LAST MINUTE REVISION G UIDE

Unit 5

Bala kumar.R.J
U nit 5
MEASURES OF LIVING STANDARD

 GDP per capita

 Human Development of Index (HDI):- A measure used by UNDP with three different index;
 Income index; measures Gross national income of the country
 Education index; measures the average years of schooling of a country
 Health index; measures the life expectancy(average number of years a person can
live)
 Has a value between 0 to 1
 0 to 0.4 means low human development. 0.5 means medium and 0.6 to 1 means high
human development

LIMITATION OF HDI

 Though it is better than GDP

 Inequality is not included
 External costs ignored
 Different exchange rates could make difference

OTHER MEASURES OF LIVING STANDARD

 Education
 Health
 Housing
 Infrastructures
 Doctors per patient

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© LAST MINUTE REVISION GUIDE 2018
 DEVELOPING COUNTRIES DEVELOPED COUNTRIES
A developing country, also called a less- A developed country, industrialized country, or
developed country, is a nation with a lower "more economically developed country" (MEDC),
standard of living, underdeveloped industrial is a sovereign state that has a highly developed
base, and low Human Development Index economy technological and advanced
(HDI) relative to other countries infrastructure relative to other less industrialized
nations
CHARACTERISTICS/ why Difference in living standard?
 High population growth  Low population growth
 More % of people employed in primary  More % of people employed in tertiary
 sector  sector
 High birth rates and death rates  Low birth rates and death rates
 High infant mortality rates  Low infant mortality rates
 Poor education and health  Better education and health
 Low life expectancy  High life expectancy
 Poor housing and infrastructure  Better housing and infrastructure
Low income per head High income per head

POVERTY

ABSOLUTE POVERTY  People are unable to get their basic needs of food shelter
and clothing
 People living less than $1.25 a day
RELATIVE POVERTY  People are poor relative to other people
 Some people due to less income enjoys fewer goods
compared with other people
POLICIES TO REDUCE  public spending on health
POVERTY  public spending on education
 subsidies to consumers to help the poor
 subsidies to producers to enable them to lower costs and
 prices
greater use of progressive taxation to reduce income
 inequalities
 greater use of benefits to poor people
 public spending on infrastructure to increase provision of jobs
 lower interest rates to increase demand
 introducing/raising a national minimum wage
encouraging more multinational companies to locate in a
country, e.g. through tax holidays government policies to
promote growth and employment
POPULATION

Total number of people living in a country in a given period of time

Census: - The official count of population

Demography: - Study of population

Household population: - The total number of people living in one household in a given period of time

Life expectancy: - Average number of years a person can live from birth to death

Infant mortality rate: - Average number of children dies at the time of birth or before their first
birthday.
FACTORS INFLUENCING POPULATION GROWTH

BIRTH RATE FACTORS INFLUENCING BIRTH RATE

Total number of live births per thousands of  Age of marriage
population in a given period of time  Sex preference and divorce rates
 Education and knowledge of
family planning
 Availability of contraception
 Healthcare
 Social and religious beliefs
 Government policies
DEATH RATE FACTORS INFLUENCING DEATH RATE
Total number of registered deaths per thousands of  Medical care
population in a given period of time  Availability of basic facilities
 Natural disasters
 Man-made disasters
 Standard of living

NET MIGRATION RATE FACTORS INFLUENCING MIGRATION

The difference between immigration rate and  Education
emigration rate is known as net migration rate.  Health
Immigrants are the people who come in and  Other facilities
emigrants are the people who go out on permanent  Employment
basis.  Fear
 Costs

FERTILITY RATE The average number of babies born per

women in a given period of time
DISTRIBUTION OF POPULATION

DISTRIBUTION EXPLANATION DIFFERENCE IN

DEVELOPING AND
DEVELOPED COUNTRIES
AGE DISTRIBUTION  Dependent age groups and  In developing
Distribution of population working age groups countries, dependent
into different age groups  Dependents are those who age groups are
are not economically active ( greater than working
children and old people ) age group.
 In developed
countries, dependent
age groups are less
than working age
group.
SEX DISTRIBUTION
Distribution of population
into male and female
OCCUPATIONAL  Primary secondary and  In developing
DISTRIBUTION tertiary countries, primary is
Distribution of population the main sector
into different sectors  When the country
develops, the
importance of
secondary and tertiary
increases.
GEOGRAPHICAL   In Developed
Urban and rural areas
DISTRIBUTION countries, more
Distribution of population people live in urban
into different regions (cities) while in
developing countries;
more people live in
rural (village) areas.
POPULATION PYRAMID
A diagram which shows number of male and female in different age groups of a population in a
country during a given period of time
DEVELOPING
COUNTRY

DEVELOPED
COUNTRY

DIFFERENT STAGES
DIFFERENT STAGES OF POPULATION

OVER POPULATION Causes

When there are more people compared with  Decline in the Death Rate
the resources  Better Medical Facilities
 More Hands to Overcome Poverty
 Technological Advancement in Fertility
Treatment

Immigration
 Lack of Family Planning
Effects
Depletion of Natural Resources

 Degradation of Environment
 Conflicts and Wars
 Rise in Unemployment
 High Cost of Living

Solution
 Better Education
 Making People Aware of Family
 Planning
 Tax Benefits or Concessions
Knowledge of Sex Education

UNDER POPULATION Causes

When there are less people compared with  Abundant resources
the resources  availability of employment
 Low pressure on social amenities
 Low congestion
 Adequate planning
 Low crime rate

Effects
 Poor allocation of resource
 Low production
 Low income
 Low investment and saving
 Under production

Low income per head

Less environmental impact

Solution
 Increase population

OPTIMUM POPULATION The population is such that it can maximize the

When the population is sufficient to meet the benefits from the resources available. It is only
resources available when we have optimum population that the
quality of life is maximized.
AGEING POPULATION

 This is where people are generally living longer

 The average age of people in a country increases
 More older people as a proportion of the population

CONSEQUENCES OF AGEING POPULATION

 Increase need for health care

 Tax revenue used to provide health care could have been used for another
purpose/opportunity cost
 Increase cost of pensions
 Place a tax burden on workers
 Increase the dependency ratio
 Proportionally more non-workers will have to be supported by proportionally fewer workers
reduce mobility of the labour force
 Older workers may be less geographically/ occupationally mobile
 A rise in the average age from a young age
 May reduce dependency ratio
 Older workers may be more experienced leading to higher productivity
 Ageing population may not increase dependency ratio/cost of pensions
 If retirement age is raised longer life expectancy raise living standards

CONSEUQNCES OF POPULATION CHANGES

POPULATION ADVANTAGES DISADVANTAGES

INCREASING  Increase demand and  Pressure on resources
supply  Overcrowding
 Jobs can be found  Environmental impact
 Increase productivity  High unemployment
 Possible higher tax rate
revenue
 Higher GDP
DECREASING  Reduce overcrowding  Less efficient allocation
Reduce environmental of resources

impact  Falling output per head
 Reduce the need for Fewer consumer

social capital leading falling revenue

Possible unemployment
 May increase
dependency ratio