Wealth

Question 1

What is PPP used for ?

Answer 1

PPP is the method used to contextualize a comparison of the world’s economies ,what money will buy and how much is needed.

Question 2

What is the difference between GDP and GDP per capita?

Answer 2

GDP measures the wealth created in a year , where as GDP per capita measures the standard of living and gives a value to a populations Purchasing Power

Question 3

What is Inflation?

Answer 3

Inflation is the economic imbalance due to a rise in the price of goods and services which leads to a drop in purchasing power

Question 4

What is the Human Development Index ( HDI )

Answer 4

The HDI intergrates several series of data too take into account the income, health and the level of education of a states population.

Question 5

What’s a good/ bad HDI number ?

Answer 5

HDI numbers vary from 0 ( meaning your country’s deplorable ) to 1 meaning your country’s exellent ( economically speaking )

Question 6

What kind of HDI number do developed countries and least developed have?

Answer 6

Least developed countries or developing countries may have an HDI of 0.5 or lower and Developed countries have an HDI of 0.8 or higher

Question 7

Who are the Triad countries ? and why ?

Answer 7

North America , Western Europe & Japan

They experienced the strongest growth after WWII

Question 8

What are the Asian dragons ?

Answer 8

the asian dragons are the four countries to experience extremely rapid economic expansion.

Question 9

Who are the Asian dragons ?

Answer 9

Taiwan, Singapore, South Korea and Hong Kong

Question 10

Which Economic indicator measures the value of a country’s wealth created in a year ?

Answer 10

Gross Domestic Product (GDP )

Question 11

Which Economic indicator is a monetary tool used to compare the evolution of an economic indicator over time , without taking into account inflation ?

Answer 11

The Constant Dollar

Question 12

Which Economic indicator is an average level of income per person including investments and foreign income

Answer 12

Gini Per capita

Question 13

Which Economic indicator is a method used to compare the economies of two countries that don’t have the same cost of living ?

Answer 13

Purchasing Power Parity ( PPP )

Question 14

What 3 elements are required in order for a state to benefit from Globaliation?

Answer 14

1- A solid economy
2- Good governance
3- Effective social policies

Question 15

Why are inequalities less obvious in industrialized countries than developing countries?

Answer 15

Industrialized countries tend to have social nets in place even when they are not a welfare state. There’s also less demand for charitable resources and for social programs so fewer are to take a larger portion of what exists

Question 16

Name two causes that lead to economic globalization

Answer 16

• Goods and Services

- Trade flows

Question 17

Name at least two characteristics of countries with an emerging economy + an example

Answer 17

1- Rapid economic growth based on Industrialization
2- Reliance on exports
3- Uneven development of territory
ex: Brazil, India , China and Russia

Question 18

what are 2 factors that prevent developing countries from getting rich off their resources ?

Answer 18

1- Developing these natural resources is too costly
2- Economies of some countries are based too heavily on their natural resources. Which places them at the mercy of international market fluctuations.

Question 19

what is globalization ?

Answer 19

Globalization is the exchange of goods and services on a global scale. I also refers to the interdependance of countries in all areas.

Question 20

What are some advantages of globalization

Answer 20

• Diversifaction of products and services available on the market
• Lower prices
• internatinal division of labour

Question 21

What are some disadvantages of globalization

Answer 21

• Increased interdependance of trading nations
• increased inequalities between developed and developing countries
• relocation of certain industries to places where cheap labour is available

Question 22

what does the International Monetary Fund ( IMF ) do ?

Answer 22

• They oversees global economic stability
• They give loans to countries in financial difficulty
• offers economic advice to member states
• provides technical assistance and training

Question 23

What is Neocolonialism

Answer 23

Neocolonialism is when a mother country exercises influence over a country.