Leaving Cert Economics: Economic Growth & Development

These flashcards summarize key concepts from the lecture on economic growth and development, including definitions, characteristics of countries, and policies that promote economic advancement.

What are the main characteristics of developed countries?

High standard of living, high GDP, good healthcare, high education, high per capita income, and high life expectancy.

What does the Human Development Index (HDI) measure?

It ranks countries based on their development, considering factors like income, education, and life expectancy.

What constitutes a least developed country (LDC)?

Countries with low per capita income, high illiteracy, poor healthcare, and inadequate infrastructure.

Which are some examples of least developed countries (LDCs)?

Afghanistan, Chad, Ethiopia, Guinea, Mozambique, Niger, and Sierra Leone.

What are two major challenges faced by LDCs?

High population growth and famine due to poor farming techniques.

How is economic growth defined?

An increase in GNP per head of population without changes to the structure of society.

What can fiscal policy do to promote economic growth?

Cutting taxes and increasing government expenditure to boost consumer spending and job creation.

What is the Gini coefficient used to measure?

Income inequality within a population.

What impact does increasing trade relationships have on an economy?

It boosts exports and stimulates further employment opportunities.

What is one significant cost of economic growth?

Inflationary pressures resulting from increased demand in an economy.

How do the factors of production lead to economic growth?

They enable the effective production of goods and services, leading to increased employment and wealth.

What role does capital play in economic development?

Capital investments make land and labor more productive, enhancing efficiency in production.

What is the significance of enterprise in economic growth?

It involves taking risks and applying resources to create businesses that contribute to economic activity.

Name an effect of economic development on government finances.

Improved indirect and direct tax revenue due to increased employment.

What are common features of poor living conditions in LDCs?

Shantytowns, poor sanitation, lack of clean water, and inadequate infrastructure.