Ahmed Sheheryar- Class Notes

Economics 2023 -

P4

Topical Essay Outlines

Chapter 6:Standard of
Living

9. Some economies are said to be developed while others are

said to be developing. Disass whether the of

problems
developing economy
world be solved it
if achieves a

developed States? [20]

Structure:I Difference between

developing
and
developed country
2 Can itbe done or not?

Part 1

↳
Developing -> These are less advance, with low levels

of living standards, high rate of

population growth

↳
Developed -> These economies a re
technologically
advance and high quality of
enjoy a

lite

standards of
- Developing, low
Social Difference elite
livings only a small

of
segmentenjoys good quality
life

↳
Developed high level ofliving

majority of
population has access to
basic facilities
 Yapital Betelin
GDP per
2 National Income

↳ High GDP High GDP per

+

capita Developed
=

3 Economic Sector ->

Developing= Primary Secondry>
composition Tertiary

↳
Developeh=Primary Secondry>
Tertiary

4
Population ->
Developing. High brith rate Hish
+

death rate

·
High population relative to GDP

↳
Developed =. how birth how
rated

death rate

· Low population relative to

LDP

-Population Structure
Developing-Pyramid like
structures more
young
people few middle aged
fewer old
people -> se

people

↳
Developed less
young
more middle large number
of old ase people
 6 Income Distribution ->
Developing> Less even distribution
taxation and laws
Pour

1 income
of -> Lorenz Curre

Developed ↳
Developed m o re
= even

distribution income, rich

↑
of

taxed >
pror
people are

parple gethealthcare etc.

&-
Developing Ginnikish=
Inequality
hish Developing

C 1 of
population
Inequality
Ginni low=
less Developed
Shows perfect
eq-clity

-> The kranetcarve

Inequality shows that
when

developing economy
1
a

expands ittends

hish
to face in come

but
inequality initially
later on
inequality
↓ - ec ses

↓
Recson:

-
when
Economy has
Initial growth, only rich
Income Per pit benefit, by land etc.
a

later need
they workers

to run businesses Gort

takes taxes money moves

back to pour people

> Dependency -> Developing Hich dependency on

cids+ on
developed countries

1 Developed> Less
dependency
enorch resources to manage
their own
expenses

↳ External Debt -
Developing hich level ofexternal
debtHigh +
level of interest
Payment

↳
Developed >
Usually have their
own resources, if
they have debt
itis of
> a small
percentage
their GDP

↳ When a
country becomes developed a several

problems likehealth care, education and

dependency is resolved

↳ Some problems still

stay there like problem of
Scarcity unemployment > extercities, inflation

↳ These problems cannotbe solved. However

they can be reduced to a
certain extent
2nd PortNew Problems

↳ Hish Cost living:Inflation

of

↳
UnemploymentT New
=

technologies

↳ High value ofexchange rate: Reduce export

↳ four mightface a
problem labor
of shortage
due to population control

↳ Asing Populations Burden on the

economy

Final Evalection

I Success depends on
how
good are the government
policies

I Cant Julie long Den quickly like external debt un

income distribution

Depends
-

on the
policies used? Fiscal and monetary
create a trade off/Supply side does not

economic
whatstage
I
of
developmentis the

country currently in?

↳
Developed country has many economic
problems as a

the of
developing country. However extent thes
limited.
problems are