ECON 313 Chapter Notes - Chapter 1: Gross National Income, Gross Domestic Product, Subsistence Economy
9 Feb 2017
School
Department
Course
Professor
Document Summary
Absolute poverty: a situation of being unable to meet the minimum levels of needs such as food and shelter (under 2$ a day) Subsistence economy: an economy in which production is mainly for persona; consumption and the standard of living yields little more than basic needs. Development: the process of improving the quality of all human lives and (cid:272)apa(cid:271)ilities (cid:271)y raisi(cid:374)g people"s le(cid:448)els of li(cid:448)i(cid:374)g, self-esteem and freedom. Developing countries: countries that are presently characterized by low levels of living and other development deficits. Traditional economics: an approach that emphasizes utility, profit maximization, market efficiency and equilibrium. It assumes a purely materialistic, individualistic, self interested orientation toward decision making. Political economy: the attempt to merge economic analysis with with practical politics and to view economic activity in its political context. Development economics: the study of how economies are transformed from stagnation to growth and from low income to high income status, and overcome the problems of poverty.
