TEST BANK -
Economic Development
Author: Michael Todaro, Stephen Smith
13th Edition
,TABLE OF CONTENT
1 Introducing Economic Development: A Global Perspective
2 Comparative Economic Development
3 Classic Theories of Economic Growth and Development
4 Contemporary Models of Development and Underdevelopment
5 Poverty, Inequality, and Development
6 Population Growth and Economic Development: Causes, Consequences, and Controversies
7 Urbanization and Rural–Urban Migration: Theory and Policy
8 Human Capital: Education and Health in Economic Development
9 Agricultural Transformation and Rural Development
10 The Environment and Development
11 Development Policymaking and the Roles of Market, State, and Civil Society
12 International Trade Theory and Development Strategy
13 Balance of Payments, Debt, Financial Crises, and Sustainable Recovery: Principles, Cases and Policies
14 Foreign Finance, Investment, Aid, and Conflict: Controversies and Opportunities
15 Finance and Fiscal Policy for Development
,Test Bank Economic Development 13/E Michael Todaro
Chapter 1: Introducing Economic
Development: A Global Perspective
As Curious As Students Who Register To Take Development Economics May Be, Their
Knowledge And Experience Of The Developing World Will Vary Widely. The First Main Point Of
Chapter 1 Is To Emphasise How Different Life In The Developing World Is. New In The 13th
Edition Is A Systematic Description Of Four Stylised Strata Of Living Standards From Extreme
Poverty To Rich Based On Rosling,
Rosling, And Rosling Ronnlund’s Book Factfulness. This Is Followed By A Discussion Of The
World Bank’s Classification Of Economies By Ranges Of Average National Income Using Gross
National Income (Gni) Statistics.
The Second Point Is To Provide An Overview Of The Nature Of Development Economics As A
Field. A Defense Of Development Economics As A Distinct Field, Rather Than An Agglomeration
Of Other Economics Subfields, Is Offered. A Major Theme Of The Book, That Development
Economics Must Encompass The Study Of Institutional And Social, As Well As Economic,
Mechanisms For Modernising An Economy While Eliminating Absolute Poverty, Is Introduced.
Sections 1.5 And 1.6 Looks Deeper Into The Meaning Of Development And A View Of
Development That Is Multidimensional. Amartya Sen’s “Capabilities” Approach Is Discussed In
Section 1.5. In Section 1.6, Data Collected In A Gallup World Poll On The Relationship Between
Happiness (As Measured By Gallup’s
Life Satisfaction “Ladder” Question And Real Per Capita Income) And Other Research On
Happiness/Life Satisfaction Is Discussed. The Level Of Happiness Is Not Only Related To Level Of
Income But To Other Factors Such As Democratic Freedoms And The Quality Of Social
Relationships. The Role Of Normative
Values In Development Economics—A Subject Dealing With Human Misery And Human
Potential, With Equity As Well As Efficiency, With Cultural Change That Causes Losses As Well
As Gains, And With Transfer
As Well As Creation Of Wealth—Is Also Stressed.
The Conclusion Is That Development Is Both A Physical Reality And A State Of Mind. The
Meaning And Objectives Of Development Include The Provision Of Basic Needs, Reducing
Inequality, Raising Living Standards Through Appropriate Economic Growth, Improving Self-
Esteem In Relation To The Developed Countries, And Expanding Freedom Of Choice In The
Market And Beyond.
Section 1.7 Presents An In Depth Examination Of The Un’s Sustainable Development Goals (Sdgs).
This Includes A More Comprehensive List Of The Goals Themselves (Appearing In Table 1.1) And
A Discussion Of The Shortcomings Of The Sdgs. In Section 1.8, The Plan Of The Book Is
Introduced Through 32 Critical Questions Of Development Economics. Depending On The
Amount Of Material
Covered By The Instructor, Students Should Be Able To Intelligently Address Most Of These
Questions By The End Of The Course. Finally, A Comparative Case Study Of Pakistan And
Bangladesh Is Presented.
