1. IB Economics Sara Shackett
Economic Development
IB Economics
Sara Shackett

2. How many people out of 10 have electricity at home?

3. How many children out of 10 are vaccinated against measles?

4. How many girls out of 10 go to primary school?

5. Growth v. Development
Military
Equipment
Health Care

6. Economic Growth Charades
You and one partner will consider the sources of economic growth.
Draw a charade card and decide how you can best act out the source of economic growth using no words or props.
You get one point for each team that correctly identifies your source.
You also get one point for each source you identify correctly.
Good luck!

7. Consequences of growth

8. Consequences of growth
Higher incomes
Consequences of growth

9. SRAS AD Y
rGDP PL
PL1 PL
AD1 Y1

10. Consequences of growth
Improved economic indicators of welfare Higher incomes
Consequences of growth

11. Consequences of growth
Higher government revenues Improved economic indicators of welfare Higher incomes
Consequences of growth

12. Consequences of growth
Creation of inequality
Consequences of growth

13. The Lorenz Curve

14. Consequences of growth
“uneconomic growth”
Negative externalities, lack of sustainability
Creation of inequality
Consequences of growth

15. Negative externalities of production
Price of paint ($)
Quantity of paint (liters) Q
MSC
MSB P1 Q1
Negative externality
Welfare loss
MPC P

16. Growth v. Development
Military
Equipment
Health Care

17. Common characteristics of developing countries
Low standards of living, characterized by low incomes, inequality, poor health, and inadequate education
Common characteristics of developing countries

18. GDP/capita on a purchasing power parity, 2014 (CIA World Fact Book) 

19. Source: Dale DeBoer, UCCS

20. 2013 HDI data from UNDP

21. Common characteristics of developing countries
Low levels of productivity (output per person)
Common characteristics of developing countries

22. Common characteristics of developing countries
High rates of population growth and dependency burdens
Common characteristics of developing countries

23. Dependency Ratio Dependency ratio = Australia 20.3 10.7 69.0 0.45 US
(% of population under 15) + (% of population over 64)
(% of population 15 to 64)
Country
% under 15
% over 64
% 15-64
Dep Ratio
Australia
20.3
10.7
69.0
0.45 US
21.1
68.2
0.47
Burkina Faso
47.7
2.3
50.0
1.00
Laos
41.7
2.9
55.4
0.81
Cambodia
38.3
2.8
58.9
0.70
World Bank stats

24. Common characteristics of developing countries
Substantial dependence on agricultural production and primary product exports
Common characteristics of developing countries

25. Common characteristics of developing countries
Prevalence of imperfect markets and limited information
Common characteristics of developing countries

26. Common characteristics of developing countries
Dominance, dependence, and vulnerability in international relations
Common characteristics of developing countries

27. Common characteristics of developing countries
High and rising levels of unemployment and underemployment
Common characteristics of developing countries

28. Diversity among developing countries
Resource endowment
Diversity among developing countries

29. Diversity among developing countries
Historical background
Diversity among developing countries

30. Diversity among developing countries
Geographic and demographic factors
Diversity among developing countries

31. Diversity among developing countries
Ethnic and religious breakdown
Diversity among developing countries

32. Diversity among developing countries
The structure of industry
Diversity among developing countries

33. Diversity among developing countries
*Resource
rich countries
Per capita income levels
Diversity among developing countries

34. Diversity among developing countries
Political structure
Diversity among developing countries

35. Hans Rosling’s Best Stats