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
43 | Page
© 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