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Characteristics of a Rapidly Developing Economy
Explain two characteristics of a rapidly developing economy
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Economic Growth and Development
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Apply economic principles to real-life situations.
Rapidly developing economies exhibit certain characteristics that distinguish them from other economies. Here are two such characteristics along with their explanations:
➡️1. High increase in real GDP per capita: A rapidly developing economy experiences a significant increase in real GDP per head over a relatively short period. This growth is indicative of the overall economic expansion and reflects the rising productivity, increased output, and improved living standards within the economy. Factors contributing to this characteristic include higher levels of investment, both domestic and foreign, which spur economic activity, create employment opportunities, and stimulate innovation and technological advancements. The growth in real GDP per capita signifies the ability of the economy to generate higher incomes and enhance the overall welfare of its population.
➡️2. Significant improvements in education: Rapidly developing economies prioritize investments in education to build a skilled workforce and enhance human capital. They allocate resources to improve educational infrastructure, expand access to quality education, and develop relevant curricula. These efforts result in significant improvements in education levels and skill development among the population. The expansion of educational opportunities equips individuals with the knowledge and skills necessary to meet the demands of a changing economy. A well-educated workforce enhances productivity, innovation, and the overall competitiveness of the economy.
It's important to note that these characteristics are not exhaustive, and other factors such as advancements in healthcare, technological adoption, changes in sectoral employment patterns, and demographic shifts also contribute to the rapid development of an economy. Each characteristic plays a role in driving economic growth, improving living standards, and positioning the economy for sustained progress in the future.
I. 🍃Introduction
- Definition of a rapidly developing economy
- Importance of understanding the characteristics of such an economy
II. High increase in real GDP per head
- Explanation of how this characteristic contributes to a rapidly developing economy
- Factors that can cause a high increase in real GDP per head
III. Significant improvements in healthcare
- Explanation of how this characteristic contributes to a rapidly developing economy
- Factors that can cause significant improvements in healthcare
IV. Tertiary sector employment
- Explanation of how this characteristic contributes to a rapidly developing economy
- Factors that can cause a high proportion of workers employed in the tertiary sector
V. Low rates of population growth
- Explanation of how this characteristic contributes to a rapidly developing economy
- Factors that can cause low rates of population growth
VI. Spending on luxury products
- Explanation of how this characteristic contributes to a rapidly developing economy
- Factors that can cause increased spending on luxury products
VII. Encouragement of MNCs to set up
- Explanation of how this characteristic contributes to a rapidly developing economy
- Factors that can encourage MNCs to set up in a country
VIII. Advances in technology
- Explanation of how this characteristic contributes to a rapidly developing economy
- Factors that can cause advances in technology
IX. 👉Conclusion
- Recap of the characteristics of a rapidly developing economy
- Importance of these characteristics for economic growth and development.
Explain two characteristics of a rapidly developing economy
• high increase in real GDP per head
• significant improvements in healthcare
• significant improvements in education
• high proportion of workers employed in the tertiary sector
• low rates of population growth
• high spending on luxury products
• encouragement of MNCs to set up
• more use of advanced technology ➡️1 mark each for each of two explanations:
• a high increase in real GDP per head will increase living standards/be caused by e.g. higher investment
• significant improvements in healthcare will increase life expectancy/be caused by e.g. higher spending on hospitals
• significant improvements in education will raise workers’ skills/be caused by increased spending on universities
• as countries develop, workers tend to move from the primary and secondary sectors to the tertiary sector
• as countries develop, the birth rate tends to fall faster than the death rate
• as countries develop, people may be able to spend on more than necessities
• the attraction of MNCs may reduce unemployment
• advances in technology due to more research and development and investment/will raise productivity.
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