Feb 06 2010
Introduction to Development – exploring prezi
Published by Andrew McCarthy at 10:57 am under
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WikipediaThis is my experiment with a new web 2.0 presentation tool called “Prezi”. It is a web-based tool that is freely available and allows you to create something that fits between the genres of a presentation, mindmap and poster. Very cool for teachers who are stuck in a powerpoint mindset. www.prezi.com (free education licenses are available)
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This is an introduction to the concept of economic development which I am teaching to my class at the moment. You can click through the prezi by pressing the play button and choosing fullscreen under “more”. The up and down arrow keys, zoom in and out.
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Enjoy. Comments/criticisms most welcome.
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Introduction to Development Economics on Prezi
Discussion Questions
- Describe two statistics that could be used to illustrate the level of economic growth.
- Describe two statistics that could be used to illustrate the level of economic development.
- Compare and contrast the terms; economic growth and economic development.
- What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
About the author: Andrew teaches IB Economics and IB Business Management at the International School of Singapore. He has previously taught in Wellington, New Zealand and graduated from Victoria University of Wellington. Related posts:
- Myths about Economic Development – debunked
- Lesson Plan: Sources of Economic Growth and Development
- IB: Economic development and fertility rates in India
- IB Economics students’ World Bank development project proposals: Students request funds to improve human welfare in the world’s poorest countries
- Lesson Plan: Visualizing Economic Growth and Economic Development
Teachers!
Submit your Econ questions here. Replies will be posted to the blog
Andrew,
Beautiful Prezi! I’ve been working on one consisting of past IB Econ questions for my year 2s to use as exam review. Also, most of my year 2s ended up choosing Prezi to create their Adopt-a-Country Development Project proposals, which was their major research assignment for Unit 5. I was planning to publish the best few Prezis from students here, so look out for them next week! I will definitely be using your prezi on Development in class next week. Thanks a ton for the great work!
Jason
Export receipts and incomes per household are two stats that can help to show economic growth. Life Expectancy and rate of death per baby are good stats to show economic development.
Economic growth is more in terms of the money flow and GDP, whereas economic development is more on the humans in the economy and how they develop in order to further develop the economy into one that is stable.
The problem with using statistics in numbers to show economic growth and development is that number in a country, particularly a large country, always change and differ.
1. Describe two statistics that could be used to illustrate the level of economic growth.
Economic growth refers to the quantity of goods and services produced. High level of economic growth means the increases in real GDP (total output) overtime. This can be measured by a country’s national income (GDP). There are three different methods that are all used to calculate this figure.
a) The output method. This measures the actual value of the goods and services produced. This is calculated by summing all of the value added by all the firms in an economy.
b) The income method. This measures the value of all the incomes earned in the economy.
c) The expenditure method. This measures the value of all spending on goods and services in the economy. This is calculated by summing up the spending by all the different sectors in the economy, this includes: spending by households, firms, governments, and net exports.
2. Describe two statistics that could be used to illustrate the level of economic development.
Economic development is a quality concept. It refers to an improvement in living standards in an economy, this can be through education, healthcare, consumption or higher incomes which bring prosperity. Human development index (HDI) can be seen as one measure. The HDI is a composite of GNP per capita, adult literacy rate, school enrolment rate and life expectancy.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth Economic development
A quantity concept A quality concept
It refers to the quantity of goods and services produced. High level of economic growth means the increases in real GDP (total output) overtime. It refers to an improvement in living standards in an economy, such as happiness, freedom of speech and quality of health care.
It is measured by a country’s national income (GDP). It is measured by Human development index (HDI)
Easy to compare between countries. Hard to compare countries and overtime.
4. What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
• Inaccuracies: for example, the date that used to calculate the various measures of national income come form a vastly wide range of sources.
• Unrecorded or under-recorded economic activity- informal markets: for example, national income accounts can only record economic activity that has been officially recorded. They therefore don’t include any do-it-yourself work or other work done at home.
• Other quality of life concerns: GDP may grow because people are working loner hours, or taking fewer holidays. While people earn higher incomes as a result, they might not actually enjoy higher standards of living.
