2.2 Measuring economic development

• Aardrijkskunde
• Middelbare school
• vmbo t
• Leerjaar 1

2.2 Measuring economic development

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Paragraph 2.2 Measuring economic development

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Checking homework

Name a country that belongs to the South

The Netherlands is a LEDC

1. True
2. False

What is a reason to move from a rural village to the urban city?

1. For a house
2. For a job
3. For a better life
4. To live in a slum

What is an example of a LEDC?

1. Germany
2. France
3. Australia
4. Nigeria

People in the city earn more money than people in the countryside. Which keyword belongs to this sentence

1. Slums
2. Regional Disparities
3. Economic Migration
4. MEDC

I live in a country where 95% of all inhabitants have a smartphone. I live in a

1. LEDC
2. MEDC

Until 4 months ago I was working on a farm in the countryside. I am now making clothing for countries in Europe!
What keyword has something to do with this sentence?

1. LEDC
2. GDP
3. Newly Industrializing country
4. Regional Disparities

How to measure economic development?

What example could you think of?

Gross Domestic product

the total value of all products and services produced by a country.

Is this a good way to check if the people in a country are rich?

Gross Domestic Product

•  Not always easy to tell the difference between LEDC or MEDC
• Solution: Gross Domestic Product

Disadvantages of using GDP

• Four disadvantages

1. GDP per capita is an average.
2. It does not show anything about the regional differences 
   

Disadvantages of using GDP

3. It does not tell you what you can buy for a certain amount of money in a country

4. Not all jobs (and incomes) are statistically registered. Some incomes do not show up in the GDP per capita

Gross Domestic Product

• Development indicator
  
• Gross Domestic Product
• Countries with a lot of people have a higher GDP than countries with less people

The GDP is the total value of all products and services produced by a country. Also the amount of money earned by a country.

Gross Domestic Product

•  To battle this they have found another solution!
• Gross Domestic Product per capita
• The total income divided by the people living in a country

GDP per capita

the total GDP of a country divided by the number of citizens in that country.

There are three sectors people can work in

Primary sector

Primary sector

the employment sector in which people earn their money by working in agriculture, mining, forestry or fishing.

In general, the percentage of people working in the primary sector is much higher in LEDCs than in MEDCs.

Secondary sector

Secondary sector

the employment sector in which people earn their money by working in a factory.

The amount of people working in the secondary sector has increased in LEDCs and decreased in MEDCs.

Tertiary sector

Tertiary sector

the employment sector in which people earn their money by providing services.

Wages in the tertiary sector can be quite high. Most people in the MEDCs work in this sector.

Formal or informal sector

Formal sector: registered work --> falling into one of the 3 sectors we just went through.

Informal sector --> work outside the registered GDP 

(Meaning Illegal work!)

Is this an example of somebody working in the formal or informal sector?

1. Formal
2. Informal

In which sector does this person work?

1. Primary Sector
2. Secondary sector
3. Tertiary sector
4. Informal sector

And this one?

1. Primary sector
2. Secondary sector
3. Tertiary sector
4. Informal sector

And this one?

1. Primary sector
2. Secondary sector
3. Tertiary sector
4. Informal sector

What is not counted in the GDP?

1. Income of the country
2. Income of all companies in a country
3. Income of people working in unregistered jobs
4. Income of people working in registered jobs

Drag the GDP per capita to the matching countries!

High

Medium

Low

High

High

Medium

Medium

Low

What is an example of an unregistered job?

1. Businessman
2. Teacher
3. Shoeshiner
4. Barber

Making the exercises!

• Make exercises of §2.2 Measuring economic development 1 t/m 5
  
• Whisper if you want to talk to you neighbour
• Read the book carefully
  
• If you have a question, raise you hand for help!
  
• Finished the exercises? Practice the keywords!

What have you learned this lesson?

What new keywords have you learned?

Have you learned any skills this lesson?

What you have learned

• Explain what kind of different economic development indicators you could use to compare the wealth of different countries 
• Explain what the advantages and disadvantages are of using these economic indicators 

End of lesson!

Homework: Read §2.2 and make the exercises!