The Impact of Growth

Question 1

Distribution of Income

Answer 1

The distribution of income is how incomes are spread across households within the population. A common measure of income inequality is the Gini
Coefficient.

Question 2

Economic development

Answer 2

Long run improvements in broad measures of income per capita, education and health outcomes and reductions in extreme poverty, hardship and inequality.

Question 3

Foreign direct investment

Answer 3

Inflows of capital from foreign multinationals (MNCs) including takeovers and tangible investment in new factories and technology.

Question 4

Inflation

Answer 4

A sustained increase in the general price level for goods and services.

Question 5

Non-inflationary growth

Answer 5

Sustained growth of real national output whilst maintaining price stability.

Question 6

Per capita incomes

Answer 6

Income per head of the population – a measure of average living standards
e.g. Gross national income per capita = GNI/total population.