Presentation on theme: "economic development Essential Questions:"— Presentation transcript:
1 economic developmentEssential Questions:How do economists measure a country’s level of economic development?Which economic activities are most clearly associated with different levels of development?
2 Indicators of Economic Development The Human Development Index (HDI) was developed by the United Nations (UN) to rank countries based on their level of economic development.Demographic IndicatorsLife Expectancy: AVG # of years an individual is expected to live.Size of the populationBirth Rate: Births per 1,000.Mortality Rate: High birth and mortality rates reflect higher poverty and lower health care quality.Infant Mortality Rate: Infant deaths per 1,000 births. Reflective of level of medical care available when an infant is born. The lower the rate, the more developed medical care.
3 Levels of Economic Development Economic Development refers to how advanced an economy is.Less Developed Nations:High birthrate and infant mortality rateIncreasing population sizeLow Gross Domestic Product (GDP) per capita and literacy rate.More Developed Nations: US/FranceLow birthrate and infant mortality rateStable population growthHigh Gross Domestic Product (GDP) per capita and literacy rate.Newly Industrialized: Emerging economies moving from less developed to more developed. China/Thailand
4 Economic Indicators Indicators tell how well an economy is performing. GDP per capita (GDP/# of people): reflects the value of goods/services produced in a year in a nation by an AVG person.
5 Social Indicators Include social services provided to citizens. Literacy Rate: % of people who can read/write% of people attending colleges/universitiesHousing, water supply and sanitation
6 Types of Economic Activities Primary: Agricultural and mining3% of US labor force is engaged in this arena.Secondary: ManufacturingIron ore changed into steel and shaped into railroad tracks; tree logs assembled into furniture.Tertiary: Services80% of US workers serve in this area. Includes teachers, accountant, truck drivers and musicians.Quaternary: Management and information processing.Involved in information processing. Include computer programmers or a general manager of a company.
7 Example of Economic Activities Primary—GRAPESSecondary—WINETertiary—SELLING THE WINEQuaternary—RESEARCH OF THE EFFECTS
9 Review Primary activities Secondary activities Tertiary activities Which type of economic activities would most likely be found in a newly industrialized country with commercial industry?Primary activitiesSecondary activitiesTertiary activitiesQuaternary activitiesANSWER: B
10 Review Cont’d Government does not interfere in the economy. Which characteristic is typical of a less developed country?Government does not interfere in the economy.Entrepreneurs play a key role in the nation’s economy.There is a high infant mortality rate and a short life expectancy.There is a high literacy rate and a long life expectancy.ANSWER: C
11 A large number of workers engaged in manufacturing Review Cont’dA newly industrialized nation is usually characterized by having-A large number of workers engaged in manufacturingMost people engaged in subsistence agricultureA lack of human resources like skilled and unskilled laborMost of its workers engaged in quaternary economic activitiesANSWER: A