The changing economic world
What's covered
Key facts
The City of London — the "Square Mile" — is the UK's historic financial district and remains its main financial centre.
During rapid economic growth LICs typically experience declining birth and death rates as healthcare, education and employment improve.
Debt relief is the cancellation of some or all of a poor country's foreign debt, freeing money for health, education and infrastructure.
Foreign aid does not always benefit recipients equally — outcomes depend on governance, corruption, conditions attached, and whether aid is tied to donor goods/services.
Rural areas near major UK cities have benefited economically from commuter spending and counter-urbanisation.
Lagos is Nigeria's largest city and a major commercial hub for West Africa.
Debt relief writes off poor countries' loans, freeing money that would have serviced debt for development spending.
The model that shows how birth and death rates change as a country develops is the Demographic Transition Model.
De-industrialisation is the long-term decline of manufacturing employment, often causing unemployment and physical decay in former industrial areas.
A newly emerging economy (NEE) is a country with rapid industrialisation and rising income, sitting between LICs and HICs in development.
Sample questions
A taste of the 66 questions in this topic — answers marked. Sign up to practise the full set with spaced repetition.
What is the quaternary sector of the economy?
- •extracting raw materials such as farming, mining, and fishing
- ✓high-tech research, information, and knowledge-based industries
- •processing raw materials into manufactured goods
- •providing services such as retail, banking, and transport
What is the difference between short-term and long-term aid?
- •Short-term aids food only; long-term aids only schools
- ✓Short-term covers emergencies; long-term builds development
- •Short-term is given by NGOs; long-term by governments
- •Short-term is in cash; long-term is always in kind
Which of these is a strategy for reducing the development gap?
- •Encouraging emigration of skilled workers to high-income countries
- ✓Investment from transnational corporations and microfinance loans
- •Reducing investment in education to balance government budgets
- •Restricting access to international trade and overseas markets
What does HDI stand for?
- •Health and Development Index
- •Human Demographics Index
- •Human Deprivation Indicator
- ✓Human Development Index
What is a science park?
- ✓A business area near a university offering research links and skilled graduates
- •A dedicated outdoor space for scientific education attached to a secondary school
- •A government-funded park where scientific research is carried out by public employees
- •An industrial estate offering reduced business rates to attract technology companies
Why do many economists argue trade is more sustainable than aid for LIC development?
- •Aid is taxed by recipient governments and trade isn't
- •Trade always returns higher profit per pound than aid
- ✓Trade builds independent income; aid creates dependency
- •Trade requires no government regulation at any stage
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