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Measures of Development. Measuring Development Gross National Product (GNP) Measure of the total value of the officially recorded goods and services produced.

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Presentation on theme: "Measures of Development. Measuring Development Gross National Product (GNP) Measure of the total value of the officially recorded goods and services produced."— Presentation transcript:

1 Measures of Development

2 Measuring Development Gross National Product (GNP) Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year. Includes things produced inside and outside a country’s territory. Gross Domestic Product (GDP) Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year. Gross National Income (GNI) Measure of the monetary worth of what is produced within a country plus income received from investments outside the country. ** Most common measurement used today.

3 GNI per capita The dollar value of a country’s final output of goods and services in a year, divided by its population. Reflects average income of a country’s citizens. $12,747+ = high income; $1,046-12,746 = middle income; $1,045 or less = low income

4 Shortcomings of GNI per capita Income distribution Cost of living Intangibles Statistical problems (dividing by total pop.) Fluctuating exchange rates

5 Purchasing Power Parity (PPP) Adjustment to the GNI per capita to account for cost of living. If GNI per capita is greater than PPP, then it is more expensive to live in that country. If GNI per capita is less than PPP, then it is less expensive to live in the country.

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10 Malnourished Sudanese children at an aid center. As a result of hunger, 6 million children under the age of 5 die each year.

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14 UN’s ranking based on four variables: life expectancy, adult literacy, combined school enrollment ratios and real (PPP) income.

15 UN’s ranking based on three variables: female share of parliamentary seats, share of professional and technical jobs, and share of administrative and managerial positions.

16 These are NOT Development Indicators: Country Size Population Size Population Density Resource Endowment

17 A. Which of the following is positively correlated with GDP per capita? 1. infant mortality rate 2. carbon dioxide emission per capita 3. rice production per capita 4. rate of natural increase 5. distance from the Prime Meridian

18 B. Between 1940 and the early 1960s, China’s industrial growth was aided by: 1. capitalist reforms 2. improved transportation 3. the location of raw materials 4. the distribution of the work force 5. Soviet planners

19 C. In which major world manufacturing country does industry NOT lie near sources of raw materials? 1. Japan 2. United States 3. India 4. Canada 5. China

20 D. After WWII, the world system periphery countries were referred to as the: 1. First World 2. Second World 3. Third World 4. Fourth World 5. Last World

21 E. One of the huge benefits of just-in-time production is that the need for __ is eliminated. 1. working overtime 2. advertising 3. labor 4. large inventories 5. understanding cultural differences

22 A. Which of the following is positively correlated with GDP per capita? 1. infant mortality rate 2. carbon dioxide emission per capita 3. rice production per capita 4. rate of natural increase 5. distance from the Prime Meridian

23 B. Between 1940 and the early 1960s, China’s industrial growth was aided by: 1. capitalist reforms 2. improved transportation 3. the location of raw materials 4. the distribution of the work force 5. Soviet planners

24 C. In which major world manufacturing country does industry NOT lie near sources of raw materials? 1. Japan 2. United States 3. India 4. Canada 5. China

25 D. After WWII, the world system periphery countries were referred to as the: 1. First World 2. Second World 3. Third World 4. Fourth World 5. Last World

26 E. One of the huge benefits of just-in-time production is that the need for __ is eliminated. 1. working overtime 2. advertising 3. labor 4. large inventories 5. understanding cultural differences


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