Unit 5 Flashcards
what are living standards
all factors that contribute to a persons well being and happiness
how is it measured
through GDP/Capita(average income per person)
Advantages of using GDP/capita to measure living standards
useful measure of the total production taking place in the country
takes population into consideration
good indicator of jobs being created
Limitations of using GDP per capita to measure living standards
takes no account of what people can buy using their incomes
doesnt consider changes in technology that can have a large impact on living standards
distribution of income is unequal so isnt accurate
excludes the unpaid work people do
doesnt differentiate between positive and negative values places on goods
doesnt determine peoples happiness and well being
what is the Human Development Index
used by the UN to compare living standards across the globe
combines other indexes:
income index
education index
healthcare index
benefits of using HDI to measure living standard
takes into account major indicators of living standard
recognizes its not just output or income that determines living standards
can compare global living standards
useful and reliable since widely recognized
limitations of HDI to compare living standards
wide differences in HDI within countreis
doesnt talk about income inequalites and wealth
information for all countries may not be available
doesnt consider many other factors
reasons for differences in living standards and income distribution within and between countries
regional variances in income and consumption
major type of sectors/job: manufacturing carries more income than agricultural regions
local government provisions of education and wealth
reasons for differences in living standards between countries
productivity of industries
major industries
population(denser = lower per capita income)
ability of citizens to pay taxes
provision of health and educational facilities
variety of goods/services produced
wars,crime and natural disasters
what is absolute poverty
the inability to afford basic necessities needed to live
how is absolute poverty measured
by the number of people living below a certain income threshold
what is relative poverty
the condition of having fewer resources than others in the same society
is a measure of income inequality
what are the causes of poverty
unemployment
low education levels
the size of a family
age
poor government support
poor health
overpopulation
minority groups
gender
how to alleviate poverty
introducing measures to reduce unemployment
imposing progressive taxes
introduce welfare services
introducing minimum wage legislation to raise wages
increase the quantity and quality of education
attract and invite inward investments from firms abroad to provide jobs and incomes for people
what is economic development
refers to the increase in the economic welfare of people through growth in positive scale and wealth of an economy
what are developed countries
characterised by high GDP/capita, high life expectancy,high literacy rate,excellent infrastructure and high productivity
under developed economies
characterised by low GDP/capita, high population growth, poor infrastructure, healthcare and education
developing economies
countries that are becoming more developed through expansion of the industrial sector
can have low standard of living
reasons for low economic development
overdependence on agriculture
domination of international trade by developed economies
low levels of saving
lack of capital
poor investment in infrastructure
high population growth
wars and conflicts deplete resources
corrupt or unstable governments
what is population
the total number of people inhabiting a specific area
what factors affect population
birth rates
death rates
net migration
what are birth rates affected by
affected by living standards,use of contraception, custom,religion,female employment and marriage
what are death rates affected by
living standards
healthcare
natural disasters
war
what is net migration
the number of people entering and leaving the countries
impact of net inward migration
will increase the working population but increase demand for housing, education
impact of net outward migration
may increase the income per capita and HDI but skilled workers are lost
what is net migration affected by
living standards
employment/wages
climate
what is age distribution
the number of people in each age group
consequences of an ageing population
workforce will decline and tax paying population has to fund welfare of old people
increase in demand for services like healthcare
government spends more on housing, healthcare
economy will be slow to adapt to new technology
what is gender distribution
the balance of male and females
what is gender imbalance and how is it caused
an excess of males or females and caused by:
wars killing young males
violence towards females
sex specific immigration
what are consequences of change in gender distribution
having more females encourages birth rates to rsie and increase population growth
more females in employment can increase productivity
more females in education and employment increase living standards
what can a balanced gender distribution achieve
aids better social equality
what do population pyramids show
the age and gender distribution
what is geographic distribution
where people live(rural or urban ares)
what is occupational distribution
what jobs people works in( what sectors)
what is an optimal population
where the output of goods and service per head is maximised
what is the effect of increasing population size
increases size of home market
higher demand and income will lead to economic growth
increased supply of labour
puts pressure on scarce resources
possible fall in rate of productivity
shift from primary sector to services
congestion of urban centres
