Question

1. (a) Giving examples in each case differentiate between the following concepts:

•     Single and complex economies
• Underdeveloped and developing economies
•     Underemployment and unemployment
•     Economic growth and economic development

      (b)    Why is economics central to an understanding of the problems of development?

Answer 1

(a) Ans - To understand Simple Economic activity and complex economic activity we can take the example of The growth and diversity of different kinds of foods humans eat .

When humans were primitive they were eating just fruits , roots , honey , meat etc which were easy to barter trade .ex - "A " will barter 10 mangoes for 1 rabbit - this is an example of Simple economics

Now in the present world The food industry has become more complex just take the example of McDonalds Business model , they are in more than 120+ countries and in 37000+ stores across the world employing 1000s of employees in store , understanding the tastes and preferences of different regions , countries ............u see now this is an example of a Complex Economy ( instead of a MNC as an example replace it with a Country)  .

• Underdeveloped and developing economies - Underdeveloped economy is an economy which relies heavily on Human lobor , There are no Robotic machineries used , Still majority of Households do not have 24/7 electricity or water or Broadband Internet , High growth of population , low GDP , too many hurdles to start a Business , Unemployment ,rampant corruption etc - African Countries  are at present in this stage , even some of USA states like Detroit ,Stockton California , Jefferson County Alabama which all filed for bankruptsy can be compared to Underdeveloped Countries
• A developing Country is a Country whose Economy is on a Growth trajectory where all the important parameters like GDP , Unemployment rate , Currency exchange rate , life expectancy are all increasing and improving .
• Under Employment - lets take A college lecturer as an example , He can teach 4 hrs in a day but he has only 3 hrs of work allotted .this is under employment and if the Lecturer do not have a job at all then it is unemployment.
• Economic Growth - let us assume that we have a new born baby locked in a room for 5 years where it will get food and grow - this is called growth but the kid has not learnt anything in these 5 years like talking , walking , singing , playing , reading .........so you see There is no development but only growth. it is the same difference with economic growth and development . The current state of affairs of World economy is this There is growth but there is mass unemployment , recession etc .
• b(ans) This is the reason why we need to Study economics to understand why there are problems for Development , we need to see beyond the statistic numbers to solve the problems of Development.