4.2.6.5 Economic growth and development NOTES

What does growth typically refer to in an economic context?

• Increase in the quantity of goods and services produced

• Increase in the quality of life

• Decrease in unemployment rates

• Improvement in social welfare

What is included in the broader concept of development?

• Gross Domestic Product

• Education and healthcare improvements

• Annual inflation rate

• Stock market performance

Which index is a composite measure that includes life expectancy, education, and income per capita?

• Gross National Income

• Economic Prosperity Index

• Consumer Price Index

• Human Development Index

What is a main characteristic of less-developed economies?

• Advanced technological infrastructure

• Dependence on agriculture

• High levels of industrialization

• Low levels of inequality

Which factor is crucial for stimulating economic growth?

• Increasing import tariffs

• Reduction in exports

• Investment in physical and human capital

• Decreasing literacy rates

What does inadequate human capital typically result in?

• Improved income distribution

• Higher export rates

• Reduced labor productivity

• Increased foreign investment

Which policy might be adopted to promote economic development?

• Reducing educational funding

• Investment in infrastructure and healthcare

• Increasing income taxes

• Limiting trade with other countries

What role does trade play in promoting growth and development?

• It fosters competition and stimulates investment

• It limits market access

• It reduces technological innovation

• It increases dependency on aid

What is a barrier to growth and development?

• Strong property rights

• High levels of foreign investment

• Corruption

• Efficient governance

How does foreign aid help less-developed economies?

• By increasing local competition

• By providing technical assistance

• By reducing their market size

• By promoting currency devaluation