Economic Growth and Development Flashcards
Define ‘standard of living’
The material welfare of an economy, usually considered to be equivalent to real national output per capita
Define ‘economic development’
Improvements in the standards of living, as well as the social and political welfare, of individuals in an economy
Define economic growth
Refers to increases in national income / national output
Define economic development
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
Give 5 characteristics of less economically developed countries
Low life expectancy
High mortality rates
Low GDP
Fast population growth
Low levels of education
Poor standard of living
Absent or poor healthcare provision
What does HDI stand for?
Human Development Index
What are the three dimensions of the HDI?
Education
Life-expectancy
Standard of living
How is the education component of HDI determined?
By the average years of schooling
How is the standard of living component of HDI determined?
by GNI (Gross National Income) adjusted to PPP per capita
On what scale is HDI calculated?
Between 0 and 1
What was the world average HDI in 1970?
0.48
What was the world average HDI in 2010?
0.68
What does a HDI of close to 1 show?
A high level of economic development
What does a HDI of close to 0 show?
A low level of economic development
Give 2 limitations of using HDI
Does not consider the distribution of income
Does not consider how free people are politically, their human rights, gender equality, etc
