Exam 21: Economic Growth in Developing and Transitional Economies

Why are property rights important in economic development?

Explain why privatization can help the economy become more efficient.

Describe the state of affairs in the developing world concerning social overhead capital?

What are some of the issues that economists have to worry about when studying developing nations that are very different from those of advanced industrialized nations?

Explain how economists use random experiments.

What is microfinance?

What is capital flight?

Many spokespersons of African countries complain that the U.S. and other developed countries heavily subsidize cotton. What is the reason for their discontent and what argument are they making with respect to their own economic development?

What is the International Monetary Fund and what are its primary goals?

Historically, why did the import-substitution strategy become popular among developing nations?

While increases in population are often seen as a problem by some observers can you think of a way in which an increase in population can be a positive factor?

Explain why growth is not necessarily synonymous with development.

Explain the "tragedy of commons."

What is export promotion? Give a few examples of countries that have tried it.

Why is it that the enforcement of contracts by government is so crucial to the conduct of business?

Explain how each of the following limits the economic growth of developing nations: (a) Insufficient capital formation (b) A shortage of human resources (c) A lack of social overhead capital

Explain how rapid population growth can hinder labor productivity.

Why have many developing countries pursued industry at the expense of agriculture? What has been the result of this strategy?

Why were Thomas Malthus' fears of increasing impoverishment for Europe and America unfounded?

Explain what social overhead capital is.