1. Economic Indicators Answers

3. 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.

4. 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?

5. 1.Which two countries have the highest GDP?
China, US

6. 2.Which two countries have the highest GDP per capita?
US, Germany

7. 3.Which two countries have the highest standard of living?
US, Germany

8. 4.Which two countries have the lowest standard of living?
India, Liberia

9. 5.Which three countries have the highest percentage of people working in agriculture?
India, Liberia, China

10. 6.Which three countries have the highest percentage of people working in industry?
Russia, US, China

11. 7.Which two countries have the highest percentage of their populations below the poverty level?
Liberia, Mexico

12. Russia, US, Germany / Liberia
8.Which three countries have the highest literacy rate? Which one has the lowest?
Russia, US, Germany / Liberia

13. 9. What does the literacy rate tell you about the country?
It tells you how educated the people are of that country. If it is low, it means a low investment in Human Capital.

14. 10.How might the investment in human capital influence the literacy rate?
The more educated the country the higher the literacy rate. That is a result of an investment in Human Capital.

15. 10.Why would the infant mortality rate be used to measure the level of health in a country?
The higher the infant mortality rate would mean a lower investment in Human Capital.