• HDI is an average figure that can make inequalities within the country. Inequalities that are likely to occur are between rural and urban citizens, between men and women.
• There are several other composite indicators and a vast number of single indicators.
1. Balance of trade (exports minus imports) and government spending are two statistics that could be used to illustrate the level of economic growth. Economic growth is basically an increase in real GDP, and its growth rate can be shown with percentage change in real GDP of two consecutive years. Therefore components from the real GDP formula affect an economic growth. Balance of trade, also known as net exports is the difference between the export receipts and import payments. Greater the exports, the greater the net exports and so an increase in real GDP results in an economic growth. Government spending also a component of GDP is made up of government purchases, which are funded with methods such as taxes. Greater the government spending, the greater the real GDP, as a result there is an economic growth.
2. Unemployment rate and HDI (Human Development Rate) are two statistics that could be used to illustrate the level of economic development. Economic development is a process where economies acquire higher standards of living, happiness and fulfillment. Unemployment rate is the percentage of people who intend on working but are unable to find jobs. The lower the percentage the greater the economic development. HDI is a composite index that consists of real GDP per capita, life expectancy at birth and educational achievement. The greater the value, the more an economy is developed.
3. As mentioned before, economic growth is an increase in real GDP overtime and so it is more based on finance and circulation of money in an economy. Thus it mainly uses quantitative indicators like GDP, which are based on objective pieces of information. Alternately economic development deals with accomplishing an improvement in standards of living, happiness and fulfillment. Therefore it may use qualitative indicators like happiness, which are based on subjective feelings. Even though the two terms are different in definition, they are quite interrelated to each other as economic development is often achieved through economic growth.
4. There are many weaknesses of using the statistics mentioned above. First, most importantly both the statistics for growth and development are not fully accurate and so to some extent it is not reliable. External costs such as environmental pollution and traffic congestions are not included in the GDP and so the resulting data is imprecise. Unofficially recorded economic activities and informal markets can also affect the money flow, and as a result an inaccurate data. In addition to that happiness index can be fully based on subjective feelings so there is a wide range of aspects of individual problems to consider.
Describe two statistics that could be used to illustrate the level of economic growth.
-Economic growth is a term refers to a real growth in the income per capita of the population over a given period of time. Gross Domestic Product and Gross National Product is normally used to measure the economic growth. GDP refers to the total value of a country’s output over a period of time (usually 1 year), and Gross National Product is calculated by adding GDP to the net income from abroad.
Describe two statistics that could be used to illustrate the level of economic development.
-HDI and other social indicators such as literacy rate, unemployment rate etc, are used to illustrate the level of economic development. The Human Development Index (HDI) which composed of three indicators, life expectancy, education and real GDP per capita, and literacy rates refers to the percentage of those aged 15 and above who are able to read and write a short, simple, statement on their everyday life.
Compare and contrast the terms; economic growth and economic development.
-Economic development refers to improvement of standard of living such as literacy rates, unemployment rates, HDI. However, Economic growth implies only an increase in quantitative output, it may or may not involve development. Economic growth is often measure by rate of change in GDP. Economic development involves in a variety of measurements such as literacy rates, life expectancy and poverty rates. GDP is not a important aspects as leisure time, environmental quality, freedom, or social justices are proposed to shows the development of a country.
What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
-There are some number of weaknesses of using statistics to describe levels of growth or development in nations. As those indicators gives average figure of a country, inequality may not be shown on the figure. Also, the data may be inaccurate, the sources and information are comes from variety of sources and this could be not fully accurate and reliable.
the two statistics that could use for measuring the economic growth are GDP and GNP. GDP shows the gross domestic product which means the growing of industry and the income from their country. and GNP means the Gross national products which means the growth of industry and the income from the abroad +GDP. By measuring these two statistics they can measure the economic growth of a country.
