Economic Development Midterm

Front 1

Absolute Poverty

Back 1

A situation of being unable to meet minimum levels of income, food, clothing, and other essentials

Front 2

Capabilities

Back 2

The freedoms that people have

Front 3

Developing Countries

Back 3

Countries that are characterized by low levels of living

Front 4

Freedom

Back 4

A situation where a society has ability to choose between real choices and different outcomes

Front 5

Funcitonings

Back 5

What people can do with the commodities they have

Front 6

Subsistence Economy

Back 6

An economy where production is mainly for personal consumption

Front 7

Brain Drain

Back 7

The emigration of more educated people from the undeveloped to the developed world.

Front 8

Crude Birth Rate

Back 8

Number of children born alive each year per 1000

Front 9

Dependency Burden

Back 9

The population that is outside the ages of 15-65 and is considered economically unproductive

Front 10

Fractionalization

Back 10

Significant ethnic, social, or linguistic variations within a country

Front 11

Free Trade

Back 11

Trade without barriers, tariffs, or other obstacles

Front 12

Human capital

Back 12

Productive investments in human beings, skills, abilities and ideas

Front 13

Human Development Index

Back 13

A measure of international socioeconomic development, measuring income, education, and health

Front 14

Imperfect Market

Back 14

A market in which the theoretical assumptions of perfect competition are violated

Front 15

Incomplete Information

Back 15

The absence of information that producers and consumers need to make efficient decisions

Front 16

Autarky

Back 16

A closed economy that attempts to be completely self-reliant

Front 17

Dependence

Back 17

The reliance of undeveloped countries on developed countries to stimulate economic growth

Front 18

Dualism

Back 18

The coexistence of two mutually exclusive phenomena in a society (extreme poverty and affluence)

Front 19

Free Market Analysis

Back 19

Analysis of the properties of an economic system operation with free markets

Front 20

Lewis two-sector model

Back 20

A model that states that growth comes when societies shift from agricultural to manufacturing sectors.

Front 21

Market Failure

Back 21

Results from market imperfections which weaken the function of the market economy

Front 22

Neoclassical Counterrevolution

Back 22

The resurgence of free market orientation towards development and dependency problems.

Front 23

Neocolonial Dependence Model

Back 23

A model that proposes that development problems exist because of developed countries making undeveloped countries dependent on them

Front 24

Periphery

Back 24

The developing countries

Front 25

Production Function

Back 25

A function of how much can be produced based on the available resources in a society, mainly capital and labor.

Front 26

Self-sustaining growth

Back 26

Growth that continues over the long run based on savings, investment, and private and public activities

Front 27

Structural Change Theory

Back 27

The idea that underdevelopment is due to the lack of utilization of resources that can come from dependence.

Front 28

Surplus Labor

Back 28

The excess supply of labor over the quantity demanded

Front 29

Underdevelopment

Back 29

An economic situation characterized by persistent low levels of living in conjunction with absolute poverty, low income per capita, low rates of economic growth, low consumption levels, poor health services, high death rates, high birth rates, dependence on foreign economies, and limited freedom to choose among activities that satisfy human wants.

Front 30

Asymmetric Information

Back 30

A situation in which one party in a transaction has more information than the other

Front 31

Big Push

Back 31

A concerted, economy-wide, public-led effort to increase economic growth across a broad spectrum

Front 32

Binding Constraint

Back 32

I don't know

Front 33

Complementarity

Back 33

An action taken by one firm that increases the incentives for other agents to take similar actions

Front 34

Congestion

Back 34

An action taken by one firm that decreases the incentives for other agents to take similar actions

Front 35

Coordination Failure

Back 35

A situation in which inability of agents to coordinate their actions leads to a worse outcome

Front 36

Deep Intervention

Back 36

A government policy that can move the economy to a higher equilibrium that is self sustaining and will need no more policy intervention

Front 37

Economic Agent

Back 37

An actor in an economic situation

Front 38

Information Externality

Back 38

I don't know

Front 39

Linkages

Back 39

Connections between firms based on sales

Front 40

Middle-Income Trap

Back 40

A situation in which a country that has attained a certain level of income will get stuck at that level

Front 41

Multiple Equilibria

Back 41

A situation in which an economy can simultaneously have two or more equilibriums

Front 42

O-Ring Model

Back 42

A model in which production function inputs have strong complimentarities

Front 43

Poverty Trap

Back 43

A bad equilibrium which will lead to a vicious cycle of poverty that people are unlikely to escape

Front 44

Social returns

Back 44

The benefit of an investment that has returns not only for the investor but for the society as a whole

Front 45

Technological Externalities

Back 45

A positive or negative spillover effect on a firm's production function through some means other than a market exchange

Front 46

Underdevelopment Trap

Back 46

When an underdeveloped country is at a bad equilibrium, making it nearly impossible to grow past it.

Front 47

Where-To-Meet Dilemma

Back 47

A situation in which parties would be better off cooperating than competing but have no idea how to

Front 48

Decile

Back 48

Tenth

Front 49

Quintile

Back 49

Twentieth

Front 50

Functional Distribution of Income

Back 50

The distribution of income to factors of production without regards to ownership of those factors

Front 51

Gini Coefficient

Back 51

Between 0 and 1, the level of income inequality in an economy

Front 52

Headcount Index

Back 52

Proportion of a country's population living below the poverty line

Front 53

Income Inequality

Back 53

The disproportionate distribution of national income among households

Front 54

Kuznets Curve

Back 54

A graph reflecting the relationship between income per capita and income inequality

Front 55

Lorenz Curve

Back 55

A graph depicting the variance of size distribution of income from perfect equality

Front 56

Personal distribution of income

Back 56

The distribution of income according to size-class of persons

Front 57

Progressive Income Tax

Back 57

A tax whose rate increases with level of personal income

Front 58

Public Consumption

Back 58

All current expenditures for goods and services by the government

Front 59

Redistribution Policies

Back 59

Policies geared toward reducing income inequality

Front 60

Regressive Tax

Back 60

A tax whose level decreases with level of personal income

Front 61

Subsidy

Back 61

A payment by the government to producers in order to prevent the decline of that industry

Front 62

Total Poverty Gap

Back 62

The sum of difference between the poverty line and levels of income of all persons living below that line

Front 63

Workfare Programs

Back 63

A poverty relief program that requires recipients to work in order to to gain benefits