4.1.1b indicators of growth Flashcards
what is the main measure of economic growth
gross domestic product per capita
how to calculate gross domestic product
gross domestic product/ population
. As GDP per capita rises, it is also assumed that
living standards in that country also rise
define literacy
the ability to read and write
describe literacy as indicator of growth
Investment in human capital* raises the average level of literacy in an economy
must have investment in schools and teachers
creates growth as ability to undertake more complex tasks , with better wage potential
This can be contrasted with a high level of literacy within an economy
By developing literacy throughout the population there is likely to be a higher level of growth than countries which have a significant difference between high and low skilled workers
describe health as an indicator of growth
include life expectancy and mortality
shows more investment in hospitals and clean water , this helps create growth because of longer working age population , less illness means more productivity
survival is not their sole focus
A healthy labour force is likely to be more productive and lack of health will be less of a burden on resources
Child health affects literacy and this will provide a supply of workers to deliver future growth
A lack of health disproportionately affects poor people as they rely on their physical body to earn money
define health
Health is the absence of illness and injury.
what is Human Development Index (HDI)
It measures economic development in terms of three criteria:
-Life expectancy at birth-This measures how long a person is likely to live from birth
Developed countries will have a longer life expectancy than developing countries
-Years of schooling-This is subdivided into:
Mean years of schooling of those aged 25 and Expected years of schooling of those entering school
Developed countries will tend to have more education than developing countries
-Real Gross National Income per capita at Purchasing Power Parity (PPP)
