Economic Development Prelim Long Quiz

refers to the “specific minimum level of income needed to satisfy the basic physical needs of food, clothing, and shelter in order to ensure continued survival.

a functional economic relationship in which the growth rate of gross domestic product depends directly on the national net savings rate and inversely on the national capital output ratio. 

wages in the modern sector are assumed to be constant and above the rural sector wages. 

may have little connection to the realities of developing economies.  

can be redefining in terms of the reduction or elimination of poverty, inequality, and unemployment within the context of a growing country.

The branch of economics that study the whole economy.

Most  developing  countries  prioritize _____________ .

Very low levels of income lead to lower investment in __________ , as well as in technology and infrastructure.

influence the allocation of scarce productive resources, either for their own benefit exclusively or for the larger population as well.  

savings expressed as a proportion of disposable income over some period of time.