9708 · 11.3
Economic development flashcards
Revision flashcards for Cambridge 9708 Economic development (syllabus 11.3). Flip, recall, then mark a real past-paper question.
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Economic growth vs development?
Growth = rise in real GDP/output. Development = sustained improvement in living standards, welfare, and capabilities — multidimensional.
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What does HDI measure?
Human Development Index — composite of GNI per capita, mean years of schooling, expected years of schooling, and life expectancy.
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Human capital and LRAS?
Investment in education and health raises worker productivity → shifts LRAS right → potential growth.
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Role of institutions?
Property rights, rule of law, low corruption — encourage investment and entrepreneurship, supporting development.
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Sustainable development?
Meeting present needs without compromising future generations — balances economic, social, and environmental goals.
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Other development indicators?
Gini (inequality), literacy rate, infant mortality, access to clean water, MPI (multidimensional poverty index).
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What is the Human Development Index (HDI)?
A composite statistic used to rank countries by level of 'human development'. It combines three dimensions: life expectancy at birth, mean and expected years of schooling, and Gross National Income (GNI) per capita (PPP$).
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Define 'human capital'.
The stock of knowledge, skills, competencies, and attributes (including health) embodied in individuals that facilitates the creation of personal, social, and economic well-being.
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What is the key difference between economic growth and economic development?
Economic growth is a quantitative increase in a country's real output (real GDP). Economic development is a qualitative, multidimensional improvement in the standard of living and quality of life.
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What is 'sustainable development'?
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It balances economic, social, and environmental objectives.
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Why is GNI per capita (at PPP$) a limited measure of development?
It is an average that ignores income inequality, does not account for the informal economy or unpaid work, and fails to subtract negative externalities like pollution or resource depletion.