Karteikarten
Economic Development
Karten in diesem Stapel (60)
- 1Why do we want economic growth? (4)1) Improved living standards
2) Rising Employment
3) Increased Tax revenue
4) Environmental - 2What would improved living standards lead to?lead to decrease in poverty
- 3What would rising employment lead to?greater disposable incomes
- 4What would increased tax revenue lead to?Greater spending on disposable incomes etc.
- 5What would environmental developments lead to?Technology leading to ‘cleaner’ production
- 6Define economic developmentThe process of improving people’s economic wellbeing and quality of life
- 7Difference between traditional economics and development?Traditional economics is concerned with allocating resources in the most efficient way to maximise output
Development economics is broader - 8Disadvantages of economic growth? (4)1) Inflation risks
2) The environment
3) Regional disparities - 9What effect could economic growth have upon inflation?danger of demand-pull and cost-push inflation
- 10What effect could economic growth have upon the environment?Negative externalities i.e.Congestion and pollution
- 11What can growth lead to? (positive)lead to achieving development objectives-
More money can provide better healthcare/education/jobs etc - 12Whatcan growth lead to? (negative)Growth may cause increased inequality of wealth
Growth may deplete natural resources
Growth may reduce jobs if capital intensive
Growth may cause pollution - 13How is economic growth measured (3)1) GDP top 10
2) GDP per capita
3) GDP by PPP - 14What is GDP top 10?List of countries by GDP
- 15What are the limitations of measuring by GDP top 10?Nominal GDP does not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency
- 16What is GDP per capita?gross domestic product per capita at nominal values
Value of all final goods and services produced within a nation in a given year, converted at market exchange rates to current U.S. dollars, divided by the average (or mid-year) population for the same yea - 17What are the limitations of measuring by GDP per capita?Same as GDP top 10 and doesn't take into account variables such as :
Distribution of income, pollution, resource depletion, the black market? - 18What does PPP stand for?Purchasing Power Parity
- 19What is GDP by PPP?value of all final goods and services produced within a state in a given year.
- 20Why is GDP by PPP needed?Simply using exchange rates to convert GDP per capita to US dollars is not enough.
This is because exchange rates do not take account of what currencies can buy in terms of other goods and services. - 21Why is GDP by PPP useful?PPP takes into account the relative cost of local goods, services and inflation rates of the country, rather than using international market exchange rates which may distort the real differences in per capita income
gives a more accurate reflection of what goods and services can be bought. - 22What are limitations of GDP by PPP?limited when measuring financial flows between countries
- 23What is the HDI?Human Development Index
- 24Why was it created and by who?United Nations Development Programme, an alternative measure of development that recognises the limitations of GDP per capita
- 25What are the main components of HDI? (3)1. Life expectancy at birth
2. The adult literacy rate (weighted two-thirds) and the percentage of the relevant population enrolled in primary, secondary and tertiary education (weighted one third)
3.GDP per capita in US$ at PPP - 26What is Life expectancy at birth an indicator of?the health of the population and longevity
- 27What is education an indicator of?indicator of knowledge and education
- 28What is GDP per capita in US$ at PPP an indicator of?indicator of the standard of living
- 29What exists for each component?Maximum and minimum values (goalposts)
- 30What is classed as a High level of human development?0.8 and above
- 31What is classed as a medium level of human development?Between 0.5 and 0.8
- 32What is classed as a low level of human development?Less than 0.5
- 33Advantages of HDI (2)1) focuses attention on the outcomes of development, rather than growth
2) allows judgements on a countries development over time - 34Why is focused attention on the outcomes of development, rather than growth a strength of HDI?HDI and GDP per capita should rise together, if this doesn't happen may indicate the country needs to devote more resources to improving human development.
- 35Why is allowing for judgements on a countries development over time an advantage of HDI?helps organisations such as the United Nations to focus aid where it may be required the most.
