Development Economics Quiz: Test Your Knowledge

What is the traditional approach to defining poverty?

According to the Capability approach, why are material resources alone not enough to guarantee well-being?

In the context of poverty, what does the Capability approach emphasize?

According to Amartya Sen, what may make a rich person greatly deprived or poor despite having material wealth?

What is the key difference between the monetary approach and the Capability approach in defining poverty?

According to Amartya Sen, which approach goes beyond the materialistic understanding of poverty?

What is the focus of the monetary approach in defining poverty?

In the context of poverty, what does the Capability approach emphasize?

What is the traditional approach to defining poverty?

What is the key difference between the Capability approach and the monetary approach in defining poverty?

Defining Poverty: Traditional Approach

The traditional approach to defining poverty focuses on income or expenditure, assuming that those who fall below a certain threshold are poor.
This approach is limited, as it only considers material resources and does not account for other aspects of well-being.

Capability Approach

The Capability approach, developed by Amartya Sen, emphasizes that material resources alone are not enough to guarantee well-being.
This approach considers the ability of individuals to pursue their goals and aspirations, focusing on their capabilities and freedoms.
According to Sen, a rich person can be greatly deprived or poor despite having material wealth, if they lack essential capabilities or freedoms.

Key Differences

The key difference between the Capability approach and the monetary approach is that the former goes beyond material wealth to understand poverty.
The Capability approach emphasizes the importance of individual capabilities, freedoms, and well-being, whereas the monetary approach focuses solely on income or expenditure.

Focus of Each Approach

The monetary approach focuses on the minimum amount of income or expenditure required to meet basic needs.
The Capability approach focuses on the individual's ability to achieve their goals, aspirations, and well-being, regardless of their income or material wealth.

Test your understanding of development economics with this quiz focusing on definitions and measures of poverty, mechanisms generating poverty traps, path dependence of growth processes, and connections between inequality and development. Explore Amartya Sen's four approaches to poverty, including the monetary approach, and deepen your knowledge in this field.