Economic development refers to the increasing people’s freedoms and reducing poverty so that people can be adequately fed and sheltered. as these meaning two statistics can be shown by welfare related indicator such as adult literacy rate and GNP per capita. Adult literacy rate shows the how they educated and the GNP per capita shows that how much money they could spend for their extra time and hobby or welfare. so that these to indicators could be used as the economic development indicators
economic growth is way of showing the increases of the real GDP which means showing the increases of money and how much money they earn over the time. it is related with the quantity of money that they earned. however the economic development shows the standard of living such as welfare or HDI ( human development indicators). Also it shows the GNP per capita, so that in a part of this indicator called Economic development could show the economic growth at the same time.
the weaknesses of using those indicators of economic growth and economic development are the inaccuracy of the information and it cannot measure the hidden market or unknown production that could affect the market. also the data is uploaded per a few months or a period, so that the data could be different than the real data.
1/To measure levels of economic growth, we may use investments and savings statistics.
2/To measure levels of economic development, we may use life expectancy and school enrollment rate statistics.
3/Economic growth is about the circulation of money in an economy and the increase/decreases of GDP per capita. Whereas economic growth is standards of living and is calculated thanks to the HDI and is measured thanks to qualitative indicators (emotions) and quantitative indicators (real consistent data).
So there are different but are related because achieve a high economic development, which happens after a high economic growth.
4/Weakness of using stats levels of growth: doesn’t include voluntary work, may underestimate some countries economic activity and only include lucrative activities.
Weakness of using stats levels of development: qualitative indicators aren’t very reliable.
Statistics in general aren’t precise, they are approximations.
1.
Economic growth is a quantitative indicator/concept that is based on objective and truthful pieces of information and it directly refers to increases in the real output. Accordingly, two statistics that could be used to illustrate the level of economic growth are GDP per capita and unemployment rate. GDP is a dominant indicator that is used to measure the economic growth. It is the total value of all final goods and services produced in an economy in a year. Hence, it shows how wealth or abundant the country is(also national income). Accordingly, higher GDP means that the country is more economically growth as there is more output. GNP can be used for measuring economic growth. The difference between GNP and GDP is GNP includes the value of output which is produced by the owners of the factors of production, regardless of location. Another statistic is the unemployment rate. Unemployment rate shows how many people aren’t hired or do not have their own jobs. Thus, it refers to the economically active age people who don’t have their own jobs and so do not earn the income. As the unemployment rate is higher, the nation is less economically growth.
2.
The term development, “A process where nations achieve higher standards of living happiness and fulfillment often through economic growth.” Therefore, economic development refers to an improvement in living standards in an economy such as education, health care or higher income which bring prosperity. For illustrating the development of economic, HDI (human development index) and HIV rate can be used. HDI is the most prominent indicator that is used for measuring the economic development. HDI is a composite index, thus, it is formed of three mixed variables: economic, social and health. Three components of HDI are life expectancy, years of schooling, GDP per capita and adult literacy. It not only represents the human’s wealth but also shows the fulfillment and happiness of human. Its score is varied from 0 to 1. As the score is higher, the country is more economically developed. Another indicator is HIV rate. It refers how many people are infected to the aids. Usually, it is very high in many LEDC countries due to the lack of health care and education. This statistic describes how country is economically developed.
3.
Economic growth is likely a quantitative concept whereas economic development is more likely a qualitative concept. Economic growth refers to the increases in real total output overtime. Opposed to that, economic development refers to an improvement in living standards in an economy. Thus, economic growth is more concentrated to how the country is wealthy and abundant in the economic whereas economic development is more concentrated or mixed with the social, health and other indicators. Furthermore, economic development is contributed to the happiness or fulfillment of human. Therefore, for measuring each concept, GDP or GNP per capita such as the indicator that directly refers to the monetary is used whereas HDI and urban population such as the indicators that is concentrated on the quality of life are used for measuring the economic development. However, both economic growth and economic development are the concepts that illustrate how the nation is well-formed.
4.
There are some limitations and weaknesses of using statistics to describe levels of growth and development in nations. They are inaccuracies, unrecorded or under-recorded economic activity, external costs, other quality of life concerns and comparison of output.
Inaccuracies
• The data such as GDP is come from a vastly wide range of sources. This statistic is changed often. Thus, figures tend to become more accurate after a lag time when additional data are included.
