Basic Concepts Flashcards
आर्थिक विकास meaning
Change in the overall indicators of economy
What kind of change? संख्यात्मक, गुणात्मक, and positive
What are some of the indicators used for economic development?
Gross National Income
Physical Quality Life Index
Human Development Index
Multidimensional Poverty Index
Per Capita Consumption
Gini Index (co efficient)
Balance of trade
What is GNI?
Gross National Income: total income earned by country’s people and businesses, no matter where it was earned
How is GNI calculated?
by adding income from foreign sources to the country’s GDP (Gross Domestic Product)
When does GNI and GDP of a country differ?
Normally GNI and GDP of a country is similar. But if a country has significant foreign presence, foreign aid or a foreign direct investment, then there will be significant differences between GNI and GDP
What is Per Capita Consumption? (PCC)
Average consumption of a population in a country
PC consumption= total consumption/total population
What is PQLI?
Physical Quality Life Index
Used to measure the quality of life and well-being of a country
How is PQLI measured?
By an average of 3 statistics:
infant mortality
Average life expectancy at age 1
basic literacy rate
What is HDI?
Human Development Index
It is a summary measure of average achievement in key dimensions of human development
What does HDI include?
Life expectancy at birth (Life expectancy index)Expected years of schooling and mean years of schooling (education index)GNI per capita (GNI index)
Who developed HDI?
It was developed by the UNDP in 1990 due to their principle that Human Development is Economic development
What does GINI index determine?
it determines a nation’s income inequality by measuring the income or wealth distribution across a country’s population
How does the GINI coefficient work?
If the coefficient is 0 (0 %): Perfect equalityIf the coefficient is 1 (100%): Perfect inequality
What happed to the GINI coefficient during Covid?
It spiked
What is the limitation of the Gini index?
It may overstate the income inequality and obscure important information about income distribution
Who developed the Global Multidimensional Poverty Index(MPI)?
Developed by Oxford Poverty and Human development Initiative (OPHI) and UNDP in 2010
What did MPI replace?
MPI replaced the Human Poverty Index
What dimensions does the MPI use?
3 standard dimensions:HealthEducationStandard of living
What indicators does MPI use?
10 indicators:
Health: Child mortality, nutrition
Education: Years of schooling, school attendance
Standard of Living: Assets, Housing, Electricity, Cooking fuel, Drinking water, Sanitation
What is balance of trade?
difference between the value of a country’s imports and exports for a given period
What is trade deficit?
If a country’s imports of goods and services are more than its exports in terms of value
What is trade surplus?
If a country’s exports of goods and services are more than its imports for a given time period in terms of its value
what is economic growth (आर्थिक वृद्धि )?
संख्यात्मक changes in the overall economic indicators of a country in a fiscal year
How is आर्थिक वृद्धि measured?
measured using indicators like GDP, GNP, and Per Capita Income etc
What is GDP?
Total monetary value of all the goods and services produced within a country in a given time period
What is GNP
Gross National Product: GDP + economic output produced by country’s residents, including income from abroad
Areas of आर्थिक वृद्धि (economic growth)
Increase in:InvestmentEmploymentProductionPricingBusinessIncomeConsumptionSavings
