The Link Between Economic Growth and Development: Explained

The video explores the distinction between economic growth and development, emphasizing that while growth is a one-dimensional measure of GDP increase, development is multidimensional, focusing on living standards and welfare. It discusses the traditional link between growth and development, highlighting criticisms and the need for sustainable growth. The Lewis dual sector model is introduced as a framework for understanding structural change in developing economies. The video concludes by stressing the importance of the right type of growth and structural change for development.

What are the three core values at the forefront of higher development for a country?

• Growth, stability, and security

• Education, health, and technology

• Wealth, power, and influence

• Sustenance, self-esteem, and freedom of choice

How is economic growth primarily measured?

• By the number of jobs created

• By changes in GDP over time

• By the level of technological advancement

• By improvements in living standards

Which of the following is NOT a factor contributing to economic development?

• Health outcomes

• Military strength

• Educational attainment

• Overall happiness and satisfaction

What does traditional economic theory assume about the relationship between GDP growth and living standards?

• GDP growth only affects the wealthy

• GDP growth leads to higher living standards

• GDP growth has no effect on living standards

• GDP growth always decreases living standards

What is a criticism of the traditional link between economic growth and development?

• Growth is always sustainable

• Growth can be volatile and unsustainable

• Growth always leads to job creation

• Growth has no externalities

What is a key challenge for developing countries in achieving sustainable growth?

• Lack of natural resources

• Over-reliance on technology

• Large unskilled workforce

• Excessive government intervention

What does the Lewis dual sector model explain?

• How economies can transition from agrarian to balanced economies

• How to improve education systems

• How to increase GDP through technology

• How to reduce inflation in developing countries

According to the Lewis model, what happens to wages in the agricultural sector when there is an excess supply of labor?

• Wages increase significantly

• Wages remain stable

• Wages decrease

• Wages fluctuate unpredictably

What is the result of workers moving from the agricultural sector to the manufacturing sector in the Lewis model?

• The manufacturing sector shrinks

• Both sectors remain unchanged

• The manufacturing sector grows

• The agricultural sector grows

What is necessary for development according to the Lewis model?

• Neither growth nor structural change

• Only structural change

• Only economic growth

• Both growth and structural change