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Economic Development > Exam 1 > Flashcards

Exam 1 Flashcards

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1
Q

First World

A

market-oriented

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2
Q

Second World

A

centralized economies

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3
Q

Third World

A

rest of the world

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4
Q

Emerging markets

A

major developing countries where financial
instruments are traded/multinational companies operate

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5
Q

Transition economies -

A

Move from Communist to Capitalist

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6
Q

LDCs and DCs

A

Less developed countries and Developed Countries

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7
Q

Sub-Saharan Africa (SSA)

A

Countries south of the Sahara

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8
Q

East Asia

A

Japan, North and South Korea, China, Mongolia, and Taiwan. (With or Without China)

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9
Q

Middle East and North Africa (MENA)

A

Algeria, Bahrain, Djibouti, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Malta, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, the United Arab Emirates, Palestine, and Yemen.

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10
Q

South Asia

A

Bangladesh, Bhutan, India, Pakistan, Nepal, Sri Lanka, and Maldives

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11
Q

Central Asia

A

Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan

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12
Q

OECD

A

Organization of Economic Cooperation and Development, DCs

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13
Q

G7

A

7 Most advanced developed economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States

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14
Q

G8

A

G7+ Russia

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15
Q

G8+5

A

G8+ Brazil, India, China, South Africa, and Mexico

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16
Q

Oil Producing Countries

A

Oil Producing Arab States+ OPEC countries

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17
Q

Large Countries

A

India and China

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18
Q

Island Economies

A

Madagascar

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19
Q

Transition Economies Examples

A

Vietnam, Poland, and Cuba

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20
Q

NICS

A

Newly Industrialized Countries

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21
Q

Gang of Four (Four Asian Tigers)

A

South Korea, Taiwan, Hong Kong, and Singapore

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22
Q

Tiger Clubs: follow tigers soon

A

Phillippines, Malaysia, Vietnam, Indonesia, and Thailand

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23
Q

BRICs

A

Brazil, Russia, India, and China

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24
Q

BRICS

A

Brazil, Russia, India, China, and South Africa

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25
MINT
Mexico, Indonesia, Nigeria, and Turkey
26
Next 11
Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, Vietnam
27
Define Growth
sustained growth in per capita income
28
Development
no formal definition, more of a process with multiple features
29
High Growth but not much development
Gulf Oil Producing States (e.g. Libya, Qatar)
30
High Development but not much Growth
Sri Lanka, Cuba
31
Market Failure
the economic situation defined by an inefficient distribution of goods and services in the free market
32
Government Failures
arises when government has created inefficiencies because it should not have intervened in the first place or when it could have solved a given problem or set of problems more efficiently, that is, by generating greater net benefits.
33
Reasons for market failure
Information, Monopolies, Externalities, and Public goods
34
First World
Market Based Economies
35
Second World
Command Based: USSR
36
Third World
Everybody else in the world
37
The World Bank
Determines the GDP per capita in order to become a DC/LDC DC: 12,535 and above DC 12,534 and below
38
Economic Development
No real definition of Development
39
GDP
Gross Domestic Product The production of Everything within the nations borders
40
GNP
Gross National Product Includes the production of all citizens of that country whether they live in it or not
41
GNI
Gross National Income a measurement of a country's income. It measures all the income earned by a country's residents and businesses, including those earned abroad that flow back into the country Used and preferred by the world banks
42
Doubling Time
number of years it takes for income to double in a country (Rule of 70)
43
Doubling Time Formula
70/g g=growth rate
44
PPP
purchasing power parity; more effective than ER because it takes into account non-traded goods and can be used to compare their value however it does not do a good job in comparing QUALITY
45
LDCs GNI rises with the ___ Computation
PPP
46
Non-traded goods
ttempts to supply non-tradable goods or services from a distance is either impossible or results in a significant loss of utility Example: Haircuts
47
Historical Growth
No growth up until about 1820
48
Leaders in growth from 1580-1820
Netherlands
49
Leaders in Growth from 1820-1890
UK
50
Leaders in growth from 1890-present
USA
51
The Great Divergence
shift in which the Western world (i.e. Western Europe and the parts of the New World where its people became the dominant populations) overcame pre-modern growth constraints and emerged during the 19th century as the most powerful and wealthy world
52
Western Offshoots
U.S., Canada, Aus- tralia, and Nea Zealand
53
GNI indicates ______
Growth
54
HDI indicates ___________
Development
55
HDI: Health
Life expectancy (years)
56
HDI: Education
Expected Years of schooling and Mean years of schooling
57
HDI: Quality of Life
ln(GNI@ppp) captures diminishing marginal utility
58
Dimension Index formula
DI=Actual Value-Minimum Value/ Maximum value-minimum Value
59
MDGs
Millennium Development Goals
60
MDGs purpose
More realistic (met most goals) - More focused (less goals set
61
SDGs
Sustainable Development Goals
62
SDGs Purpose
Less equitable (unreasonable expectations for LDCs) - Less involvement (countries have less say in goals set) - Less obvious goals (poor measurement standards)
63
If Brazil’s growth rate is 5% and GNI per capita (PPP) is $5,750, what will Brazil’s GNI @ PPP be in 5 years (2020)?
A. $7560 B. $8550 C. $6450 D. 7340 (Correct)
64
China wants to double its per capita GDP in 10 years. What should its per capita income growth be?
Formula 70/g = number of years 70/g = 10 G = 7
65
New Zealand has a mean years of schooling of 11.4 and an expected years of schooling of 13.7. Calculate New Zealand’s education index. (Remember that the goal posts for the mean is [0:15], and the expected years is [0:18]
Find mean years ratio: 11.4/15 = 0.76 Find expected year ratio: 13.7/18 = 0.761 Education index = (Expected + Mean)/2 = (0.76 + 0.761)/2 Education index = 0.76
66

Economic Development (2 decks)

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