1. Standard of Living and Literacy Rate

2. Building Inferences

3. Vocabulary
Literacy Rate – The amount of people in a country who know how to read and write.

4. Cycle of Poverty
Having basic reading & writing skills is very important.
Without skills, workers are stuck in the lowest-paying jobs.
A cycle of poverty can develop when people cannot get an education.
Illiterate people are forced to get low-paying jobs, so they cannot get enough money to pay for their children’s education…This cycle can continue for generations.
The standard of living remains low for these families because their education level is low.

5. Cycle of Poverty
Without the skills of reading and writing, workers cannot get better jobs.
Developing countries are poor, and their people are generally uneducated.
It is difficult to pay for education, when there is little money for food…

6. Improving Literacy Rate
The goal of every country is to have a 100% literacy rate among its people.
One reason that many people cannot read/write is that their communities cannot afford to pay for teachers or schools.
Many governments, missionaries, & aid groups come to the poorest countries to assist the people in educating their children

7. European Literacy Rates
European Country
Literacy Rate
United Kingdom
99%
France
Russia
Germany
Italy
98%
Information above is according to the Georgia CRCT Test Prep Book.

8. Building Inferences

9. Building Inferences

10. So…
How does someone’s education (literacy rate) impact their standard of living? VS

11. How is the wealth or the economy of a country measured?

12. GDP
Gross Domestic Product (GDP) - the total value of goods produced/services provided in a country during one year.

13. Gross
Domestic
Product
PUGG Shoes

14. What does the GDP describe?
GDP tells us how rich or poor a country is.
Shows if the country’s economy is getting better or worse.

16. When a country invests in capital resources and human capital , the GDP of the country can only go…
UP.

17. .
EXAMPLE
Investment is taken from the GDP. For example Russia invests 25% of its GDP on human capital and capital resources.

18. European Literacy Rates
Why does Russia have a high literacy rate then but a low GDP per capita? HMM….
European Country
Literacy Rate
GDP Per Capita
United Kingdom
99%
$35,100
France
$33,000
Russia
$14,700
Germany
$33,200
Italy
98%
$30,400
Information above is according to the Georgia CRCT Test Prep Book.

19. How does GDP impact standard of living?

20. When a country’s GDP is high, its citizens enjoy a better life, in other words a higher STANDARD OF LIVING.

21. Standard of Living The quality of life of the people within a country.
The higher a country’s GDP, the better the quality of life or standard of living.
GDP
Standard of Living

22. GDP and Standard of Living What is the relationship?
Blue- High
Green- Medium
Red- Low
GDP
Blue- High
Green- Medium
Red- Low

23. GDP Per Capita.
GDP per capita (GDP divided by population) is often used to compare the economies of countries and the well-being of their citizens.

24. GDP versus GDP PER CAPITA
The Jones
Total income $80,000
The Smiths
Total income $60,000
Consider each family’s income to be the GDP. If so-
which family would have the highest GDP?
Which family would have the highest GDP per capita?
In which family would the family members get more money to spend?

25. NOTE: NUMBERS ARE SUBJECT TO CHANGE

26. The Ten Countries with the Lowest GDP/Capita (in hundreds)
NOTE-Numbers are subject to change.

27. The Richest and the Poorest
No Data
30,000 plus
20-30,000
10-20,000
5-10,000
3-5000
1-3000

28. Factbook