TERM PAPER

OF
MACRO ECONOMICS

TOPIC: National income and standard of living in developing

countries

Submitted To: Submitted By:

Vaani Mittal Birbal Kumar Mahato
Roll No: RR1908A12
Reg.No:10906418
BBA2nd semester
 TABLE OF CONTENT
Acknowledgement
INTRODUCTION
NATIONAL INCOME
I. Concepts & Meaning of National Income
II. Measurement of National Income
1) Output or Value-Added Approach
2) Expenditure Approach
3) Income Approach
III. Relevant Concepts of National Income
IV. Factors Affecting National Income
1) Factors of Production
2) Technology
3) Political Stability
4) Government
V. Uses of National Income Statistics
VI. Limitations of National Income Statistics
1) Price Changes
2) Omittion or Under-estimation
3) Problem of Comparison
4) Other Limitation
Developing country
Measure and concept of development

Standard of living and GDP

National Income and Changes in Living Standards

Measuring the standard of living

List Developing Countries

 Acknowledgement

I, BIRBAL KUMAR MAHATO, BBA Student in LPU, highly grateful to all those who guided
me in completing this term paper.
First of all, I would like to pay my heartiest thanks to entire teacher but especially, Vaani Mittal
mam my macroeconomic teacher who provided me such a wonderful opportunity to do term paper
on National income and standard of living in developing countries and provided their valuable
suggestions in understanding the work.
Last but not the least, I would like to thanks all faculties of LSB, I would like to thanks my friend
who help me, Mrs. Gagandeep mam for imparting his valuable guidance to me.
Words can never express the deep sense of gratitude.
INTRODUCTION

Some countries are rich, some are poor and yet some others are in-between. How do we measure the
performance of standers of living? Performance of standers of living is related to the level of
production of goods and services or total economic activity. Measures of national income and
output are used
in economics to estimate the total value of production in an economy. The Standard measures of
income and output are gross national product Gross domestic product gross national income net
National product and net national income in India, the Central statistical organization has been
estimating the national income. You measure your academic performance in relation to other
students by the percentage of the marks scored by you. Similarly a country’s standers of living.
Performance has been measured by indicators of national income such asGDP or GNP. Further,
measuring national income is essential for various Purposes that include projection about the future
course of the economy, Assisting government as the basis to design suitable development Policies,
helping firms in forecasting future demand for their products and facilitating international
comparison. National income per person or per capita income is often used as an Indicator of
people’s standard of living or welfare. However, many Development economists have criticized that
GNP as a measure of welfare has many limitations. They argued that human well-being does not
depend on national income alone. as measures of gnp exclude poverty, literacy, Public health,
gender equity, and many human issues of well-being, they Developed other measures of welfare
such as the human development index Some rich countries in terms of national income are poor in
human Development. similarly, poor countries in terms national income have
performed well in human development. In the case of India, though the gdp is growing faster, its
performance in terms of hide is far below than that of many countries.
 NATIONAL INCOME

PART I: National Income Accounting

I. Concepts & Meaning of National Income

II. Measurement of National Income
III. Relevant Concepts of National Income
IV. Factors Affecting National Income
V. Uses of National Income Statistics
VI. Limitations of National Income
I. Concepts & Meaning of National Income
National income is a measure of the total flow of earnings of the factor-owners through the
production of goods & services. In a simple way, it is the total amount of income earned by the
citizens of a nation. All incomes are based on production. In this sense, national income reflects the
level of aggregate output. The term national income carries at least 2 meaning in economics. The
total value of the level of aggregate output is called Gross National Product or G.N.P. G.N.P. is a
measure of the total market value of all final goods & services currently produced by all the citizens
of a nation within a period, usually a year. There are a few points important here:
* It measures how much people produce.
* It counts current production only.
* It counts the level of output with a market value.
* It relies on the market prices of goods & services as a measure.
II. Measurement of National Income
There are mainly 3 approaches to measure GNP.
The relationship of the 3 approaches is shown by the diagram below.
The Circular Flow of Economic Activities

Expenditures ($) Product $

Market
Output
Households Firms

Income by $ Factor
production Costs

The 3 arrows in the diagram show the overall level of economic activities.
Based on these 3 directions of flows, i.e. a flow of income, a flow of output, & a flow of
expenditures, economists develop 3 approaches to measure GNP.

