ECON 313 Chapter Notes - Chapter 2: Marginal Utility, Human Development Index, Poverty Trap
3 May 2016
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Classified as low-income countries (lic), lower-middle-income countries (lmc), upper-middle- income countries (umc), high-income oecd countries, other high-income countries. Other high-income economies sometimes still developing countries: eg has a highly developed export sector, but low education/health/social development. Sometimes distinction among upper-middle or newly high-income economies, designating those w/advanced manufacturing sectors newly industrializing countries (nics) World bank also classify by international indebtedness: severely, moderately, less indebted. Un designation of least developed countries: must meet low income, low human capital, high economic vulnerability. 2. 2 basic indicators of development: real income, health, and education. Gni: total domestic & foreign value added by residents w/o depreciation of domestic capital stock. Most common measure of overall level economic activity. Gdp + difference b/w incomes residents receive from abroad payments to non-residents to who contribute to domestic economy. Gdp: total value final use of output produced by economy, by both residents & non-residents.
