1. Macro #8: Standard of Living
Quality of Life:
What is needed for a good quality of life? List 10+ things.

2. Macro #9: Comparing Nations

3. Productivity Labor productivity: how much each worker produces
Increases in productivity are due to:
Technology
Capital deepening: increase in amount of capital goods available per worker (more machines = more production)
Educated & skilled workforce
Other factors: loyalty to job, motivation of worker

4. Developing Countries Poorest Nations
Developing Nations : low standard of living due to little human or physical capital
What do these countries have in common?

6. Problems: Traditional economies Human Resources:
Subsistence farming: grow just enough to survive, but not to trade
Wealthy control cash crops: coffee, sugar, peanuts
Human Resources:
Lack of skilled, experienced workers
Lack of education
Low literacy rates

7. Natural Resources: Capital Resources Little arable (productive)land
Lack of water or infrastructure to make it obtainable
Lack of natural resources
One crop economy: only makes 1 thing thus reliant on price of just 1 product
Capital Resources
Don’t have the capital to invest & can’t borrow
Microloans

8. Richest Countries – by GDP
Developed Countries or Industrialized Nations: highest standards of living

9. GDP per capita Amount produced per person GDP per capita
Indicates the level of the standard of living
BUT – cannot show if the wealth is evenly distributed
With only 300,000 and rich oil reserves, Qatar is one of the richest nations on earth!

10. What is a high standard of living?
Is it money or stuff? Or is a feeling of happiness or success?
Happiest Countries
Murder Rate

11. After looking at all this data, where would you like to live? Explain.