Grade 12 results are out. Where to check yours

Unit notes and practice questions

Grade 11 Economics unit 6: Economic development

Everything here is for unit 6 of the Grade 11 Economics textbook: what the chapter covers, the short notes, practice questions with their answers, and the lesson video where one exists.

Get it on Google Play
3
Cards
10
Practice questions on unit 6
146–167
The textbook pages for unit 6

What unit 6 covers

  1. 1.Economic Growth and Economic Development
  2. 2.Measures of Productivity
  3. 3.Human Development Index (HDI)
  4. 4.Ethiopia's HDI Value and Rank
  5. 5.Evaluation of HDI and its Relevance to Developing Countries
  6. 6.Capability Approach
  7. 7.Sustainable Development
  8. 8.Millennium Development Goals (2000-2015)
  9. 9.The Sustainable Development Goals (2015-2030)

Short notes for unit 6

The cards filed under this chapter on the Grade 11 Economics page. Open one at a time.

FeatureEconomic GrowthEconomic Development
NatureQuantitative increase in outputMultidimensional qualitative and quantitative change
Primary IndicatorReal GDP or GDP per capitaHuman Development Index (HDI)
ScopeNarrow focus on aggregate productionBroad focus on poverty, institutions, health, education

When you use it

Use this comparison table when distinguishing between output expansion and broad socio-economic progress.

Watch out

Economic growth is necessary for economic development, but economic growth does not automatically guarantee development.

Drafted from Grade 11 Economics, pages 146-167, then checked twice before it went up

GDP growth=Gt−Gt−1Gt−1×100\text{GDP growth} = \frac{G_t - G_{t-1}}{G_{t-1}} \times 100
GDP growth\text{GDP growth}
Percentage growth rate of gross domestic product%\%
GtG_t
Real GDP in current periodUSD\text{USD}
Gt−1G_{t-1}
Real GDP in previous periodUSD\text{USD}

When you use it

Use this formula to calculate the percentage change in real GDP between two consecutive time periods.

Watch out

Always divide by the previous period GDP in the denominator, not the current period GDP.

Drafted from Grade 11 Economics, pages 146-167, then checked twice before it went up

P=OIP = \frac{O}{I}
PP
Productivity ratiooutput per input unit\text{output per input unit}
OO
Total output volumeunits produced or USD\text{units produced or USD}
II
Total input volume usedhours worked or units\text{hours worked or units}

When you use it

Use this formula to measure how efficiently production inputs are converted into outputs.

Watch out

Higher productivity can occur by increasing output with constant input, or by reducing input while maintaining output.

Drafted from Grade 11 Economics, pages 146-167, then checked twice before it went up

Practice questions on unit 6

10 multiple-choice questions written against this chapter, each with its answer and the reason. Try one before you open the answer.

Question 1

Which concept describes a multidimensional process that involves changes in social structures, reduction of inequality, and eradication of poverty alongside economic growth?

  1. A.Economic development
  2. B.Gross domestic product
  3. C.Nominal output growth
  4. D.Trade surplus
Show the answer and why

Answer: A Economic development

Why

Economic development is a multidimensional process that includes institutional and social changes, poverty reduction, and improvements in living standards, whereas economic growth refers only to a quantitative increase in output.

Question 2

In economics, how is productivity defined?

  1. A.The ratio of input volume to output volume
  2. B.The ratio of total output to total input
  3. C.The total market value of intermediate goods
  4. D.The total population divided by total GDP
Show the answer and why

Answer: B The ratio of total output to total input

Why

Productivity is measured as the ratio of output to input (Productivity = Output / Input), showing how efficiently inputs are converted into goods and services.

Question 3

The Human Development Index (HDI) developed by the UNDP is composed of which three basic dimensions?

  1. A.Export rate, inflation rate, and exchange rate
  2. B.Life expectancy, educational attainment, and standard of living
  3. C.Tax revenue, government spending, and money supply
  4. D.Fertility rate, infant mortality, and urban growth
Show the answer and why

Answer: B Life expectancy, educational attainment, and standard of living

Why

The HDI combines three key indicators: Life Expectancy Indicators (health), Educational Attainment Indicators (education), and Standard of Living Indicators (real GDP per capita).

Question 4

How many Sustainable Development Goals (SDGs) were adopted by United Nations member states in the 2030 Agenda?

