Module 1

Question 1

This is a situation of being unable to meet the minimum levels of income, food, clothing, healthcare, shelter, and other essentials.

Answer 1

Absolute Poverty

Question 2

This is an economy in which
production is mainly for personal consumption
and the standard of living yields little more than
basic necessities of life—food, shelter, and
clothing.

Answer 2

Subsistence Economy

Question 3

This is the process of improving the quality of all human lives and capabilities by raising people’s levels of living, self-esteem, and freedom.

Answer 3

Development

Question 4

This is a field of study that is rapidly evolving its
own distinctive analytical and methodological
identity.

Answer 4

Economic Development

Question 5

He is claimed to be the first development economist who wrote the Wealth of Nations that was published in 1776.

Answer 5

Adam Smith

Question 6

This was claimed as the first treatise on economic development.

Answer 6

Wealth of Nations by Adam Smith

Question 7

True o False: We can analyze developing countries realistically without also considering the role of economically developed nations in promoting or retarding that development.

Answer 7

False. We cannot.

Question 8

This has a great scope that is deals with the economic, social, political, and institutional mechanisms, both
public and private, necessary to bring about rapid (at least by historical
standards) and large-scale improvements.

Answer 8

Development Economics

Question 9

This is an approach to economics that emphasizes utility, profit maximization,
market efficiency, and determination of equilibrium. It deals with an advanced capitalist world of perfect markets, consumer sovereignty, and others. It also assumes economic rationality.

Answer 9

Traditional Neoclassical Economics

Question 10

It is concerned with the relationship between politics and economics, with
a special emphasis on the role of power in economic decision making. This is the attempt to merge economic analysis with practical politics to view economic activity in its political context.

Answer 10

Political Economy

Question 11

This is the study of how economies are
transformed from stagnation to growth and from low income to high-income status, and overcome problems of absolute poverty.

Answer 11

Development Economics

Question 12

This is a synonym for developing countries.

Answer 12

Less developed countries

Question 13

This is the increasing integration of national economies into expanding international markets.

Answer 13

Globalization

Question 14

True or False: Concepts or goals such as economic and social equality, the elimination of poverty, universal education, and political participation all derive from subjective value judgments about what is good and desirable and what is not.

Answer 14

True

Question 15

What does OECD stand for?

Answer 15

Organization for Economic Cooperation and Development

Question 16

These are interdependent relationships between economic and non-economic factors. They are organizational and institutional structure of a society.

Answer 16

Social systems

Question 17

True or False: Values, attitudes, and institutions play in the overall development process of a country.

Answer 17

True

Question 18

These are principles, standards, or qualities that a society or groups within it considers
worthwhile or desirable.

Answer 18

Values

Question 19

These are the states of mind or feelings of an individual, group, or society regarding
issues such as material gain, hard work, saving for the future, and sharing wealth.

Answer 19

Attitudes

Question 20

These are norms, rules of conduct, and generally accepted ways of doing things.

Answer 20

Institutions

Question 21

These are humanly devised constraints that shape human interactions,
including both informal and formal “rules of the game” of economic life in the widely
used framework of Douglass North.

Answer 21

Economic institutions

Question 22

This is the total final output of goods and services produced by the country’s economy, within the country’s territory, by residents and nonresidents, regardless of its allocation between domestic and foreign claims.

Answer 22

Gross Domestic Product (GDP)

Question 23

This is 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.

Answer 23

Gross national Income

Question 24

This is an approach that states capabilities as freedoms enjoyed in terms of functionings, given their personal features and their command over commodities. It states that a person may well regard happiness as an important functioning for her well-being.

Answer 24

Amartya Sen’s Capability Approach

Question 25

This is the ability to meet basic needs.

Answer 25

Sustenance

Question 26

This is to be a person. It is the feeling of worthiness that a society enjoys when its social, political, and economic systems and institutions promote human values.

Answer 26

Self-esteem

Question 27

This means to be able to choose.

Answer 27

Freedom from servitude

Question 28

What are the 3 core values of development?

Answer 28

Sustenance
Self-esteem
Freedom from servitude

Question 29

When were the MDGs or Millennium Development Goals established by the UN?

Answer 29

2000

Question 30

According to Amartya Sen’s capability approach, this is what people do or can do with
the commodities of given characteristics that they come to possess or control.

Answer 30

Functioning

Question 31

This is a holistic measure of living levels.

Answer 31

Human Development Index

Question 32

The gross domestic product per capita is replaced by?

Answer 32

Gross national income per capita

Question 33

This represents the different factors that explain the differences in the levels of income of countries.

Answer 33

Schematic Representation

Question 34

This is a society, organization founded for some purpose or an established law, practice, or custom.

Answer 34

Institution

Question 35

What does PPP stand for?

Answer 35

Purchasing Power Parity

Question 36

This weights changes in per capita income by population size.

Answer 36

Per capita income convergence

Question 37

This is defined by different
socio-cultural issues, rates of rural to urban
migration, pacing of modernization and
industrialization and geographical issues.

Answer 37

Adverse Geography