4.1.1 - growing economies

Question 1

what is a growing economy?

Answer 1

an economy that is experiencing an increase in its output of goods and services over time.

Question 2

true or false?
a growing economy is always beneficial for all sectors of society.

Answer 2

false

Question 3

what does GDP stand for and what is it?

Answer 3

GDP stands for Gross Domestic Product, and it is a measure of all the goods and services produced in a country divided by the number of people in the country.

Question 4

what does an increase in GDP generally indicate?

Answer 4

economic growth and improved living standards.

Question 5

what are emerging markets?

Answer 5

nations with social or business activities in the process of rapid growth and industrialisation.

Question 6

multiple choice:
which of the following is NOT a characteristic of a growing economy?
A) High unemployment
B) Increased consumer spending
C) Rising investments.

Answer 6

A) High unemployment

Question 7

what role does foreign direct investment (FDI) play in growing economies?

Answer 7

FDI provides capital, technology, and expertise, facilitating economic development.

Question 8

true or false:
inflation typically decreases in a growing economy.

Answer 8

false

Question 9

what is the significance of a developing country’s access to international trade?

Answer 9

it can enhance economic growth by opening new markets and attracting investment.

Question 10

fill in the blank:
a high level of _____ can lead to increased productivity in a growing economy.

Answer 10

education

Question 11

what is a major challenge faced by growing economies?

Answer 11

managing inflation and ensuring sustainable growth.

Question 12

multiple choice:
which sector typically leads the growth in emerging economies?
A) Agriculture
B) Manufacturing
C) Services.

Answer 12

B) Manufacturing

Question 13

what is the relationship between population growth and economic growth?

Answer 13

a growing population can provide a larger labour force, which can contribute to economic growth.

Question 14

true or false:
a growing economy always leads to environmental degradation.

Answer 14

false

Question 15

what is the role of government policy in a growing economy?

Answer 15

government policy can create a favourable environment for business, investment, and innovation.

Question 16

what is human development index (HDI) and its purpose?

Answer 16

it combines a range of economic statistics for a country to focus on a country’s people rather than the economic context.
(businesses looking to expand may use this to analyse potential demand, income and skills).

Question 17

what trade opportunities may emerging economies create for international businesses?

Answer 17

• increased FDI
• opportunities for exporting to developed economies
• better infrastructure, leading to developing economies becoming a production location