1. Measuring Development

2. GDP Gross Domestic Product Value of total output of goods and services within a country in a year- p.276 PER CAPITA MDCs - $30,000 LDCs - $3,000

3. Y = C+I+E+G Y = GDP C = Consumer Spending I = Investment made by industry E = Excess of Exports over Imports G = Government Spending

4. GNP Gross National Product Total value of officially recorded goods and services produced by citizens and corporations. Broader than GDP (inside & outside territory)

5. GNP Formula Consumption + Government Expenditures + Investments + Exports + Foreign Production by US Companies – Domestic Production by Foreign Companies = Gross National Product

6. GNI Gross National Income Monetary worth of a country’s production PLUS income received from investments. More accurate in terms of global economy. Japan - $31,410 USA - $41, 950 Luxembourg - $65,340 India - $3,460

7. Literacy Rate % of people who can read and write Exceeds 98% in MDCs Lower than 60% in LDCs

8. Life Expectancy Average # of years a newborn can expect to live. 60s in LDCs 70s in MDCs

9. HDI Human Development Index A country’s development is comprised of economic, social, and demographic factors! 1.GDP 2.Literacy Rate 3.Amt. of Education 4.Life Expectancy

10. The Brandt Line