chapter 3 topic 1: economic growth

Question 1

ECONOMIC DEVELOPMENT

Answer 1

• process of structural change developing economic and social infrastructure
• qualitative measure of average SOL achieved to date by a nation

Question 2

ECONOMIC GROWTH

Answer 2

• increase of output of an economy over period of time
• measured through changes of real GDP

real GDP: quantitative measure of output in economy after adjusting for inflation

Question 3

LEVEL OF DEVELOPMENT + characteristics

Answer 3

1. developed (38)
   - high real income per capita
2. developing
   - low real income per capita
   
   • EMERGING: high levels of economic growth, developing and rising rapidly

Question 4

difference between GDP and GNP

Answer 4

GDP: value of G&S produced in country borders

GNP: value of G&S produced by labour and property owned by residents (oversea+domestic)

Question 5

transitioning economy

Answer 5

economy in the process of transitioning from planned to free market system
eg china going from command to free market economy