Question

Part B

Remember that GDP stands for gross domestic product. It is the total dollar value of the goods and services produced within a country in a year. Per capita GDP is this same total value, divided by the number of people in the country. Per capita GDP is a tool economists use to measure the economic health of a country. Another tool economists use to measure economic health is the industrial production growth rate. This is the percentage increase in mining, manufacturing, and construction from one year to the next.

Research facts about the economies of North Korea and Finland. Read the first paragraph under the "Economic overview" for each. Then, examine data for these categories: GDP (official exchange rate), GDP per capita, and the Industrial production growth rate. Write down the information you find. Then, research the types of economies each country has, as well as its main resources. You can use additional resources of your choosing to help obtain this information. Write this information in the space provided as well. In the next part of the activity, you will make some assumptions about the economies of North Korea and Finland, based on the information you have gathered.

Answer 1

Economic Overview of North Korea:

North Korea has a command economy, one of the last in the world. Its economy is heavily influenced by its large military and weapons programs, its dependence on China, and its growing isolation from the rest of the world.

GDP (official exchange rate): $37.13 billion

GDP per capita: $1,649

Industrial production growth rate: 1.2%

Economic Overview of Finland:

Finland has a mixed economy that combines free-market principles with a relatively large public sector. The service sector dominates the economy and is largely supported by foreign trade and an extensive social welfare system.

GDP (official exchange rate): $270.12 billion

GDP per capita: $50,877

Industrial production growth rate: 0.7%

Assumptions:

It can be assumed that North Korea has a command economy, in which the government heavily regulates production and trade of goods and services. The economy is dominated by the military and its weapons programs, and is limited by its dependence on China, making North Korea an isolated country overall. The economy is supported mainly by its heavy industry and low-tech manufacturing, as well as its small amount of agricultural production.

It can also be assumed that Finland has a mixed economy with a large public sector. The largest portion of its economy is made up of its service sector, which is mainly supported by foreign trade and social welfare systems. Finland is supported mainly by its tech industry, as well as its extensive energy production and mining. There is also a large amount of agricultural production in the country.