4.1.1 growing economies

Question 1

define economy

Answer 1

the state of a country in terms of how many goods / services the country is producing and consuming

Question 2

define gdp

Answer 2

the value of all the goods and services produced in a country within a year

Question 3

define emerging economy

Answer 3

low incomes per head, but high growth rates and good prospects.
economy has not quite met the requirements of a developed economy but is almost there

Question 4

BRIC economies

Answer 4

Brazil, russia, india, china, South Africa.
countries, or groupings of countries that have global influence and power.
have either a large population, access to key resources, regional influence and power, economic growth

Question 5

MINT economies

Answer 5

Mexico, indonesia, nigeria, turkey.
very favourable demographics for at least the next 20 years.

Question 6

how can growth affect individuals

Answer 6

increased wages = more spending on businesses.
more enterprise opportunities = impacts on quality of life

Question 7

how can growth affect businesses

Answer 7

chance to gain more customers and increase profit by setting up in these emerging markets.
potentially have increased competition due to businesses from these economies exporting into the developed economies

Question 8

gdp advantages

Answer 8

measured frequently and widely.
methodology of calculating it is well established and has been developed internationally.
meaningful comparable data between countries and within a country.

Question 9

gdp disadvantages

Answer 9

the hidden economy.
distribution of wealth.
gdp growth may not be sustainable if scarce resources are being used up.
gdp ignores living conditions such as pollution / congestion

Question 10

define gdp per capita

Answer 10

measuring the gdp of an economy through the gdp per head of a population

Question 11

define ppp - purchasing power parity

Answer 11

adjusting income levels to allow for differences in the cost of living

Question 12

define literacy rate

Answer 12

the percentage of a population, aged 15 and above who can read and write a short statement on their everyday lives

Question 13

health

Answer 13

countries where aids, malaria, ebola and other diseases are prominent.
affects the workforce and productivity of the whole economy

Question 14

human development index

Answer 14

developed to find a more person centred measure of economic development.
combines statistics on literacy, and health + gdp per capita into a single value

Question 15

why search for new markets?

Answer 15

develop brand / market share overseas.
to extend the product life cycle.
increase sales.
market saturation

Question 16

market saturation

Answer 16

the point at which new demand is not being created for a product