Econ - Economic development

Question 1

What is economic development

Answer 1

An improvement in economic welfare

Question 2

Cause of differences in economic development: Incomes per head

Answer 2

• Tend to be lower with low real GDP per head
• Some people struggle to afford good standard of living
• Some are very rich, some are poor

Question 3

Cause of differences in economic development: Saving due to diff in income per head

Answer 3

• Poor people cant afford to save
• Savings ratio likely to be low (Average income low)
• If saving low, lack of fianace for investment

Question 4

Cause of differences in economic development: Investment

Answer 4

• Low value of capital goods per worker
  
  • Likely have low income per head

Question 5

Cause of differences in economic development: Population growth

Answer 5

• High population rate
• Usually high dependency ratio
• Small proportion of workers
• Some resources might be used to support extra people

Question 6

Cause of differences in economic development: Education and healthcare

Answer 6

• Poor quality, lack of access
• Reduction of quality of peoples lives
• Result in low levels of productivity

Question 7

The impacts of differences in economic development: High growth of population

Answer 7

• high birth rate lead to resource being used to feed and educate
• Opportunity cost: Used for countrys productive potential and living standards

Question 8

The impacts of differences in economic development: High levels of international dept

Answer 8

• Large income of government is used for repaying
  -Income cant be used for other uses

Question 9

The impacts of differences in economic development: Reliance of exports