econ case study

2916 Words12 Pages
Kim 6


1. Chapter 1 (page 34)

1) Why is economics central to an understanding of the problems of development?

It is because that the development of a country depends on economic factors. Economics helps you to interpret how a country is developing, economic policies of a country that determine whether or not it develops and how fast it develops if it performs. In addition, economics helps you to understand how wealth and finance are distributed, and the causes and effects of borrowing and lending. Problems of development are like not having enough money, economics teaches us about problems in development and so we can better interpret these problems primarily by looking at the economic components that define the troubles.
…show more content…
Rather, it has continued to insure an extremely high percentage of its population in extreme poverty in an upper middle income country, and remains one the countries with the highest degrees of inequality in the world.

3. Chapter 2

1) According to the textbook, the problems that most developing countries have in common are poverty, high levels of unemployment and underemployment, low levels of agricultural productivity and sizable imbalances between urban and rural levels of living and economic opportunities (Todaro & Smith, P. 92). The most significant problem is serious poverty because every person should at least have the most basic needs such as home, basic clothes and food.

2) According to the textbook, low levels of living is the amount of money on average a person makes in a country. (Todaro & Smith, P. 29). In my opinion, low levels of living can exist simultaneously with high levels of per capita income because there might be a few that are earning a lot with the majority of the population earning less. For instance, on 1980's Portsmouth, Ohio and Brazil, which is an upper medium income country with nice levels of per capita with a bulk of its citizens living in poverty.

4) In my opinion, among health, labor productivity, and income levels, there are huge, and strong relationship because I think labor productivity decides the income levels, and it also affects people's health. For
Get Access