Module 3 Flashcards Preview

Economic development > Module 3 > Flashcards

Flashcards in Module 3 Deck (41)
Loading flashcards...
1
Q

The only variables that determines the level and growth of output

A

Labor and Capital

2
Q

Man made goods which are used in further production of wealth.

A

Capital

3
Q

Very large in industrial countries, explaining as much or more than 50% of economic growth in the postwar era.

A

TFP- Total Factor Productivity or multifactor productivity

4
Q

In TFP what is the formula in production function?

A

Y=f(K,L,A)

5
Q

Growth Theories

A
Keynesian Theory
Solow Model
Power Balance Theory
Structural Theory
New Growth Theory
6
Q

Give example that will include in TFP

A
Adaption of new technology
Better educated workers
Better management
Better coordination within the organization
More efficient production techniques
7
Q

Can be measured by adjusting the factor inputs and labor and capital.

A

Embodied TFP

8
Q

Cannot be measured. It has to go into the residual

A

Disembodied TFP

9
Q

2 kinds of technical progress or innovation

A
  1. Embodied technical progress

2. Disembodied technical progress

10
Q

Changing nature of the inputs into the production process

A

Embodied technical progress

11
Q

Improved technology which is exploited by investing in new equipment

A

Embodied technical progress

12
Q

Relates to the way factors are combined together in the workplace such as management or organizational innovations

A

Disembodied technical progress

13
Q

Improved technology which allows increase in the output produced from given inputs without investing in new equipment.

A

Disembodied technical progress

14
Q

Limited technology, static society

A

Traditional society

15
Q

Commercial explotation of agriculture and extractive industry

A

Preconditions for take off

16
Q

Development of a manufacturing sector

A

Take-off

17
Q

Development wider industrial and commercial base

A

Drive to maturity

18
Q

Exploitation of comarative advantages in international trade

A

High Mass Consumption

19
Q

Transition triggered by external influence, interests, or markets

A

Traditional society

20
Q

Installation of physical infrastractures and emergence of social or political elite

A

Preconditions for take-off

21
Q

Investment in manufacturing exceeds 10% of national income: develope of modern, social, economic, and political institutions.

A

Take-off

22
Q

Rostow’s Stages of Growth Model

A

Traditional society- precautions for take off- take-off-drive to maturity-high mass consumption

23
Q

Growth is dependent on the rate of capital formation and the efficiency of the use of capital

A

The Harrod-Domar Model

24
Q

Dynamic version of amsimple Keynasian Model

A

The Harrod-Domar Model

25
Q

It introduces diminishing returns to capital and fouses on the long run

A

The solow model

26
Q

The higher the rate of saving, the higher the steady state level of per capita income

A

The solow model

27
Q

Emphasized explotation of poor “southern” economies by the rich industrial “northern” economies

A

Power Balance theory

28
Q

Major sectors of the economy

A

Agriculture, industry, services

29
Q

Stress the shift in output among the sectors of the economy and the rigidities that hinder them

A

Structuralist Approach

30
Q

Two sectors model of growth in LFR model

A

A modern and a traditional

31
Q

Named after three economists that developed it, is a two sector model

A

Lewis- Fei- Ranis model

32
Q

The amount per capita capital in the current period depends upon the per capita capital and the last period, the saving rate in the previous method, and the rate of population growth.

A

Solow Growth Model

33
Q

They stress the importance of of externalities and the possibility of increasing returns to scale rather than the decreasing returns to scale of the Solow Model.

A

New Growth Theories

34
Q

Soth Asia includes

A

Afghanistan, India, Bangladesh, sri lanka, nepal, bhutan, and Madlives

35
Q

Is atrade and economic policy which advocates replacing foreign imports with domestic production

A

Import Substitution Industrialization (ISI)

36
Q

Primary factors of the asian growth miracle

A

Openess
Macroeconomic stability
Labor and Market Flexibility
Education Policies

37
Q

Secondary factors of the asian growth miracle

A

Initial conditions

Sector Policies

38
Q

Outward looking policies and emphasis on exports and acquisitions of foreign technology

A

Openess

39
Q

Focused on the importance of macroeconomic policies and the role of the government

A

Macroeconomic Stability

40
Q

Is the tendency for groups to become less like other groups over time.

A

Divergence

41
Q

Predicts an increasingly uneven spatial distribution of economics activity due to economic phenomena

A

Divergence Theory