Eco Dev
is tge study of how individuals, businesses and governments make vhouce on allocating limited resources
Economics
Unlimited need and wants = limited resources
Economic
Science of choice and scarcity
Economic
Is the process of improving the living standards
Economic Development
A graph that shows the distribution of income or wealth in an economy
Lorenz Curve
Line of equality tge greater the inequality
Father of Lorenz Curve
Line of inequality
Lorenz Curve
Explains long term economic growth based on capital, labor amd technology
Solow Model
Who the invented of Solow Model?
Robert Solow
O-Ring Theory proposed by?
Michael Kremer
If one part fails, the whole process is less effective
O-ring Theory
Everypart of tge economy education, technology, transport, governance is strong.
Development Country
Even if workers are skilled, if roads are poor or electricity is unstable, the whole economy suffers.
Developing Country
Reason why this happen 1.
Unequal Distributiin of Wealth
Reason why this happen 2.
Dependence on one Industry
Reason why this happen 3.
Corruption and Weak Governance
More money or GDP increase
Economic Growth
Better life for people or quality of life improves
Economic Development
Refers to the level of wealth, comfort, materials goods, and services available to people in a country
Standard of Living
When a perzon does not have enough money or resources to meet the minimum basic need of survival.
Absolute Poverty
When a person income is much lower than the average incom3 of people in the same society
Relative Poverty
Economic Factors
Unemployment and Underemployment, Low wages, Inflation and Rising prices
Not enough jobs or jobs that pay too
Unemployment and Underemployment
Workers may have jobs but still cannot meet basic needs.
Low wages
Cost of food, housing and education growd faster than income
Inflation and Rising Prices
Short term unemployment than happens when people are between jobs
Frictional Unemployment
Occurs when workers skills do not match the job available
Structural Unemployment
Caused by down turns in the business cycle
Cyclical Unemployment
Happens when jobs are only available during certain seasons
Seasonal Unemployment
Social Factors
Lack of education, Inequality, Discrimination
Without skills or knowledge, people cannot find stable or high- paying jobs
Lack of education
wealth and opportunities are concentrated in the hands of a few liaving many behind
Inequality
Sone grouos have fewer opportunities
Discrimination
Political Factors
Corruption, Weak Governance, Unequal Policies
Money meant for social services misused
Corruption
Poor pokicies and unstable governmet make poverty worse
Weak Governance
Benefits often go to the rich and powerful rather than the poor
Unequal Policies
Is the total market value all finished goods and services produce with a country
GDP
Measured by adding the value of all final goods and services
Production Approach
Consuption, investment, government spending and net export
Expenditure Approach
Including wages, rent, interest and profit adjust for taxes and subsidies
Income Approach
Types of GDP
Nominal GDP, Real GDP
Measured at current prices without adjusting for inflation
Nominal GDP
Measured by constant prices and adjusted for inflation
Real GDP