Welfare and Economic Development Concepts

The lecture discusses the concepts of economic growth and development, distinguishing between the two and exploring various measures of economic development. It focuses on welfare as a measure, highlighting increased consumption of goods and services as an indicator. The perspectives of Okun and Richardson are presented, emphasizing sustained improvement in material well-being. The lecture also addresses the limitations of using welfare as a measure, such as issues with weighting consumption, equitable income distribution, production methods, and output valuation.

What is the primary focus of the lecture series on economics of growth and development?

• The history of economic thought

• The impact of globalization on economies

• The role of technology in economic growth

• The distinction between economic development and growth

How is welfare used as a measure of economic development?

• By assessing the increase in national income

• By measuring the rate of inflation

• By evaluating the consumption of goods and services

• By analyzing the level of technological advancement

According to Okun and Richardson, what reflects economic development?

• An increase in the flow of goods and services

• A decrease in unemployment rates

• A reduction in government debt

• A rise in technological innovation

What is a major limitation of using welfare as a measure of economic development?

• It ignores the impact of globalization

• It does not consider technological advancements

• It fails to account for the equitable distribution of income

• It overlooks the role of government policies

Why is it difficult to prepare a welfare index of individuals?

• Because of the complexity of economic models

• Due to the varying tastes and preferences of individuals

• Due to the influence of international trade

• Because of the lack of data on consumption patterns

What is necessary for economic development besides increased national income?

• Higher levels of education

• Lower interest rates

• More foreign investments

• Equitable distribution of income

What does the welfare view fail to account for in terms of production?

• The methods and conditions of production

• The cost of raw materials

• The influence of market competition

• The availability of skilled labor

What challenge is associated with valuing output in welfare measures?

• The instability of political environments

• The reliance on market prices for valuation

• The unpredictability of consumer demand

• The fluctuation of currency exchange rates

What is a potential consequence of increased income going to a specific segment of society?

• A rise in inflation rates

• A reduction in foreign investments

• A decrease in overall economic growth

• An increase in the gap between rich and poor

What is a key factor that welfare as a measure of economic development fails to provide?

• A thorough understanding of global trade dynamics

• A detailed analysis of government policies

• A clear picture of economic development

• A comprehensive picture of technological progress