3.1 - Ginius Maths

Question 1

Why may GDP be an inaccurate measure of development?

Answer 1

• GDP data may be inaccurate as black economy may not be fully included in final figure
• higher income earners may not declare full income for taxation reasons, means GDP will be seen as being lower
• may be subject to things such as levels of government intervention, not GDP

Question 2

What are the indicators of development?

Answer 2

• HDI (Composite)
• GDP (single)

Question 3

What does the GINI coefficient tell us?

Answer 3

• how equally wealth is spread in a nation
• 1 indicates large inequality
• 0 indicates perfect equal distribution
• can be used with other indices to see whether same level of development is available to all in a nation