Lecture 1 - The Facts to be Explained & A Framework for Analysis.pdf - LECTURE 1 THE FACTS TO BE EXPLAINED A FRAMEWORK FOR ANALYSIS A SOME BASIC

# Lecture 1 - The Facts to be Explained & A Framework for Analysis.pdf

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L ECTURE 1: T HE F ACTS TO BE E XPLAINED & A F RAMEWORK FOR A NALYSIS 1 | P a g e Exercise: Describe the possessions of these families. Exercise: What are their invisible possessions? A. S OME B ASIC F ACTS B. D IFFERENCES IN THE L EVEL OF I NCOME C. D IFFERENCES IN THE R ATE OF I NCOME G ROWTH D. S OURCES OF E CONOMIC G ROWTH E. S CATTER P LOTS AND C ORRELATIONS A. S OME B ASIC F ACTS
L ECTURE 1: T HE F ACTS TO BE E XPLAINED & A F RAMEWORK FOR A NALYSIS 2 | P a g e Real GDP per capita : GDP per person adjusted for changes in money value Life Expectancy: The expected number of years of life remaining at birth Adult literacy rate: % of the population age 15 who can (with understanding) read and write a short, simple statement on their everyday life Quiz: Which is the most commonly used indicator of economic well-being? Why? A. S OME B ASIC F ACTS B. D IFFERENCES IN THE L EVEL OF I NCOME C. D IFFERENCES IN THE R ATE OF I NCOME G ROWTH D. S OURCES OF E CONOMIC G ROWTH E. S CATTER P LOTS AND C ORRELATIONS More indicators are available at:
L ECTURE 1: T HE F ACTS TO BE E XPLAINED & A F RAMEWORK FOR A NALYSIS 3 | P a g e A. S OME B ASIC F ACTS B. D IFFERENCES IN THE L EVEL OF I NCOME C. D IFFERENCES IN THE R ATE OF I NCOME G ROWTH D. S OURCES OF E CONOMIC G ROWTH E. S CATTER P LOTS AND C ORRELATIONS B. D IFFERENCES IN THE L EVEL OF I NCOME Gross Domestic Product (GDP) GDP is the market value of all final goods & services produced in an economy during a particular period real GDP per capita is a proxy for economic prosperity But it is an imperfect measure as it fails to account for leisure time, unpaid services provided, environmental quality, quality of life, income inequality, international tension, etc Increases in real GDP per capita » Economic Growth