Economic Indicators
- Created by: Doodlegame
- Created on: 03-03-19 16:46
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- Economic Indicators
- The Brandt Line
- 1980s
- Countries have changed since
- Divided the world into north and south
- North = Rich
- South = Poor
- Physically incorrect as New Zealand and Austrailia are in the south but above the line
- Economies are far more complex than Manufacturing and Agriculture
- 1980s
- Wealth is a significant and widely used indicator of development
- GNI (Gross National Income)
- Popular measurement of wealth
- Calculated per capita (per head)
- In 2016, the US had a GNI of $60,000 whereas India had $6,700
- USA is wealthier and more developed
- However, there are 45,000 millionaires in India's financial capital of Mumbai
- USA is wealthier and more developed
- GNI assumes wealth is shared equally when it is not
- GNI (Gross National Income)
- How wealth is generated
- If greater wealth comes from agriculture than from banking or service industries, the country is usually less developed
- Therefore we often look at the percentage of people employed in each sector
- Primary
- HICs have very few people employed in primary jobs such as farming
- So well developed that a few people can produce large amount of produce
- What the country does not grow it can import
- LICs rely heavily on agriculture
- Farmers growing just enough to survive on
- HICs have very few people employed in primary jobs such as farming
- Quaternary
- Research
- Tertiary
- Large demand for the services provided by the tertiary sector in HICs
- Banking, teaching, building, etc.
- Higher disposable income and leisure time
- Hairdressing, tourism, leisure, etc.
- Seen as unaffordable luxuries in LICs
- Hairdressing, tourism, leisure, etc.
- Large demand for the services provided by the tertiary sector in HICs
- Primary
- Therefore we often look at the percentage of people employed in each sector
- If greater wealth comes from agriculture than from banking or service industries, the country is usually less developed
- Purchasing Power Parity (PPP)
- Compares what can be brought with the same amount of money in different countries
- Useful as it considers the cost of living
- For example, a dollar will buy more in Afghanistan than the UK
- Useful as it considers the cost of living
- Scandinavian countries tend to have the highest PPP
- Asian counties tend to have the lowest PPPs
- Compares what can be brought with the same amount of money in different countries
- Don't tell us if a ccountry is a pleasnt place to live
- Or whether the people are happy and free from oppression
- Only give a general picture of the country
- Or whether the people are happy and free from oppression
- The Brandt Line
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