Macro 2.2 Development Flashcards
What are the three sectors of the economy?
Primary, Secondary, Tertiary
The Quaternary sector is sometimes included as well.
What is the policy objective of sustainable development?
To meet the needs of the present without compromising the ability of future generations to meet their own needs.
True or False: Economic growth is the same as economic development.
False
Fill in the blank: Short term economic growth occurs when an increase in _________ absorbs spare _________ as there is an increase in _________.
aggregate demand, capacity, output
Fill in the blank: Long term economic growth occurs when there is an _________ in the _________ of the economy.
increase, productive potential
What does economic growth measure?
Changes in the quantity of goods and services produced by an economy.
What does economic development include beyond economic growth?
Quality of the output produced and its contribution to human happiness.
List the four productive sectors of the economy.
- Primary
- Secondary
- Tertiary
- Quaternary
What is GNI per capita?
A measure of the average income levels across countries. GNI divided by population
True or False: GNI per capita takes into account the informal economy.
False
What are some social indicators of development?
- Literacy rate
- Numbers of doctors per head of population
- Infant mortality rate
- Women’s literacy rate
- Birth rate
- Death rate
- Access to water and sanitation
What is the Human Development Index (HDI)?
A UN measure of development that includes GNI per capita, mean and expected years of schooling, and life expectancy.
What can HDI be adjusted to reflect?
Inequality in an LDC society.
What are barriers to growth and development?
- Corruption
- Institutional factors
- Poor infrastructure
- Inadequate human capital
- Lack of property rights
What is one negative consequence of corruption?
It prevents normal economic activity and leads to inefficient allocation of resources.
