Cleveland state University
Spring, 2012
Dr.Dawn, Alberti
Sec:2
05/12/2012
Data and Variables
Three variables are used for this project:
1-Gross National Incomes (GNI) PPP per capita.
2-Life expectancy.
3-Population (in millions).
Validity of the Measurement
Income level
Q_1: Why can’t Gross National Income be directly used as a measure of income level? What does the PPP adjustment take into account? Why has it to be per capita?
GNI definition is the measure of good and services produced within a country at a given period of time. Therefore, it wouldn’t tell how much income received by residents in that specific country but the whole things produced within that country. That why it wouldn’t be a good measure of income level. Also, a country might has a huge number of total goods and services produced but the typical income received by a resident over there is not sufficient cover life expenses over there.
PPP adjustment takes into account the needed adjustment when exchange goods between countries so exchanging goods are convenient with a country’s current currency purchasing power. Moreover, it has to be per capita because the total value of goods and services produced within a country has to include all capita in that specific country.
It has to be per capita to make sure to include all residents in that specific country.
Q_2: How is life expectancy defined? Why not to use Crude Death Rate (CDR)? What is the advantage of using life expectancy?
Life expectancy is the expected age each generation would live to in a and it is affected by some life factors in any country such as environmental and health .
CDR shows the percentage of death among a specific country and it is including all ages which is really not accurate measure for life expectancy. The reason is that, the numbers of death in less developed-country is higher than developed ones due to bad living