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Today’s revision covers
1.The development gap
2.Measuring development
3.How to answer an exam question on development
This is a simplified model that shows the development gap. This divides the rich and poor countries based on their wealth.
20% of wealth
80% of wealth
What is GNI?This stands for Gross National Income which is the total wealth of a country including money made from overseas investments.
What is wrong with using GNI to measure development?
1) It doesn’t show Purchasing Power Parity.
This means what the income is actually worth in terms of the cost of living.
Can you give an example?
Example
$100 in the UK will buy a lot less than the same amount in the USA.
In China the GNI per capita was $2000
After working out the PPP it showed that it was worth approximately $7500 so it is a lot cheaper to live in China than in the USA.
2) The country may be wealthy but it is not shared out.
10th richest country.Ranked 127 out of 167 on the Human Development Index.
A better measurement is HDI = Human Development Index.
This measures life expectancy, adult literacy and GNI (PPP $US)
Describe the relationship between GNI per person and life expectancy. Basic idea that in general as one goes up so does the other (1 mark)
with sound use of data (+1 mark)
or reference to the specific countriesnot totally fitting this pattern (+1 mark).
3 marks