2.2- economic development

Question 1

Economic development

Answer 1

An improvement in economic welfare
Seen through higher real incomes / reduced poverty

Question 2

Primary Sector

Answer 2

Extraction of raw materials from land
E.G coal / fish / crops

Question 3

Secondary sector

Answer 3

Manufacturing of raw materials using machinery
E.G car / phone production

Question 4

Tertiary Sector

Answer 4

Service sector where G+S sold to consumer
E.G restaurants / insurance

Question 5

Sustainable Development

Answer 5

Achieving needs of current generations without jeopardising future generations

Question 6

What does sustainable development balance?

Answer 6

Economic objectives - use of scarce resources
Social objectives - distribution of benefits of economic growth
Environmental objectives - full social cost of econ growth

Question 7

Policies to promote sustainable development

Answer 7

Increase in training + development
Progressive tax + benefit systems
Improved access to healthcare

Question 8

GDP per capita calculation

Answer 8

Real GDP / population

Question 9

Problems with GDP per capita

Answer 9

Doesn’t factor spread of income
No value on leisure
Some economic activity is not considered

Question 10

Human development index

Answer 10

Measures / ranks countries level of social + economic development

Question 11

What 3 sections does HDI equally weigh?

Answer 11

Health / life expectations
Education
Standard of living / GDP per capits

Question 12

Problems with HDI

Answer 12

Emphasis on income
Weighs all factors equally
Uses a broken measure in GDP per capita