Economic Growth and Development Flashcards

1
Q

Economic Growth

A

The growth in the value of output in the economy.

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2
Q

Development

A

The sustained actions that improve the standard of living and economic health of a specific locality.

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3
Q

Growth - Higher Incomes

A

Implies there are jobs, improving quality of life, material standard of living. Reduces income inequality and reduces poverty when there is high GDP per capita.

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4
Q

Growth - Higher Profits

A

Firms COULD use profits to reinvest into economy or technology. Helps move from agriculture towards service /manufacturing. Creates jobs to satisfy demand.

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5
Q

Growth - Fiscal Dividend

A

With higher wages, higher level of taxation corporation and expenditure tax, higher fiscal revenue for healthcare, education and infrastructure.

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6
Q

Distribution of Income

A

No guarantee that growth will provide total income equality, incomes will differ. Standard of living hasn’t increased to everyone.

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7
Q

Negative Externalities and Sustainability

A

The requirement for resources contribute to pollution, short term growth created. Future generation no access and pollution will affect health.

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8
Q

Dominant Sectors

A

Not everyone will benefit from the growth only those involved in a particular industry, income equality.

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9
Q

Overall

A

Growth is a necessary condition, but not sufficient in achieving development.

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10
Q

GDP per Capita

A

This shows the average income per person. Could be income inequality, pollution ect shows the production of one country.

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11
Q

GNI

A

All income created by all the economies factors of production regardless of where they are operating/remittances. High FDI in developing country.

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12
Q

Purchasing Power Parity

A

This is where GNI is converted into something more universal dependant on cost of living something could cost more in another country.

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