Standard of Living and Literacy Rate E Q

Standard of Living and Literacy Rate E. Q. – How does one’s literacy rate impact their standard of living?

Building Inferences

Vocabulary Literacy Rate – The amount of people in a country who know how to read and write.

Cycle of Poverty • Having basic reading & writing skills is very important. • Without skills, workers are stuck in the lowest-paying jobs. • A cycle of poverty can develop when people cannot get an education. • Illiterate people are forced to get low-paying jobs, so they cannot get enough money to pay for their children’s education…This cycle can continue for generations. • The standard of living remains low for these families because their education level is low.

Cycle of Poverty • Without the skills of reading and writing, workers cannot get better jobs. • Developing countries are poor, and their people are generally uneducated. • It is difficult to pay for education, when there is little money for food…

Improving Literacy Rate • The goal of every country is to have a 100% literacy rate among its people. • One reason that many people cannot read/write is that their communities cannot afford to pay for teachers or schools. • Many governments, missionaries, & aid groups come to the poorest countries to assist the people in educating their children

European Literacy Rates European Country Literacy Rate United Kingdom France Russia Germany Italy 99% 99% 98% Information above is according to the Georgia CRCT Test Prep Book.

Building Inferences

Building Inferences

So… How does someone’s education (literacy rate) impact their standard of living? VS

How is the wealth or the economy of a country measured?

GDP Gross Domestic Product (GDP) - the total value of goods produced/services provided in a country during one year.

Gros s Domesti c Product PUGG s Shoe

What does the GDP describe? q. GDP tells us how rich or poor a country is. q. Shows if the country’s economy is getting better or worse.

d ite Un di a In ly ia ss Ita Ru il m do Ki ng az Br ce y an an rm n pa Ja a in Ch es at St 16 14 12 10 8 6 4 2 0 Fr Ge d ite Un WORLD’S TOP TEN GDP in TRILLIONS

When a country invests in capital resources and human capital , the GDP of the country can only go… UP.

. EXAMPLE Investment in Human Capital & Capital Resources GDP Growth Rate 25 19 17 8. 1 1. 3 Russia Germany 0. 7 United Kingdom

European Literacy Rates European Country United Kingdom France Russia Germany Italy a e v a h a i ss u R a s t e u o b d y n h e th W e t a r y c ra e t i l h g i ita? h p a c r e p P D G w lo MM…. H Literacy Rate GDP Per Capita 99% $35, 100 99% 99% 98% $33, 000 $14, 700 $33, 200 $30, 400

How does GDP impact standard of living?

• When a country’s GDP is high, its citizens enjoy a better life, in other words a higher STANDARD OF LIVING.

Standard of Living • The quality of life of the people within a country. • The higher a country’s GDP, the better the quality of life or standard of living. P D G a St n r a d d of g n i Liv

GDP and Standard of Living What is the relationship? STANDARD OF GDP LIVING Blue- High Green. Medium Red- Low

GDP Per Capita. GDP per capita (GDP divided by population) is often used to compare the economies of countries and the well-being of their citizens.

GDP versus GDP PER CAPITA • The Jones • The Smiths • Total income $80, 000 $60, 000 Consider each family’s income to be the GDP. If so • which family would have the highest GDP? • Which family would have the highest GDP per capita? • In which family would the family members get more money to

nd e) es at St ) sia (A ) st Ea ur op (E d ei e e) op ) sia (A ) st ) ) sia (A Ea ur dl id ite Un e (E un Br la er itz Sw ay t( M ai w Ku rw No or ap au ac M e dl pe ro Eu g( (M id ng Si Qa ta r ur bo em Lu x TOP TEN GDP/CAPITA COUNTRIES (in thousands) 100, 000 90, 000 80, 000 70, 000 60, 000 50, 000 40, 000 30, 000 20, 000 10, 000 0

a) ric Zim Af ric ba a) w e (A fri Lib ca er ) ia (A fri Co ca ng ) o (A Bu fri ca ru ) nd i( Af ric a) a( re Er it (A f ca ) a) ric fri r(A al ia m So ge Ni ) ca (A fri i( Af aw M al go To The Ten Countries with the Lowest GDP/Capita (in hundreds) 1, 000 900 800 700 600 500 400 300 200 100 0

The Richest and the Poorest No Data 30, 000 plus 20 -30, 000 10 -20, 000 5 -10, 000 3 -5000 1 -3000 0 --1000

Factbook