2.2-Development Flashcards
What is economic development?
Economic development refers to the process by which a nation improves the economic, political, and social well-being of its people.
True or False: Economic growth and economic development are synonymous.
False
Fill in the blank: Economic development focuses on __________ improvements in living standards.
qualitative
What is the Human Development Index (HDI)?
The Human Development Index is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development.
Which three dimensions does the HDI measure?
Health, education, and standard of living.
What does GDP stand for?
Gross Domestic Product
True or False: GDP is a measure of economic development.
False
What is the primary focus of sustainable development?
To meet the needs of the present without compromising the ability of future generations to meet their own needs.
Define ‘poverty line’.
The poverty line is the minimum level of income deemed adequate in a particular country.
What is meant by ‘income inequality’?
Income inequality refers to the unequal distribution of income within a population.
Multiple Choice: Which of the following is NOT a component of the HDI? A) Life expectancy B) Economic freedom C) Education D) Income
B) Economic freedom
What is the role of foreign direct investment (FDI) in economic development?
FDI can provide capital, technology, and expertise to developing countries, promoting growth and development.
True or False: Microfinance is aimed at providing financial services to low-income individuals or those without access to typical banking services.
True
What is the difference between absolute poverty and relative poverty?
Absolute poverty refers to a condition where an individual lacks the basic necessities for survival, while relative poverty is defined in relation to the economic status of other members of the society.
Fill in the blank: __________ development focuses on improving the quality of life and well-being of individuals.
Human
What does the term ‘structural change’ refer to in the context of economic development?
Structural change refers to a shift in the fundamental structure of an economy, often moving from agriculture to manufacturing or services.
What is a ‘development trap’?
A development trap is a situation where a country is unable to escape from a cycle of poverty and underdevelopment.
Multiple Choice: Which of the following is a common indicator of economic development? A) Unemployment rate B) Literacy rate C) Inflation rate D) All of the above
D) All of the above
What is the purpose of the Millennium Development Goals (MDGs)?
The MDGs were established to address global challenges and improve social and economic conditions in developing countries.
True or False: The Sustainable Development Goals (SDGs) replaced the Millennium Development Goals.
True
What does ‘microeconomic stability’ entail?
Microeconomic stability involves maintaining a stable economic environment that encourages investment and growth.
Fill in the blank: __________ is the process of increasing the productive capacity of an economy.
Investment
What is the significance of human capital in economic development?
Human capital refers to the skills, knowledge, and experience possessed by individuals, which are crucial for economic growth and development.
What are ‘social indicators’?
Social indicators are statistics that reflect the social conditions of a population, such as education levels, health status, and income distribution.
