Economic Indicators

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What did the Brandt line (1980s) do?
Draw a line between north (rich) ans south (poor)
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What was wrong with the Brandt line?
It is geographically incorrect as NZ and Australia is physically in the south but economically in the north. It is also outdated
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What industries did the Brandt line consider?
Manufacturing (rich) and agriculture (poor)
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What does Purchasing Power Parity (PPP) do?
Compares what can be brought with the same amount of money in different countries, e.g. $1 buys more in Afghanistan than the UK
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What countries tend to have the highest Purchasing Power Parity (PPP)?
Scandinavian countries
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What countries tend to have the lowest Purchasing Power Parity (PPP)?
Asian Countries
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Why is Purchasing Power Parity (PPP) useful?
It considers the cost of living
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Why is GNI not an effective way of measuring development>
As it assumes wealth is shared equally between everyone.
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What is GNI calculated in?
Per capita (per head)
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If more wealth comes from agriculture than service industries, is it usually more or less developed?
Less. This is why we often look at the employment percentage in each sector
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What sector jobs do LICs have the highest percentage of?
Primary Jobs
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Why can HICs have less people working in primary sector jobs?
As few people can make large amounts of produce and we can import anything we don't make
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What sector jobs is there a lot of demand for in HICs?
Tertiary (services such as teaching, banking and tourism and leisure from disposable income)
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Why are economic indicators not always good?
They don't show whether the people are free and happy, they only give a general picture
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Other cards in this set

Card 2

Front

What was wrong with the Brandt line?

Back

It is geographically incorrect as NZ and Australia is physically in the south but economically in the north. It is also outdated

Card 3

Front

What industries did the Brandt line consider?

Back

Preview of the front of card 3

Card 4

Front

What does Purchasing Power Parity (PPP) do?

Back

Preview of the front of card 4

Card 5

Front

What countries tend to have the highest Purchasing Power Parity (PPP)?

Back

Preview of the front of card 5
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