CWORLD Midterm Quizzes

• The Bangladeshi apparel industry is what keeps the country's economy afloat as far as Paul Krugman is concerned. However, for the detractors of economic globalization, it is exploitation and oppression, a form of economic colonialism that puts profits before people.
• Income values the flow of goods and services, not the stock of assets.
• Wealth values the stock of assets, not the flow of goods and services.
• According to the Global Wealth Report 2016 by the Credit Suisse Research Institute, global wealth today is distributed unequally.
• According to development practitioners, the world economies have become more interconnected and trade liberalization has been the driving force for the growth of many developing economies.
• Trade protectionism involves giving preferential treatment to domestic producers and discriminating against foreign competitors.
• The Great Depression of 1929 marked the peak of protectionism.
• The central idea of sustainable development is that global ecosystems and humanity itself can be threatened by neglecting the environment.
• In a broader sense, sustainable development is defined by the Brundtland Commission.
• Neoclassical Counterrevolution Model


  Free-market analysis, public choice theory, and market-friendly approach belong to this model.
• New Growth Models


  The model suggests an active role for public policy in promoting econ development thru direct and indirect investments in human capital formation.
• Linear Stages Model


  A model of a progressive transition from traditional to a modern industrial society.
• Structural Change Models


  The primary focus of the model is on both the process of labor transfer and the growth of output & employment in the modern sector.
• Structural Change Models


  Analysts of this model are basically optimistic that the “correct” mix of econ policies will generate beneficial patterns of self-sustaining growth.
• Neoclassical Counterrevolution Model


  Assumes politicians, bureaucrats, citizens, & states act solely from a self-interested perspective, using power and authority of government for their own selfish ends.
• Harrod-Domar Model


  For a traditional society to move towards an industrial urban-based society, the mobilization of domestic and foreign savings is necessary to generate sufficient investment.
• Linear Stages Model


  Development proceeds a linear path.
• Neoclassical Counterrevolution Model


  “Good government is minimal government”
• Structural Change Models


  The growth of output and employment in the modern sector will eventually absorb the excess labor in the rural sector.  This will require increase individual investment and capital accumulation in the modern sector.
• International Dependence Models


  Underdevelopment of LDCs is attributed a large part of the 3rd world’s  continuing and worsening poverty to the existence  and policies  of the industrial capitalists of the northern hemisphere and the elite “compradors” in the host LDCs.
• International Dependence Models


  Different sets of conditions, of which some are “superior” and others “inferior”, can coexist in a given space.
• International Dependence Models


  Compared to structural change theorists, these analysts are pessimistic.
• International Dependence Models


  These models view developing countries’ underdevelopment as caused by an international system of dominance and dependence relationship with rich countries.
• International Dependence Models


  The existence and continuance of underdevelopment is primarily due to the historical evolution of a highly unequal international capitalist system of rich - poor country relationship.
• International Dependence Models


  The model attributes underdevelopment to faulty and inappropriate advice provided by well-meaning but often uninformed, biased international expert advisers from developed countries and multilateral donor agencies.
• Structural Change Models


  Economists that advocated this model argued that despite variations, one can identify certain patterns occurring in almost all countries during the development process.  Such patterns may be affected by the choice of development policies of developed nations.
• Structural Change Models


  The model argues that LDCs consist of two sectors – a traditional overpopulated rural sector with surplus labor and a high-productivity modern sector.
• International Dependence Models


  Recognizes the many imperfections in LDC product and factor markets and that governments do have a key role in facilitating the operation of markets thru “market-friendly” interventions by investing physical and social infrastructures, healthcare facilities, and educational institutions.
• Structural Change Models


  The engine of economic growth is the transformation of a developing economy’s economic, industrial, and institutional structure.
• New Growth Models


  The model is simply expressed by the equation, Y = Ak, where Y is output, A is any factor affecting technology, and k is physical and human capital.
• New Growth Models


  This theory provides a framework for analyzing endogenous growth, persistent GNP growth that is determined by the system governing the production process rather than by forces outside of the system.
• Harrod-Domar Model


  In order to grow, the economy must save and invest a certain proportion of their GNP.  The more they can save and invest, the faster they grow.
• The narrow goal of economic development is economic growth which is measured in terms of Gross National Product (or Income).
• In a broader sense, sustainable development is defined by the Brundtland Commission.
• The central idea of sustainable development is that global ecosystems and humanity itself can be threatened by neglecting the environment.
• The collapse of the mercantilist system came as a result of the strict regulations and restrictions imposed by European governments on economic activities.
• Exchange rate is the price of a country’s currency relative to a foreign currency.
• When there are more peso units in exchange for a U.S. dollar than usual, this is an indication that Philippines's economy is getting weaker.
• In David Ricardo's Theory of Comparative Advantage, technological efficiency is key to determining which product a country has the greatest advantage.
• According to Antonio, “Environmentalists argue that environmental issues should be given priority over economic issues.”