1. Why is economics central to an understanding of the problems of development?

Economics is a word describing the various ways in which people produce, use and exchange all needed
and wanted goods and services, it is the thing that allows us to survive and thrive, it brings economic
growth in a country economy, creating high wage jobs and facilitating an improved quality of life, it also
helps to protect the local economy from economic downturns and it helps us to have a better
infrastructure and more jobs, improves the economy of the region and raises the standard of living for
its residents.

2. Is the concept of the developing world a useful one? Why or why not?

Yes, In general nations are typically characterized by economic status and economic metrics like gross
domestic products, employment growth and unemployment rate, by having a classification or economic
segmentation it helps us to easily characterize which countries is less economically developed compared
to the more developed countries and it is a better reference to see the difference between the diversity
of different countries.

3. Why is an understanding of development crucial to policy formulation in developing nations? Do you

think it is possible for a nation to agree on a rough definition of development and orient its strategies
accordingly?

Policy formulation is the development of effective and acceptable courses of action for addressing what
has been placed on the policy agenda, and yes it is possible if the policy for a nation is understandable so
a developing countries can act accordingly to the policy, it is very important that, development process
is looked at a wider perspective and policies to be formulated accordingly, so that, the development
process brings about strong positive changes in the economy and take the nation towards that status of
more developed country.

4. Why is a strictly economic definition of development inadequate? What do you understand economic
development to mean? Can you give hypothetical or real examples of situations in which a country may
be developing economically but may still be underdeveloped?

The strictly economic definition of development was inadequate because the only basis of it is all about
financial and economic status not taking into consideration other factors. Economic development is a
progress in an economy and can be defined as efforts of a country to seek for improvements in the
country as well as improving the quality of life for everyone by providing  jobs and adoption of new
technologies, transition from agriculture-based to industry-based economy, and general improvement in
living standards. An example of a country which is economically developed but still considered as
underdeveloped is China, despite being the world's second-largest economy and home to the most
billionaires; China is still categorized as a "developing" country. The World Bank, however, defines a
high-income country — or "developed" country — by setting the threshold for gross national income
(GNI) per capita at $US12,055 ($16,900). Since China's GNI per capita — at $US 8,690 in 2017 — falls
below the threshold, it could possibly argue that it is eligible for the status under this framework. But
this definition is not binding or officially accepted by the WTO, and there exists no all-encompassing
framework tied to soaring GDP or anything of the sort. According to the WTO, two-thirds of its 164
members — including China and India — currently consider themselves developing countries.

5. How does the concept of “capabilities to function” help us gain insight into development goals
and achievements? Is money enough? Why or why not?

No, money is not enough the concept of capabilities to function is all about the improvement of all
individuals so that people can live freely and enjoy their lives. Money would help a lot when it comes to
the development and achievements so we can attain it easily but not all can be achieved by money, we
need skills to do things suppose that we have all the resources we need to make a product but the
problems is we do not know how to do it so basically our growth is not depend on how much money we
have, it is all about our skill and how to function properly on the society we are in, money is enough only
to enjoy and buy the things we like but not in the development of ourselves, our skill and abilities
cannot be buy but only increases as much as we use it.