GEOG 216 Reading three Flashcards
growth and development: concepts and measures
1
Q
Commodity or product markets
A
products are bought and sold
2
Q
Factor or resource markets
A
items needed to produce things that are bought and sold
3
Q
How do economies grow?
A
- New resources: people land, capital
2. Technological change
4
Q
Measures of economic output:
A
GDP and GNP
5
Q
GDP
A
the market value of all goods and services produced within a country’s boarders in given year. Domestic: where the production occurs.
o The better measurement of what is actually going on in your country. Gives you an insight of the structure of an economy.
6
Q
GNP
A
the market value of all goods and services produced by nationals of a given country in a year.
7
Q
Problems with GDP
A
- Does not include the informal sector/underground economy: sometimes up to 20% of a country’s’ economy.
- Unpaid work
- Welfare enhancing vs. welfare reducing activities
- Distribution of income
- Comparisons with developing countries
8
Q
Purchasing Power Parity (PPP)
A
- Exchange rates and purchasing power
- Adjust CDP as if country’s output sold in the US
- Big Max index
9
Q
Gross National Income (GNI)
A
- Incomes received rather than value of goods and services: truer measure of income
- Makes a significant difference form smaller countries
10
Q
Other measurements of development
A
HDI, GPI and GNHI
