Macro #8: Standard of Living Quality of Life: What is needed for a good quality of life? List 10+ things.

Macro #9: Comparing Nations

Productivity Labor productivity: how much each worker produces Increases in productivity are due to: Technology Capital deepening: increase in amount of capital goods available per worker (more machines = more production) Educated & skilled workforce Other factors: loyalty to job, motivation of worker

Developing Countries Poorest Nations Developing Nations : low standard of living due to little human or physical capital What do these countries have in common?

Problems: Traditional economies Human Resources: Subsistence farming: grow just enough to survive, but not to trade Wealthy control cash crops: coffee, sugar, peanuts Human Resources: Lack of skilled, experienced workers Lack of education Low literacy rates

Natural Resources: Capital Resources Little arable (productive)land Lack of water or infrastructure to make it obtainable Lack of natural resources One crop economy: only makes 1 thing thus reliant on price of just 1 product Capital Resources Don’t have the capital to invest & can’t borrow Microloans

Richest Countries – by GDP Developed Countries or Industrialized Nations: highest standards of living

GDP per capita Amount produced per person GDP per capita Indicates the level of the standard of living BUT – cannot show if the wealth is evenly distributed With only 300,000 and rich oil reserves, Qatar is one of the richest nations on earth!

What is a high standard of living? Is it money or stuff? Or is a feeling of happiness or success? Happiest Countries Murder Rate

After looking at all this data, where would you like to live? Explain.