growing economies - indicators of growth

Question 1

GDP per capita

Answer 1

• taking the total output (GDP) of a country and dividing it by the number of people in that country
• High GDP per capita is associated with a high standard of living
• It is important to look at the GDP per capita over a period of time to see whether there has been an improvement
• GDP per capita can also be a useful indicator to compare the growth in two countries

Question 2

literacy and why is it important?

Answer 2

• Literate workers are more productive
• They are richer and therefore buy more goods and services

Question 3

health and why is it important?

Answer 3

• Workers are more productive (less sick days taken)
• Work for longer so contribute more to businesses
• Richer so consume more goods and services

Question 4

HDI - human development index

Answer 4

• life expectancy, education and income of the population
• 0-1 = Closer to 1 the better
  BUT average so no account for imbalances within the country/quality of life/quality of education

Question 5

limitations of HDI

Answer 5

• does not take into
  account qualitative factors, such as cultural identity and
  political freedom
• It does not account for inequalities within a country
• There is a lack of reliable data in some countries