32 Economic development

Question 1

Economic development

Answer 1

Rise in peoples economic well-being and quality of life

Question 2

Primary sector

Answer 2

Production or extraction of raw materials, agriculture or growing crops

Question 3

Secondary sector

Answer 3

Industry involved in processing raw materials of the primary sector to create end products e.g. Manufacturing, construction, assembly

Question 4

Tertiary sector

Answer 4

Includes the provision of services e.g. Finance, education

Question 5

Affects of development on countries

Answer 5

• Primary sector production has lower productivity relative to the secondary and tertiary sectors
• less developed countries are more reliant on primary sector production
• less developed countries are therefore characterised by lower total factor productivity and can be more vulnerable to volatile commodity prices on international markets.
• as economy becomes more developed it transitions to the secondary sector and sue becomes more reliant on tertiary sector
• implications for labour demand and supply and the risk of occupational immobility

Question 6

Policy objective of sustainable development

Answer 6

Economic development that meets the needs of the present without compromising babe of future generations to meet their own weeds

Question 7

Positive relationship between econ growth and sustainable development

Answer 7

• Higher GDP per capita
• improvement in public services - higher taxation can be used to fund government expenditure on healthcare and education to improve life expectancy and mean years of schooling
• greener technologies - higher rates of profitability means sims can invest into technology reduce negative externalities

Question 8

Negative relationship between econ growth and sustainable development

Answer 8

• Environmental capital stock should not diminish over time - future generations should inherit a stock of resources that enables high quality of life as current generation
• good governance of resources so that all best residents, now and in future
• income and gender inequality could still exist
  -Social factors such as environmental degradation and access to healthcare and education must be considered to boost occupational mobility and increase lifespan
• investment in infrastructure ( transport links and utilities) will aid geographical divides

Question 9

GDP

Answer 9

• Gross domestic product
• simple measure that is objective
  -Limited statistic as it only looks at income

Question 10

GNI per capita

Answer 10

• Gross national income per person
• more accurately represents the incomes of inhabitants, includes net income flows between countries
• exchange rate problems - overcomes differences in currency valuation
• informal sector - only formal transactions, informal sector distorts data
• doesn’t represent income inequality or distribution
• negative externalities, public goods are not included

Question 11

HDI

Answer 11

• Human development index
• GWI per capita, life expectancies, expected years of schooling
• include broader range of factors than GNI I.e. Representing social factors
• only comprises of three components

Question 12

Genuine progress indicators

Answer 12

• 26 components covering economic, social and environmental factors
• broader measure than HDI
• assigning an economic value could be difficult for social and environmental distorting accuracy of measures

Question 13

Gender inequality

Answer 13

• Difference in HDI between genders
• collects data ser different genders separates
• still onus compromises of 3 components
• night want to look at the individual measures

Question 14

Happiness index

Answer 14

• Happiness does not correlate to income
• econ growth does not = greater happiness
• A subjective measure and hard to quantify