4.1.1 Growing Economies

• Economic growth in growing economies can increase income inequality
• Infrastructure deficits in growing economies limit access to markets, education, and healthcare.
• What does economic growth lead to in terms of Gross Domestic Product (GDP)?

  Rise in GDP
• Arrange the key characteristics of growing economies in order of their impact on economic progress:

  1️⃣ GDP Growth

  2️⃣ Rising Incomes

  3️⃣ Infrastructure Development

  4️⃣ Strong Consumption

  5️⃣ Expanding Industries
• What does the formula $GDP =$$C +$$I +$$G +$$(X - M)$ represent?


  Components of GDP
• Emerging economies are characterized by lower average incomes
• Developed economies have well-developed infrastructure and robust service sectors.
• What is one factor that drives economic growth?

  Human capital
• What is a growing economy defined as?

  Increase in goods and services
• A growing economy leads to a rise in Gross Domestic Product (GDP) due to an increase in the overall production of goods and services
• Emerging economies typically have lower GDP growth rates compared to developed economies.

  False
• Developed economies are characterized by high average incomes
• Developed economies tend to have more volatile economies compared to emerging economies.

  False
• What does the GDP growth formula indicate?

  Expanding economic activity
• Emerging economies have higher GDP growth rates due to rapid industrialization.
• A skilled workforce contributes to economic growth by enhancing productivity
• What role does technological advancement play in economic growth?

  Increases efficiency and productivity
• GDP per capita is calculated by dividing total GDP by the population
• What three dimensions does the Human Development Index (HDI) measure?

  Life expectancy, education, income
• Match the economic indicator with its description:

  GDP per capita ↔️ Total GDP divided by the population

  Human Development Index ↔️ Measures life expectancy, education, and income

  Literacy rates ↔️ Percentage of the population able to read and write

  Income inequality ↔️ Difference in income distribution across the population
• GDP per capita is calculated by dividing total GDP by the population
• The Human Development Index (HDI) includes education, life expectancy, and per capita income.
• Match the economic indicator with its description:

  GDP per capita ↔️ Average income per person

  HDI ↔️ Composite measure of development

  Literacy Rates ↔️ Indicates education level

  Income Inequality ↔️ Measures wealth distribution
• GDP per capita indicates average income per person
• The Human Development Index (HDI) provides a broader view of development than GDP per capita alone.
• Life expectancy reflects the quality of healthcare
• Literacy rates indicate the education level of a population.
• The formula for GDP per capita is total GDP divided by the population
• A country with a high GDP per capita and HDI is considered to have a high level of economic development.
• Environmental degradation often leads to reduced air and water quality
• Income inequality can lead to social unrest and reduced consumption.
• Infrastructure deficits constrain productivity by limiting access to markets and education
• What is a major consequence of environmental degradation in growing economies?

  Reduced air and water quality
• Technological advancement increases efficiency and productivity
• The economic growth rate is calculated as the percentage change in GDP over time.
• What is one indicator used to assess economic development?

  GDP per capita
• The formula for GDP per capita is Total GDP divided by the population
• Environmental degradation in growing economies can lead to climate change and habitat loss.
• What is an example of income inequality in growing economies?

  Brazil's high Gini coefficient
• Growing economies often become major trading partners