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Questionnaire 2

In: Other Topics

Submitted By Gilbertlee
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Questions for Test 2 ECO 320 Economics of Development

Chapter 1

1.Developing countries share some features (low levels of income, etc.), but they are quite different in many respects. Explain what we mean by “institutions” and how is it that developing countries different in institutional development. How would the differences in the development of institutions make it more difficult to formulate policies for development and theories of development?

2.Is there a fixed set of prerequisites for development? Explain.

Chapter 2

3.Comment on the following statement: The level and growth rate of real GDP per capita can be a misleading indicator of development. At the same time, countries that experience sustained increases in real GDP per capita over time will tend to be more developed.

4.Why is an understanding of what “development” means crucial to policy formulation in developing nations? Why do you think a country may have difficulties in agreeing on a rough definition of development?

5.Why do we use “purchasing power parity” measures when comparing incomes across countries?

6.Suppose that you had to explain this graph to someone who is not a “visual learner” – he just doesn’t get pictures. You have to explain every feature of the graph using words.

7.What are the components of the Human Development Index? What are some strengths and weaknesses of the HDI as a comparative measure of human welfare?

8.Discuss the Millennium Development Goals. How can the mere act of adopting these goals as aims of action be beneficial for economic development?

Chapter 3

9.What does it mean to say that “factor accumulation” and “productivity growth” are important for development? How are they distinct?

10.Most growth models assume that new investment increases the capital stock, that investment is financed by saving, and that saving comes

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