Economic Growth And Development

Question 1

What does Amartya Sen view development as

Answer 1

Freedom

Question 2

Who views development as freedom

Answer 2

Amartya Sen

Question 3

What is an emerging economy

Answer 3

An economy in the process of rapid growth and industrialisation

Question 4

Common features of emerging economies

Answer 4

• primary sector dependence
• industrialisation
• fast long term economic growth
• many still in poverty
• struggle to access global market (trade barriers)

Question 5

How can sustained growth spur development

Answer 5

• incomes rise
• higher profits (= investment)
• shifting economy towards manufacturing and services
• higher tax revenues

Question 6

3 risks from rapid economic growth

Answer 6

• higher inflation and higher interest rates
• environmental effects
• inequalities of income and wealth

Question 7

How can rapid economic growth cause a risk of higher inflation and higher interest rates

Answer 7

• fast growing demand = cost and demand inflation

- central bank may decide to raise interest rates to control inflation

Question 8

How can rapid economic growth cause environmental effects

Answer 8

• pollution and waste

- risk of unsustainable resource extraction of finite resources

Question 9

How can rapid economic growth cause inequalities of income and wealth

Answer 9

• rapid increases in RNO can lead to a higher level of inequality and social divisions
• many of the gains form growth may go to only a few people

Question 10

Reasons for positive medium-long-term GDP growth trends for emerging markets

Answer 10

• urbanisation process continues
• population growth
• per capita income

Question 11

Reasons for slow economic growth in many advanced countries

Answer 11

• ageing population
• high debt
• fall in corporate spending
• inequality in

Question 12

What is human capital

Answer 12

The capital that is in human being rather than machines - physical, emotional, educational

Question 13

What is human capital a measure of

Answer 13

Economic development

Question 14

Ways of measuring the extent, durability and progress of improvements in human economic development

Answer 14

• risk of extreme poverty
• energy consumption
• access to clean water
• degree of primary export dependence

Question 15

What is GNI per capita

Answer 15

GDP per capita plus net inflows of income for a country’s people from overseas investments and remittances