Podcast
Questions and Answers
Which of the following best describes the concept of 'economic development'?
Which of the following best describes the concept of 'economic development'?
- The total market value of all final goods and services produced within a country.
- The average income per person in a country.
- Improvements in living standards, income distribution, education, and healthcare. (correct)
- An increase in a country's output of goods and services.
Gross Domestic Product (GDP) is the key indicator that reflects the standard of living in a country.
Gross Domestic Product (GDP) is the key indicator that reflects the standard of living in a country.
False (B)
Name one factor that drives economic growth by improving efficiency in producing goods and services.
Name one factor that drives economic growth by improving efficiency in producing goods and services.
Technological Innovation
Investment in physical capital, such as machinery, is known as ______ accumulation.
Investment in physical capital, such as machinery, is known as ______ accumulation.
Match the following terms with their descriptions.
Match the following terms with their descriptions.
What is a key challenge to economic growth mentioned in the text?
What is a key challenge to economic growth mentioned in the text?
Environmental degradation helps achieve sustainable economic growth.
Environmental degradation helps achieve sustainable economic growth.
Name one way governments play a role in fostering economic growth.
Name one way governments play a role in fostering economic growth.
Flashcards
What is GDP?
What is GDP?
The total market value of all final goods and services produced within a country during a specific period. It's a key measure of a nation's economic output.
What is Capital Accumulation?
What is Capital Accumulation?
Investment in physical capital like machines, buildings, and infrastructure that helps to increase production.
What is Economic Development?
What is Economic Development?
Improvements in living standards, income distribution, education, healthcare, and overall quality of life in a country.
What is Per Capita Income?
What is Per Capita Income?
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What is Productivity?
What is Productivity?
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How do Governments Promote Economic Growth?
How do Governments Promote Economic Growth?
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What is Income Inequality?
What is Income Inequality?
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What is Environmental Degradation?
What is Environmental Degradation?
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Study Notes
Economic Growth and Development
- Economic growth is the increase in a country's output of goods and services over time, measured typically by GDP growth.
- Economic development is a broader concept encompassing improvements in living standards, income distribution, education, healthcare, and overall quality of life.
- Key indicators of economic growth include Gross Domestic Product (GDP), per capita income, and productivity levels.
- Factors driving economic growth are capital accumulation (investment in physical capital), technological innovation, human capital development (education and skills), and institutional quality (stable governance).
- The Sustainable Development Goal 8 (SDG 8) promotes inclusive economic growth with a focus on decent work, social protection, and sustainable job creation aligned with climate action.
- Challenges to economic growth include income inequality, environmental degradation, and global shocks.
- Governments can foster economic growth through infrastructure development, investment in education and healthcare, and trade policies that attract FDI.
Key Differences
- Economic growth focuses on quantitative measures like GDP increase.
- Economic development encompasses broader qualitative improvements in living standards and quality of life.
Indicators
- Gross Domestic Product (GDP): Total market value of all final goods and services produced within a country.
- Per Capita Income: Average income per person.
- Productivity Levels: Efficiency of producing goods and services.
Drivers of Growth
- Capital Accumulation: Investment in physical capital (machinery, infrastructure).
- Technological Innovation: Improvements in production processes, new industries.
- Human Capital Development: Education and skill-building.
- Institutional Quality: Stable governance, property rights, regulation.
Sustainable Development Goals (SDG 8)
- Focuses on inclusive and sustainable economic growth promoting decent work, social protection and sustainable job creation.
Challenges
- Income Inequality: Unequal wealth distribution hindering overall progress.
- Environmental Degradation: Unsustainable practices harming resources and ecosystems.
- Global Shocks: Major disruptions like pandemics or financial crises.
Government Role
- Governments facilitate growth through infrastructure, education, healthcare investment, and trade policies to attract FDI.
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