1. Output or Value-Added Approach

The total value of all final goods & services ( i.e. outputs ) can be found by adding up the total
values of outputs produced at different stages of production.

This method is to avoid the so-called double-counting or an over-estimation of GNP.

However, there are difficulties in the collection and calculation of data obtained. It is from
1980 that the H.K. government started to collect data by this approach.
In 1995, the government started to release GNP data.

2. Expenditure Approach
The amount of expenditures refers to all those spending on currently-produced final goods &
services only. In an economy, there are 3 main agencies which buy goods & services. They are the
households, firms and the government.
In economics, we have the following terms:
C = Private Consumption Expenditure (of all household)
 I = Investment Expenditure ( of all firms)
G = Government Consumption Expenditure (of the local government)
The expenditure approach is to measure the GNP. We could not buy all our outputs because some
are exported to overseas. Similarly, our consumption expenditures may include the purchases of
some imports. In order to find the GNP, the value of exports must be added to C, I & G whereas the
value of imports must be deducted from the above amount.
Finally, we have:
G N P at market prices = C + I + G + X - M
Gross Domestic Product (GDP)
In HK, the government is difficult to know about the amount of income earned through production
by H K citizens outside H K and the income earned by foreign citizens within HK because of free
trade policy. So we can only find the amount of outputs produced within our domestic
boundary.GDP is an aggregate measure of the total value of net output produced within the
domestic boundary of an economy in a specific period, say a year.

Income from abroad = Income earned by local citizens from the provision of factor services abroad
Income to abroad = Income earned by foreign citizens from the provision of Factor services
locally ( I H K )
Net income from abroad =Income earned from abroad - Income sent to abroad
G N P = G D P + Net Income from abroad

2. Income Approach
The income approach tries to measure the total flows of income earned by the factor-owners in the
provision of final goods & services in a current period. There are 4 types of factors of production
and 4 types of factor incomes accordingly.
National Income = Wages + Interest Income + Rental Income + Profit
The term profit can be further sub-divided in: Profit Tax; Dividend to all those shareholders; &
Retained Profit ( or retained earnings ).
III. Relevant Concepts of National Income
Net National Product ( N N P )
The investment expenditure of the firms is made up of 2 parts. One part is to buy new capital goods
& machinery for production. It is called net investment because the production capacity of the firms
can be expanded. Another part - consumption allowance or depreciation - is spent on replacing the
used-up capital goods or the maintenance of existing capital goods because capital goods will wear
and tear out over time. Depreciation refers to all those expenses to replace physical capital due to
wear and tear, obsolescence, destruction and accidental loss etc.
The sum of these 2 amounts is called Gross Investment in economics.
Gross Investment = Net Investment + Depreciation
Net investment will increase the production capacity and output of a nation, but not by depreciation
expenditure. So we have,
N N P = G N P - Depreciation
G N P at factor cost
The amount of national income found by the income approach will not be the same as the amount of
G N P at market prices found by the expenditure approach.In the expenditure approach, the value of
G N P includes some types of expenses which are NOT factoring incomes earned by the citizens.
They include depreciation, indirect business taxes, and government subsidies.
G N P at factor cost = GNP at market prices - Indirect Business Taxes + Subsidies = GNP at
market prices - Indirect Business Taxes less subsidies

GNP at factor cost carries the meaning that we are measuring the total output by their costs of
Production. As output generates income to the factor-owners, it is also related with the value of
national income.
G N P at factor cost = National Income + Depreciation
Depreciation is also a type of costs of production but will not become a source of income directly.
So, it is included in the factor cost but excluded in the value of national income.
Nominal G N P ( G N P at Current Market Prices )
GNP is a measure based on market prices which are expressed in terms of money. In reality, market
prices change all the time. The same amount of outputs may have different total market values
provided that prices change.
In order to isolate the effect of price changes on the value of GNP, economists have developed the
concept and technique of constant market prices.
Example:

Nation A with a population of 5 million

1990 1995 2000
Price Quantity Price Quantity Price Quantity
(million) (million) (million)
T-shirt 1 6 1 6 2 6
Watch 2 4 2 6 2 5
 Soft-drink 2 2 3 4 4 5

