Economic theories in the Virtual Developing Country

Each of the field trips in the Virtual Developing Country has economic theory that is relevant to that trip. All the economic theories covered are listed below.

The Copper Tour

• Supply Side Approaches
• The Dependency Ratio
• Dependency Theory
• Economic Efficiency
• Economic Growth and the Production Possibility Frontier
• Fisher Clark's Theory of Structural Change
• The Harrod-Domar model
• The Lewis Model of Development
• Rostow's Model - the Stages of Economic Development
• Models of Demographic Transition
• Measuring the Circular Flow of Income
• Neo-classical Theory
• Population Pyramids
• Price Movements of Primary Commodities
• The Arguments for Privatisation
• The Causes of Economic Growth
• The Causes of Inflation
• The Impact of Multinational Enterprises
• The Theory of Externalities
• The Problems Associated with Inflation

The Rural Life and Agriculture Tour

• Alternative Indicators of Poverty
• Commodity Agreements
• Composite Indicators of Poverty and Living Standards
• Economies of Scale and Commercial Farming
• Income Elasticity of Demand
• Infant Industries
• Price Movements in Commodity Markets
• Economies of Scale and Commercial Farming
• The Lorenz Curve and Gini Coefficient
• Thomas Malthus and the Law of Diminishing Returns
• Using National Income Data to Measure Poverty and Living Standards
• Perfect Competition
• Poverty and the Cycles of Poverty
• Price Ceilings or Maximum Prices
• Producer Subsidies
• The Coffee Market
• Using GDP Data to Make International Comparisons

The Trade tour

• The Benefits of Trade
• The Principle of Absolute and Comparative Advantage
• Trade Creation and Trade Diversion
• The Formation of Trading Blocs
• Terms of Trade
• Balance of Payments Policies
• Interpreting the Balance of Payments
• Foreign Exchange Markets
• Fixed Exchange Rates
• Floating Exchange Rates
• Effects of a Floating Exchange Rate System
• The Marshall-Lerner Condition
• The Economic Effects of a Devaluation
• The Imposition of Quotas
• The Imposition of Tariffs and Welfare Loss
• Consumer and Producer Surplus
• Price Elasticity of Demand

The Aid tour

• The Benefits of Receiving Aid
• The Arguments Against Foreign Aid
• Development Assistance Philosophy
• The World Bank
• Types of Aid
• Why Donor Countries Give Aid

The Wildlife tour

• Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
• Establishing Property Rights
• Market Failure
• Regulating The Ivory Market
• Sustainability
• The Multiplier Principle