Ch 29 - Measuring Economic Progress 

• Economic Growth: an increase in production of economic goods and services, compared from one period of another

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• GDP per capita: the gross domestic product per person

  • Output per person within a country

• GNI per capita: gross national income per person

  • Output per person produced by nationals of the country

• GDP per capita PPP: gross domestic product at purchasing power parity

  • Purchasing power parity: estimates the amount the exchange rate needs to be adjusted between countries in order for identical goods and services from different countries to have the same price

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• Health indicators:

  • Life expectancy at birth: number of years that a member of the population can be expected to live
  • Maternal mortality rate: annual rate of female deaths per 100,000 live births from any cause relating to pregnancy
  • Infant formality rate: compares the number of deaths of infants under 1 year old in a given 1,000 live births in the same years

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• Education indicators:

  1. Education is important considering the standards of living within a country

     a. more educated population = more productive workforce.

  2. Adult literacy rate: the percentage of the population age 15 and above who can, with understanding, read and write a short, simple statement on their everyday life.

  3. Primary school enrolment: the total enrollment in primary education, regardless of age, expressed as a percentage of the population of official primary education age. This can exceed 100% due to the inclusion of over-aged and under-aged students because of early or late school entrance and grade repetition.

  4. Secondary school enrolment: the total enrollment in secondary education, regardless of age, expressed as a percentage of the population of official secondary education age. This can exceed 100% due to the inclusion of over-aged and under-aged students because of early or late school entrance and grade repetition.

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• Composite indicators:

  1. Human development index (HDI): measures development by combining indicators of life expectancy, education, attainment, and income
  2. Some lower income countries may have a high HDI value due to their high life expectancy/education which are provided by well run public services
  3. Composite indicators include more than one measure and so are considered to be better indicators of economic development. The main one that tends to be used is the Human Development Index.
  4. The HDI measures development by combining indicators of life expectancy, education attainment, and income. The education component contains two indicators: expected years of schooling and mean years of schooling. The income component is measured by GNI per capita (PPP$)

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