Unrecorded or under-recorded economic activity
• The data don’t include any do-it-yourself work or other work done at home. Thus, in GDP, painting the own house isn’t included whereas paying a house painting company to do is recorded. In addition, hidden economy such as the actual work is illegal or the activity is legal but the people are doing it illegally doesn’t record. Furthermore, the work that people want to evade paying taxes doesn’t include.
External costs
• GDP do not take into account the costs of resource depletion (loss)
E.g: No measure to account for the loss of these trees.
Other quality of concerns
• The indicator doesn’t include all the variables. Thus, GDP only includes the economic sector and HIV rate only refers to the health part. Hence, one indicator doesn’t show all the variables. Furthermore, HDI doesn’t mask inequalities between men and woman and between different ethnic groups. In addition, higher GDP people isn’t always having the higher quality of life or standard of living.
1.Economic growth is a quantitative concept; it refers to increase in real GDP (total output) overtime. Obviously, GDP could be used to measure the level of economic growth increases. In general, there are three different methods that are all used to calculate this figure. They are output method, income method and expenditure method respectively. In addition, low unemployment also contributes to a positive factor. When unemployment decreases, more people are employed; more output will be come out. Therefore, the economic growth increases.
2.Development refers to an improvement in living standards in an economy; this can be through education, healthcare, consumption or higher incomes which bring prosperity. If there are more people having opportunities to access to education and become literate, the level of economic development increases. Higher freedom of speech, freedom from oppression are also play vital role in measuring economic development. The higher they are, the higher the economic development is.
3. Economic growth is a quantitative concept reflected by GDP, HDI etc. that are relatively objective. Economic development is a qualitative indicator that consists of happiness, freedom of speech, access to education and quality of healthcare. It mainly depends on people’s subjective feeling. But economic development could be achieved by economic growth if the increased output improves the provision of health care, housing, education, jobs and achieved a more even income distribution. Now matter which one we analyze, people are the beneficiaries of economic growth and economic development of their countries.
4. Inaccuracy: They are still average figures that mask inequalities within the country. Unrecorded or under-recorded economic activity: e.g. national income accounts can only record economic activity that has been officially recorded. Therefore the data is inaccurate. External costs: GDP may do not take external costs into account, which also make it unreliable.
1. Describe two statistics that could be used to illustrate the level of economic growth.
The two statistics that could be used to illustrate the level of economic growth are the income per capita and the import receipts, since both of these statistics are related to the GDP per capita of a country.
2. Describe two statistics that could be used to illustrate the level of economic development.
The two statistics that could be used to illustrate the level of economic development is the HDI rate of a country and the income distribution. The reason why HDI rate is one of the statistics is because HDI is calculated by using 3 other components, and it means that it really shows the improvement and development of the country. The reason for the literacy rate to become one of the statistics that could be used to illustrate level of economic development is because people will feel that the economic is developing only if the literacy rate is high. And usually, if the economic of one country is highly developed, the literacy rate will be higher than the country that hasn’t developed that high.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth is more related to the quantity concept and it is more objective than economic development since the information is more reliable (census, collected data). Economic development is related to the quality concept, which is more subjective since the information is taken based on the feeling, impression, and opinion.
4. What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
The weaknesses of using statistics to describe levels of growth or development in nations are the data sometimes aren’t reliable since they are probably not accurate. Plus they might be inaccurate because they only collect the data annually and not very precise.
1. Describe two statistics that could be used to illustrate the level of economic growth.
-Economic growth refers an increase in the real output of an economy over time. To measure the economic growth GDP and GNP can be used to measure the level of economic growth.
2.Describe two statistics that could be used to illustrate the level of economic development.
-Economic development is increase in the standard living that includes education, healthcare, consumption or higher incomes. It can be measured by adult literacy rate, unemployment rate and Human development index. HDI includes life expectancy, literacy rate and standard of living.
3.Compare and contrast the terms; economic growth and economic development.
-Economic growth is a quantitative concept and it only refers to increases in real GDP overtime and may or may not involve development. It is measured by the change of GDP. Economic development implies increase in a range of indicators such as literacy rates, poverty rates and life expectancy. In this case, GDP cannot be used since it includes only a basic measure of a country’s overall economic output.
