hand out 2 Flashcards
(19 cards)
How do low levels of living create a vicious cycle?
Poor health, education, and productivity reinforce poverty and underdevelopment.
What common problems do developing countries in Africa, Asia, and Latin America face?
Income inequality, high population growth, weak institutions, and poor infrastructure.
How do developing economies differ from each other?
Income levels, human capital, inequality, population growth, industrialization, geography, financial markets, and institutions.
Why don’t analysts use exchange rates to compare living standards?
Exchange rates fluctuate and don’t reflect differences in purchasing power.
Why do PPP measures show smaller income gaps?
PPP accounts for lower costs of goods and services in developing countries.
What are the three main components of the Human Development Index (HDI)?
Life expectancy, education, and PPP-adjusted GDP per capita.
What does economic convergence mean?
Low-income countries catching up to high-income ones in output per capita.
How does colonialism still impact economic development?
Weak institutions, dependence on raw material exports, and political instability.
Are living standards converging globally?
Some regions converge, but many African nations lag behind.
How does culture affect development?
Shapes education, institutions, and social cohesion, influencing economic progress.
How have Ghana and Côte d’Ivoire developed differently?
Economic policies, governance, and trade strategies have led to different growth paths.
What changed in the new HDI compared to the original?
Revised formulas for education and inequality adjustments.
What is an upper middle-income country example?
Brazil.
What defines a newly industrialized country?
An upper-middle-income country with a strong manufacturing sector.
What is fractionalization?
Ethnic, linguistic, and religious divisions that can cause political instability.
What percentage of developing countries face ethnic conflict?
Between one-quarter to one-half.
What is purchasing power parity (PPP)?
A measure that adjusts income based on the cost of goods across countries.
What is the dependency burden?
The percentage of the population below 15 and above 65.
What long-term trend is seen in economic growth?
Growth is uneven; some regions thrive while others stagnate for centuries.
