Development Economics and Institutions Quiz

<p>It improves citizens’ understanding of poor government performance. (A)</p> Signup and view all the answers

<p>Forces protecting narrow elites (B)</p> Signup and view all the answers

<p>Genuine development (D)</p> Signup and view all the answers

<p>Broad access to economic opportunities (C)</p> Signup and view all the answers

<p>Which economic institutions most facilitate development. (D)</p> Signup and view all the answers

<p>Redistribution from growth (A)</p> Signup and view all the answers

<p>Increase of unemployment (D)</p> Signup and view all the answers

<p>The capability to function (D)</p> Signup and view all the answers

<p>Inability to achieve well-being (A)</p> Signup and view all the answers

<p>Global economic trends (A)</p> Signup and view all the answers

<p>Material wealth accumulation (B)</p> Signup and view all the answers

<p>The activities one engages in (A)</p> Signup and view all the answers

<p>As a multidimensional process (D)</p> Signup and view all the answers

<p>A valued state of being or doing (C)</p> Signup and view all the answers

<p>It enhances an individual's opportunity to choose (B)</p> Signup and view all the answers

<p>Average national happiness increases with average income (A)</p> Signup and view all the answers

<p>Climate change (B)</p> Signup and view all the answers

<p>Capabilities provide opportunities for achieving valued functionings (B)</p> Signup and view all the answers

<p>It enhances opportunities for personal growth (A)</p> Signup and view all the answers

<p>Capability must be considered alongside functioning (D)</p> Signup and view all the answers

<p>Being happy (C)</p> Signup and view all the answers

<p>Conditional convergence (B)</p> Signup and view all the answers

<p>Learning from past mistakes (B)</p> Signup and view all the answers

<p>Developing countries experience larger marginal benefits from capital. (A)</p> Signup and view all the answers

<p>Colonialism (D)</p> Signup and view all the answers

<p>China and South Asia (A)</p> Signup and view all the answers

<p>Growth patterns are inconsistent. (C)</p> Signup and view all the answers

<p>Changes in per capita income weighted by population size. (B)</p> Signup and view all the answers

<p>Economic policy flexibility (D)</p> Signup and view all the answers

<p>It creates or enforces inequality. (B)</p> Signup and view all the answers

<p>It directly impacts income and development. (B)</p> Signup and view all the answers

<p>Narrow elite protections limiting broader opportunities. (C)</p> Signup and view all the answers

<p>They encourage better quality public goods. (C)</p> Signup and view all the answers

<p>It enhances government effectiveness as a force for development. (C)</p> Signup and view all the answers

<p>Institutions enhance civil society’s ability to act independently. (B)</p> Signup and view all the answers

<p>Legacies of colonialism and dictatorships contribute to challenges. (C)</p> Signup and view all the answers

<p>They serve as meta-institutions for improving governance. (D)</p> Signup and view all the answers

<p>A situation where agents' inability to coordinate leads to a suboptimal outcome. (C)</p> Signup and view all the answers

<p>Circumstances where one agent's action enhances the incentives for others to act similarly. (C)</p> Signup and view all the answers

<p>A widespread, coordinated initiative often involving public policy. (C)</p> Signup and view all the answers

<p>Returns that are enhanced when others make similar investments. (B)</p> Signup and view all the answers

<p>O-ring model. (D)</p> Signup and view all the answers

<p>Individuals may wait for others to initiate action. (B)</p> Signup and view all the answers

<p>It can result in worse outcomes for all involved. (B)</p> Signup and view all the answers

<p>By aligning their expectations and actions. (A)</p> Signup and view all the answers

A development strategy focusing on reducing poverty, inequality, and unemployment while promoting economic growth. It emphasizes sharing the benefits of growth to uplift marginalized communities.

Development encompasses social, economic, and institutional changes. It involves improving living standards, reducing disparities, and strengthening institutions for sustainable progress.

A framework that emphasizes individual's ability to achieve a desired quality of life. It focuses on what people can 'be' and 'do' rather than just their income or possessions.

The ability of an individual to act and achieve desired well-being based on their capabilities. This involves using resources and opportunities to live a fulfilling life.