G N P at the base year (1990) = 1 x 6 + 2 x 4 + 2 x 2 m. = 18 million

G N P at current market prices in 1995 = 1 x 6 + 2 x 6 + 3 x 4 m. = 30 million
G N P at current market prices in 2000 =
The 2 values of GNP at current market prices in 1995 & 2000 are calculated by using the money
prices in that year. They are also called nominal GNP.
Nominal growth rate of GNP refers to the change in the value of nominal GNP between any 2 years,
e.g. the nominal growth rate is 66.67 % between 1990 to 2000.
G N P at constant market prices of 1995 = 1 x 6 + 2 x 6 + 2 x 4 m. = 26 million
The real output changes from 18 to 26 million from 1990 to 1995. GNP at constant market prices is
called real GNP. The growth rate of real GNP is called real growth rate of GNP.
Real G N P
The value of real GNP is based on the prices of the base year. However, there are too many
different values of prices on goods & services. To make the calculation of GNP easier, economists
use a price index to find the real GNP.

A price index is a number showing the changes in the overall level of prices. It shows a change in
the general price level of an economy.With the value of the price index, the real GNP of anyone
year can by found:
Real GNP = Nominal GNP X (Price index at base year / Price index at current year)

IV. Factors Affecting National Income

1. Factors of Production
Normally the more efficient and richer the resources, the higher the level of national income or GNP
will be.
Land
Resources like coal, iron & timber are essential for heavy industries so that they must be available
and accessible. In other words, the geographical location of these natural resources affects the level
of GNP.
Capital
Capital is greatly determined by investment. Investment in turn depends on other factors like
Profitability, political stability etc.
Labour & Entrepreneur
The quality or productivity of human resources is more important than quantity. Manpower
planning and education affect the productivity and production capacity of an economy.

2 .Technology
This factor is more important for nations with little natural resources. The development in
technology is affected by the level of invention and innovation on production.

3. Government
Government can help to provide a favourable business environment for investment. It provides
laws and order, regulations that affect exchanges. In HK, the government promotes free trade and
competition which encourage economic activities.
4. Political Stability
A stable economic and political system helps the allocation of resources. Wars, strikes and social
unrests will discourage investment and business activities.
V. Uses of National Income Statistics
Standard of Living
The per capita GNP allows us to compare the standard of living of different nations. In general, a
nation has a higher standard of living if its per capita GNP is greater than that of another nation.

Policy Formulation
In the compilation of GNP statistics, the government had already gathered a lot of information of
the economy. The government can base on these figures to plan and decide its policies.
International Comparison
By converting the local GNP figures into a common unit .we can compare the standard of living of
different nations. It helps to show the rate of growth or development of different nations.
Business Decision
The GNP figures can show the level of development of different industries and sectors of an
economy. It helps the businessmen to plan for production.
VI. Limitations of National Income Statistics
GNP is a measure of the overall flow of goods & services, as well as to show the general welfare of
the people. It aims not only at the level of cost of living but also the standard of living. It is quite
correct to show the cost of living but there are some limitations on the GNP statistics to indicate the
standard of living of an economy.
1.Price Changes
A higher nominal GNP of a nation may not mean that the standard of living is better. If the prices
increase at a high rate, the real GNP may even fall.
2.Omittion or Under-estimation
Voluntary Services
GNP figures do not include the contribution of the voluntary agencies which raise the general
welfare, e.g. the Tung Wah group of hospitals. In this respect, the GNP figures under-estimate the
level of welfare.
The voluntary work of housewives is also neglected by the GNP figures. It again under-estimates
our welfare or standard of living.
Leisure
It is also a source of welfare and raises our standard of living, e.g. the welfare enjoyed with a
Chinese New Year Holiday. However, the monetary value is difficult to calculate.
Illegal Activities
Drug trafficking and illegal gambling are activities omitted in the value of GNP. It is difficult to
determine its effect on the welfare of an economy.
Undesirable Effects of Production
GNP figures had not considered the effects of pollution, traffic congestion on the economy. They
have lowered our standard of living.
3. Problem of Comparison