4.What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
- The date to measure economic growth and development is an average indicator sine they do not include do-it-yourself work or other work done at home. Therefore there is unrecorded or under-recorded economic activity. Also since the data can be changed and it is the various measure of calculation, it can be inaccuracies.
1. Describe two statistics that could be used to illustrate the level of economic growth.
Economic growth is a quantitative concept which refers to increases in real GDP so the two statistics that can be used to illustrate are GDP and income per capita.
2. Describe two statistics that could be used to illustrate the level of economic development.
Economic development refers to improvement in living standards in an economy which are education, healthcare, consumption or higher incomes. So the two statistics that can be used to illustrate the economic development are statistics that show life expectancy and adult literacy rate.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth is a quantitative concept which relies on money flows in an economy such as increased in GDP. To measure economic growth, we use quantitative indicators which are based on objective data like GDP. However, economic development refers to an improvement in living standards in an economy such as healthcare and education. So economic development uses qualitative indicators to which are based on subjective data like feelings, impression and opinion.
4. What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
The weakness of using statistics to describe levels of growth or development is inaccuracy of the data. The data is not measured frequently and it is uploaded for once in a few months or annually so I think that this makes the weakness of using statistics.
1. Describe two statistics that could be used to illustrate the level of economic growth.
First, the economic growth is a quantitative concept and refers to increase in real GDP over time. Two statistics that are used to illustrate the level of economic growth are GDP and unemployment rate. GDP refers a basic measure of a country’s overall economic output, and it shows how the country is wealthy. If GDP is high, the economic growth will be high as well. And decrease in unemployment rates leads increase in economic growth because more people will be employed and then, output will be increased
2. Describe two statistics that could be used to illustrate the level of economic development.
The economic development refers to an improvement in living standards in an economic. And the two statistics that could be used to illustrate the level of economic growth are life expectancy and education. So if a country’s life expectancy and education is high, the economic development is high as well. This is because long life expectancy allows people to work longer time, and high education allows students to access more detailed studies.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth is quantitative concept and refers to increase in real GDP over time. On the other hands, economic development is a quality concept and refers to an improvement in living standards in an economic. The economic growth can be measured by GDP whereas economic development can be measured by life expectancy. And Economic growth is easy to compare between two countries whereas economic development is hard to compare between two countries.
4.What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
One of the weakness of using statistics is information is not reliable because it is not accurate. The information is collected annually and is changed everyday.
1. Describe two statistics that could be used to illustrate the level of economic growth.
Economic growth is a quantitative concept and refers to increase in real GDP over time. Two statistics that are used to illustrate the level of economic growth are GDP and GNP. GDP refers to a value of total output that are produced in a year. GNP is a measurement of total income in a country.
2. Describe two statistics that could be used to illustrate the level of economic development.
The economic development refers to an improvement in standard of living in economy. It is a qualitative data which is based on people’s happiness and satisfaction. And the two statistics that could be the level of economic growth are life expectancy and HDI. The life expectancy is high, which means people live longer, which illustrate that the country has good environment and healthcare. Also the HDI which is measurement of life expectancy, adult literacy rate, and healthcare.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth is quantitative concept and refers to increase in real GDP over time, and it is objective data that measures money flows such as GDP or GNP. Economic development is qualitative concept and refers to improvement in standard of living. It is subjective data which measures people’s feeling, happiness and saticefaction, which is measured by life expectancy or HDI.
4.What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
The weaknesses of using statistics to describe levels of growth or development is that it is inaccurate. Each data is different for each sources where they get data and it is measured annually which means they are not measured frequently.
1. Describe two statistics that could be used to illustrate the level of economic growth.
Economic growth is refers to increases in real GDP so the two statistics that can be used to illustrate are GDP and income per capita, which is a quantitative concept. It can be illustrated by GDP and GNP>
2. Describe two statistics that could be used to illustrate the level of economic development.
Economic development refers to improvement in living standards in an economy, which are healthcare, education, higher income or consumption. So the two statistics that can be used to illustrate the economic development are statistics that show HIV infection rate, HDI, and life expectancy.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth is about the circulation of money in an economy and the increase/decreases of GDP per capita. However, economic development refers to an improvement in living standards in an economy such as healthcare and education. So economic development uses qualitative indicators to which are based on subjective data like feelings, impression and opinion.
