Economic Development Flashcards
What is economic development?
Economic development refers to the process by which a nation improves the economic, political, and social well-being of its people.
True or False: Economic growth and economic development are the same.
False
Fill in the blank: Economic development often involves improvements in _____ and _____.
living standards, quality of life
What are the main indicators of economic development?
GDP per capita, literacy rates, life expectancy, and income distribution.
Multiple Choice: Which of the following is NOT a component of economic development? A) Education B) Health C) Environmental sustainability D) Profit maximization
D) Profit maximization
What is the Human Development Index (HDI)?
The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, used to rank countries into four tiers of human development.
True or False: Economic development is solely focused on economic growth.
False
What role do institutions play in economic development?
Institutions provide the framework for economic activity, influencing policy-making, governance, and economic stability.
Fill in the blank: Sustainable development seeks to balance _____, _____, and _____ aspects of growth.
economic, social, environmental
Multiple Choice: Which of the following is a characteristic of developing countries? A) High GDP per capita B) Low literacy rates C) Advanced technology D) High employment in service sector
B) Low literacy rates
What is meant by ‘poverty alleviation’?
Poverty alleviation refers to efforts aimed at reducing the level of poverty in a population.
True or False: Economic development can occur without economic growth.
True
What is the significance of foreign direct investment (FDI) in economic development?
FDI can provide capital, technology, and expertise to developing countries, fostering growth and development.
Fill in the blank: The term ‘microfinance’ refers to financial services aimed at _____ and _____.
small businesses, low-income individuals
What are the main challenges to economic development?
Corruption, political instability, lack of infrastructure, and inadequate education.
Multiple Choice: Which of the following is a measure of income inequality? A) GDP B) Gini coefficient C) HDI D) CPI
B) Gini coefficient
What does the term ‘human capital’ refer to?
Human capital refers to the skills, knowledge, and experience possessed by an individual or population.
True or False: Economic development is a linear process.
False
What is a ‘developing country’?
A developing country is a nation with a lower living standard, underdeveloped industrial base, and low Human Development Index relative to other countries.
Fill in the blank: ‘Inclusive growth’ aims to ensure that economic growth benefits _____ segments of society.
all
What is the role of technology in economic development?
Technology drives innovation, increases productivity, and can improve quality of life.
Multiple Choice: Which of the following is a key factor in determining a country’s level of economic development? A) Natural resources B) Military strength C) Population size D) Geographic location
A) Natural resources
What does the term ‘sustainable economic development’ imply?
Sustainable economic development implies meeting the needs of the present without compromising the ability of future generations to meet their own needs.
