Economic Development: Measures and Indicators
ECONOMIC
DEVELOPMENT
Essential Questions:
1.
How do economists measure a
country’s level of economic
development?
2.
Which economic activities are most
clearly associated with different levels
of development?
I
NDICATORS
OF
E
CONOMIC
D
EVELOPMENT
The Human Development Index (HDI) was
developed by the United Nations (UN) to rank
countries based on their level of economic
development.
Demographic Indicators
Life Expectancy
: AVG # of years an individual is expected to
live.
Size of the population
Birth Rate
: Births per 1,000.
Mortality Rate
: High birth and mortality rates reflect higher
poverty and lower health care quality.
Infant Mortality Rate
: Infant deaths per 1,000 births.
Reflective of level of medical care available when an infant is
born.
The lower the rate, the more developed medical
care.
L
EVELS
OF
E
CONOMIC
D
EVELOPMENT
Economic Development refers to how advanced an
economy is.
Less Developed Nations
:
High birthrate and infant mortality rate
Increasing population size
Low Gross Domestic Product (GDP) per capita and literacy
rate.
More Developed Nations
:
US/France
Low birthrate and infant mortality rate
Stable population growth
High Gross Domestic Product (GDP) per capita and literacy
rate.
Newly Industrialized
: Emerging economies moving
from less developed to more developed.
China/Thailand
E
CONOMIC
I
NDICATORS
Indicators tell how well an economy is performing.
GDP per capita (GDP/# of people
)
: reflects the
value of goods/services produced in a year in a
nation by an AVG person.
S
OCIAL
I
NDICATORS
Include social services provided to citizens.
Literacy Rate
: % of people who can read/write
% of people attending colleges/universities
Housing, water supply and sanitation
T
T
YPES
YPES
OF
OF
E
E
CONOMIC
CONOMIC
A
A
CTIVITIES
CTIVITIES
Primary
:
Agricultural
and
mining
3% of US labor force is engaged in this arena.
Secondary
:
Manufacturing
Iron ore changed into steel and shaped into railroad
tracks; tree logs assembled into furniture.
Tertiary
:
Services
80% of US workers serve in this area. Includes
teachers, accountant, truck drivers and musicians.
Quaternary
:
Management
and
information
processing.
Involved in information processing. Include computer
programmers or a general manager of a company.
E
XAMPLE
OF
E
CONOMIC
A
CTIVITIES
Primary
—
GRAPES
Secondary
—
WINE
WINE
Tertiary
—
SELLING
THE
WINE
Quaternary
—
RESEARCH OF
THE
EFFECTS
STOP
R
EVIEW
Which type of economic activities would most likely
be found in a newly industrialized country with
commercial industry?
A.
Primary activities
B.
Secondary activities
C.
Tertiary activities
D.
Quaternary activities
ANSWER:
B
R
EVIEW
C
ONT
’
D
Which characteristic is typical of a less developed
country?
A.
Government does not interfere in the
economy.
B.
Entrepreneurs play a key role in the
nation’s economy.
C.
There is a high infant mortality rate and
a short life expectancy.
D.
There is a high literacy rate and a long
life expectancy.
ANSWER:
C
R
EVIEW
C
ONT
’
D
A newly industrialized nation is usually
characterized by having-
A.
A large number of workers engaged in
manufacturing
B.
Most people engaged in subsistence
agriculture
C.
A lack of human resources like skilled
and unskilled labor
D.
Most of its workers engaged in
quaternary economic activities
ANSWER:
A
Economists measure economic development using indicators like the Human Development Index, life expectancy, birth rate, mortality rate, and GDP per capita. Different levels of development are associated with specific economic activities, from primary industries like agriculture to quaternary activities in management and information processing. Social indicators like literacy rates also reflect a country's development status.
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Presentation Transcript
ECONOMIC DEVELOPMENT Essential Questions: 1. How do economists measure a country s level of economic development? 2. Which economic activities are most clearly associated with different levels of development?
INDICATORS OF ECONOMIC DEVELOPMENT The Human Development Index (HDI) was developed by the United Nations (UN) to rank countries based on their level of economic development. Demographic Indicators Life Expectancy: AVG # of years an individual is expected to live. Size of the population Birth Rate: Births per 1,000. Mortality Rate: High birth and mortality rates reflect higher poverty and lower health care quality. Infant Mortality Rate: Infant deaths per 1,000 births. Reflective of level of medical care available when an infant is born. The lower the rate, the more developed medical care.
LEVELS OF ECONOMIC DEVELOPMENT Economic Development refers to how advanced an economy is. Less Developed Nations: High birthrate and infant mortality rate Increasing population size Low Gross Domestic Product (GDP) per capita and literacy rate. More Developed Nations: US/France Low birthrate and infant mortality rate Stable population growth High Gross Domestic Product (GDP) per capita and literacy rate. Newly Industrialized: Emerging economies moving from less developed to more developed. China/Thailand
ECONOMIC INDICATORS Indicators tell how well an economy is performing. GDP per capita (GDP/# of people): reflects the value of goods/services produced in a year in a nation by an AVG person.
SOCIAL INDICATORS Include social services provided to citizens. Literacy Rate: % of people who can read/write % of people attending colleges/universities Housing, water supply and sanitation
TYPES OF ECONOMIC ACTIVITIES Primary: Agricultural and mining 3% of US labor force is engaged in this arena. Secondary: Manufacturing Iron ore changed into steel and shaped into railroad tracks; tree logs assembled into furniture. Tertiary: Services 80% of US workers serve in this area. Includes teachers, accountant, truck drivers and musicians. Quaternary: Management and information processing. Involved in information processing. Include computer programmers or a general manager of a company.
EXAMPLE OF ECONOMIC ACTIVITIES Primary GRAPES Secondary WINE Tertiary SELLING THE WINE Quaternary RESEARCH OF THE EFFECTS
REVIEW Which type of economic activities would most likely be found in a newly industrialized country with commercial industry? A. Primary activities B. Secondary activities C. Tertiary activities D. Quaternary activities ANSWER: B
REVIEW CONTD Which characteristic is typical of a less developed country? A. Government does not interfere in the economy. B. Entrepreneurs play a key role in the nation s economy. C. There is a high infant mortality rate and a short life expectancy. D. There is a high literacy rate and a long life expectancy. ANSWER: C
REVIEW CONTD A newly industrialized nation is usually characterized by having- A. A large number of workers engaged in manufacturing B. Most people engaged in subsistence agriculture C. A lack of human resources like skilled and unskilled labor D. Most of its workers engaged in quaternary economic activities ANSWER: A
