First LE

• Law, order, and discipline are prerequisite for refinement, and thus are critical in achieving economic development, according to David Hume?

  True
• Ascetism was a result of Christian belief that God was a god of providence?

  True
• Mercantilism upheld economic development for the benefit of the larger population?

  false
• Classicism maintained that economic development must be achieved but not as much as civil liberties?

  true
• Robbin's definition of economic development completely captures the essence of the term?

  false
• Amartya Sen's capability approach maintained that economic development must enable us to widen our freedoms?

  true
• Economic development is the same as economic growth?

  false
• The Antigrowth theory believed that economic development must be rejected because of its effect on growth that lead to negative externalities?

  true
• Physiocracy believed that farmers must be given their fair share of the plenty?

  true
• Economic development was not desirable at the time of the Ancient Greeks and Primitive Christians. The former depreciated foreigners due to trade being dishonorable while the latter was held back by the idea of rapture or the coming of the Lord?

  true
• economic development in terms of increasing real income per head or increasing potential to produce such income?

  Robbin's Economic Development
• Validity of economic analysis and prescriptions should always be evaluated in light of the underlying assumptions or value premise?

  true
• On Ancient Greeks, foreigners are unwelcome and trade is discouraged?

  true
• Mercantilism is a culmination of a nation state. Its goal is power and plenty?

  true
• They emphasized the role of government in achieving a more distributed happiness and wealth?

  Hume and Smith
• Economic development was no longer an either-or-problem: marginal effect was on the spotlight?

  Marginalism
• Economic development must increase not only our incomes but also our freedoms?

  Human Development Index
• average number of years a newborn child would live if subjected to the mortality risks prevailing for the cohort at the time of their birth?

  Life Expectancy
• consuming too little food to maintain normal levels of activity?

  Rate of Undernourishment
• percentage of adults with basic abilities to read and write?

  adult literacy
• Problems with the old HDI?

  empirically not sound

  does not take account quality, focuses of quantity

  high variations in results
• • Agriculture-based
  • Limited production due to little or no technology
  • Producer is also the consumer
  • Its drivers is feudalism?
  • Traditional Society
• · Emphasis on the importance of technology, knowledge, investments

  · Increase in population

  · Rapid urbanization?

  Preconditions take off
• ·        Industrialization

  ·        Technology adoption

  ·        Openness to trade

  ·        Sustained annual investment rate at 10%?

  Drivers

  ·  Institutionalized capital investment

  ·  Sustained and enlarged momentum in the preconditions

  Reactive nationalism towards modernization

  Takeoff
• ·        Diversification in the use of technology and capital in areas outside of agriculture

  ·        Increase in per capita income and consumption?

  drive to maturity
• ·        Mass Production

  ·        Consumerism

  ·        Society thrives in capitalism

  Drivers

  Technological Spillover?

  High Mass Consumption
• Classical roots: two sectors – agri and non-agriculture with different behaviors?

  Arthur Lewis Theory of Development
• agri is a _ non-agri is a _ from agri stagnation?

  Capitalist sector

  temporary deviation
• advancement leads to higher population growth?

  Malthusian trap
• Rostow/Harrod-Domar assumptions?

  Savings = Investments

  Higher I lead to higher capital

  more capital in the form of more technology increases productivity (higher Y)

  Higher Y increases savings
• Lewis – agri is a dominant _ ; modern sector is the _?

  non-capitalist sector

  capitalist sector
• Structural Transformation of a subsistence economy?

  Lewis Theory of Development
• Excess labor in the rural area is absorbed entirely by the industrial sector?

  Self-sustained growth in the modern sector
• declining land to labor ratio, as capitalist uses up labor, and the wages increase in response to an increasing marginal product of labor?

  Lewis Turning Point
• Increase savings rate to enable investment/technology?

  Rostow/Harrod-Domar
• Cheap rural surplus labor 

  diminishing marginal product of labor 

  Profits ?

  Lewis structural change
• Political and economic imperialism of developed over underdeveloped countries?

  Neocolonial dependence
• Incorrect policies imposed/suggested by international experts?

  False paradigm
• In Solow vs Classical Growth Theoy, K is no longer fixed: investment causes it to grow, depreciation causes it to shrink?

  true
• In Solow vs. Classical Growth Theoy, L is no longer fixed: population growth causes it to grow. All N is L?

  true