Demographic Terms Created by: Mr. D

Level of Development The productivity with which countries use their productive resources is widely recognized as the main indicator of their level of Development - –physical capital –Human capital –Natural capital:

Physical Capital an ​ asset, such as ​ land, ​ buildings, ​ equipment, etc. that is ​ owned by a ​ company and used to ​ produce ​ goods or ​ services

Human Capital employees, and all of the ​ knowledge, ​ skills, ​ experience, etc. that they have, which makes them ​ valuable to a ​ company or ​ economy Education, training, and health are the most important investments in human capital.

Natural Capital Is the land, air, water, living organisms and all formations of the Earth's biosphere that provide us with ecosystem goods and services imperative for survival and well-being. Furthermore, it is the basis for all human economic activity.

Gross Domestic Product GDP is s one of the primary indicators used to measure the health of a country's economy It is calculated as the value of the total final output of all goods and services produced in a single year within a country’s boundaries. GDP includes all private and public consumption, government outlays, investments and exports minus imports that occur within a defined territory. Put simply, GDP is a broad measurement of a nation’s overall economic activity. GDP is usually calculated on an annual basis

GDP = C + G + I + NX C is equal to all private consumption, or consumer spending, in a nation's economy, G is the sum of government spending, I is the sum of all the country's investment, including businesses capital expenditures NX is the nation's total net exports, calculated as total exports minus total imports (NX = Exports - Imports)

Practice Calculating the GDP

Quiz Atoll K is small island nation. Its population total is 400, and it has 100 wage earners who earn an average of $50 per year. Each wage earner spends a total of $40 per year buying goods and services of which $3.00 goes to buying imported goods. The island exports a total of $800 worth of goods. The Government tax rate is 10% and all government money is spent on building infrastructure and supporting schools. There is only one industry (uranium mining) on the island and it employs every wage earner. The industry spends $600 each year on new mining equipment. What is the GDP?

Gross National Product GDP plus incomes received by residents from abroad minus incomes claimed by nonresidents. Looks only on citizenship; ignores were all goods were produced. GNP = GDP + Net income inflow from abroad – Net income outflow to foreign countries

Birth Rate It compares the average annual number of births during a year per 1,000 persons in the population at midyear

Literacy Rate the ​ percentage of ​ people who are ​ able to ​ read and write

Death Rate It compares the average annual number of deaths during a year per 1,000 population at midyear

Growth Rate a ​ measurement of how fast something ​ increases in ​ size during a particular ​ period

Purchasing Power Parity is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries. The basis for PPP is the "law of one price"

Newly industrialized a country, where ​ industry has been ​ growing quickly for the first ​ time. – Example: China

Human Development Index HDI is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. – Health Dimension – Education Dimension HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone.

Health Dimension (HDI) The health dimension is assessed by life expectancy at birth component of the HDI is calculated using a minimum value of 20 years and maximum value of 85 years.

Education Dimension (HDI) The education component of the HDI is measured by mean of years of schooling for adults aged 25 years and expected years of schooling for children of school entering age.

Standard of Living Dimension (HDI) The standard of living dimension is measured by gross national income per capita.

HDI

Per Capita For each person; in relation to people taken individually Average GDP per capita: Tells us how big each person’s share of GDP would be if we were to divide the total into equal portions.

Standard of Living It is found through the Average real gross domestic product (GDP) per capita If average real GDP per capita is increasing, there’s a strong likelihood that: (a) more goods and services are available to consumers, and (b) consumers are in a better position to buy them. This is a pretty good indicator of our material standard of livin

Work on this individually Write a paragraph using the academic vocabulary to explain how social, political, and economic factors affect the demographics of a country or region. – Use all vocabulary