) (GNI per capita) standard of lviing

Question 15

3 indicators /indexes /specifics about the human development index

Answer 15

1) life expectancy
2) years of schooling
3) GNI per capita (quality of life)

Question 16

WB (GNI per capita) vs HDI what can it show

Answer 16

Wb classification is about money, like saudi arabia has higher GNI per capita but lower HDI than sri lanka . Or can show how rural china has lower HDI than Urban china

Question 17

5 ways developing countries differ from developed countries?

Answer 17

1) low per capita income
2)lower level of human capital
4)high population growth
5)high social fractionalization(religion, ethnic, class)
6)predominance on agriculture
7) dominance of informal sector
8)underdeveloped markets
9) weak institutions (corruption)

Question 18

what is human capital

Answer 18

health, under 5 mortality rate, education, skills (knowledge, skills and health to be productive)