Sociology Of Development

Question 1

Economic system

Answer 1

An economic system is a socially created institution that coordinates human activity in an effort to produce, distribute and consume goods and services.

Question 2

Surplus wealth

Answer 2

Is a situation in which the amount of available food items and other products exceed that which is required to subsist, or to meet basic needs for human survival.

Question 3

Socialism

Answer 3

Socialism is an economic system whereby raw materials and the means of producing and distributing goods and services, are collectively owned.

Question 4

Capitalism

Answer 4

Capitalism is an economic system in which the raw materials and the means of producing and distributing goods or services are privately owned.

Question 5

Welfare state

Answer 5

The welfare state is a term that applies to an economic system that is a hybrid of capitalism and socialism.

Question 6

Modernisation Theory

Answer 6

The modernisation theory holds that, poor countries are poor because they have yet to develop into modern economies and that their failure to do so is largely the result of internal factors such as a country’s resistance to free-market principles, or to the absence of cultural values that drive material success.

Question 7

Dependency Theory

Answer 7

Dependency theory holds that, for the most part, poor countries are poor because they are products of a colonial past.

Question 8

World System Theory

Answer 8

World system theory argues that capitalist responses to economic downturns and stagnation have driven a 500-year-plus economic expansion, which has facilitated interconnections between local, regional and national economies.