IGCSE Development Studies: Specimen Questions with Answers 24 - 25 of 98

Passage

GNP data of South Africa is as follows:

South Africa GNP for was $ 0. 00B, a 100% decline from 2,019.
South Africa GNP for 2,019 was $ 353. 53B, a 6. 38% increase from 2,018.
South Africa GNP for 2,018 was $ 332. 32B, a 7. 74% increase from 2,017.
South Africa GNP for 2,017 was $ 308. 44B, a 0. 34% increase from 2,016.

Question 24 (2 of 6 Based on Passage)

Write in Short

Short Answer▾

B) Distinguish between GNP and GDP

Explanation

B)

Distinguish between GNP and GDP
S. No.	GNP	GDP
1.	GNP is a national concept	GDP is a territorial concept
2.	GNP is a wider concept	It is relatively a narrower concept
3.	Formula of income from abroad	Formula of GDP = P (G) + P (S)
4.	If we subtract net factor income from abroad from it, we get GDP	If we add NFIA to it, we get GNP
5.	GNP will be greater than GDP when NFIA is positive.	When NFIA is negative it GDP will be greater than GNP.

2.

External Debt

Question 25 (3 of 6 Based on Passage)

Write in Short

Short Answer▾

Give three reasons of developing country’s economic problem.

Explanation

Economic Problems Face by a Developing Country Are as Follows

Economic Challenges

Transition from free market economies produce, rising standards of living and expanding middle class
“Brain drain” –migration of residents to other countries for education or job.
Increasing gap between the rich and poor.

Political Challenges

Increasing demand for political freedoms and individual rights.
Example- Increasing demand for political freedom in Taiwan and South Korea.

Factor Markets

Capital markets less efficiently in many developing countries while channeling money to the most productive use.
Labor markets work in a less efficient manner where the wage gap between expanding and declining sectors is high.

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