Output Composition
Nations with the same GNP may have different living standard because their output composition
may be different. In general, a higher level of consumer goods & services in the GNP indicates a
higher current level of living standard.
Distribution of Income & Wealth
If income is obtained by a small rate of people in a nation, the general living standard is still low
compared with a nation having a more evenly distributed income or GNP.
4.Other Limitations
Population Size
A large population has a lower living standard even if its GNP is the same as that of a small
population. The per capita GNP is more useful to compare the 2 nations.
National Defense
If a nation has spent a lot of resources in the production of weapon and so on, its living standard
may not be improved.
Time
Technology will be improved over time. This may not be shown in GNP figures because there may
be small changes in cost and price only.Besides, durable goods provide welfare to us over a period
of time. This cannot be shown by GNP figures within a year.
Developing country:
Developing country is a term generally used to describe a nation with a low level of material well being.
There is no single internationally-recognized definition of developed country, and the levels of development
may vary widely within so-called developing countries, with some developing countries having high average
standards of living. Some international organizations like the World Bank use strictly numerical
classifications. The World Bank considers all low- and middle- income countries as "developing". In its most
recent classification, economies are divided using 2008 Gross National Income per capita. In 2008, countries
with GNI per capita below US$11,905 were considered developing. Other institutions use less specific
definitions.
Countries with more advanced economies than other developing nations, but which have not yet fully
demonstrated the signs of a developed country, are grouped under the term newly industrialized countries
Definition

Kofi Annan, former Secretary General of the United Nations, defined a developed country as
follows. "A developed country is one that allows all its citizens to enjoy a free and healthy life in a
safe environment." But according to the United Nations Statistics Division, There is no established
convention for the designation of "developed" and "developing" countries or areas in the United
Nations system.

And it notes that the designations "developed" and "developing" are intended for statistical
convenience and do not necessarily express a judgment about the stage reached by a particular
country or area in the development process.

The UN also notes

In common practice, Japan in Asia, Canada and the United States in northern America, Australia
and New Zealand in Oceania, and Europe are considered "developed" regions or areas. In
international trade statistics, the Southern African Customs Union is also treated as a developed
region and Israel as a developed country; countries emerging from the former Yugoslavia, except
for Slovenia, are treated as developing countries; and countries of eastern Europe and the
Commonwealth of Independent States in Europe are not included under either developed or
developing regions.

According to the classification from IMF before April 2004, all the countries of Eastern Europe
including Central European countries which still belongs to "Eastern Europe Group" in the UN
institutions as well as the former Soviet Union (U.S.S.R.) countries in Central Asia (Kazakhstan,
Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan) and Mongolia, were not included under
either developed or developing regions, but rather were referred to as "countries in transition";
however they are now widely regarded as "developing countries". In the 21st century, the original
Four Asian Tigers regions (Hong Kong, Singapore, South Korea, and Taiwan) are considered
"developed" region or areas, along with Cyprus, Israel Malta, and Slovenia, are considered "newly
developed countries".

The IMF uses a flexible classification system that considers 8“per capita income level, export
diversification—so oil exporters that have high per capita GDP would not make the advanced
classification because around 70% of its exports are oil, and degree of integration into the global
financial system."

The World Bank classifies countries into four income groups. Low income countries have GNI per
capita of US$975 or less. Lower middle income countries have GNI per capita of US$976–$3,855.
Upper middle income countries have GNI per capita between US$3,856–$11,905. High income
countries have GNI above $11,906. The World Bank classifies all low- and middle-income
countries as developing but notes, "The use of the term is convenient; it is not intended to imply that
all economies in the group are experiencing similar development or that other economies have
reached a preferred or final stage of development. Classification by income does not necessarily
reflect development status."

Measure and concept of development

The development of a country is measured with statistical indexes such as income per capita (per
person) (GDP), life expectancy, the rate of literacy, et cetera. The UN has developed the HDI, a
compound indicator of the above statistics, to gauge the level of human development for countries
where data is available. Developing countries are in general countries which have not achieved a
significant degree of industrialization relative to their populations, and which have, in most cases a
medium to low standard of living. There is a strong correlation between low income and high
population growth.
The terms utilized when discussing developing countries refer to the intent and to the constructs of
those who utilize these terms. Other terms sometimes used are less developed countries, least
economically developed countries, "underdeveloped nations" or Third World nations, and "non-
industrialized nations". Conversely, the opposite end of the spectrum is termed developed countries,
most economically developed countries , First World nations and "industrialized nations".

To moderate the euphemistic aspect of the word developing, international organizations have started
to use the term Less economically developed country for the poorest nations which can in no sense
be regarded as developing. That is, LEDCs are the poorest subset of LDCs. This may moderate
against a belief that the standard of living across the entire developing world is the same.

