Economic Concepts and Theories

Play an AI-generated podcast conversation about this lesson

Match the economic concept with its definition:

Income per Capita = Total gross national income divided by total population Gross National Income = Total domestic and foreign output claimed by residents of a country Gross Domestic Product = Total final output produced by a country's economy within territory Functionings = What people do or can do

Match the economic term with its description:

Traditional Economics = Economics that emphasizes utility, profit maximization, market efficiency Traditional Neoclassical Economics = Deals with an advanced capitalist world of perfect markets Political Economy = Merges economic analysis with practical politics Globalization = Increasing integration of national economies

Match the societal aspect with its definition:

Values = Principles, standards, or qualities Attitudes = States of mind or feelings of an individual Institutions = Norms, rules of conduct, and accepted ways of doing things Social System = Organizational and institutional structure of a society

Match the development concept with its description:

Development Economics = Focuses on how economies are transformed Sustenance = Basic goods and services Self Esteem = Feeling of worthiness society enjoys Freedom = Society has at its disposal a variety of alternatives from which to satisfy wants Signup and view all the answers

Match the poverty-related term with its meaning:

Absolute Poverty = Unable to meet minimum income Subsistence Economy = Production is for personal consumption Less Developed Countries = Developing countries Millennium Development Goals = Set of eight goals adopted to eradicate extreme poverty Signup and view all the answers

Match the economic measure with its definition:

Sector = Subset of an economy Values = Principles, standards, or qualities Capabilities = Freedoms that people have Institutions = Humanly devised constraints that shape interactions in an economy Signup and view all the answers

Explain the difference between absolute poverty and subsistence economy.

Absolute poverty refers to being unable to meet the minimum income required for survival, while subsistence economy involves production solely for personal consumption and not for market exchange. Signup and view all the answers

Define the concept of social system and its relationship with economic factors.

A social system is the organizational and institutional structure of a society, where economic and noneconomic factors have interdependent relationships. Signup and view all the answers

Elaborate on the differences between functionings and capabilities in the context of development economics.

Functionings refer to what people do or can do, while capabilities are the freedoms that people have to pursue those functionings. Signup and view all the answers

Discuss the significance of institutions in shaping interactions within an economy.

Institutions are humanly devised constraints that shape interactions in an economy, influencing behaviors and outcomes. Signup and view all the answers

Explain the difference between Gross National Income (GNI) and Gross Domestic Product (GDP).

Gross National Income is the total domestic and foreign output claimed by residents of a country, while Gross Domestic Product is the total final output produced by a country's economy within its territory. Signup and view all the answers

Describe the core objectives of Millennium Development Goals (MDGs) and their relevance in global development.

MDGs are a set of eight goals adopted to eradicate extreme poverty, improve health, education, and sustainability worldwide. Signup and view all the answers