Chapter 30 Growth 的and the Less-Developed Countries.pptVIP

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Chapter 30 Growth 的and the Less-Developed Countries.ppt

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Chapter 30 Growth 的and the Less-Developed Countries

Chapter 30 Growth and the Less-Developed Countries In this chapter, you will learn to solve these economic puzzles: Is there a difference between economic growth and economic development? 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 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 What is infrastructure? Capital goods usually provided by the government, including highways, bridges, waste and water systems, and airports What is a major problem for LDCs? They find themselves in a vicious cycle of poverty What is the Vicious Circle of Poverty? The trap in which countries are poor because they cannot afford to save and invest, but they cannot save and invest because they are poor What are the Political Factors Favorable for Economic Growth? Law and order Infrastructure International trade What is Foreign Aid? The transfer of money or resources from one government to a