The concept of the developing nation is found, under one term or another, in numerous theoretical
systems having diverse orientations — for example, theories of decolonization, liberation theology,
Marxism, anti-imperialism, and political economy. Criticism of the term 'developing country'

The term 'developing' implies mobility and does not acknowledge that development may be in
decline or static in some countries, particularly those southern African states worst affected by
HIV/AIDS. The term implies homogeneity between such countries which vary widely. The term
also implies homogeneity within such countries when wealth of the most and least affluent groups
varies widely.

Standard of living and GDP

GDP per capita is not a measurement of the standard of living in an economy. It is often used as
such an indicator; on the rational that all citizens would benefit from their country’s increased
economic production. Similarly, GDP per capita is not a measure of personal income.GDP may
increase while incomes for the majority of a country’s citizens may even decrease or change
disproportionally.
The major advantage of GDP per capita as an indicator of standard of living is that it is measured
frequently, widely and consistently. It is measured frequently in that most countries provide
information on GDP on a quarterly basis, which allows the users to spot trends regularly measured
widely in that some measure of GDP is available for almost every country in the world, allowing
allowing comparisons to be made between countries. It is measured consistently in that the technical
definition of GDP is relatively consistent among countries.
The major disadvantage is that it is not, strictly speaking, a measure of standard of living. GDP is
intended to be a measure of particular types of economic activity within a particular country.
The argument in favor of using GDP is not that it is good indicator of the standard of living, but
that, all other things being equal; the standard of living tends to increase when GDP per capita
increases. As such, GDP can be a proxy for the standard of living, rather than a direct measure. The
sometimes use of GDP per capita as a proxy of labor productivity is also problematic.
National Income and Changes in Living Standards
How well off are we compared to recent years and in comparison with people in other countries?
What do we actually mean by the standard of living and can routine information on national income
give us a reliable indication of our economic well-being. In this chapter we look at living standards
and the development of alternative measures of welfare and the quality of life.

Measuring the standard of living

The standard of living is a measure of the material welfare of the inhabitants of a country. The
baseline measure of the standard of living is real national output per head of population or real GDP
per capita. This is the value of national output divided by the resident population. Other things being
equal, a sustained increase in real GDP increases a nation’s standard of living providing that output
rises faster than total population.
Problems in using national income statistics to measure living standards
GDP data on its own is an insufficient indicator of our economic well-being. The following quote
adapted from an article in the Independent in December 2002 sums up the issue quite well.

‘Improving living standards is about poor families gaining access to what is available at the time to
make life comfortable, healthy and rewarding. In the end, economic statistics only measure what
they measure, which may not bear much relation to how well off we are.’
The table below provides time series data on per capita national incomes for the twenty five nations
of the European Union. Ireland has made huge strides in improving her relative standard of living.
In 1994 Ireland’s GDP per capita was just 84% of the EU average but extremely rapid economic
growth allowed the Irish economy to surge past the EU15 average in 1999 and this progress has
been maintained. In contrast, Germany’s relatively slow growth has seen erosion in her relative
advantage in living standards – from a level 10% above the EU average in 1994 to a level only 3%
above the average in 2002. In 2004, Britain had a per capita income some ten per cent higher than
the European average.
Average GDP per head of the ten accession countries in the year 2000 was only 46% of the EU
average although it should be pointed out that there has been progress in closing this gap over recent
years. Many transition economies experienced a deep recession in the early 1990s but have grown
more quickly since then. Of the ten accession countries, Cyprus and Slovenia are closest to the EU
average in terms of a PPP adjusted income per capita.

Imbalances between consumption and investment: If an economy devotes too many scarce
resources to satisfying the short run needs & wants of consumers, there may be
insufficient resources for capital investment and over-consumption can lead to an over-exploitation
of scarce finite resources thereby limiting future growth prospects.

Changes in life expectancy: Improvements in life expectancy have a huge impact on people’s
living standards but don’t always show through in the GDP accounts. Reductions in infant mortality
have been accompanied by the prevention or cure of diseases that might have led to the premature
death of even the richest of our ancestors at any time. Putting a monetary value on the benefits of
increased longevity is difficult, but surely it must be factored into any overall assessment of living
standards and the quality of life.

