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Economic Development 12th Edition by Michael Todaro
Edition 12ISBN: 978-1292002972Economic Development 12th Edition by Michael Todaro
Edition 12ISBN: 978-1292002972 Exercise 1
Why is economics central to an understanding of the problems of development?
Explanation
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The term development in a general sense means an important change. However, in the world of Economics it means bringing about a significant change in the following:
1. Structure of the economy ( Primary-secondary-tertiary)2. Institutions (Political, Social, Technological and Economic)3. Process of production, distribution and consumption
4. Attitudes of people
5. Incomes of the people
6. Infrastructure; and so on
When we talk about changes, it is the change, which enables an economy, to move from 'worse-off' situations to 'better-off' situations and these changes are brought about in an underdeveloped or a developing economy.
The development process is not an easy one because there are many challenges involved in the form of:
1. Eradication of poverty
2. Creating employment opportunities
3. Provision of health and education facilities for a strong human capital base
4. Correcting population explosion
5. Reduction of inequalities; and entire system of working of that particular economy
The term Economics on the other hand deals with production, distribution and consumption of goods and services and with the theory and management of economies or economic systems (with respect to money available). It is the study of choice making behavior of people with the limited amount of resources available at their disposal.
When we compare the two terms i.e. Development and Economics, we find that Economics is the integral part of the study of development as both move in the same direction and thus, its study becomes central to the understanding of problems of development.
1. Structure of the economy ( Primary-secondary-tertiary)2. Institutions (Political, Social, Technological and Economic)3. Process of production, distribution and consumption
4. Attitudes of people
5. Incomes of the people
6. Infrastructure; and so on
When we talk about changes, it is the change, which enables an economy, to move from 'worse-off' situations to 'better-off' situations and these changes are brought about in an underdeveloped or a developing economy.
The development process is not an easy one because there are many challenges involved in the form of:
1. Eradication of poverty
2. Creating employment opportunities
3. Provision of health and education facilities for a strong human capital base
4. Correcting population explosion
5. Reduction of inequalities; and entire system of working of that particular economy
The term Economics on the other hand deals with production, distribution and consumption of goods and services and with the theory and management of economies or economic systems (with respect to money available). It is the study of choice making behavior of people with the limited amount of resources available at their disposal.
When we compare the two terms i.e. Development and Economics, we find that Economics is the integral part of the study of development as both move in the same direction and thus, its study becomes central to the understanding of problems of development.
Economic Development 12th Edition by Michael Todaro
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