Economic Growth and Its Impacts

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Questions and Answers

What amount is estimated to represent the worth of lost sovereign natural resources?

P100 billion

P1 trillion

P750 billion

P990.3 billion (correct)

Which of the following is NOT mentioned as a factor for the improvement of economic and institutional conditions?

Technological advancement (correct)

Per capita income

Literacy rate

Infrastructure access

Which approach is recommended to contextualize the problem and solution in economic terms?

Neoclassical Economics

Behavioral Economics

Cultural Economics

Clinical Economics (correct)

What is one of the recommended improvements for addressing economic issues?

Ethno-linguistic fragmentation management (C) Signup and view all the answers

According to the content, which phenomenon is related to the implications of poor quality economic growth?

Impact on natural resources (D) Signup and view all the answers

Which of the following is NOT a characteristic of developing countries?

High levels of industrialization (D) Signup and view all the answers

Which country is noted as a remarkable example of economic surge among developing nations?

South Korea (A) Signup and view all the answers

What factor contributes to learning poverty in developing countries?

Incompetent education bureaucracy (C) Signup and view all the answers

What percentage of developed countries' share does the group of developing economies consist of?

25% (B) Signup and view all the answers

Which of the following is a common outcome of rural-to-urban migration in developing countries?

Overcrowding and strain on urban services (A) Signup and view all the answers

Which characteristic is associated with the social structure of developing countries?

High degree of social fractionalization (B) Signup and view all the answers

Which factor is least likely to contribute to economic growth in developing countries?

High levels of inequality (A) Signup and view all the answers

What is a significant observation in health and education across most developing nations in recent years?

Significant improvements have been observed (A) Signup and view all the answers

What type of economic growth refers to using more resources?

Extensive growth (B) Signup and view all the answers

Which of the following factors is NOT mentioned as contributing to GDP increase?

Natural resources depletion (A) Signup and view all the answers

Which type of capital involves skills and education of the workforce?

Human capital (A) Signup and view all the answers

What is a key condition for increasing people's self-esteem as mentioned in the content?

Creating necessary systems that promote human dignity (B) Signup and view all the answers

Which of the following countries is associated with significant economic growth patterns?

United States (D) Signup and view all the answers

Which factor could enhance the range of choice variables for individuals?

Increasing varieties of goods and services (D) Signup and view all the answers

What does intensive economic growth focus on?

Efficiency in the use of resources (A) Signup and view all the answers

Which category reflects countries like Japan in terms of economic development?

Advanced countries (D) Signup and view all the answers

Which factor is NOT included in the economic growth inputs?

Cultural capital (B) Signup and view all the answers

Sustainable development aims to support which of the following?

Long-term ecological balance (B) Signup and view all the answers

What is meant by 'jobless growth'?

Growth attributed to increased productivity without job creation (C) Signup and view all the answers

How does geography influence economic development?

It determines the amount and type of investments needed. (C) Signup and view all the answers

What constitutes 'rootless growth' in the context of the case study?

Growth leading to displacement of indigenous communities (B) Signup and view all the answers

What does 'voiceless growth' imply?

Growth that marginalizes land and environmental defenders (D) Signup and view all the answers

Which of the following describes a characteristic of 'futureless growth'?

Increased vulnerability to climate-related disasters (C) Signup and view all the answers

What factor can influence the trajectory of economic development?

Demography, culture, and institutions (A) Signup and view all the answers

According to the Human Development Report, how can growth be characterized?

It can be jobless, ruthless, voiceless, rootless, and futureless. (B) Signup and view all the answers

What is a common misconception about economic growth?

It always increases employment opportunities. (B) Signup and view all the answers

What is a primary indicator of economic development in countries transitioning from agricultural to manufacturing economies?

Shift towards service-oriented industries (D) Signup and view all the answers

Which factor can contribute to internal conflict and political instability in developing nations?

Inequality among ethnic groups (C) Signup and view all the answers

What percentage of the world's population lived on less than $5.50 per day as of 2017?

46% (A) Signup and view all the answers

Which issue is often a challenge for developing countries in their economic markets?

Imperfect markets and incomplete information (D) Signup and view all the answers

What has significantly decreased in the global population from 1981 to 2017 regarding income levels?

Those living on less than $1.90 per day (D) Signup and view all the answers

Which characteristic is common among successful development stories such as South Korea?

Culturally homogeneous societies (A) Signup and view all the answers

Which aspect of geography often influences agriculture and public health in developing countries?

Geographical location (D) Signup and view all the answers

How do agricultural subsidies in wealthier nations affect developing countries?

They often disadvantage developing countries (C) Signup and view all the answers

Study Notes

Economic Growth

Economic Growth focuses on the quantitative change or expansion of a country's economy.
There are two types of economic growth:
- Extensive: Utilizing more resources
- Intensive: Focusing on efficiency

What Accounts for Economic Growth?

Countries like the U.S., Europe, and Japan experienced decades of economic growth.
GDP growth is attributed to various factors, including:
- Aggregate Demand
- Labor Productivity
- Technological Innovation
- Investment in Manufactured Capital
- Taking advantage of Trade Opportunities

Development and Freedom

There is a relationship between development and freedom.
Development can lead to increased freedom, but it’s important to note that economic growth is just one factor.

Futureless Growth

This refers to economic growth that comes at the cost of environmental and social sustainability.
It's a concept that is increasingly relevant in the context of climate change and resource depletion

Sustainable Development

This is an approach to development that emphasizes meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.

Characteristics of Developing Countries

There are a number of characteristics that are commonly seen in developing countries, such as:
- Lower levels of income and productivity compared to developed countries
- Lower levels of human capital attainment
- Higher levels of inequality and poverty
- Higher rates of population growth and a younger age structure
- Larger rural populations and rural-to-urban migration
- More social fractionalization
- Lower levels of industrialization and manufactured exports
- Geographical challenges and varying natural resource endowments
- Less developed financial and other markets
- Weaker institutions and greater external dependence

Case Study: Philippines

Economic growth in the Philippines has been challenged with issues like “jobless growth” where GDP grows but there is little improvement in employment.
The Philippines faces other challenges, including:
- Rootless Growth: Displacement of communities due to development projects.
- Voiceless Growth: Environmental and social injustice with concerns about land grabbing, human rights abuses, and corruption.
- Futureless Growth: Lack of sustainable practices that endanger the future with environmental degradation and a disregard for future generations

Policy Recommendations for the Philippines

Improvement of economic and institutional conditions, focusing on areas such as:
- Increasing per capita income
- Improving the initial human capital stock
- Addressing ethno-linguistic fragmentation
- Increasing literacy rates
- Expanding access to infrastructure
- Implementing effective agrarian reform programs
Utilization of Clinical Economics to better understand the complexities of economic problems and design more effective solutions

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Description

This quiz covers key concepts of economic growth, including the types of growth, factors contributing to it, and the interplay between development and freedom. It also discusses the implications of growth on sustainability and the environment. Test your understanding of these vital economic principles!