3.2 Development Economics

• Developing economies often have limited access to healthcare.
• The Human Development Index (HDI) considers both economic and social progress.


  True
• Modernization Theory suggests that developing countries should adopt Western values and institutions.
• Dependency Theory argues that developing countries are hindered by unequal trade and external debt
• Dependency Theory advocates for foreign investment as a primary driver of development

  False
• Trade opens up access to larger global markets, boosting economic growth


  True
• Foreign aid can address critical needs such as health and education
• Developed economies are characterized by high income and advanced industrialization
• Development Economics focuses on improving the economic and social conditions of developing countries.
• Order the components of the Human Development Index (HDI) from broadest to most specific.

  1️⃣ Combines economic, health, and education aspects

  2️⃣ Life expectancy at birth

  3️⃣ Mean years of schooling

  4️⃣ Expected years of schooling

  5️⃣ GNI per capita
• The HDI combines economic, health, and education aspects to provide a comprehensive view of development.
• Dependency Theory argues that developing countries are exploited by developed countries through unequal trade.


  True
• Match the theory with its example:

  Modernization Theory ↔️ South Korea

  Dependency Theory ↔️ Latin American trade blocs
• What is the role of trade in economic development?

  Specialize and benefit from comparative advantage
• Conditional aid always leads to positive economic outcomes

  False
• Match the example with the related concept:

  South Korea ↔️ Trade

  African nations ↔️ Foreign Aid
• Developing economies often have underdeveloped infrastructure

  True
• The HDI combines economic, health, and education
• What does Modernization Theory assume about development stages?

  Development happens in stages
• Steps advocated by Dependency Theory to promote independent development

  1️⃣ Self-reliance

  2️⃣ Fair trade

  3️⃣ Debt reduction
• What is a benefit of trade for developing countries?

  Access to global markets
• What type of assistance does foreign aid provide to address critical needs?

  Financial and technical
• A circular economy aims to eliminate waste and the continual use of resources.


  True
• Developed economies have high literacy rates and good access to healthcare.


  True
• GNI per capita measures the total income of a country's residents divided by its population.
• Match the development theory with its key factors:

  Modernization Theory ↔️ Technology transfer, foreign investment

  Dependency Theory ↔️ Unequal trade agreements, external debt
• What does Modernization Theory emphasize for development?

  Technology transfer and investment
• Modernization Theory assumes that countries progress through stages and need to adopt Western values and institutions


  True
• One drawback of foreign aid is that it can create dependence
• What is comparative advantage in trade?

  Producing goods at lower opportunity cost
• What is the focus of Development Economics?

  Economic and social conditions of developing countries
• Order the components of the Human Development Index (HDI) from simplest to most comprehensive:

  1️⃣ GNI per capita

  2️⃣ Life Expectancy Index

  3️⃣ Education Index

  4️⃣ Combined HDI
• Why might a country with lower GNI per capita have a higher HDI?

  Superior health and education systems
• Dependency Theory argues that developing countries are dependent on developed countries, hindering their growth
• What is a key factor in Modernization Theory?

  Technology transfer
• Foreign aid can distort local markets in developing countries.


  True
• Sustainable development meets the needs of the present without compromising future generations
• What is a significant challenge faced by developing economies that limits access to basic needs?

  Poverty
• Which country is an example of political instability and corruption hindering development?

  Myanmar
• How is GNI per capita calculated?

  Total National Income / Population