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Explain the theory of social balance

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Question: In Chapter 7 JK Galbraith and the Theory of Social Balance, we learned about the importance of social balance, theDependence Effect and the POPS. In your review, answer the following questions:

1. Explain the "theory of social balance".

2. Explain Galbraith's Dependence Effect and the POPS (private opulence and public squalor).

3. What is Galbraith's solution to the POPS phenomena?

4. What is wrong with the assumption of the mainstream economists "more output is always better than less"?

5. Why does the GDP maximization not always equal to better wellbeing? Give two examples and explain your argument.

6. What were Galbraith's main social concerns? List three and explain.

7. What should be the goals of development for poor countries, Symbolic Modernization, Maximized Economic Growth [=GDP], or Selective Growth? List the advantages and disadvantages of each of the growth mode.

Reference no: EM132280211

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