Question

define the following:

quality-quantity trade off

geography versus institutions debate

Answer 1

Quality - Quantity Trade Off

When the marginal cost of quality raises, the quantity also raises with respect to it. It lead to make a trade off between the quality and quantity. Here the quality referred as the child outcome and the quantity referred as the number of children. There would be having only limited empirical evidence to support the theoretical trade off between the children's quality and the quantity. Especially in the case of child health. There occuring a negative relationship between the number of children in the household and the child outcomes. So we have to find the empirical evidence through quality-quantity trade off by using data regarding household size and child health.

​​​​​​Geography versus Institutions

​​​​​​There will be having a large role for the geography and the institution in the economic development of a country. While considering the geography of a country, the natural factors such as climate, water bodies, natural resources availability etc playing an basic role for the economic development. While considering the institutions of a country, it is reffered as the 'rules of games' in a society to develop the economy. An economic development is a complex thing. Geography and Institutions are the driving factors that helps in development of the country. The condition of geography in a country cannot possible to change by the people. The Institutions are human devised one, so it can possible to change by some collective actions. As per the good geographical conditions, some of the countries were already rich. But some rich countries were becoming poor and some poor countries are becoming rich . It is because of their higher performance in institution level. An economic development is highly related to the quality of institutions in that country. Overall we can say that the institutions are having the dominant role for the economic development of a country. The geography also playing an important role to ensure quality to the Institutions.