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GNP per Capita
Complete these exercises with information from the Data Tables.
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1.

Read the definition of purchasing price parity (PPP), then compare the GNP per capita and the PPP columns in the Economic Data Tables. In which countries is the GNP per capita higher than the GNP per capita adjusted for PPP? In which income group are these countries? What does this tell you about the cost of goods and services in these countries?

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2.

Using the Text and the Basic Data Tables, fill in the table below according to the following instructions.

  a. Choose a low-income country in Sub-Saharan Africa and one in Asia (South and East) and the Pacific and write their names in the first column.
  b. Choose a middle-income country in Europe and Central Asia, one in Middle East and North Africa, and one in South America, and add them to the first column.
  c. Choose a high-income country in North and Central America and the Caribbean, one in Europe and Central Asia, and one in Asia (South and East) and the Pacific and add them to the first column.
  d. Label each country in your data table with an L, M, or H to show which income group it belongs to: low, middle, or high.
  e. Read the definitions of GNP per capita, population growth rate, life expectancy at birth, and access to safe water. Go to the Basic Data Tables, and for each of your countries, find the 1998 GNP per capita, 1980-98 population growth rate, 1998 life expectancy at birth, and 1990-96 percentage of population with access to safe water, and write this information in the appropriate columns. If data for one of the indicators are not available, select another country from the same income group and region.
  f. Rank the countries, with "1" equaling the highest GNP per capita and "8" equaling the lowest. Write the appropriate ranking number in parentheses after the data in column 4.
Country Income group Region GNP per capita, 1998 Population growth rate, 1980-98 Life expectancy at birth, 1998 Access to safe water, 1990-96
Sub-Saharan Africa
Asia (South and East) and the Pacific
Europe and Central Asia
Middle East and North Africa
South America
North and Central America and the Caribbean
Europe and Central Asia
Asia (South and East) and the Pacific
  g. Study your chart and answer the following questions:
   
  • In the countries with the lowest GNP per capita, are the other indicators high or low?
  • In the middle-income countries, are the other indicators higher or lower than in the low-income countries?
  • In the high-income countries, are the other indicators higher or lower than in the developing countries?
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  h. Based on your chart, is GNP per capita a good general indicator of the standard of living of a country? Why or why not?
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3.

Fill in the table below according to the following instructions.

  a. In the column 2, write the following countries. Brazil (South America); Ghana (Sub-Saharan Africa); Philippines (Asia, South and East, and the Pacific); Egypt (Middle East and North Africa); Canada (North and Central America and the Caribbean); Russian Federation (Europe and Central Asia).
  b. Use the Economic Data Tables to find the GNP per capita for each country and fill in the data table.
  c. Use the Economic Data Tables to find the GNP per capita adjusted for PPP for each country and fill in your table.
Region Country GNP per capita, 1998 GNP per capita, PPP, 1998 Income group
South America
Sub-Saharan Africa
Asia, South and East, and the Pacific
Middle East and North Africa
North and Central America and the Caribbean
Europe and Central Asia
  d. Are there any substantial changes in GNP per capita when it is adjusted for purchasing power parity?
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  e. Classify each country as low-, middle-, or high-income according to its GNP per capita adjusted for PPP. Did any of the countries change from one classification to another? What does this tell you about GNP per capita data?
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4.

Fill in the blank table below using the following instructions.

  a. In the first column, write the same country names that you used in your table for the question #2.
  b. In the second column, give their data for the GNP per capita, 1998.
  c. Use the Economic Data Tables to find the GNP per capita adjusted for PPP, 1998 for each of your countries and fill in column 3 in your table.
Country GNP per capita, 1998 GNP per capita, PPP, 1998 Income group
  d. Are there any substantial changes in GNP per capita of each country when that GNP per capita is adjusted for purchasing power parity?
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  e. In the column 4, classify each country as low-, middle-, or high-income according to its GNP per capita adjusted for PPP. Did any of the countries change from one classification to another?
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  f. Are differences between GNP per capita and GNP per capita adjusted for PPP reflected in any of the other indicators for the countries you chose? Explain. (For example, if one of your countries shifts from a middle-income to a high-income country when its GNP per capita is adjusted for PPP, does that country have a higher percentage of its population with access to safe water and sanitation than your other middle-income countries?)
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