Ch50 Economic Development

Front

What does the poverty cycle explain?

Back

The link between low incomes and low savings, leaving limited resources for investment, resulting in low productivity and continuing low incomes.

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What are the three components of the Human Development Index (HDI)?

Back

GNI per head, education (expected years in schooling and mean years of schooling), and healthcare (life expectancy at birth).

Front

What does Measurable Economic Welfare (MEW) adjust?

Back

GDP data to account for other factors impacting living standards positively or negatively.

Front

What does the Multidimensional Poverty Index (MPI) use?

Back

Ten indicators of living standards, education, and health to complement monetary measures of poverty.

Front

What is the shadow economy?

Back

The output of goods and services not included in official national income statistics, also known as the informal economy.

Front

What does the Kuznets curve show?

Back

The relationship between economic growth and income inequality, suggesting income becomes more unequal as an economy develops, then more equal after a certain income level is reached.

Front

Why do high-income countries usually have a higher HDI ranking?

Back

They allocate more resources to health and education, which are key indicators in compiling the HDI.

Front

How does MEW differ from GDP per head?

Back

MEW takes a broader view of living standards, considering factors like leisure time and environmental impact on quality of life.