ECON 388 Study Guide for the Final: 1. Final Date & Time: 2. Compréhensive & Multiple Choice (About 100 M/C Questions)3. Some tips for Preparing for the Final:- Go over the past 4 tests and compare to answers posted .- Go into the “Study Space” on line quizzes in the textbook website: http://www.wwnorton.com/college/econ6/outline.html and do the practice M/C quizzes for all text chapters covered, except chapters 4 & 21- Go over Power Point Lectures for the chapters covered in Todaro on the webpage at URL://homepages.wmich.edu/~asefa/teaching/388/388index.html For all chapters are covered with the exception of chapters 4 & 21 )Please note: - Make up is strongly discouraged. - Final course grades will be mailed by WMU. (i.e. Grades will not be posted)After you complete tasks 1 to 3 above, focus on the following concepts including their applications & meaning- The difference between economic growth and development- Some common features of low income countries- Simon Kuznet’s key features of modern economic growth- Rachmina Abdullah’s earnings working in Japanese electronic factory- The relationship between per capital income, adult Literacy, Infant mortality and share of the population in rural or agricultural sector- The concept of Globalization & Economic Globalization- The relationship between per capita income, energy use & spending on necessities such as food.- Converting GDP to dollars using a foreign exchange rate for a country- Number of millennium Development Goals (MDGs): Try to list them- Marx’s view of precondition of modern growth - Gerschenken’s idea of substitutes for low income countries- Chenery estimation of patterns of development- The idea of Engel’s Law as income rises- The key human development problem of Botswana- Given Solow model where does investment come form- The main contributor of developing factor - Common features of rapidly growing countries- The core of the typical IMF Stabilization Program- The role of the World Bank and IMF in development- The idea of big bang approach to economic reform- The common features of East Asian Tigers (Korea, Singapore, Hong Kong and Taiwan)- The typical frequency distributions of income- The Gini Coefficient Ration and its meaning- How international trade may help the poor- The aim of the design of social safety nets- Kuznets inverted U-hypothesis and its implication- The idea of “missing” women1- A country’s optimum population level- The idea of capital deepening and capital widening- T used he concepts of mortality, morbidity, and life expectancy- In what disease does Oral rehydration therapy (ORT) used to prevent death- Economic Returns to Education and to Health- Investment, Tax revenue Government expenditure privates saving & export equation relationship- Private savings and corporate savings- Determinants of foreign savings and their relative growth- Main source of investment income in LDCs- The effect of government implemented subsidies and tariffs- Calculation of the PV of a $sum that you will receive in few years in the future- The role of shadow pricing in investment project- The relationship between FDI and Economic Growth- Restrictions on FDI by governments - The concepts of tax evasion and tax burden- The concept of public goods- The relationship between nominal rate and real interest rate- Factors that influence the demand for broad money (M2)- Items that count as foreign aid and foreign loans- Two countries that gives the most foreign aid in absolute & relative terms- Factors that comprise of debt sustainability indicator- The rationale for debt relief for the poorest economies- The problem created by fixed exchange rate- Financial instruments that are volatile or can be withdrawn quickly- The idea of share cropping and communal farming- The type of most successful land reform- The Green Revolution Technology- Objectives of Agricultural development and its contribution to the national economy- Basic difference between traditional and modern agriculture - How institutions such as IRRI and CIMMYT contribute to agricultural development- The concept of net barter terms of trade & their trends in LDCs- Appropriate choice of technology for LDC’s- Factors that give rise to scale economics - Effective rate of protection - Official exchange rate and real exchange rate- The meaning of GATT and WTO & their objective- Strategies for controlling pollution & their relative effectiveness- Method of calculating the value of a forest - The terms such as Customs Union, Free Trade Area , Common Market