1. Economic Growth & Productivity

2. Levels of Development
Developed Nations (1st World)
have a market economy, a high standard of living, high GDP, industrialization, widespread private ownership of property, & stable and effective gov’ts.
Western Europe, The US, Canada, Australia, New Zealand, Japan & South Korea.
Transitional Economies
a country that has moved or is moving from a command to a market economy.
The ppl are on their way to improving their standard of living. Democracy and economic freedom have begun to take shape.
China, Russia, many Eastern European countries are considered to be transitional.

3. Less Developed Countries
has a low GDP, less well developed industry, and a lower standard of living.
Many African, South American and Eastern European countries. Some slightly better off- middle-income: Brazil & Thailand. Low-income: Mozambique & Cambodia.
Ppl live in substandard housing, few TVs or washing machines. Lack infrastructure: basic support systems needed to keep an economy going, including power, communications, transportation, water, sanitation, & education systems.

4. Factor 1: Natural Resources
What Determines Economic Growth?
Why do some countries grow at faster rates than others?
Factor 1: Natural Resources
How available are the natural resources in the country?
Fertile land, water, forests, oil, mining.
Factor 2: Human Resources
Level of human capital  the skills and knowledge of the workforce

5. Factor 3: Capital Goods (Machinery)
Machines that are used to create goods.
Heavy equipment (excavators, forklifts, generators, metal-forming or metal-working machines) which require a large investment, and are used over several years.
The more you have and the better quality they are will help to increase output.
Factor 4: Technology and Innovation
Promote the efficient use of other/new resources and foster innovation can lead to increased output.

6. 6 Standards of Economic Development GDP Per Capita
Health
Infant Mortality Rate: number of children who die within the 1st year of life per 1,000 live births. Helps us understand the conditions in which infants thrive: safe & sanitary birth environments, access to medical care, adequate nutrition. Mother’s access to clean drinking water & acceptable shelter and protection from disease.
Life Expectancy Rate: the average number of years a person can expect to live if a current mortality trends were to continue for the rest of that person’s life.

7. Consumption of Goods & Services
Education
Literacy Rate: the percentage of people older than 15 who can read and write.
Human Development Index (HDI): combination of a nation’s real GDP per capita, life expectancy, adult literacy rate, and student enrollment figures.
Consumption of Goods & Services
How do ppl choose to spend their income after they have food and shelter. When ppl buy big-ticket items like: fridges, cars and washing machines it shows that a country is developing and growing.

8. Energy Use
How energy is put to use, especially the amount used for commercial purposes correlates to a nation’s level of technological achievement.
Labor Force
What kind of jobs to most ppl have? Less agriculture and more manufacturing the better off they are.