, Todaro and Smith, Economic Development, 13e, Instructor’s Manual
◼ Lecture Suggestions
It Might Be Best To Begin With A Discussion Of The Immense Scale Of Transformation In The World
Economy. The Late Hans Rosling’s Video “200 Countries, 200 Years, 4 Minutes” (Readily
Available On Youtube) Can Be Used To Confirm This Point In An Entertaining Way. It Might Also
Be Helpful To Highlight That Real Gross World Product Per Capita Has Almost Tripled Between
1960 And 2018 (Implying Growth Per Year Of 1.85%) And Is 33% Higher Than It Was At
The Turn Of This Century
(Implying Annual Growth Of 1.56% From 2000 To 2018). This Data Can Be Found On The Saint
Louis Federal Reserve’s Website In The Federal Reserve Economic Database (Or Fred).
Despite Such Advances, Tremendous Disparities Continue To Exist. In Terms Of Easily Accessible
Statistics The Pew Research Centre’s “World Population By Income” Provides An Interactive
Map
Showing The Share Of Economies’ Population Who Are Economically Poor, Low Income, Middle
Income, Upper Middle Income, And High Income. While Regrettably The Data Provided Is For
2011, It
Echoes What Todaro And Smith Point Out In The Text, That More Than 75% Of The World’s
Population Live On $15 Or Less A Day (Or About $5,500 Per Person Per Year). Several Excellent
Books Attempt To Give Some Idea Of The Range Of Living Standards Found Throughout The
World. For Example, The Material World By Peter Menzell. This Book Presents Photographic
Profiles Of Typical Families
Around The World With All Of Their Possessions Placed In Front Of Their Homes. As One Goes
From One Family To The Next The Instructor Has The Opportunity To Highlight The Important
Differences Between Nations And Regions And To Touch On Key Issues Of Growth And
Development.
One Of The Key Strengths Of This Chapter Is That It Does Not Focus Solely On The Hard Numbers That
Supposedly Measure Development. The Discussion Of Sen’s Capabilities Approach And The Far
Less Than Perfect Relationship Between Income And Happiness Are Well Worth Spending A Fair
Amount Of Class Time Exploring. Class Time Should Also Be Spent Discussing The 32 Critical
Questions Listed On
Pages 21–23 Of The Text And Then Asking Students To Identify 3 Or 4 Questions That They Are
Particularly Interested In Exploring. Asking Each Student To List What They Consider To Be
“Critically” Critical Questions On A Sheet Of Paper, Collecting Their Responses, And Then Trying
To Direct The Rest Of The Term To Addressing The Most Commonly Mentioned Critical
Questions For That Class Will Be Helpful
In Further Drawing Students In And Holding Their Attention Throughout The Term.
At This Same Point, The Instructor Might Also Wish To Get Some Idea Of Students’ Experiences
Traveling To Developing Countries And, In As Subtle A Way As Is Possible, Determine How
Shaky Their Understanding Of The Wider World Is. The Instructor Perhaps Could Draw On His Or
Her Own Experiences And Give Some Background As To How He Or She First Became Interested
In Development
Economics. This May – Through The Kinds Of Questions Asked – Help The Instructor Further
Gauge Students’ Level Of Sophistication In This Area. This Is Not Something That Should Be Or,
Can, Be Settled In The First One Or Two Classes And Will Develop Over The Course Of The
Term.
In Many Universities, The Economic Development Course Will Be Filled With Students Who Are
Not Majoring In Economics. These Students May Come From Different Colleges With Majors Such
As Anthropology, Sociology, Or Political Science Or Business (Management, Finance, Etc.). They
May Have Had As Little As One Semester Of Introductory Economics. Given That You Are
Teaching An Economics Class, You May Wish To Remind The Students Of This Fact And Offer
Whatever Help You Can. Given Video Capture Software, You Might Consider Recording Some
