Theme 4.1 Flashcards
What’s the primary sector ?
Involves the production of raw materials and includes agriculture, mining and quarrying, and fisheries.
What’s the secondary sector ?
Involves manufacturing and the production of tangible goods.
What’s the tertiary sector ?
Involves services and other knowledge based industries.
What’s the growth rate of the UK (developed/ mature economy) compared to that of an emerging economy ?
UK has a slow economic growth rate whereas, an emerging economy has a very rapid economic growth.
What makes a country a developing economy ?
- Relatively low standard of living.
- labour intensive
Implications of economic growth for individuals and businesses ?
- More is produced than before
- This needs more resources including labour
- Employment is created and incomes earned
- Leads to more demand and to further growth ( workers with more disposable income spend more and consume goods and services)
How do individuals benefit from economic growth ?
- rising standards of living
- job opportunities
Disadvantage to businesses of economic growth and the ‘However’ to accompany it ?
As incomes rise, wage rates will also rise .
However, businesses may outsource their manufacturing process to move production to the countries with lower labour costs. (employment and incomes may fall)
What are the indicators of growth ? (4)
- Growth Domestic Product (GDP) per capita
- Literacy
- Health
- Human Development Index (HDI)
Define Gross Domestic Product (GDP).
Measures the value of all the goods and services produced within an economy over the space of a year.
Drawbacks of measuring growth using GDP ?
- doesn’t measure important aspects of well-being such as the availability of health care and education, housing, and environmental regulation.
- inequality within the country. Some very wealthy people but a large proportion of the population living in poverty can make the average per capita appear quite high.
- fluctuating exchange rates make international comparisons difficult.
- the hidden (/black) economy - paid world not declared to the tax authorities
- Doesn’t account for home produced goods (important in developing countries where they rely on the food they produce themselves. E.g. eat eggs from their chickens)
Define ‘literacy rate’ ?
The rate or percentage of people who can read and write. Indicates the level of education.
The link between health and employment ?
Healthy workers are likely to be more productive.
Define Human Development Index (HDI).
A measure of development based on access to health care (via life expectancy at birth), education (mean and expected years of schooling) and living standards (gross national income - GNI - per capita)
What’s the difference between GDP and GNI ?
GDP measures what the economy produced and GNI measures what the economy makes, tracking things like wages, profits and taxes.
Who is access to education particularly important for ?
Businesses who want to hire skilled labour.
What does the higher the HDI number ( between 0 and 1) mean ?
The more developed the country is.
Define import ?
A good or service that enters a country from abroad.
Money flows out of the UK.
Define export.
When the country produces a product and then sells it to another country.
Money flows in to the UK.
Whats the difference between visible and invisible imports and exports ?
Visible imports and exports are physical products such as computers, cars, drinks, raw materials, industrial machinery and clothing.
Invisible imports and exports are services such tourism, transport (by sea or air), financial services, legal services and education.
