Section 14 - Economic Development

Question 1

Economic Growth

Answer 1

An increase in the size of a country’s GDP.

Question 2

Economic Development

Answer 2

It’s a normative concept - it involves making value judgements about what would make up a ‘more developed’ country. (But aims to measure how living standards and people’s general welfare in a country change over time.)

Question 3

Size of a country’s economy is important when measuring development, and so are things such as…

Answer 3

The size and health of the population and the quality of life they have.

Question 4

National income data is an important measure of economic development, such as…

Answer 4

Real GDP per capita or real GNI (gross national income) per capita. Real GDP and GNI have the effect of inflation removed.

Question 5

Benefit of using ‘per capita’ national income figures