1. Literacy Rate and GDP

2. Most developed countries have high literacy rates
Literacy rates looks at the percentage of people over 15 in a country who can read and write.
Most developed countries have high literacy rates

3. Cycle of Poverty
Having basic reading and writing skills is very important.
Without skills, workers are stuck in the lowest paying jobs
Illiterate people take these low paying jobs and cannot afford their children’s education…cycle continues for generation
Standard of living remains low because education level is low
Developing counties more likely to have a greater illiterate population

4. GDP= Gross Domestic Product
The total market value of all final goods and services produced within the country in a year
Per Capita means how much money each individual would receive IF a country divided its yearly income equally among everyone
GDP Per Capita is a measure of wealth with the wealth of other nations
Raising GDP increases standard of living

5. What affect does Literacy rates have on GDP?
Does Literacy rate of a country seem to have an impact on - GDP per capita? - Life expectancy? WHY????

6. What other factors may affect GDP per capita?
Political Issues
Government corruption
Government Type
Uneducated population
Natural resources
Wars

8. What other factors may affect GDP per capita?
Wars
Famine
Drought
Natural Disasters

9. So, how does literacy rate affect the standard of living in countries?
Normally, the higher the literacy rate the higher the GDP per capita.

10. Four factors of Economic Growth
Natural Resources
Human capital
Capital
Entrepreneurship

11. Natural Resources “Gifts of nature”
Important to countries- without them, countries must import resources they need (costly)
Countries with a lot of natural resources are able o use them to produce goods and services or trade with other countries to make money for the economy
Renewable sources: generated from natural sources, clean. Ex: sun, wind, hydroelectric power
Nonrenewable sources: generated from the earth, causes damage to environment to retrieve/when used. Ex: oil, coal, Earths minerals

12. Human Capital
The health, strength, education, training, and skills that people bring to their jobs.
Countries invest in human capital when they:
Invest in education
Invest in training workers in different skills
Invest in healthcare

13. Human Capital What do you think would be an example of human capital?
How can a country invest in human capital?
Do you think a country would be wise to invest in human capital? Why or why not?
What is the relationship between Human capital and GDP?
Do you think our chart supports this?

14. Capital Goods
Capital goods- all of the factories, machines, technologies, buildings, equipment needed by businesses in order to operate
The more capital goods a country has = the more goods and services they are able to produce= the more money they make.
Ex:

15. Entrepreneurship People who start businesses
These people risk their own money and time because they believe that their business ideas will make a profit
They create jobs and bring together natural resources, human capital and capital goods together to make different types of goods and services
The more entrepreneurs a country has, the higher the country’s GDP will be