1. economic development
Essential Questions:
How do economists measure a country’s level of economic development?
Which economic activities are most clearly associated with different levels of development?

2. Indicators of Economic Development
The Human Development Index (HDI) was developed by the United Nations (UN) to rank countries based on their level of economic development.
Demographic Indicators
Life Expectancy: AVG # of years an individual is expected to live.
Size of the population
Birth Rate: Births per 1,000.
Mortality Rate: High birth and mortality rates reflect higher poverty and lower health care quality.
Infant Mortality Rate: Infant deaths per 1,000 births. Reflective of level of medical care available when an infant is born. The lower the rate, the more developed medical care.

3. Levels of Economic Development
Economic Development refers to how advanced an economy is.
Less Developed Nations:
High birthrate and infant mortality rate
Increasing population size
Low Gross Domestic Product (GDP) per capita and literacy rate.
More Developed Nations: US/France
Low birthrate and infant mortality rate
Stable population growth
High Gross Domestic Product (GDP) per capita and literacy rate.
Newly Industrialized: Emerging economies moving from less developed to more developed. China/Thailand

4. Economic Indicators Indicators tell how well an economy is performing.
GDP per capita (GDP/# of people): reflects the value of goods/services produced in a year in a nation by an AVG person.

5. Social Indicators Include social services provided to citizens.
Literacy Rate: % of people who can read/write
% of people attending colleges/universities
Housing, water supply and sanitation

6. Types of Economic Activities
Primary: Agricultural and mining
3% of US labor force is engaged in this arena.
Secondary: Manufacturing
Iron ore changed into steel and shaped into railroad tracks; tree logs assembled into furniture.
Tertiary: Services
80% of US workers serve in this area. Includes teachers, accountant, truck drivers and musicians.
Quaternary: Management and information processing.
Involved in information processing. Include computer programmers or a general manager of a company.

7. Example of Economic Activities
Primary—GRAPES
Secondary—WINE
Tertiary—SELLING THE WINE
Quaternary—RESEARCH OF THE EFFECTS

8. STOP

9. Review Primary activities Secondary activities Tertiary activities
Which type of economic activities would most likely be found in a newly industrialized country with commercial industry?
Primary activities
Secondary activities
Tertiary activities
Quaternary activities
ANSWER: B

10. Review Cont’d Government does not interfere in the economy.
Which characteristic is typical of a less developed country?
Government does not interfere in the economy.
Entrepreneurs play a key role in the nation’s economy.
There is a high infant mortality rate and a short life expectancy.
There is a high literacy rate and a long life expectancy.
ANSWER: C

11. A large number of workers engaged in manufacturing
Review Cont’d
A newly industrialized nation is usually characterized by having-
A large number of workers engaged in manufacturing
Most people engaged in subsistence agriculture
A lack of human resources like skilled and unskilled labor
Most of its workers engaged in quaternary economic activities
ANSWER: A