Topic 4.9: Barriers to Economic Growth and/or Economic Development Questions

A text says that poor infrastructure in rural Sarnia raises farmers’ transport costs. Define the term infrastructure.

Define the term infrastructure.

A poverty cycle (poverty trap) exists when:

Define the term human capital.

Sketch a poverty cycle diagram and mark where microfinance breaks the cycle.

Farmers in Ardena cannot borrow because they lack secure property rights to their land. Define the term property rights.

Kalvia is a landlocked, low-income country. Coffee earns 60% of its export revenue, and its price fell by a quarter last year. Government debt is 90% of GDP, and interest payments take a fifth of tax revenue. Only 40% of girls finish primary school, and most workers are in the informal economy. Roads to the nearest port are poor, and many firms report paying bribes for permits. Using information from the text/data and your knowledge of economics, discuss the barriers to economic growth and economic development that Kalvia faces.

Explain two ways in which gender inequality holds back Vennland's economic development.

Weak institutional frameworks in developing countries can be a barrier to development because:

High levels of external debt can be a barrier to development because:

The "brain drain" hinders development in developing countries because:

Using a diagram or description, explain how a poverty cycle operates.

Explain how over-dependence on primary commodities can hinder economic development.

Explain two institutional barriers to economic development in developing countries.

Explain the impact of trade barriers imposed by developed countries on the development of developing countries.

Most farmers in Vennland's highlands work land their families have used for generations but hold no document proving it is theirs. Define the term property rights.

Sketch a poverty cycle diagram and mark where investment in infrastructure would break it.

Explain two reasons why raising girls' schooling could accelerate development in Vennland.

A third of Vennland's export earnings goes on interest and repayments to foreign lenders each year. Define the term debt servicing.

Wealthy Vennlanders moved an estimated $3 billion abroad last year, fearing instability at home. Define the term capital flight.