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Literacy Rate & GDP

Literacy Rate & GDP. The relationship between a country’s economy and its literacy rate. Let’s look at …. What does literacy rate mean?. The percentage of people in a country that can read and write. What in the world is GDP?. Gross Domestic Product

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Literacy Rate & GDP

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  1. Literacy Rate & GDP

  2. The relationship between a country’s economy and its literacy rate. Let’s look at …

  3. What does literacy rate mean? • The percentage of people in a country that can read and write.

  4. What in the world is GDP? • Gross Domestic Product • The total market value of all final goods and services produced within the country in a given period of time (usually a calendar year). • Countries seek to increase their GDP to improve their standard of living

  5. So, what is GDP per capita? • Per capita is a measure of wealth • Per capita income means how much money each individual would receive IF a country divided its yearly income equally among everyone. • Is used to measure a nation’s wealth with the wealth of other nations.

  6. Look at the following chart and try to determine the following … • Does the literacy rate of a country seem to have an affect on … • GDP per capita? • Life expectancy? • Industrial production growth rate?

  7. Other factors? • Other than the literacy rate, what other factors may affect a country’s GDP per capita?

  8. Other factors that may affect a country’s GDP. • Wars • Famine • Drought • Natural disasters

  9. So, how does literacy rate affect the standard of living in countries? • Normally, the higher the literacy rate the higher the GDP per capita.

  10. What is the relationship between investment in human capital and GDP? • First … what is human capital? • The health, strength, education, training, and skills that people bring to their jobs.

  11. Reminder … how can a country invest in human capital? • Invest in • Education • Training in skills • Health care

  12. What is the relationship between investment in human capital and GDP? • What do you think would be an example of human capital? • How can a country invest in human capital? • Do you think a country would be wise to invest in human capital? • What is the relationship between investment in human capital and the GDP? • Do you think our chart supports your answer?

  13. What is the relationship between investment in human capital and GDP? • Normally … the more a country invests in human capital, the greater the GDP.

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