Unit 2B - the changing economic world (1. the development gap)

Question 1

Development gap

Answer 1

The difference in levels of economic and social wellbeing between the richest and poorest people on the planet.

Question 2

GDP

Answer 2

Gross Domestic Product. The value goods and services produced by a country divided by its total population. Foreign income is not included.

Question 3

GNP

Answer 3

Gross National Product. The value of goods and services produced by citizens of the country in a year.

Question 4

GNI

Answer 4

Gross National Income. The total value of goods and services produced within a country including income received from and payments made to other countries.

Question 5

Rich industrialising countries

Answer 5

Wealthy countries whose manufacturing industry is declining. eg UK

Question 6

Oil exporting countries

Answer 6

Few very rich people from oil exports but majority very poor. eg UAE

Question 7

NICs

Answer 7

Countries that have developed rapidly in recent years. eg India, China, Mexico

Question 8

Heavily indebted poor countries

Answer 8

The world’s poorest countries who took loans in the past and now are unable to pay them off, which makes it very hard to develop. eg African countries

Question 9

HDI

Answer 9

Human development index. An index based on three variables - life expectancy at birth; level of education; purchasing power parity. Maximum HDI is 1.

Question 10

Development measure

Answer 10

Statistics used to show the level of development, which allows countries to be compared

Question 11

Infant mortality rate

Answer 11

The number of babies that die under a year of age per 1,000 live births.

Question 12

Literacy rate

Answer 12

The percentage of adults in a country who can read and

Question 13

Birth rate

Answer 13

The number of live births per 1,000 people in a year.

Question 14

Death rate

Answer 14

The number of deaths per 1,000 people in a year.

Question 15

People per doctor

Answer 15

The average number of people for each doctor in a country.

Question 16

Access to safe water

Answer 16

The percentage of people who have access to safe water.

Question 17

Life expectancy

Answer 17

The average age a person can expect to live, measured at birth.§

Question 18

Standard of living

Answer 18

The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area.

Question 19

PQLI

Answer 19

Physical quality of life index. The average of three social indicators - literacy rate, life expectancy and infant mortality.

Question 20

Debt repayment

Answer 20

Paying back money borrowed to support development to banks or governments.

Question 21

Conservation swaps

Answer 21

Agreements made between countries where some debts are written off in exchange for conservation projects being done.

Question 22

Fair trade

Answer 22

A system whereby agricultural producers in countries at lesser stages of development are paid a fair price for their produce to help them attain a reasonable standard of living.

Question 23

Short term aid

Answer 23

Aid given to relieve a disaster situation.

Question 24

Long term aid

Answer 24

Aid given over a long period, which aims to promote economic development.

Question 25

Donor country

Answer 25

A country giving aid to another country.

Question 26

Recipient country

Answer 26

A country receiving aid from another country.

Question 27

Bilateral aid

Answer 27

Aid given by one government to another. It may include trade and business - tied aid.

Question 28

Multilateral aid

Answer 28

Richer countries give money to international organisations (IMF, UN) which then pass it on to development projects in lesser developed countries

Question 29

Trade surplus

Answer 29

When a country’s exports are greater than its imports, making it wealthier.

Question 30

Trade deficit

Answer 30

When a country’s imports are greater than its exports, making it poorer.

Question 31

Tariffs

Answer 31

Government taxes placed on imported goods, favouring home produced goods.

Question 32

Subsidies

Answer 32

Farmers receive grants to produce certain crops. The excess is brought by the trade bloc or government. The farmer receives a guaranteed price.

Question 33

Quotas

Answer 33

Farmers are told an amount of crop to grow to reduce overproduction. Imports are also restricted to protect home farmers.

Question 34

Economic periphery

Answer 34

The edge of a country or region in terms of economics. It is a less developed area but not necessarily the physical border

Question 35

Economic core

Answer 35

The centre of a country or region economically where businesses thrive. It is a highly developed area.

Question 36

Sustainable development

Answer 36

This allows economic growth to happen over a long period of time without harming the environment. It benefits current and future generations.

Question 37

Schengen area

Answer 37

An area in the EU where a passport is not required to cross the borders of the countries within it.