Y11 Economics - C35 Differences in Economic Development

What is economic development primarily concerned with?

• Improvement in economic welfare

• Increase in population growth

• Expansion of primary sectors

• Reduction of international debt

Which organization classifies countries into levels of human development?

• World Bank

• European Union

• International Monetary Fund

• United Nations

What does a Human Development Index (HDI) score of 0.750 indicate?

• Very high development

• High development

• Medium development

• Low development

Which factor is NOT a cause of economic differences between countries?

• Differences in investment

• Differences in education

• Differences in population growth

• Differences in climate

What is one impact of low economic development?

• High levels of education

• Increased foreign investment

• High levels of international debt

• Low birth rates

What is a vicious circle of poverty?

• A strategy to attract foreign aid

• A method to measure economic development

• A situation where countries have high economic growth

• A cycle where low income leads to low savings and investment

What is one condition necessary for economic development?

• High population growth

• Improvement in resources

• Reduction in foreign aid

• Increase in tariffs

What is import substitution?

• Increasing exports of primary products

• Reducing tariffs on imports

• Encouraging foreign investment

• Protecting domestic industries from foreign competition

Which of the following is a type of foreign aid?

• Grants

• Loans with high interest

• Tariffs

• Trade restrictions

What does the World Bank primarily provide?

• Long-term loans on favorable terms

• Technical assistance only

• Grants without conditions

• Short-term loans