KAA development

Question 1

Development

Answer 1

increase in standard of living in a whole population

Question 2

Savings gap

Answer 2

Low income poverty
Low savings
Lack of funds in banks
Low investment
Low growth
Low gni growth
Low hdi growth

Question 3

Harrod domar model

Answer 3

Savings ration/capital output ratio = economic growth

Question 4

Prebish singer hypothesis

Answer 4

Yed inelastic primary products
World income rises
Less than porpitante increase in Qd than income
Prices of primary products rise slowly exports
Yed elastic capital
Greater than proportionate increase in Qd than income for capital
Prices rise quickly for imports
TOT worsens
For every import the country must sell more exports
Barrier to diversification

Question 5

Lewis model:

Answer 5

Rural to urban
Factories more productive
MRP higher, higher wages than farmers
Farmers move to cities to work in factories 30%
Mobility of labour - tourism