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Lecture Economics - Chapter 30: Growth and the less-developed countries
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Lecture Economics - Chapter 30: Growth and the less-developed countries
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In this chapter, you will learn to solve these economic puzzles: Is trade a better “engine of growth” than foreign aid and loans? Why are some countries rich and others poor? Is there a difference between economic growth and economic development?. | Chapter 30 Growth and the Less-Developed Countries Key Concepts Summary Practice Quiz Internet Exercises ©2000 South-Western College Publishing * In this chapter, you will learn to solve these economic puzzles: Is there a difference between economic growth and economic development? Is trade a better “engine of growth” than foreign aid and loans? Why are some countries rich and others poor? * What is one way to compare the well-being of one country to another? GDP per capita * What is GDP Per Capita? The value of final goods produced (GDP) divided by the total population * What are Industrially Advanced Countries (IACs)? High-income nations that have market economies based on large stocks of technologically advanced capital and well-educated labor * Who are the IACs? The United States, Canada, Australia, New Zealand, Japan, and most of the countries of Western Europe * What are Less-Developed Countries (LDCs)? Economies based on agriculture which are lacking large stocks of technologically advanced capital and well-educated labor * Who are the LDCs? Most countries of Africa, Asia, and Latin America * GDP per Capita for IACs and LDCs by Region, 1997 IACs Latin America and Caribbean Europe and Central Asia Middle East and North Africa East Asia and Pacific Sub-Saharan Africa South Asia $24,847 $3,880 $2,320 $2,060 $970 $500 $390 * What are problems in comparing GDPs per Capita? Measurement errors Income distribution Fluctuations in exchange rates Differences in living standards * Is GDP per Capita correlated with other measures of Quality of Life? Yes * What are Quality of Life Indicators? Life expectancy Adult literacy Daily calorie supply Energy consumption per capita * What Factors come together to Produce a Country’s Growth? Natural resources Investment in capital Investment in human capital Low population growth Infrastructure * 40 30 20 10 100 200 50 60 70 80 300 400 500 Economics Growth Q Q Manufactured Goods | Chapter 30 Growth and the Less-Developed Countries Key Concepts Summary Practice Quiz Internet Exercises ©2000 South-Western College Publishing * In this chapter, you will learn to solve these economic puzzles: Is there a difference between economic growth and economic development? Is trade a better “engine of growth” than foreign aid and loans? Why are some countries rich and others poor? * What is one way to compare the well-being of one country to another? GDP per capita * What is GDP Per Capita? The value of final goods produced (GDP) divided by the total population * What are Industrially Advanced Countries (IACs)? High-income nations that have market economies based on large stocks of technologically advanced capital and well-educated labor * Who are the IACs? The United States, Canada, Australia, New Zealand, Japan, and most of the countries of Western Europe * What are Less-Developed Countries (LDCs)? Economies based on agriculture which are lacking .
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