Economic Growth and Development (Precise) Flashcards
Explain what a ‘developed country’ is
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; health-care, communications and educational facilities etc.
Explain what a ‘developing country/least developed country (LDC)’ is
Developing countries, or least developed country’s (LDC’s) are countries that are going through the initial levels of industrial development and have low per capita income.
Explain why famine is a characteristic of an LDC
Famine frequently occurs in LDC’s resulting in death, disease and a high medical cost
Explain why foreign debts are a characteristic of an LDC
The capital and interest repayments use up significant government revenue and often cripple the economy
Explain why lack of capital/low levels of investment are a characteristic of an LDC
LDC’s lack the capital essential for economic development and employment generation.
Explain why poor levels of education are a characteristic of an LDC
Educational opportunities are limited. This in turn limits economic development.
Explain the term economic development
Economic development is an increase in GNP per head of population, which is accompanied by a fundamental change in the structure of society.
Explain the term economic growth
Economic growth is an increase in GNP per head of population without any changes to the structure of society.
Explain what urbanisation is (fundamental change)
Urbanisation is the move from rural areas of the country to more urban districts.
Explain what education is (fundamental change)
The provision of mandatory primary education for all citizens.
Explain what political stability is (fundamental change)
A move from an unstable and corrupt political structure to a democratic constitution
Explain what it means to move away from subsistence industry (fundamental change)
Less dependence on agriculture and increased provision of services.
Explain why ‘human capital’ is a non monetary benefit of the factors of production
As people learn more skills in the work place they become more employable or command higher wage in the future.
Explain why ‘competition’ is a non monetary benefit of the factors of production
An increase in entrepreneurship leads to an increase in competition. This offers consumers lower prices and / or greater choice.
Explain why ‘R+D’ is a non monetray benefit of the factors of production
As the economy grows, businesses have profits to spend. This creates a market for start ups and corporations to develop new products and services.
