Real GDP and Human Development Index Overview

Real GDP divided by the population, showing the average wealth per person in a country.

The total value of goods and services produced in an economy in a year without adjusting for inflation.

The value of all goods and services produced in an economy in a year, adjusted for inflation.

Easy comparisons of living standards between countries, as it accounts for inflation.

A single indicator, and doesn't show the distribution of wealth within the country, potentially hiding significant poverty.

Higher savings lead to increased investment, which drives economic growth. This creates a positive cycle where higher growth further boosts savings.

A high dependency ratio (more dependents compared to working population) means less money available for savings and investment, hindering economic growth.

Better education leads to a more skilled workforce, resulting in higher productivity and wages, contributing to economic growth.

Healthy workers are more productive, which leads to higher output and income for the economy.

Developed economies tend to have healthier workforces, while less developed economies often have more sickness and disease.

The difference between birth rate and death rate, determining population growth or decline.

Improvements in agriculture, medicine, technology, housing, and sanitation all contribute to longer lifespans.

Limited access to family planning, increased survival rates for mothers, cultural norms favoring large families, and religious beliefs contribute to higher birth rates in developing countries.

Increased access to contraception, changing social norms leading to delayed family formation, and increased costs of raising children contribute to lower birth rates in developed countries.

When a region's population surpasses the carrying capacity of its resources, leading to environmental strain, social challenges, and economic difficulties.

When a region has more resources available than its population can effectively use, leading to economic challenges and potential resource waste.

A balance between the population size and available resources, allowing for the highest standard of living and sustainable development.

Describes the distribution of individuals within a population based on age, gender, ethnicity, religion, and other characteristics.

A graphical representation displaying the age and gender distribution of a population, providing insights into its structure and growth potential.

The ratio of dependents (those under 15 or over 64) to the working-age population (15-64), reflecting the burden on the workforce for supporting societal needs.

A vicious cycle where low wages lead to poor human capital, resulting in low productivity and further low wages.

The skills, knowledge, and health of a workforce, contributing to their productivity and earning potential.

Low wages are often attributed to unemployment, informal employment, insufficient skills, or an economy heavily reliant on primary industries.

Economic growth, achieved through removing barriers or promoting demand and supply-side policies, can lead to higher wages and improved living standards.

While growth can be positive, it can also lead to negative externalities, like environmental damage, if not managed sustainably.

Investing in education increases a country's potential output, as skilled workers improve productivity and create more wealth.

State benefits provide a safety net for vulnerable individuals, helping to increase their income and improve their access to education and healthcare.

Progressive taxation redistributes wealth from higher earners to lower earners, reducing income inequality and providing more resources for essential services.

A national minimum wage set above the free market rate ensures workers earn a living wage, potentially leading to better education, healthcare, and overall living standards.

Population growth is influenced by birth rates, death rates, and net migration: a higher birth rate, lower death rate, and more immigration than emigration contribute to population growth.

The Human Development Index is a composite indicator that measures a country's development based on health, education, and income.

The HDI considers three main components: health (life expectancy), education (mean and expected years of schooling), and income (real GDP per capita).

The HDI score ranges from 0 to 1, with higher values indicating higher levels of development.

The HDI offers a holistic view of development, incorporating multiple indicators beyond just economic growth.

The HDI does not account for income inequality or environmental factors.

Different economic systems, like mixed economies (with a balance of government control and free markets) and completely free markets (unchecked capitalism), have varying impacts on income distribution and living standards.

A government's values, economic agenda, and tax policies influence the distribution of wealth and quality of life.

Corruption significantly hampers a country's development by undermining trust, justice, and resource allocation.

Tax systems, especially progressive taxes (higher earners pay more), aim to promote fairness and social equity. However, indirect taxes can disproportionately impact the poor.

Higher education levels lead to greater skills, which contribute to higher productivity and wages, leading to a better standard of living.

In densely populated areas, resource allocation and public service provision can be more challenging, impacting quality of life.

Inflation disproportionately hurts the poor because price increases erode the value of their limited income.

A state where individuals lack the basic necessities for a safe and healthy life, often defined by a daily income threshold.

Measured as a percentage of the median income, it describes a situation where a household's income falls below a certain threshold compared to others in the same society.

A concave shape indicating a high birth rate, low life expectancy, high death rate, and a young dependent population.

A pyramid with relatively straight sides indicating a decreasing birth rate, increasing life expectancy, low infant mortality, and a larger working-age population.

As economies develop, populations become older with an increasing proportion of elderly dependents.

Governments face increased pension payments as more people retire.

Increased demand for healthcare and social care services puts strain on government budgets.

A smaller workforce leads to labor shortages, higher wage costs, and potentially lower tax revenue for governments.

As economies develop, birth rates decrease, impacting the future workforce and potentially leading to school closures.

Governments often provide incentives to encourage families to have more children.

Governments may adjust migration laws to attract skilled immigrants to fill labor shortages.

Migration can lead to an uneven distribution of genders or age groups, creating demographic imbalances.

Increased population growth due to migration can put strain on public services like healthcare and education, increasing government costs.

Housing shortages can arise from rapid population growth, leading to social issues.

Population growth can lead to negative externalities like traffic congestion, pollution, and resource depletion.

Sustainable increases in living standards, typically characterized by improvements in life expectancy, education levels, and income.