Economic Inequality Flashcards
What is economic inequality?
Economic inequality refers to the gap in wealth and living standards between richer or poorer countries or areas
What’s an industrialised country?
A country that has the capacity to produce secondary goods and services
What are examples of countries with “tiger economies”?
- China
* Malaysia
What is the developed world?
- includes most of the countries of the northern hemisphere as well as Australia and New Zealand
- a large proportion of their workers are involved in the service of tertiary sector
What is the quickly developing world?
- The quickly developing world are the countries whose economies are growing rapidly
- most of them are rapidly industrialising countries
What is the slowly developing world?
Countries where little or no industrial development is happening and they are still largely dependent on primary goods
What are the features of north and south countries?
- many countries were colonial powers
- northern countries control world trade
- most people are healthy
- high life expectancy
- most people are educated
- incomes are higher
- smaller families
Here’s of the south countries?
- many countries are colonies of northern countries
- mainly produce primary products-tea, coffee, minerals
- low prices for exports
- many people are unhealthy
- low life expectancy
- many are poorly educated
- incomes are much smaller
- bigger families
What’s the GNP?
Gross national product
What is the GNP?
Adds up all the wealth of a country for a particular year, GNP is then expressed per person or per capita
- useful for making comparisons between the wealth of different countries
- can be misleading as the average figures don’t highlight the poverty
What are is the HDI?
Human Development Index
•measures a person’s quality of life
•combines indicators of life expectancy, educational attainment and income
•countries then measured on a scale
What are the reason the income gap is widening?
- colonisation
- industrialisation
- trade
- debt
How does colonisation affect the income gap?
The colonies were exploited by the imperial powers, they used the natural resources of the colonies for their own benefit
How does industrialisation affect the income gap?
Developed countries are industrialised meaning they have the capacity to produce secondary goods and services. This has made them wealthier while developing countries are mainly primary producers. They produce raw materials for the industrialised developed world
How does trade affect the income gap?
Richer countries control trade by paying low prices for raw materials from poorer countries. These raw materials are then processed as industrial products for greater profits