4. What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
The weaknesses of using statistics to describe levels of growth or development in nations are the data sometimes aren’t reliable since they are probably not accurate. Plus they might be inaccurate because they only collect the data annually and not very precise.
1.Economic growth is considered to be a quantative concept it refers to increase in real GDP overtime. The ways to measure economic growth are the; output method, income method and expenditure method. When unemployment decreases, more people are employed; more output will be come out. Therefore, the economic growth increases, thus unemployment is a positive factor.
2. Economic development is considered to be the measure of the qualative factor, used to measure the peoples standard of living in a country. The two statistics that can be used to understand the economic development of a country are the statistics that show HIV infection rate, HDI, and life expectancy
3. Economic growth is about the circulation of money in an economy and the increase/decreases of GDP per capita. While, economic development refers to an improvement in living standards in an economy such as healthcare and education. So economic development uses qualitative indicators while economic growth uses quantative indicators
4. Most importantly both the statistics for growth and development are not fully accurate and so to some extent it is not reliable. As the external costs are not included in the GDP, so the resulting data is imprecise. In addition to that, the happiness index can be fully based on subjective feelings so there is a wide range of aspects of individual problems to consider that have not been added.
1.Describe two statistics that could be used to illustrate the level of economic growth.
Economic growth is measured by the increase in the amount of national output or income. GDP per capita and unemployment rate could be used as the measures of economic growth. GDP per capita, concerning with the amount of domestic production, is linked with unemployment rate, which shows the productivity of the economy.
2. Describe two statistics that could be used to illustrate the level of economic development.
Economic development is measured by the progress in the standard of living and quality of life and empowerment. It indicates the level of satisfaction or happiness of individuals that is often determined by the rights and choices that are available. Being a more comprehensive concept, including various dimensions of ‘progress’ such as social and political factors, the level of economic development can be measured by HDI, as HDI congregates the data of life expectancy, literacy rate and school enrolment rate as well as GDP per capita.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth refers to ‘progress’ made in the economy, based on the assumption that the amount of national income in the flow of the economy will directly promote the individuals to gain higher living standard and quality of life. Economic development refers to the human ‘progress’ made in the economy, considering various aspects of human development such as impacts of social and political factors on individuals’ lives. The word ‘economic’ may be defined differently in the concepts of ‘economic growth’ and ‘economic development’. In terms of ‘economic growth’, the word focuses on the capacity and productivity of the economy for providing an increased amount of national capital. In terms of ‘economic development’, the word emphasizes the behaviour of individuals as an indicator of the society’s development.
4. What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
The essential weakness of describing the levels of economic growth or development is that the definition of the ‘progress’ is subjective. The dimensional concepts of ‘progress’, ‘economy’ and ‘happiness’ make it harder for us to define economic growth and economic development. Moreover, the methods of measuring and interpreting statistics can vary over a period of time or different regions.
1. Describe two statistics that could be used to illustrate the level of economic growth.
GDP per capita and GNP can be used to illustrate the level of economic growth. GDP refers to the total output in a year. GNP measures the total income in a country.
2. Describe two statistics that could be used to illustrate the level of economic development.
To illustrate the level of economic development we may use the HDI rate of a country and the income distribution.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth is about changes in GDP per capita, and the circular flow. Economic development is about standards of living and humans in the economy. Economic development is calculated by using HDI.
4. What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
The statistics used to describe levels of growth and development in nations fail to include important aspects.
Level of growth: underestimates some countries economic activity and it does not include voluntary work.
Level of development: qualitative indicators are not very reliable. Statistics are not always correct.
1. Two statistics that could be used to illustrate the level of economic growth.
Economic growth is the increase in national income during time period. It can be measured by using GDP and unemployment. These 2 factors are interrelated because if a country has high number of unemployment, a country will get small number of GDP and this will link to the economy’s productivity.
