Year 8 Geography: GNI per capita

What is GNI per capita?

GNI stands for Gross National Income. It measures the total income earned by a nation, including all its residents and businesses. When we divide this total income by the number of people living in that country, we get GNI per capita.

Simple Explanation

• GNI: The money a country earns.
• Per Capita: Per person.

So, GNI per capita tells us how much money, on average, each person in a country would have if the total income were shared equally.

Example

Imagine a small country with:

• Total income (GNI) = £10 million
• Population = 1 million people

To find GNI per capita, we do the following calculation:

$$\text{GNI per capita} = \frac{\text{Total GNI}}{\text{Population}} = \frac{10,000,000}{1,000,000} = £10$$

So, the GNI per capita for this country would be £10. This means that, on average, each person has £10.

Why is GNI per capita important?

1. Comparison: Helps compare the wealth of different countries.
2. Living Standards: Gives us an idea of the living standards in a country.
3. Economic Growth: Indicates how well a country is doing economically.

Key Rules to Remember

1. Units: GNI per capita is usually expressed in currency (like pounds or dollars).
2. Average: It is an average figure, so not everyone in the country earns this amount.
3. Not the Whole Picture: GNI per capita doesn’t show how wealth is distributed. Some people might be very rich while others are very poor.

Tips and Tricks

• Visual Comparison: Draw a graph to compare GNI per capita of different countries. This can help you see which countries are wealthier.
• Use Real Data: Look up current GNI per capita figures for different countries to see how they compare.
• Think About Context: Consider what GNI per capita means in terms of what people can afford to buy, like food, clothes, and houses.

Questions About GNI per capita

Easy Level Questions (1-20)

1. What does GNI stand for?
2. What does ‘per capita’ mean?
3. How do you calculate GNI per capita?
4. If a country has a GNI of £20 million and a population of 2 million, what is the GNI per capita?
5. Why is GNI per capita important?
6. Can GNI per capita tell us about living standards? (Yes/No)
7. If a country has a GNI of £30 million and a population of 3 million, what is the GNI per capita?
8. What unit is GNI per capita usually measured in?
9. Is GNI per capita an average figure? (Yes/No)
10. If Country A has a GNI per capita of £50 and Country B has £100, which is wealthier?
11. Why might two countries with the same GNI per capita have different living standards?
12. If a country has a population of 4 million and GNI per capita is £25, what is the GNI?
13. What happens if the population of a country increases but GNI stays the same?
14. What does a high GNI per capita indicate?
15. Can GNI per capita show wealth distribution? (Yes/No)
16. If Country C has a GNI of £15 million and a population of 5 million, what is its GNI per capita?
17. Why is it useful to compare GNI per capita across countries?
18. What would happen to GNI per capita if the country’s income doubles but the population stays the same?
19. If a person earns £30,000 a year, how does that compare to GNI per capita of £10?
20. What does GNI per capita help economists understand?

Medium Level Questions (21-40)

21. Calculate GNI per capita if a country has a GNI of £50 million and a population of 5 million.
22. If the GNI per capita of Country D is £40,000 and its population is 10,000, what is the GNI?
23. How does GNI per capita differ from GDP per capita?
24. Why might a country with a high GNI per capita still have poverty?
25. Can GNI per capita change over time? Give an example.
26. If Country E has a GNI of £200 million and a population of 8 million, what is the GNI per capita?
27. How can GNI per capita influence government policy?
28. How does the economic activity of a country affect its GNI per capita?
29. If Country F has a high GNI per capita, what can you infer about its economy?
30. Why is it important to look at GNI per capita alongside other economic indicators?
31. Compare the GNI per capita of a developed country and a developing country. What differences might you expect?
32. If the GNI of Country G is £1 billion and the population is 50 million, is the GNI per capita high, low, or average?
33. What factors can cause GNI per capita to rise?
34. How can changes in technology affect a country’s GNI per capita?
35. Why might two countries with the same GNI per capita have different quality of life?
36. If GNI per capita is £15,000, what does this imply about the average income of a person in that country?
37. How could a natural disaster impact GNI per capita?
38. What role does education play in influencing GNI per capita?
39. If Country H’s GNI per capita is £24,000 and its population is 2 million, what is the total GNI?
40. How might tourism affect a country’s GNI per capita?