  1. A.8
  2. B.10
  3. C.17
  4. D.21
Show the answer and why

Answer: C 17

Why

The 2030 Agenda for Sustainable Development contains 17 Sustainable Development Goals (SDGs), succeeding the 8 Millennium Development Goals (MDGs).

Question 5

Suppose Ethiopia's real GDP was 200 billion birr in 2021 and grew to 214 billion birr in 2022. What was the real GDP growth rate?

  1. A.6.54%
  2. B.7.00%
  3. C.14.00%
  4. D.0.07%
Show the answer and why

Answer: B 7.00%

Why

GDP growth rate is calculated as: ((GDP in current period - GDP in previous period) / GDP in previous period) * 100. Here: ((214 - 200) / 200) * 100 = (14 / 200) * 100 = 7.00%.

Question 6

According to the textbook, what was Ethiopia's HDI value and global rank in 2019?

  1. A.Value of 0.292 and rank 189 out of 189
  2. B.Value of 0.485 and rank 173 out of 189
  3. C.Value of 0.661 and rank 120 out of 189
  4. D.Value of 0.750 and rank 100 out of 189
Show the answer and why

Answer: B Value of 0.485 and rank 173 out of 189

Why

In 2019, Ethiopia had an HDI value of 0.485, which positioned the country at 173 out of 189 countries in the low human development category.

Question 7

In Amartya Sen's capability approach, what is the key difference between a functioning and a capability?

  1. A.A functioning is an economic output, while a capability is an industrial input.
  2. B.A functioning is what a person actually does or achieves, while a capability is the real opportunity or freedom to achieve it.
  3. C.A functioning applies only to developing countries, while a capability applies only to developed countries.
  4. D.A functioning is measured by GDP per capita, while a capability is measured by adult literacy alone.
Show the answer and why

Answer: B A functioning is what a person actually does or achieves, while a capability is the real opportunity or freedom to achieve it.

Why

Under Sen's capability approach, functionings refer to what a person actually is or does (such as being nourished), while capabilities represent the real freedoms and possibilities an individual has to choose among various functionings.

Question 8

What are the three core pillars of sustainable development identified in the textbook?

  1. A.Monetary policy, fiscal policy, and trade balance
  2. B.Economic growth, environmental stewardship, and social inclusion
  3. C.Urbanization, industrialization, and foreign direct investment
  4. D.Primary education, secondary education, and tertiary education
Show the answer and why

Answer: B Economic growth, environmental stewardship, and social inclusion

Why

The three pillars of sustainable development are economic growth, environmental stewardship, and social inclusion.

Question 9

According to reports cited in the textbook, how did Ethiopia perform regarding the eight Millennium Development Goals (MDGs)?

  1. A.It achieved all 8 goals fully.
  2. B.It achieved 6 of the 8 goals, making significant progress on MDG 3 and MDG 5.
  3. C.It achieved only 2 goals and failed to make progress on the rest.
  4. D.It replaced MDGs entirely with Agenda 2063 before 2015.
Show the answer and why

Answer: B It achieved 6 of the 8 goals, making significant progress on MDG 3 and MDG 5.

Why

Ethiopia successfully achieved six of the eight MDGs and made significant progress with respect to the remaining two (MDG 3 and MDG 5).

Question 10

Using the HDI achievement level formula: Achievement level = (Actual value - Minimum value) / (Maximum value - Minimum value), what is the Life Expectancy Index for a country if its actual life expectancy is 56 years, the minimum value is set at 20 years, and the maximum value is set at 80 years?

  1. A.0.45
  2. B.0.56
  3. C.0.60
  4. D.0.75
Show the answer and why

Answer: C 0.60

Why

Applying the formula: LEI = (56 - 20) / (80 - 20) = 36 / 60 = 0.60.

The app holds 12 questions on this unit, marked as you go. These are the first 10.

Lesson video for unit 6

A lesson on this chapter from YouTube. It loads only when you press play.

Understanding economic growth · Watch on YouTube

The textbook pages for unit 6

Unit 6 runs from page 146 to page 167 of the Ministry of Education edition.

Ministry of Education edition, English, 202 pages

Download the PDF

All Grade 11 Economics short notes

Practise this unit in the app

Temari turns this chapter into timed practice and marks it as you go, with an AI tutor to explain anything that did not land.

Start free

Temari.et is also an Android app, free on Google Play.

Get it on Google PlayAbout the Temari app
Sign inCreate your account