Definition of Economic Development

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What is the primary concern of economics?

Scarcity of resources (correct)

Equitable distribution of wealth

Unlimited resources

Maximizing profits for businesses

Which of the following best describes the problem of scarcity?

The available resources are insufficient to meet the demand for them (correct)

There is an oversupply of resources, leading to waste

Resources are evenly distributed among all members of society

Resources are unlimited, but people's wants and needs are limited

Why is a systematic and logical way of allocating resources necessary?

To encourage unlimited consumption of resources

To ensure equal distribution of resources among all members of society

To address the problem of scarcity (correct)

To maximize profits for businesses

What is the relationship between economic growth and economic development?

Economic growth is a necessary but not sufficient condition for economic development Signup and view all the answers

Which of the following is a factor that promotes or hinders economic development?

All of the above Signup and view all the answers

What is the purpose of the course discussed in the text?

To explore the concept of economic development and its factors Signup and view all the answers

If a foreign company operates within a country's borders, its production and income will be included in the calculation of:

The country's GDP, but not its GNP or GNI Signup and view all the answers

In the expenditure approach for calculating GDP, which of the following is not included in the formula?

Net foreign factor income Signup and view all the answers

If a country's personal consumption expenditures increase while its net exports decrease by the same amount, what will be the effect on its GDP?

GDP will remain unchanged Signup and view all the answers

Which of the following statements is not true about GNP or GNI?

It is geographically focused, including only output produced within a nation's borders Signup and view all the answers

If a country's exports increase while its imports remain constant, what will be the effect on its GDP?

GDP will increase Signup and view all the answers

If a country's government expenditures decrease while all other components of GDP remain unchanged, what will be the effect on its GDP?

GDP will decrease Signup and view all the answers

What is described as 'necessary but not the sufficient conditions for development'?

Increasing per capita incomes Signup and view all the answers

Which term refers to 'the sense of worth and self-respect, of not being used as a tool by others for their own ends'?

Dignity Signup and view all the answers

According to Amartya Sen, what does 'development is freedom' mean?

Expanding one's range of choices Signup and view all the answers

Which aspect of development involves being able to 'enjoy food, travel, and leisure'?

Freedom from servitude Signup and view all the answers

What is an essential component of self-esteem according to the text?

Not being used as a tool by others Signup and view all the answers

In the context of development, what is considered 'necessary but not sufficient' according to the text?

Decreasing income inequalities Signup and view all the answers

Which of the following is NOT a core value or objective of development?

Economic growth Signup and view all the answers

Based on the definition provided, which of the following statements is TRUE about development?

It involves major changes in social structures and popular attitudes. Signup and view all the answers

What is the primary purpose of economic activities related to production and consumption?

To provide for the needs and wants of people and help them overcome deficiencies Signup and view all the answers

Which of the following statements is consistent with the definition of development provided in the text?

Development must represent changes that move a society toward a better condition of life. Signup and view all the answers

Which of the following statements is TRUE about self-esteem as a core value of development?

Self-esteem is considered a fundamental human need that development aims to address. Signup and view all the answers

Based on the information provided, which of the following statements is NOT consistent with the definition of development?

Development is a one-dimensional process focused solely on increasing per capita income. Signup and view all the answers

What is the main difference between a recession and a depression?

A recession is a temporary decline in economic activity, while a depression is a more severe and prolonged economic downturn. Signup and view all the answers

According to the passage, what are the three key questions to ask about a country's development?

What has been happening to the country's poverty, unemployment, and inequality? Signup and view all the answers

What is the main reason why the traditional definition of development (based on GDP growth) was reconsidered?

The experiences of many developing countries in the 1960s and 1970s, which worsened in the 1980s and 1990s, proved that having increases in GDP is not enough to improve the lives of their citizens. Signup and view all the answers

According to the passage, which of the following is NOT a characteristic of a recession?

A period of economic growth. Signup and view all the answers

How does the passage describe the traditional definition of development?

The traditional definition of development is narrowly focused on increases in a nation's production and income, as measured by its gross domestic product (GDP). Signup and view all the answers

What is the main implication of the passage's discussion of the new economic view of development?

The experiences of developing countries in the 1960s-1990s have led to a fundamental rethinking of how development should be defined and measured. Signup and view all the answers