Classifying development-Economic Measures

• What does GDP stand for?

  Gross Domestic Product
• What does GDP measure?

  The value of all goods and services produced within a country
• What are three economic measures of development?

  GDP, GNI, GNI per capita
• What does GNI stand for?

  Gross National Income
• What does GNI measure?

  Total income of a country
• What is GNI per capita?

  Average income of people living in that country
• How is GNI per capita calculated?

  By dividing the country's GNI by the size of the country's population
• What does LIC stand for?

  Low Income Country
• What is the GNI per capita threshold for a LIC?

  $1025 or less
• What does HIC stand for?

  High Income Country
• What is the GNI per capita threshold for a HIC?

  $12,476 or more
• What does NEE stand for?

  Newly Emerging Economy
• What characterizes a NEE?

  It has begun to experience high rates of economic development and no longer relies mainly on agriculture
• What are some limitations of economic measures of development?

  • Don't show quality of life
  • Don't show inequality of wealth within a country
  • Some countries may not have up-to-date data if they are developing quickly or leaders don't share accurate data