Question

What is the objective of the 'Doughnut Model' of development?
1. It envisions a world in which people and planet can thrive in balance.
2. It envisions total abandonment of technology to live at peace with environment
3. It envisions the food processing industry as the centre of development. 
4. It envisions rapid development at environmental cost, then make up for it later

Answer 1

Correct Answer - Option 1 : It envisions a world in which people and planet can thrive in balance.

The correct answer is It envisions a world in which people and planet can thrive in balance.

 

•  'Doughnut Model' of development
  • The Doughnut, or Doughnut economics, is a visual framework for sustainable development – shaped like a doughnut or lifebelt – combining the concept of planetary boundaries with the complementary concept of social boundaries.
  • It envisions a world in which people and the planet can thrive in balance.
  • The name derives from the shape of the diagram, i.e. a disc with a hole in the middle.
    • The center hole of the model depicts the proportion of people that lack access to life's essentials (healthcare, education, equity and so on) while the crust represents the ecological ceilings (planetary boundaries) that life depends on and must not be overshot.

 

• Austrian economic thought
  • Austrian economic thought talks about methodological individualism or the idea that people will act in meaningful ways which can be analyzed.
  • The Austrian school uses the logic of a priori thinking—something a person can think on their own without relying on the outside world—to discover economic laws of universal application, whereas other mainstream schools of economics, like the neoclassical school, the new Keynesians, and others, make use of data and mathematical models to prove their point objectively.
  • In this respect, the Austrian school can be more specifically contrasted with the German historical school that rejects the universal application of any economic theorem.
• Keynesian Economics
  • Keynesian economics is a macroeconomic economic theory of total spending in the economy and its effects on output, employment, and inflation.
  • Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression.
  • Keynesian economics is considered a "demand-side" theory that focuses on changes in the economy over the short run. 
• Laissez-Faire
  • Laissez-faire is an economic theory from the 18th century that opposed any government intervention in business affairs.
  • Laissez-faire economics is a key part of free-market capitalism.