Developed, Emerging and developing economies (CH 14)

Question 1

Indicators of growth

Answer 1

• GDP per capita
• Literacy and Health

Question 2

Define GDP per capita

Answer 2

• Value of total GDP divided by population of nation
• Measures the average output per person in an economy
• Useful for comparing performance to other nations

Question 3

Limitations of GDP

Answer 3

• Doesn’t give indication of distribution of income
• Nations with similar GDP’s may have different distributions leading to different living standards in countries
• GDP may need adjustment to account for international price differences
• Black markets excluded from calculations
• GDP doesn’t take in account living standards

Question 4

Discuss Education and health factors

Answer 4

• Indicates infrastructure quality and opportunities in a nation
• Reflects success of government policies in promoting development

Question 5

Discuss life expectancy and health indicator

Answer 5

Poor sanitation and clean water access

Question 6

Human development index

Answer 6

• Education
• Life expectancy
• Standards of living

Measures economic and social welfare of nations over time

Question 7

HDI Limitations

Answer 7

• how free people are politically
• human rights, gender equality
• environment
• distribution of income

Question 8

HDI benefits

Answer 8

• Allows for comparisons between nations from which are more developed
• Provides broader comparison between nations GDP

Question 9

Define Developed economies

Answer 9

• High level of economic growth and stable economy

Indicator- Health and welfare supply

Question 10

Define Developing economies

Answer 10

• Manufacturing ( mainly clothing and footwear)

Question 11

Factors of Developed Economies

Answer 11

• Long life expectancies
• High income per capita
• High levels of education
• Slow population growth per year
• Low mortality rates
• Low birth rates
• Large urban / city populations

Question 12

Factors of Developing economies

Answer 12

• Low life expectancies
• Low / Middle incomes
• High mortality rates
• High dependency ratio
• Low GDP
• Fast population growth
• Low level of education
• Poor standards of living
• Poor nutrition
• Poor healthcare
• Low saving rates

Question 13

Factors of emerging economies

Answer 13

• BRIC are emerging economies
• Fast growth + recent industrialisation
• Moving away from agriculture
• Rely heavily on industry

Question 14

Mean and median incomes

Answer 14

Mean income of nation = total income of economy (GDP) / Population

Median income= ‘middle values’ of all incomes in a country