- 36HDI Disadvantages (4)1) Only looks at 3 indicators of development
2) Weighting of the 3 indicators
3) Opportunity cost
4) Quality - 37Why is only looking at 3 indicators of development a weakness of HDI?More measures could make the measure more holistic but would more measures dilute the other measures, or is the selectiveness a strength?
- 38Why is the weighting 3 indicators of development a weakness of HDI?Are all the components of equal importance when measuring development-Is adult literacy rate a more important measure than life expectancy
- 39Why is the opportunity cost a weakness of HDI?Taking an L- Shifting expenditure to health and education, from improving access to clean water? Is this worth a 1-year increase in life expectancy?
- 40Why is the quality a weakness of HDI?Doesn't take into account the quality of developments- Even though more of the population are in education, does this necessarily mean that the education being provided will lead to better prospects?
- 41Evaluative points (2)1) HDI should not be seen in isolation from measures of human well-being i.e. quality of life, access to clean water etc
2) When governments use HDI to guide policy, care needs to be taken to ensure that the distribution of development is not unequal. - 42Characteristics of development? (6)1) Low standards of living
2) Low levels of labour productivity
3) A high rate of population growth
4) Economic structure dominated by primary sector
5) High degree of market failure
6) A lack of economic power in international markets - 43What are the characteristics of low standards of living?1) low income
2) poor heath
3) high infant mortality
4) lack of access to clean water - 44Why does low levels of labour productivity occur? (3)1) Because of a shortage of physical capital (machinery)
2) Low GDP and savings also contribute to the lack of investment in human capital
3) Poor heath - 45What does low levels of labour productivity usually lead to?Vicious circle of poverty
- 46What are the four stages of the poverty circle?1) Low income
2) Low saving
3) Low investment
4) Low productivity - 47What do poorer countries tend to have? (2)high rates of population growth & high birth rates in excess of the death rate.
- 48What does high rates of population growth lead to?dependency’ burden due to a high rate of the population being under 15.
- 49What is the effect of development increases?Dependency on primary sector falls
- 50What is the relationship between development and dependency on the primary sector?As development increases, dependency on primary sector falls.
- 51In very poor countries what is the purpose of most output ?for the countries own consumption
- 52What would be the value of these products if they were exported?value is likely to be low
- 53What theory support the idea that then value of exports from poor countries would be very low? What does it argue?Prebish-Singesr
Argues that the price of primary commodities declines relative to the price of manufactured goods over the long term, which causes the terms of trade of primary-product-based economies to deteriorate - 54What do developing nations have a high dependency on?Government intervention
- 55What are markets usually like in poor countries? Why?Markets are often incomplete, usually due to a lack of legal frameworks
- 56What are there high levels of in developing nations?Negative externalities
- 57Why do developing countries usually have low economic power?They have a low level of exports
- 58Even when developing countries may have a comparative advantage what are these likely to be?dominated by MNC’s in developed countries
E.g. 90% of the world’s bananas are grown in developing countries, with plantations being owned by 5 companies from developed countries. - 59What are examples of market led strategies to promote development? (6)1) Promoting tourism and movement of people
2) Reduce import tariffs / quotas
3) Privatisation of certain industries
4) De-regulation of businesses
5) Removing subsidies
6) Allowing FDO - 60What are examples of interventionist strategies to promote development? (7)1) Reduce benefits/welfare reform
2) Invest in public services
3) Build infrastructure – roads, f
4) Re-nationalisaton
5) Increase import tariffs- wont import, all money stays in the country
6) Rebalancing the economy- primary to secondary
7)Receiving foreign aid- but there is the danger that you could become dependent on it
Informationen
- Beschreibung
- A-Level Macro yr13 ( 4.2.6.5 Economic growth and development) Karteikarten am Economic Development , erstellt von Maya Khangura am 20/02/2017.
- Erstellt von
- Maya Khangura
- Aufrufe
- 5
- Bewertung