Kevin Bialczak – Ec207 Final Exam

Final Exam Review > Kevin Bialczak – Ec207 Final Exam

Wilfrid Laurier University EC 207 EC207 CH 1 Notes – Introducing Economic Development: A global Perspective 1.1 How the Other Half Live  2/5’s of the population lives on $2 per day  Absolute poverty: o A situation of being unable to meet the minimum levels of income, food, clothing, health care, shelter, and other essentials  Subsistence economy: o ...[Show More]

Wilfrid Laurier University
EC 207
EC207 CH 1 Notes – Introducing Economic Development: A global Perspective
1.1 How the Other Half Live
 2/5’s of the population lives on $2 per day
 Absolute poverty:
o A situation of being unable to meet the minimum levels of income,
food, clothing, health care, shelter, and other essentials
 Subsistence economy:
o An economy in which production is mainly for personal consumption
and the standard of living yields little more than basic necessities of
life – food, shelter and clothing
 Development:
o The process of improving the quality of all human lives and
capabilities by raising peoples levels of living, self esteem, and
freedom
 Developing countries:
o Countries of asia, Africa, the middle east, latin America, eastern
Europe, and the former soviet union that are presently characterized
by low levels of living and other development deficits
1.2 Economics and Development studies
The nature of development economics:
 Traditional economics is concerned primarily with the efficient, least-cost
allocation of scarce productive resources and with the optimal growth of
these resources over time so as to produce an ever-expanding range of goods
and services
 Traditional neoclassical econ failed to address challenges faced by
development: static issues of market efficiency
 Political economy: goes beyond traditional economics to study, among other
things
o The attempt to mere economic analysis with practical politics
o Concerned with the relationship between politics and economics
 Development economics: has a greater scope, in addition to traditional
economics, it also deals with the economic, social, political and institutional
mechanisms, both public and private to bring large scale improvements
 Economic Development:
o Means bringing change to the life of those people from low level to
high levels of development
 Development economics:
o Field of study devoted to understanding the economic experience of
developing countries
 What are developing countries?