Innovation and the development of new products: One of the problems in comparing and
contrasting living standards and the quality of life across different generations is that new goods and
services become available because of competition, investment, invention and innovation that simply
would not have been available to the richest person on earth less than fifty years ago. Examples
include air travel, cars, computers, antibiotics, hip replacements, insulin and many other life-
enhancing and life-saving drugs.

Purchasing power - differences in the cost of living between countries

Data on relative standards of living is normally adjusted to reflect estimates of purchasing power
parity to take account of differences in the cost of living – so that each unit of currency has the same
purchasing power. One Euro of income in each country may not have the same real purchasing
power because of differences in the average cost of living. For example, relative prices of a basket
of goods and services for consumers in Britain are estimated in 2003 to be 18% higher than the
EU15 average.
The Scandinavian countries have significantly higher prices whereas Mediterranean countries have
relative price levels less than four fifths of the EU average. As the following passage makes clear,
movements in the exchange rate also have an effect on the relative cost of living in different
locations around the world.

Limitations of the purchasing power parity adjustment

At any given time, the current exchange rate for a country is unlikely to be at PPP levels. Currency
speculation or other factors may have driven the exchange rate above or below its estimated PPP
level. The PPP calculation/estimation is also constrained by the fact that:

o Not all output is traded internationally – some goods and services are produced only for
domestic consumption and do not find their way onto international markets

o Price differences in different countries may reflect product differentiation.

o Differences in degree of competition in local and national markets affect relative prices – for
example the high level of new car prices in the UK compared to most other countries in the
EU is partly a result of oligopoly power among leading UK car retailers.

o Local indirect taxes and tariffs cause differences in the cost of living.

Alternative measures of economic and social welfare:

having focused on income as a key measure of living standards, we briefly consider some of the
alternative approaches.

1990 1995 2000 2004

Cable television subscribers (per 1,000 people) 3 24 57 74
Internet users (in 1000s) 1100 18000 23505
Mobile phones (per 1,000 people) 19 98 727 883
Personal computers (per 1,000 people) 108 201 338 367

One of the simplest ways of judging whether we are better off materially than we were a few years
ago is to track ownership of consumer durables. The table above draws on some of the information
provided over the years 1990 – 2004. Ownership levels are affected by the trend in price levels,
household incomes, changes in tastes and preferences, the emergence of new general purpose
technologies and factors such as consumer borrowing and confidence.

Key Points

• The basic measure of the standard of living refers to per capita real GDP. It is found by
dividing real GDP by the size of the population.

• This figure is an average and gives no indication of the distribution of income

• To ensure purchasing power parity between countries, the current exchange rate is adjusted
so that a basket of goods and services can be bought for the same amount of dollars. GDP
data can then by expressed at purchasing power standard (PPS)

• There are limitations in the use of purchasing power parity estimates

• Omissions and inaccuracies suggest that officially published GDP figures are a debatable
guide to the quality of life and the standard of living.

List Developing Countries:

Individuals residing in one of the developing countries listed below qualify for a special, low dues
rate for the year 2010 of US$16.

• Albania • Hungary

• Algeria • India

• Angola • Indonesia

• Antigua • Iran

• Argentina • Iraq

• Botswana • Jamaica
 • Brazil • Kazakhstan

CONCLUSION:

Standard of living factors, like gross domestic product, poverty rate and environmental quality, can
all be measured and defined with numbers, while quality of life factors like equal protection of the
law, freedom from discrimination, and freedom of religion are more difficult to measure and are
particularly qualitative. Both indicators are flawed, but they can help us get a general picture of
what life is like in a particular location at a particular time.

Bibliography:
Books:
Macro economics theory and policy
Writer: D.N.Dwivedi
Google search engine
1) See F. J. Bayliss, The Standard of Living (1969); B. Mieczkowski and O. Zinam, Bureaucracy,
Technology, Ideology: Quality of Life East and West (1984
2) Butterworth, Myra (January 6, 2010). "Britain's quality of life worse than former Communist
countries". Telegraph.co.uk. http://www.telegraph.co.uk/finance/personalfinance/6943343/Britains-
quality-of-life-worse-than-former-Communist-countries.html. Retrieved February 8, 2010.
3)"Israel ranked 47th in standard of living index". Ynetnews. January 6, 2010.
http://www.ynetnews.com/articles/0,7340,L-3830832,00.html. Retrieved February 8, 2010.