Hard Level Questions (41-60)

41. Discuss the limitations of using GNI per capita as a measure of economic health.
42. If a country’s GNI per capita is increasing, but its population is decreasing, what might be the implications?
43. Calculate the GNI per capita when a country’s GNI is £500 million and its population is 25 million.
44. Why might a country with a high GNI per capita not necessarily have a high standard of living?
45. How do global events (like pandemics) affect national GNI per capita?
46. If Country I has a GNI of £75 million and a population of 1.5 million, what is its GNI per capita? Discuss the significance.
47. Compare GNI and GDP. Why might GDP be higher than GNI in some countries?
48. If Country J’s GNI per capita is £45,000, what economic policies might it have in place?
49. How does income inequality influence GNI per capita perceptions?
50. If a country has a GNI per capita of £12,000, what might you predict about its healthcare system?
51. How can foreign investment affect a country’s GNI per capita?
52. Discuss the relationship between GNI per capita and employment rates.
53. If a country’s GNI rises sharply, what might be the social implications?
54. Why is it important for policymakers to monitor GNI per capita trends over time?
55. How does GNI per capita relate to poverty levels in a country?
56. If a country’s population grows while its GNI remains the same, what happens to its GNI per capita?
57. How does remittance from citizens working abroad affect a country’s GNI?
58. Discuss how GNI per capita can change during an economic recession.
59. If two countries have the same GNI per capita but different resources, what might this suggest?
60. How can GNI per capita influence international relations and trade agreements?

Answers and Explanations

Easy Level Answers

1. Gross National Income.
2. Per person.
3. Divide total GNI by the population.
4. £10.
5. To compare wealth.
6. Yes.
7. £10.
8. Currency (like pounds).
9. Yes.
10. Country B.
11. Different wealth distribution.
12. £100 million.
13. GNI per capita would decrease.
14. Wealthier economy.
15. No.
16. £3 million.
17. To see how they compare.
18. GNI per capita would double.
19. The person earns more than the average.
20. It helps understand economic health.

Medium Level Answers

21. £10 million.
22. £400 million.
23. GDP measures total production; GNI measures total income.
24. Wealth concentration can lead to poverty.
25. Yes, due to economic growth or decline.
26. £25 million.
27. It can shape funding and resource allocation.
28. More activity usually means higher GNI.
29. It likely has a strong economy.
30. Because GNI per capita alone doesn’t tell the whole story.
31. Developed countries generally have higher GNI per capita.
32. Low (£20).
33. Increased production or better wages.
34. It can create new jobs and industries.
35. Different social services and infrastructure.
36. Average income is £15,000.
37. It can lower GNI per capita.
38. Better education can raise incomes.
39. £48 million.
40. It can increase GNI per capita.

Hard Level Answers

41. It doesn’t show wealth distribution or quality of life.
42. Higher average income but may lead to fewer services.
43. £20 million.
44. High-income inequality may exist.
45. It can decrease GNI per capita.
46. £50,000; it suggests economic strength.
47. GDP includes foreign production; GNI does not.
48. Strong economy and high productivity.
49. Higher inequality can mask economic health.
50. Likely limited resources.
51. It can increase GNI by boosting income.
52. More jobs can raise GNI per capita.
53. Potential for social unrest or inequality.
54. To make informed decisions.
55. It helps identify areas needing improvement.
56. GNI per capita would decrease.
57. It can significantly raise GNI.
58. GNI per capita often falls.
59. Resources can lead to different economic pathways.
60. Higher GNI per capita can lead to better trade deals.