a
variety of international and domestic financial forces that often have little
relation to domestic output, use of these rates is less satisfactory for
calculating GNP/GDP than the PPP method. In developing countries with weak
currencies the exchange rate estimate of GNP/GDP in dollars is typically one-
fourth to one-half the PPP estimate. Furthermore, exchange rates may suddenly
go up or down by 10% or more because of market forces or official fiat whereas
real output has remained unchanged. On 12 January 1994, for example, the 14
countries of the African Financial Community (whose currencies are tied to the
French franc) devalued their currencies by 50%. This move, of course, did not
cut the real output of these countries by half. One additional caution: the
proportion of, say, defense expenditures as a percent of GNP/GDP in local
currency accounts may differ substantially from the proportion when GNP/GDP
accounts are expressed in PPP terms, as, for example, when an observer estimates
the dollar level of Russian or Japanese military expenditures;
Growth rate (population): The annual percent change in the population, resulting
from a surplus (or deficit) of births over deaths and the balance of migrants
entering and leaving a country. The rate may be positive or negative.
Illicit drugs: There are five categories of illicit drugs--narcotics,
stimulants, depressants (sedatives), hallucinogens, and cannabis. These
categories include many drugs legally produced and prescribed by doctors as well
as those illegally produced and sold outside medical channels.
Cannabis (Cannabis sativa) is the common hemp plant, which provides
hallucinogens with some sedative properties, and includes marijuana (pot,
Acapulco gold, grass, reefer), tetrahydrocannabinol (THC, Marinol), hashish
(hash), and hashish oil (hash oil).
Coca (Erythroxylon coca) is a bush, and the leaves contain the stimulant
cocaine. Coca is not to be confused with cocoa, which comes from cacao seeds and
is used in making chocolate, cocoa, and cocoa butter.
Cocaine is a stimulant derived from the leaves of the coca bush.
Depressants (sedatives) are drugs that reduce tension and anxiety and include
chloral hydrate, barbiturates (Amytal, Nembutal, Seconal, phenobarbital),
benzodiazepines (Librium, Valium), methaqualone (Quaalude), glutethimide
(Doriden), and others (Equanil, Placidyl, Valmid).
Drugs are any chemical substances that effect a physical, ment
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