Mac Ch19

In terms of economic growth, each additional year of schooling is worth about percent more in overall earnings over the course of a lifetime.

10

A capability is something a person is not able to be or do.

False

The term foundations is also commonly used to refer to government bodies (such as senates and ministries of education), development agencies (such as the World Bank), and international groups (such as the United Nations).

False

Economic growth involves increases in

GDP

What is part of the problem in devising economic development strategies? Select all that apply.

Health care facilities don't exist in many parts of the world Many people don't use health care facilities

evaluation entails answering one seemingly simple question: How did people's lives change after a program or policy, compared to how they would have changed without it?

Impact

Industrial policy has two traditional tactics. What are they?

Import substitution Export-led growth

To work with children lagging behind on basic math and reading skills, __________________ approach included training women in the community to offer supplemental lessons to the students who were furthest behind in their learning.

Innovations for Poverty Action

are the rules of the game in a society, or more formally, the humanly devised constraints that shape human interactions.

Institutions

The tools at governments' disposal in pursuing industrial policy include which of the following?

Trade barriers Incentives for foreign direct investment Tax breaks Investment in research Subsidies

Which of the following are examples of capabilities?

Travel freely Get an education Live a long and healthy life Live free of the fear of violence Speak one's mind Be able to find secure and meaningful work

True or false: It is possible for a country to experience strong economic growth without comparably strong economic development.

True

The international group designed to monitor and enforce trade agreements is the

World Trade Organization.

A(n) _____ is something a person is able to be or do, such as to engage fully in life, including having economic and political freedoms.

capability

Industrial policy can involve trying to promote a of industries that share linkages through the economy.

cluster

Many of the stories of sustained growth in formerly poor countries occurred under governments that are not very _____.

democratic

Rwanda shows that a country does not have to have a _____ government to promote economic development, as well as economic growth.

democratic

When GDP increases, there is

economic growth.

In terms of economic growth,

educated workers are generally more productive.

The difference between the savings rate in an economy and the amount of investment needed to achieve sustainable growth is called a _______ gap.

financing

Economic development commonly leads to economic _____.

growth

Economic involves increases in GDP whereas economic focuses on the quality of life for all sectors of society.

growth development

One of the challenges for development economists working in health care is to figure out a way to give doctors the right

incentives

An effort by a government to favor some industries over others to help the overall economy to develop is known as

industrial policy

Many basic capabilities rely on having a competent, well-intentioned government and good

institutions

Many basic capabilities rely on having a competent, well-intentioned government and good .

institutions

Foreign aid often the central focus of development efforts because It

it has direct intuitive appeal.

Some authorities maintain that the simplest and most effective way to aid developing countries is to ______ international trade barriers.

lower

The problem with foreign aid is how to

make these funds go to the best uses.

The prospect of a better life drives millions of people to to other cities, provinces, or countries thousands of miles away in search of opportunity.

migrate

One important consequence of is that people often return home after a few years working overseas, bringing with them new ideas and skills that benefit their local economy.

migration

Development economists have recently started to pay more attention to the challenge of improving the of education.

quality

Institutions are

the humanly devised constraints that shape human interactions.

A financing gap is the difference between the savings rate in an economy and the amount of investment needed

to achieve sustainable growth.

Some authorities maintain that the simplest and most effective way for industrially advanced nations to aid developing nations is to eliminate international ______ barriers.

trade