8.2 economic characteristics Flashcards
(18 cards)
primary production
the process of producing natural products for human use, such as plants and animals
subsistence farming
self-sufficient farming carried out by individuals to provide food for themselves and their family
why do we classify countries into groups?
allows countries that experience similar characteristics to be grouped together for the purpose of guiding policies and interventions that may improve the health outcomes experienced
how does the World Bank classify countries
use a country’s Gross National Income (GNI) per capita, or average income, to classify countries into low, middle or high income
why would a country change classifications?
The income thresholds, or GNI per capita for each group, are updated on 1 July each year, to take into account changes in average incomes in the previous year.
As a result, countries can change groupings from one year to the next.
high income GNI per capita range
$13 846 or more
upper middle income GNI per capita range
$4466–$13 845
lower middle GNI per capita range
$1136–$4465
low income GNI per capita range
$1135 or less
what is meant by economic characteristics?
A range of factors relating to the financial or economic state of a country can influence the opportunities and resources that are available to its citizens
poverty
refers to a state where individuals or communities lack the financial resources and essentials needed to meet basic standards of living
extreme poverty
living on less that PPP$2.15 per day
PPP
‘purchase power parity’ - provides a way to compare countries that have different currencies and costs of living
Gross International Income (GNI)
the total value of goods and services a country’s citizens produce, including the value of income earned by citizens who may be working in an overseas country
economic characteristics of high income countires
- lower levels of poverty
- wide range of industries
- opportunities for global trade
- high average incomes
how can having a diverse range of industries assist in reducing poverty
increases the probability that at least some of these industries increases will experience positive production and trade trends at any one time
what is the difference between GDP and GNI
GNI per capita is the measure used to categorise countries according to the income groupings used by the World Bank.
GDP is similar to GNI but is not adjusted to take into account the income earned by foreign citizens or the income earned by citizens working in other countries.
Gross Domestic Product (GDP)
a measure that reflects the economic state of a country; the value of all goods and services produced in a country in a 12-month period
