What is economic development?
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What is economic development?
Economic development is the sustainable increase in living standards for a country, typically characterised by increases in life span, education levels, and income.
What is the Human Development Index (HDI)?
The Human Development Index (HDI) is an indicator used to compare development levels across countries.
How are countries categorised based on HDI?
Countries are categorised into five levels of development based on their HDI score: low, medium, high, and very high human development.
True or False?
A higher GDP per capita indicates higher development.
True.
Countries with a higher GDP per capita tend to be more developed.
What is the impact of productivity differences on development?
Differences in productivity lead to differences in wages and living standards.
How does population growth affect development?
More densely populated countries or cities face more challenges, and poorer economies have less government spending per capita.
What is the relationship between economic sector size and development?
Economies with a larger proportion of secondary and tertiary activity tend to be more developed due to the higher wages in those sectors compared to the primary sector.
True or False?
Higher savings result in higher investment and economic growth, and as economies develop, savings tend to increase.
True.
Higher savings result in higher investment and economic growth, and as economies develop, savings tend to increase.
True or False?
Increased savings → increased investment → less capital stock → higher economic growth → increased savings
False.
Increased savings → increased investment → higher capital stock → higher economic growth → increased savings
What is the impact of education on development?
Improved education directly influences the level of skill in an economy, leading to higher productivity and wages.
How does healthcare affect development?
The level of health directly impacts the productivity of labour, which influences output and income. Developed economies tend to have healthier workforces.