Economic Growth and Development (Broad)

Question 1

Explain what a developed country is

Answer 1

Developed countries are the countries that are developed in terms of their economy and industrialisation.

A developed country has a high standard of living; high GDP; high child welfare; healthcare; communications and educational facilities.

Question 2

Explain what a developing country / least developed country (LDC) is

Answer 2

Developing countries, or least developed countries, are countries that are going through the initial levels of industrial development and have low per capita income.

Question 3

List four characteristics of LDC’s

Answer 3

Famine, Foreign Debts, Lack of capital / Low levels of investment, Poor levels of education

Question 4

Distinguish between economic development and economic growth

Answer 4

Economic development is an increase in GNP per head of population, which is accompanied by a fundamental change in the structure of society.

Economic growth is an increase in GNP per head of population without any changes to the structure of society.

Question 5

Give four examples of fundamental changes in the structure of society

Answer 5

Urbanisation, education, political stability, move away from subsistence industry.

Question 6

Name and explain three non-monetary benefits of the factors of production

Answer 6

Human capital, competition, R+D (research and development)

Question 7

Explain what the Human Development Index (HDI) is

Answer 7

The Human Development Index (HDI) is a summary composite index that measure’s a country’s average achievemnts in three basic aspects of human development: health, knowledge and income.