ECO DEV 1.1

• A major goal of poor countries is __________

  economic development or economic growth
• refers to increases in a country's production or income per capita.

  Economic growth
• Production is usually measured by _______in Economic Growth

  gross national product (GNP) or gross national income (GNI)
• an economy's total output of goods and services.

  gross national product (GNP) or gross national income (GNI)
• refers to economic growth accompanied by changes in output distribution and

  economic structure.

  Economic development
• is a broader concept than economic growth.

  Economic development
• reflects social and

  economic progress and requires economic growth.

  Economic development
• _____ is a vital and necessary condition for

  development, but it is not a sufficient condition as it cannot guarantee development.

  Growth
• it is about creating freedom

  for people and removing obstacles to greater freedom? According to?

  economic development and Amartya Sen
• _____ enables people to choose their own destiny? According to?

  Greater freedom and Amartya Sen
• Obstacles to freedom, and hence to

  development, include?

  poverty, lack of economic

  opportunities, corruption, poor governance, lack of education and lack of health.
• METRICS DETERMINED BY NATIONAL INCOME

  ACCOUNTING

  Gross Domestic Product (GDP),

  Net National Product (NNP),

  Gross National Product (GNP),

  personal income, and

  disposable income
• refers to the government bookkeeping system that measures the health of an economy, projected growth, economic activity, and

  development during a certain period of time.

  National income accounting
• the most commonly used metrics of the economy is?

  GDP
• It is the cumulative value of products and services generated in an economy

  over a given period of time.

  GDP
• Only the goods produced in the home country are included in _____ regardless of the nationality status of the company owners.

  GDP
• may not represent the correct value, as some goods

  may not even make it to the market, which makes it difficult to determine the true value

  of the market.

  GDP
• The other economic measures can

  be derived from

  GDP
• measures the total monetary value of the output produced by a country's

  residents.

  GNP
• any output produced by foreign residents within the country's

  borders must be excluded in calculations of ___, while any output produced

  by the country's residents outside of its borders must be counted.

  GNP
• measures of national income and output

  GDP, GNP, NNI, NNI AT FACTOR COST
• is defined as gross national income minus the depreciation of

  fixed capital assets (dwellings, buildings, machinery, transport equipment and physical

  infrastructure) through wear and tear and obsolescence.

  Net national income
• NNI adjusted for natural resource depletion

  ADJUSTED NATIONAL

  INCOME
• also called as NNI at factor cost

  ADJUSTED NATIONAL

  INCOME
• Adjusted net national income is EQUAL TO?

  GNI - consumption of fixed capital and natural resources depletion.