Standard Of Living (SOL) Flashcards
Material Standard Of Living (mSOL)
Definition
The quantity of goods & services available for consumption by the average person in the economy in a given time period.
KEI: GDP, GNI, Real GDP/ capita
Gross Domestic Product (GDP)
Definition
The total monetary value of all final G&S produced within the geographical boundary of a country over a given time period.
Gross National Income (GNI)
Definition
The value of all final output of G&S produced by nationally owned FOPs during a given period of time, using the income approach.
Gross National Income (GNI)
Formula
GNI = GDP + NFIA
where NFIA = Net Factor Income from Abroad
Net Factor Income from Abroad (NFIA)
Definition
The income earned by the country’s residents and businesses from foreign sources minus the factor income earned by foreign residents and businesses located in the country.
Real GDP
Definition
The total monetary value of the total economic output of a country upon adjustment for price changes overtime due to Inflation and population changes over a given period of time.
Nominal GDP
Definition
The total monetary value of the total economic output of a country measured at current year prices over a given period of time.
Real GDP
Formula
Real GDP = [Nominal GDP/ CPIcurrent year] x 100%
Real GDP per Capita (Real GDP/ capita)
Formula
Real GDP per Capitacurrent year = Real GDPcurrent year/ Population Sizecurrent year
Non-material Standard of Living (nmSOL)
Definition
The qualitative aspects of welfare
KEI: Real GDP/ capita, Healthcare, Education, Pollution, Stress Levels, Security
Human Development Index (HDI)
Definition
A measure of PPP-adjusted Real GNI/ capita, access to education and life expectancy at birth.
Human Development Index (HDI)
Values
0.8 < x < 1.0: Significantly HD
0.7 < x < 0.8: High HD
0.55 < x < 0.7: Medium HD
< 0.55: Low HD
