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GNP per Capita
Read the text, and then complete the exercises at the end.
Did You Know?
  • Of the world’s 6 billion people, more than 1.2 billion live on less than $1 a day. Two billion more people are only marginally better off.
  • About 60 percent of the people living on less than $1 a day live in South Asia and Sub-Saharan Africa.
  • In high-income countries, farmers—men and women—make up less than 6 percent of the workforce, while in low- and middle-income countries combined, they represent nearly 60 percent of all workers.
  • Developing countries account for almost $1 out of every $4 that industrial countries earn from their exports.

GNP per Capita

Gross national product (GNP) per capita is the dollar value of a country’s final output of goods and services in a year, divided by its population. It reflects the average income of a country’s citizens. Countries with a GNP per capita in 1998 of $9,361 or more are described as high income, between $761 and $9,360 as middle income, and $760 or less as low income.

What GNP per capita shows

GNP per capita shows what part of a country’s GNP each person would have if this GNP were divided equally. Knowing a country’s GNP per capita is a good first step toward understanding the country’s economic strengths and needs, as well as the general standard of living enjoyed by the average citizen. A country’s GNP per capita tends to be closely linked with other indicators that measure the social, economic, and environmental well-being of the country and its people. For example, generally people living in countries with higher GNP per capita tend to have longer life expectancies, higher literacy rates, better access to safe water, and lower infant mortality rates.

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