Gni gdp and ppp all those stuff Flashcards
Economic development
an assessment of the standards of living of an entire country’s population, often measured by the HDI.
GDP (Gross Domestic Product)
the total income generated by factors of production located within a country in a given time period
GNI (Gross National Income)
the total income generated by factors of production owned by a country within a given time period. GDP + net property income from abroad.
Human Development Index
A measure of a country’s economic development that takes into account health (life expectancy), education (average and expected years of schooling), and standards of living (real GNI per capita).
Purchasing Power Parity (PPP)
An adjustment of exchange rates to reflect the real purchasing power of the two currencies.
Capital flight
Where money is withdrawn from the country to receive higher returns abroad
PPP (Purchasing Power Parity) better defo
the rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country.
Aid
The transfer of resources from one country to another on concessional terms.
what does gdp do to the size of economies
- Gdp overestimates the size of economies of countries with large inflows of direct investment and low outflows of direct investment
what does gni at ppp do
- GNI at PPP is a better measure of development, because the dollar exchange rate underestimates the size of economies of economies with low cost of living
what does gni tend to do measurement
- GNI would tend to decrease the measurement of the size of a developing countries’ economy
what does ppp tend to do measurement
- PPP would tend to increase the measurement of the size of a developing countries’ economy
