Online Activity 1

Answer the following items in no more than 10 sentences: (3 items x 10 points)

1. Choose and explain at least (2) definitions of economic development.

Principles of the social Doctrine of the Church

 The Catholic Church accepts the good that markets can bring in
strict economic terms in production and distribution and in the
specific sorts of freedom they can facilitate, but social teaching
has consistently stressed that markets are limited and imperfect
tools with potentially destructive aspects (inequality and
exclusion, environmental degradation, erosion of community).
The market is a powerful set of practices that can bring many
benefits when oriented to the common good and profound
disruption and suffering when it overruns its proper limits. It is
precisely this tension that modern Catholic social teaching has
responded to over the past century and a half.

Adams Smith’s Theory

 Adam Smith proposes natural law in economic affairs. He

advocated the philosophy of free and independent action. If
every individual member of society is left to peruse his
economic activity, he will maximize the output to the best of
his ability and Freedom of action brings out the best of an
individual which increases society wealth and progress.
2. Identify and explain the nature of development economics.

 The Traditional Economics deals basically with the efficient, least cost allocation

of scarce productive resources and with the optimal growth of these resources
overtime so as to produce an ever-expanding range of goods and services
 The 'Political Economy' is also a branch of economics where a relationship is
established between politics and economics
 Development Economics it is concerned with the economic, cultural and political
requirements which are necessary for structural and institutional transformations of
entire societies in a manner that the fruits of economic growth could be provided to
the largest segment of the society the poor class. 

3. Compare and contrast traditional and new economic measures of development.

 Traditional economic is an activity of the society, as well as the totality of
the relations that are formed in the system of production, distribution,
exchange and consumption,
 New economic system, social and cultural relations based on the use of
digital information and communication technologies.
 New economy stocks are in the business of providing innovation for
the easy and fast exchange of services. In comparison to old economy
stocks, they can have much lower costs of sales and much less need
for the physical assets required to manufacture, store, and sell physical
goods.