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An overview of the regional averages of GDP per person for developing countries, measured in comparable international dollars as well as population in 2008 ( [link] ), shows that the differences across these regions are stark. As [link] shows, nominal GDP per capita in 2012 for the 581.4 million people living in Latin America and the Caribbean region was $9,190, which far exceeds that of South Asia and sub-Saharan Africa. In turn, people in the high-income nations of the world, such as those who live in the European Union nations or North America, have a per capita GDP three to four times that of the people of Latin America. To put things in perspective, North America and the European Union have slightly more than 9% of the world’s population, but they produce and consume close to 70% of the world’s GDP.

Gdp per capita in u.s. dollars (2008)

This image is a colored map of the world with only a few areas having high GDPs.
There is a clear imbalance in the GDP across the world. North America, Australia, and Western Europe have the highest GDPs while large areas of the world have dramatically lower GDPs. (Credit: modification of work by Bsrboy/Wikimedia Commons)
(Source: http://databank.worldbank.org/data/home.aspx)
Regional comparisons of nominal gdp per capita and population in 2013
Population (in millions) GDP Per Capita
East Asia and Pacific 2,006 $5,536
South Asia 1,671 $1,482
Sub-Saharan Africa 936.1 $1,657
Latin America and Caribbean 588 $9,536
Middle East and North Africa 345.4 $3,456
Europe and Central Asia 272.2 $7,118

Such comparisons between regions are admittedly rough. After all, per capita GDP cannot fully capture the quality of life. Many other factors have a large impact on the standard of living, like health, education, human rights, crime and personal safety, and environmental quality. These measures also reveal very wide differences in the standard of living across the regions of the world. Much of this is correlated with per capita income, but there are exceptions. For example, life expectancy at birth in many low-income regions approximates those who are more affluent. The data also illustrate that nobody can claim to have perfect standards of living . For instance, despite very high income levels, there is still undernourishment in Europe and North America.

Economists know that there are many factors that contribute to your standard of living. People in high-income countries may have very little time due to heavy workloads and may feel disconnected from their community. Lower-income countries may be more community centered, but have little in the way of material wealth. It is hard to measure these characteristics of standard of living. The Organization for Economic Co-Operation and Development has developed the “OECD Better Life Index.” Visit this website to see how countries measure up to your expected standard of living.

The differences in economic statistics and other measures of well-being, substantial though they are, do not fully capture the reasons for the enormous differences between countries. Aside from the neoclassical determinants of growth , four additional determinants are significant in a wide range of statistical studies and are worth mentioning: geography, demography, industrial structure, and institutions.

Questions & Answers

What will be the multiplier, when MPS is 0, 0.4, 0.6, and 1? What will it be when the MPC is 1, 0.90, 0.67, 0.50, and 0? How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is 0.80? And If the MPC is 0.67?
Ayesha Reply
what are the side effects of government policies
narayan Reply
Government policy can influence interest rates, a rise in which increases the cost of borrowing in the business community. Higher rates also lead to decreased consumer spending. Lower interest rates attract investment as businesses increase production.
REHMA
if there is a negative technology shock to the economy in short run the firms production cost will go up and labor goes down and thus consumption and production will be lower than before. the government can spend to create jobs and central Bank can lower the interest rates
Dine
what are marlet prices
Jaheim Reply
price which includes net indirect taxes
Anish
what is aggregate demand
Kalkidan Reply
what is micro economics
A-dip Reply
microscopic study...
REHMA
microeconomics is study of individual, household and firms of division making and allocation of resources.
himanshi
absolutely
Shahzaib
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Thi
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Thi
cũygi👅
Thi
what a pure economics. must have downloaded by mistake.
Zaiveisho
microeconomics is the study of an individual unit in an economic system or an household
DAMIAN
what really cause inflation?
Urey Reply
what is trade deficit
vivek Reply
is ther forgon alternative. is the amount sacrifice of one thing to gain another thing
Alie
what is enflation rate?
Mohibullah Reply
Is it inflation rate sir
Bilal
yes
Mohibullah
This is the annual rate of increase of basic household goods and services and measures also the cost of living and doing business in a country. it's a important information when making for forecast or business plans.
this is continuous increase of overall price level
Bethwel
the betewen microeconomics and macroeconomics is microeconomics is concerned with individual scarcity like household,workers and so on while macroeconomics is focuced on the problème winth organisation the collaboration with others companies the profits and then the growth of the organisation
Amadou Reply
what is tax base
ekwuye Reply
The tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority.
Mare
what is economic system
Alinda Reply
Quantity of Gasoline in millions was?
Touseef Reply
1000cubic meter
Keyrene
definition of phillips curve
Alok Reply
what is closed economy
Nati Reply
an economy that is not open
Chris
meaning: The economy is a closed system, there is not trade between this economy and another one, so no shared market. just a system with no outside influences.
Chris
thanks
Nati
what are the decision-making unit of an economy..?
Nati
an economy which is not involved in exchange with foreign countries
Manjisha
what is the demand curve
Cabdiqani Reply
it is the graph of aggregate demand in a market
Chris
the demand curve is a graph showing the quantity demand and price and the numbers and numbers of units at various quantity demanded
Paitience
' it is a diagram with two axes one represent price, the other represents quantity demanded. the curve slops downwords from left to right interpreting the Law of demand (reversed proportion between price and demand ) The higher the price the lower the demand..
Isameldin
What is DMU and how affects demand?
Isameldin

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Source:  OpenStax, Macroeconomics. OpenStax CNX. Jun 16, 2014 Download for free at http://legacy.cnx.org/content/col11626/1.10
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