7.1 – Developed and less-developed economies

Question 1

What does economic development mean?

Answer 1

Economic development refers to the increase in the economic welfare of people through growth in productive scale and wealth of an economy. Governments aim for their countries to expand from developing economies to developed economies.

Question 2

What are Developed Countries?

Answer 2

Generally have a good infrastructure and a stable economy with very high per capita income. The degree of development, industrialization and general standard of living for its citizens, in terms of education, health and wealth, is very high.

Question 3

What are Under-developed Countries?

Answer 3

countries that lag behind most others in industrialization, infrastructure and standards of living, and have low income per capita.

Question 4

What are Developing Countries?

Answer 4

Countries that are becoming more developed through expansion of the industrial sector and fewer people suffer the extremes of poverty. However they may still have a low standard of living.

Question 5

What are the reasons for low economic development?

Answer 5

Over-dependence on agriculture
Domination of international trade by developed economies
Lack of capita
Poor investment in infrastructure, health and wealth
High population growth
Wars deplete resources
Corrupt and unstable governements

Question 6

What is Absolute Poverty?

Answer 6

The inability to afford basic necessities needed to live

Question 7

What is Relative Poverty?

Answer 7

The condition of having fewer resources than others in the same society.

Question 8

How to reduce poverty?

Answer 8

Introduce measures to reduce unemployment
Impose progressive taxes:
Introduce welfare services
Introduce minimum wage legislation
Increase the quantity and quality of education.
Attract and invite inward investments from firms abroad
Overseas aid could be gained from foreign governments and aid agencies.