What people actually do or can do with their resources and capabilities. This involves the concrete actions and experiences that contribute to their well-being.

Poverty is not just about lacking income, but also about lacking the capabilities to live a fulfilling life. It means being deprived of the freedoms to achieve desired functionings.

Development is about expanding individual capabilities to live a good life. This involves creating opportunities for all to achieve their full potential.

Social conventions, family and societal position, festive occasions, and physical distance can all influence what people can do and become.

An individual's real freedoms or opportunities to achieve functioning's. It's the ability to choose and pursue a desired way of being or doing.

A state of being where an individual experiences both functioning's (actual outcomes) and capability (freedoms of choice) that contribute to their overall well-being.

Happiness is a part of human well-being, and increased happiness can lead to expanded capabilities to function.

There's a correlation between average income and national happiness levels.

Family relationships, financial situation, work, community, health, personal freedom, and personal values significantly impact national happiness.

Development should focus on sustainably improving the lives of people and society towards a better and more humane experience.

Development involves three core values as guidelines: sustainable improvement, social progress, and a more humane existence.

The tendency for poorer countries to grow faster than richer countries, leading to a narrowing of income gaps over time.

Convergence that occurs when other factors, like savings rates, labor force growth, and technology, are similar across countries.

Developing countries adopting technology developed in richer countries, skipping earlier stages of development and improving productivity quickly.

The growth of a country's capital stock, such as factories and machinery. In developing countries, this leads to faster output growth due to initial scarcity.

The principle that as more capital is added to a system, the increase in output becomes progressively smaller.

Colonialism shaped institutions that affected economic development, often hindering opportunities for growth in colonized countries.

The study of why some countries develop faster than others and have higher living standards.

Rules of the economic game, created by institutions, can either limit or encourage economic growth.

Human capital, like quality education and healthcare, is crucial for long-term development, similar to strong institutions. It can directly impact income and human development.

A well-educated population benefits both government effectiveness and market functioning. Informed citizens can hold officials accountable and participate in economic growth.

The quality of institutions established after colonialism significantly affects private, public, and civil society sectors.

Democratic governance, rule of law, and constraints on elites promote high-quality public goods and encourage private investments.

Protecting property rights, enforcing contracts, and providing equal access to opportunities encourage private investments and economic development.

Strong institutions enable civil society organizations to operate effectively, providing a check and balance to both state and market.

Colonial institutions that favored a small elite can leave lasting negative effects on health and education, hindering development even after independence, as seen in India.

While the ideal economic institutions are still debated, research shows that institutions that limit access to opportunities for the majority are major barriers to development.

Colonization often created or reinforced inequality, particularly along ethnic lines, hindering economic growth and development in postcolonial societies.

High levels of inequality make it harder for societies to invest in human capital and public goods, further hindering development and making democratic transitions less likely.

Human capital, such as education and skills, directly influences income levels and overall human development.

The quality and reach of education determine the effectiveness of government in promoting development by creating a more capable civil service and fostering informed citizenship.

Democratic governance, rule of law, and checks on power encourage public investment and attract private investment, fostering economic growth.

Strong institutions allow civil society to operate independently of the government and market, contributing to diverse economic and social development.

Economic development involves a complex interplay of government, market, and civil society, each influencing productivity, incomes, and overall human development.

Protecting narrow elites and limiting opportunities for the broader population are major barriers to successful economic development, especially when institutions resist reform.

A situation where agents cannot coordinate their actions, leading to a worse outcome for everyone compared to a possible alternative.

When one agent's action increases the incentives for others to take similar actions. This often involves mutually beneficial investments.

A coordinated effort across various industries and skills, often led by government policies, to kickstart or accelerate economic development.

An economic model showing how strongly interconnected production elements are. Upgrading one area benefits others, but a weak link can drastically reduce overall output.

Agents are unable to coordinate their actions, even though they are aware of a better outcome, leading to a worse equilibrium for everyone.

They create situations where investments or actions are more beneficial when done in collaboration with other agents, leading to mutually beneficial outcomes.

It aims to overcome coordination failures and create a critical mass of economic activity by stimulating multiple industries simultaneously.

Quality and skill levels across different parts of production are crucial for achieving high output. Weak links can significantly damage overall performance.