10.5 Economic growth and development

Question 1

What is economic growth?

Answer 1

An increase in the long-run productive capacity of an economy

Question 2

What is economic development?

Answer 2

The process of improving peoples economic well-being and quality of life

Question 3

What factors are included in economic devlopment?

Answer 3

• Higher living standards
• Improved availability of basic needs
• Expansion of opportunity via education and enhanced healthcare
• Improved resource allocation and sustainability

Question 4

What are factors that affect growth and development?

Answer 4

Investment, education and training

Question 5

What are barriers to growth and development?

Answer 5

Corruption 
Weak institutions 
Poor infrastructure
Inadequate human capital
Lack of property rights

Question 6

What are market based stratergies?

Answer 6

Privatisation and deregulation
Trade liberalisation
Establishment of property rights
Macroeconomic stability

Question 7

What are interventionist strategies?

Answer 7

Centralised state planning
Infrastructure investment
Education and training
Protectionism