economic problems Flashcards
economic problems facing more developed countries (MEDC’s)
high levels of income inequality - leading to allocative inefficiency
could have high levels of national debt - leading to oppertunity cost as money needs to be paid back with interest
housing affordability - many younger members of society are unable to buy homes
ageing society - fewer younger individuals to help with older ones
economic problems facing less developed countries (LEDC’s)
poverty - low living standards
lack of infrastructure and education - reducing economic growth
depedence on primary commodities - limited number of primary goods that can be exported, so they are reliant on the demand for this good, often sold at low prices
foreign debt - needs to be paid with intrest, leaving less available for investment
economic problems facing emerging economies
lack of inrastructure - reducing economic growth
income inequality - leading to allocative inefficiency
dependance on export commodities - volatillity in export prices can affect demand and the money earnt from exports
lack of education - reducing economic growth
what is an emerging economy
an economy that is on the transition from a developing to a developed economy
