GEB 3375 Module 7 Questions and Answers Solved 100%

Developed economies - A classification for high-income industrialized nations, which have high living standards and the most technically developed infrastructure Developing economies - A classification for the world's lower-income nations, which have less technically developed infrastructures and lower living standards Discretionary Income - The amount of income left after paying taxes and making essential purchases Disposable Income - After-tax personal income Emerging market economies - Economies with per-capita incomes in the low to middle range that are in a transition toward developed status Examples of Developed Countries - -United States -Euro Area -Japan -Canada Examples of Developing Countries - -Angola -Bolivia -Nigeria -Bangladesh Examples of Emerging Markets - -Brazil -China -India-Indonesia -Turkey Gini Index - A measure of the degree to which family income within a country is distributed equally -A lower score indicates a more equal distribution -The range of Gini scores is wide: Sweden's is 23.0 and South Africa's is 63.1 Gross Domestic Product (GDP) - A measure of an economy's size based on the market value of goods and services produced within a nation in a year Gross National Income (GNI) - The total value of all income generated by the residents of a nation, including both the domestic production of goods and services and income from abroad Key Characteristics of developed countries - -Per capita GNI greater than $12,746 -High material standard of living, high quality of life index and substantial middle class -Frequent application of the most advanced production techniques and equipment -Large base of productive capital, sophisticated financial markets and banking systems, and vigorous international trade in a range of sectors -A very small share of total output coming from agriculture and declining share for manufacturing -Well-established governmental and legal systems -Plentiful educational opportunities and low illiteracy -Relatively low levels of unemployment or underemployment -Adequate or high levels of nutrition and access to health care Key Characteristics of developing countries - -Per capita GNI less than $12,746 -Moderate to low material standard of living and quality of life index -Technological dualism meaning the presence of a mix of firms employing latest technology using primitive methods -Low savings rates, inadequate banking facilities, and high dependence on a few products for export, generally agricultural or minerals-Relatively unproductive agricultural sector that provides a living for most of the population -Political instability and deficient governmental and legal systems -High illiteracy rate and a few educational facilities -Disguised unemployment or underemployment -Widespread malnutrition and a wide range of health problems -Inhospitable topography such as deserts, mountains, and tropical forests Key Differences Among the Three Major Country Groups - ADVANCED ECONOMIES -Representative Countries: Canada, France, Japan, United Kingdom, United States -Approx. # of countries: 35 -% of world population: 14% -Population (mil): 979 DEVELOPING ECONOMIES -Representative Countries: Angola, Bolivia, Nigeria, Bangladesh -Approx. # of countries: 120 -% of world population: 25% -Population (mil): 1706 EMERGING MARKETS -Representative Countries: Brazil, China, India, Indonesia, Turkey -Approx. # of countries: 40 -% of world population: 61% -Population (mil): 4155 Key Differences between India and China - China: -Population: 1.37 billion GREATER -Larger Economy -Better Infrastructure-1.12 million millionaires -MANUFACTURING powerhouse -Manufacturing labor cost: $3.52/hour India: -Population: 1.2 billion LESSER -6.1 million in college -200 million fluent in english -SERVICE powerhouse -Manufacturing labor cost: $0.92/hour