Adalberto Melchor
Econ
Assignment 2
1—According to the textbook, “economics is a social science” means that it focuses on human needs both material and nonmaterial. By understanding economics we have a better way of understanding and the problems of developing nations. Also stated in the textbook is that central economics problems include different issues on the production of goods and service (Todaro & Smith, P. 26).
5— By understanding development, developing nations can identify the problems and formulate policy to improve people’s wellbeing (Todaro & Smith, P. 5). I think currently nations can’t agree on a rough definition of development because most of them have different approaches, measurements and standards. But I think in the future there might be a working definition that the nations can agree on and orient its strategies accordingly. As the textbook mentions there are three basic components that help understand the meaning of development which are sustenance, self-esteem and freedom (Todaro & Smith, P. 21).
6—The Strictly economic definition of development was inadequate due to not taking into account the factors other the financial or economical. I thought that economic development meant financial growth or the increase in production of goods. An example of a country that is developed economically but still underdeveloped would have to be India because it is producing a lot of goods and services but much of its citizens are living in poverty and there’s still a high inequality between genders.
7—The Capabilities to function help us gain insight into development goals and achievements by letting us see how much freedom of choice a person has in their country which makes it a good measurement of development. I think money isn’t enough because having money doesn’t prevent you from getting sick, living long or even guaranty you