Unit 7 Flashcards Preview

Economics > Unit 7 > Flashcards

Flashcards in Unit 7 Deck (37):

When does development occur?

Occurs When people are better off, not only with higher incomes but also access to benefits such as improved education and health


What does economic development measure?

Tries to measure how well an economy is doing rather than simply GDP per capita and it can include the welfare, freedom, health, education and happiness within a country


Absolute poverty?

Can't afford basic necessities


Relative poverty?

Fewer goods and services than others


How does the G deal with Poverty?

- progressive taxes
- taxing the rich
- transfer payments / benefits for poor
- subsidies to firms
- free health and education
- setting policies to stimulate economic growth -> increases derived demand labour


Birth rate?

Number of deaths per 1000


Death rate?

Number of deaths per 1000


General fertility?

Number of children born to the average women in her lifetime


Net migration?

Measures difference between immigration + emigration of an area during a year


Population percentage change

-------- x 100


what are the concerns of population growth in developed countries?

- BR is falling because women are more educated
- more opportunities for a career
- families want a high SOL
- the average BR is below 2 so therefore immigration increases which is important to maintain labour supply
- tax revenue increases for the G
- with people living longer, the pension burden is going to increase at the same as labour supply


what are the concerns of population growth in poor countries?

- BR remains high but the survival of those children is not always decline
- there workers are looking for a better future - often in other countries - to do the work many people in MEDCs that no one wants to do


what is a typical developing country like in terms of BR DR and life expectancy?

high BR
high DR
low life expectancy
(wide bottom, narrow top)


what is a typical developed country like in terms of BR DR and life expectancy?

low DR
lower BR
linger life expectancy
(wide top and bottom)


what is the first stage on the demographic model?

high mortality and fertility rates


what are the problems of stage 1 in the demographic model?

low life expectancy
poor health and sanitation conditions
high BR


give an example of stage 1

Afghan with high infant and maternal mortality rates


what is the second stage on the demographic model?

falling mortality combined with high FR


what are the problems of stage 2 in the demographic model?

rising life expectancy leads to rapid increases in the population because BR is still high


give an example of stage 2

Uganda with high BR and falling mortality rate


what is the third stage on the demographic model?

low mortality and low FR


what are the problems of stage 3 in the demographic model?

rising standards of living but problems may arise from falling population


give an example of stage 3

Japan with falling mortality, fertility and BR


what are the problems of an increasing population in a developing country?

- rapid spread of disease
- youthful population has high dependancy ratio
- overcrowding
- HIV/ AIDS -> children in orphanages
- threat of famine
- resources have to be split further
- lack of access to basic amenities
- lack of employment opportunities


what are the consequences of population for developed countries?

- with longer life spans in developed countries there is more pressure on those in work to pay taxes to provide the pensions for those who are retired
- lower fertility rate results in a smaller working population and larger dependent population - the young, the old depend on those who work


what countries of the world are most in danger of over populating?

- small island economies with large population e.g. Indonesia
- landlocked economies with no success to ports e.g. chad
- parts of megacities with large numbers of people e.g. Singapore


what is the optimum population?

is a state where a population is combined most efficiently with the resources available to that population
best population


what is the carrying capacity?

maximum amount of people a population can have


what is age structure?

grouping people according to their age


what is occupational structure?

grouping people by their jobs


what is urban/ rural divide?

grouping people according to where they live


what is meant by young?

they are most dependent on working population for services (0-14)


what is meant by youth?

working or studying (15-24)


what is meant by young working age?

with dependents, will not be able to save as much (25-49)


what is meant by mature working age?

have high incomes so most likely to be able to save (50-64)


what is the elderly?

similar requirements to 0-14 group


why is BR falling in developed countries?

- family planning / contraception
- career options for women
- QOL and SOL
- average house is 8 times average salary
- increase in tertiary / uni fees makes parents wary of cost of education
- delayed pregnancy for so long that women become infertile
- value of pension is falling
- because aged parents are living longer, parents care for there parents and children
- age of retirement increases - parents living longer
- worry about having enough money to live well