What factors influence a countrys wealth Natural resources

What factors influence a country's wealth?

Natural resources investment in human capital resources entrepreneurship The FOUR Factors of Production

How is a country's wealth measured?

The Measure of Wealth Ammu Nair Copyright 9/3/2021

Gros s Domesti c Product PUGG s Shoe

GDP The total market value of all final goods and services produced by a country in a given year.

Flag GDP

GDP vs Per Capita GDP O GDP doesn't tell the whole story, however. Looking at the flag GDP, the USA and China seem to be equal, but they are not. See how a country's population changes everything, Country USA China GDP Population Per Capita GDP $18. 56 billion 326, 625, 791 $57, 300 1, 379, 302, 771 $14, 600 $21. 14 trillion CIA World Factbook 2106

GDP versus GDP PER CAPITA Simplified O The Jones O The Smiths O 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

GDP Per Capita The total market value of all final goods and services produced by a country in a given year divided by the country's population.

Per capita GDP 2016

In real life, however, money is not evenly distributed among all the people in a country. A country like Germany can have a high per capita GDP and still have homeless people. Sound familiar?

Standard of Living O The higher a country’s per capita GDP, the better the standard of living is for the country’s citizens. A person’s economic level can be measured by a their access to housing, food, health care, educational opportunities.

What we think of when we say RICH.

What a large part of the world thinks rich looks like.

A washing machine and dryer, electricity, plumbing, things we take for granted all add to one's standard of living.

Earth’s Lights from Outer Space How does this picture show us standard of living?

Literacy Rate Another Economic Measurement O A literate person is one who can read and write. O • Being literate is a major factor in whether a person can get a job and be successful in the workplace. O • Literacy rate is the percentage O of a country’s population over O the age of 15 that can read O and write.

A Higher Literacy Rate Increases Standard of Living O Countries like Germany, the UK, and Russia, with high literacy rates are generally wealthier. O • They can compete in the world economy. O • Having a high literacy rate is important to the success of the people in a country. O • People who can read get better jobs, earn more money, and can afford to buy better things. O • They can afford housing, food, healthcare, & clothing for their families.

CIA World Factbook O Use this reference to collect data or statistics about a country. O GDP, per capita GDP, and literacy rate can be found under the heading of "Economy. " So can the percent of a country's people under the poverty line. O Population can be found under the "People" heading. Life expectancy can be found in this category, too. O How many cellphones there are per 100 citizens can be found under "Communications. "