Exam code: 0455 & 0987
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Define economic development.
Economic development is the sustainable increase in living standards for a country, usually shown by increases in life span, education, and income.
What are two common indicators used to compare economic development between countries?
Two common indicators are real GDP and the Human Development Index (HDI).
Define Human Development Index (HDI).
The Human Development Index (HDI) is a composite statistic used to rank countries by levels of development, based on life expectancy, education, and income per capita.
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Define economic development.
Economic development is the sustainable increase in living standards for a country, usually shown by increases in life span, education, and income.
What are two common indicators used to compare economic development between countries?
Two common indicators are real GDP and the Human Development Index (HDI).
Define Human Development Index (HDI).
The Human Development Index (HDI) is a composite statistic used to rank countries by levels of development, based on life expectancy, education, and income per capita.
The HDI groups countries into categories based on their scores, from low to very high human development.
The HDI groups countries into five categories based on their scores, from low to very high human development.
What HDI score range is considered very high human development?
A very high human development HDI score is any value > 0.800.
Countries with GDP per head tend to be more developed, but may still have significant income .
Countries with higher GDP per head tend to be more developed, but may still have significant income inequality.
How do differences in productivity affect the standard of living in a country?
Higher productivity leads to higher wages and an improved standard of living.
Define dependency ratio.
The dependency ratio measures the proportion of dependents (young and old) to the working-age population in an economy.
The secondary sector adds to raw materials, resulting in products that sell for profits than those from the primary sector.
The secondary sector adds value to raw materials, resulting in products that sell for higher profits than those from the primary sector.
How does access to education affect a country's economic development?
Better access to education raises skill levels, which increases productivity and wages.
Developed economies tend to have workforces, while less developed economies have more and disease.
Developed economies tend to have healthy workforces, while less developed economies have more sickness and disease.
True or False?
Countries with abundant natural resources always achieve high economic development.
False.
While natural resources can help economic growth, high development also depends on other factors like productivity, education, and investment.
Compare the key differences in income and life expectancy between South Korea and India.
South Korea has a much higher GDP per head (around $31,000) and longer life expectancy (about 82.6 years) compared to India’s lower GDP per head (about $2,700) and life expectancy (about 69.2 years).