A2- Economic Growth and Development (full topic notes)

Economic Growth and Development topic. Here are revision notes on Unit 4 of A2 Edexcel Economics. 

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  • Created on: 21-01-12 19:58
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Revision Notes A2 Economics
Definitions
Objectives
Measurements
Diagrams
Constraints of Economic Growth and Development
Costs of Economic Growth and Development
Definitions:
Economic Growth:
Is a steady growth in the productive capacity of the economy, resulting in a growth of
national income
Economic Development:
Is the sustained, concerted actions of policymakers and communities that promote
the standard of living and economic health of a specific area.
Objectives:
Economic Growth:
o Sustainable Growth
o Stabilise Inflation
o Increase Employment
o Maintain Balance of Payments Current Account
o Reduce income inequality
Economic Development:
o Provision of Basic needs (Food, Shelter, Water, Education and Health)
o Raise Standards of Living
o Increasing the range of economic and Social choices
Measurements:

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Revision Notes A2 Economics
Economic Growth:
o Gross Domestic Product: The Total value of goods produced and services
provided in a country over a year.
o Real GDP: is value of all final goods and services produced in a geographical
region, adjusted for inflation.…read more

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Revision Notes A2 Economics
HDI o Includes 3 indicators(GDP, o Equal weighting of the 3
Literacy, Life Expectancy) indicators
o Data available since 1990 o Omits environment
o Hard to give things
monetary values
o Only since 1990
HPI o Includes social measures o Focusses on
excluded by HDI deprivation
o Draws on data for
longevity, knowledge,
living standards.…read more

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Revision Notes A2 Economics
AD/AS: Gini:
Constraints of Economic Growth/ Economic Development:
Economic Growth:
o Political instability
o Inadequate Infrastructure
o Industrial relations and Labour market rigidity
o Restricted access to finance
o Poor Macroeconomic management
Economic Development:
o Inefficiencies within the microeconomy.
o Imbalances in the structure of the economy.
o A rapidly growing or declining population.
o Lack of financial capital.
o Lack of human capital.
o Poor governance and corruption.
o Missing markets.
o Overexploitation of environmental capital.
o Barriers to trade.…read more

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Revision Notes A2 Economics
Costs of Economic Growth/ Economic Development:
Economic Growth:
o Inflation (High)
o Increased Pollution an carbon emissions
o Income inequality can widen (long time for the trickledown effect to happen)
o Regional disparities
o Balance of Payments deficit
Economic Development:
o Consumerism
o Resource depletion
o Damages the environment
Summary of Economic Growth/ Economic Development:
Economic Growth:
o Only Temporary/Permanent Changes
o Could be only single sector growth
o Centres around quantity
o Increase seen in GDP
o Not all costs…read more

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