ECONOMIC DEVELOPMENT - PRELIMS

productivity

amount of goods and services produced from each unit of labor

physical capital

assets utilized to produced goods and services

human capital

measure education attainment, trainings, years of experience and capability

natural resources

comparative advantage

includes trees, water, minerals, metals, fruits and root crops that makes an economy produced more goods and services

technology

closely related to research and development

the output of innovation

land

labor

capital

entrepreneurship

4 factors of production

united nations

finances millenium development goals (MDG)

international development Association (IDA)

finances United Nation (UN)

classical growth theory

modern category of economic theory that is applied to the work of several economist

developed by most British economist during the industrial revolution

Adam Smith

father of modern economics

scottish economist

wealth of the nation

Adam smith wrote the book ______

Adam Smith

defines the economics as an inquiry in to the nature and causes of the wealth of the nations

familiar in the law of supply and demand

leave alone theory

laissez-faire theory aka ______ : promotes market capitalism (free market) opposing government intervention and business operations

david ricardo

he extended the theory of Adam Smith

david ricardo

he also develop the concept of comparative advantage (country or location especialization)

gains from trade

this is the extra production/output from international trade

karl marx

father of modern socialism

marxism theory

the means of production should be held by the ones operated them

milton friedman

american economist

monetarism theory

monetarism theory

money supply is the primary factors which drives different economics situation (value of money)

john maynard keynes

father of macroeconomics

keynesian theory

promotes government spending on infrastructures and education to increase consumer demand (makes accessible and affordable to the public)

thomas malthus

an economist and philosopher proposed malthusian theory

population theory

malthusian theory also known as ______

malthusian theory

human population grows faster than food supply

economic development

process by which the economic well-being and quality of a nation, region, local community or an individual are improved according to targeted goals and objectives

1. infrastructure

2. education system

3. public safety

4. local business

5. job opportunities

6. tourism

objectives of economic development includes innitiative to improve the following:

1. education

2. health

3. employment rate

4. gender equality

main social indicators of development:

gdp

sum of the income contributed by firms, household;

measure how much money can a country make

gnp

gdp + income abroad

gnp per capita

calculated as gnp/population

human development index

composite statistic calculated in the:

1. life expectancy index

2. education index

3. mean years of schooling index

4. expected years of schooling index

5. income index

infant mortality rate

numbers of infants dying before reaching the age of 1

literacy rate

to assess the education';

can be used to rate the percentage of people who are able to read

life expectancy rate

can be used as an indicator of the following:

1. health care quality in a country or province

2. level of sanitation

3. provision of care for elderly

economic structure

the structural transformation in the economy

urbanization

measures the incrasing portion of population living in urban areas compared to rural

saving figures

measures the investment and capital in an economy for industrialization process

industrialization

mass production

quality of life index

it measures the welfare of citizen and prosperity

1. physical quality index

numerical literacy

ability to count 1-1000