Economic Growth and Development

Question 1

Define ‘standard of living’

Answer 1

The material welfare of an economy, usually considered to be equivalent to real national output per capita

Question 2

Define ‘economic development’

Answer 2

Improvements in the standards of living, as well as the social and political welfare, of individuals in an economy

Question 3

Define economic growth

Answer 3

Refers to increases in national income / national output

Question 4

Define economic development

Answer 4

A sustained improvement in the quality of life and living standards of an economy
Shown through measures of literacy, life-expectancy and health care outcomes

Question 5

Give 5 characteristics of less economically developed countries

Answer 5

Low life expectancy
High mortality rates
Low GDP
Fast population growth
Low levels of education
Poor standard of living
Absent or poor healthcare provision

Question 6

What does HDI stand for?

Answer 6

Human Development Index

Question 7

What are the three dimensions of the HDI?

Answer 7

Education
Life-expectancy
Standard of living

Question 8

How is the education component of HDI determined?

Answer 8

By the average years of schooling

Question 9

How is the standard of living component of HDI determined?

Answer 9

by GNI (Gross National Income) adjusted to PPP per capita

Question 10

On what scale is HDI calculated?

Answer 10

Between 0 and 1

Question 11

What was the world average HDI in 1970?

Answer 11

0.48

Question 12

What was the world average HDI in 2010?

Answer 12

0.68

Question 13

What does a HDI of close to 1 show?

Answer 13

A high level of economic development

Question 14

What does a HDI of close to 0 show?

Answer 14

A low level of economic development

Question 15

Give 2 limitations of using HDI

Answer 15

Does not consider the distribution of income
Does not consider how free people are politically, their human rights, gender equality, etc

Question 16

Give 2 benefits of using HDI

Answer 16

Provides a much broader comparison between countries than GDP does
Allows for comparisons between countries to be made
Could show how successful government policies have been

Question 17

Give a measure of economic development, other than HDI

Answer 17

HPI (Human Poverty Index)

Question 18

What 3 things does HPI (Human Poverty Index) measure?

Answer 18

Life expectancy
Education
The ability of citizens to meet basic needs

Question 19

What is meant by market-orientated strategies?

Answer 19

Measures that make the economy more free, with minimum government intervention