2. Two statistics that could be used to illustrate the level of economic development.
Economic development is the improvement in the standard and quality of living. We usually use HDI (Human Development Index) to illustrate economic development. There are many statistics inside HDI such as life expectancy, the average years of schooling, literacy rates, HIV infection rate, etc.
3. Compare and contrast the terms; economic growth and economic development.
Economic growth is the increase in national income overtime and a quantitative concept. Economic development is the improvement of living standard and a qualitative concept. Economic growth is more focus on money and wealth than people’s welfare. Economic development is more concentrated on health, education, and social. Furthermore, economic development is wider concept than economic growth because it measures the income with HDI. So, it can tell us if a country’s is balance enough or not. But, actually economic growth and economic development are the concepts that we usually use that can tells us about how nations are formed.
4. The weaknesses of using statistics to describe levels of growth or development in nations:
- Inaccurate
The data often change, so it’s hard to get the 100% correctly. And also the data comes from many resources, so it can make us confuse to choose which one is the right.
- Unrecorded or under recorded economic activity The data doesn’t include our work at home like paint our own home. And the illegal work or activity won’t be record. People usually do illegal activity to prevent the tax.
- External costs GDP figures don’t take into account the costs of resource depletion.
- Other quality of life concern GDP accounting doesn’t include free activities. E.g.: volunteer work and people caring for elderly and children at home. These activities can give good impacts to society but not might be discouraged in the pursuit of economic growth.
- Composition of output Some goods in a country, which do not give benefit to the customers will lead to the difficulties that a higher GDP will raise living standard.
1. Economic growth is an increase in real GDP, its growth rate is shown with the change in GDP in two consecutive years. Balance of trade and increase in income can be used to illustrate the level of economic growth. An increase in balance of trade, the difference between the export receipts and import payment, will increase in real GDP and thus affecting economic growth. An increase in income will result in an increase in consumer spending and will affect GDP and economic growth.
2. Economic development is a process where economies acquire higher standards of living, happiness and fulfillment. Unemployment rate and HDI are two statistics that can be used to illustrate the level of economic growth. Unemployment rate is the percentage of citizens in a country who are willing to work but unable to get a job, the higher the unemployment rate, the greater the unhappiness within a country is.
3. Economic growth is measured in GDP. Economic development deals with accomplishing an improvement in standard of living, happiness and fulfillment.
4. Inaccuracies might occur. Unofficially recorded economic activities and informal markets can also affect the money flow.
. Describe two statistics that could be used to illustrate the level of economic growth.
- GDP and GNP are the most frequently used statistics styles that are used to illustrate the level of economic growth. They are calculated with the output method usually although there are other methods like input method. GDP is an estimated value of the total worth of a country’s production and services, calculated over the course on one year, which means though output, by foreign companies investing within that country is included in GDP. GDP summed up with total capital gains from overseas investment and subtracting income earned by foreign nationals domestically means GNP.
2. Describe two statistics that could be used to illustrate the level of economic development.
- Some of the most frequently used statistics styles that are used to illustrate the level of economic development are HDI and HPI. Human development index is the combination of three factors, which are long and healthy life, as measured by life expectancy at birth, knowledge, as measured by the adult literacy rate (with two-thirds weight) and the combined primary, secondary and tertiary gross enrollment ratio (with one-third weight) and a decent standard of living, as measured by GDP per capita in purchasing power parity (PPP) terms in US dollars. Human poverty index is the combination of four factors, which are percentage of people likely to die before the age of 60, percentages of people whose ability to read and write is far from adequate, proportion of the population with disposable incomes of less than 50% of the medium, proportion of long term unemployed (12 months of more)
3. Compare and contrast the terms; economic growth and economic development.
- Economic growth is based solely on level of economic activity such as how much people an average person earn, how much an average company in one country earn as total. Economic development is concerned more with the level of standard of living such as how long an average people live with health care or how many people are unemployed.
4. What are some of the weaknesses of using statistics to describe levels of growth or development in nations?
- Statistics can easily be altered and the human error can also be largely present. Statistics may not reflect the factual events on the ground. It does not take some informal markets into account.