Chapter 18.2

Question 1

Economic development

Answer 1

A process where increases in real per capita output and incomes are accompanied by improvements in standards of living of the population

Question 2

Human development

Answer 2

The process of expanding human freedoms

Question 3

Indicator

Answer 3

A measurable variable that indicates the state or level of something being measured

Question 4

Out of GDP/GNI per capita, which is a better indicator of the standards of living in a country and why?

Answer 4

GNI per capita because it represents income per person received by the residents while GDP considers output per person

Question 5

Why is PPP used when comparing GDP/GNI across countries?

Answer 5

To eliminate the influence of price differences on the value of output or income

Question 6

True or false? Income or output measures are sufficient indicators of health outcomes of a country

Answer 6

False. There are many other factors that can affect health

Question 7

True or false? Limited resources are the most important cause of poor health outcomes in a country

Answer 7

False. Most countries can do more with their resources, reallocating them towards provisions of more social services and merit goods

Question 8

Why do development issues also apply to developed countries?

Answer 8

Presence of poverty in wealthy societies that make people on low incomes subject to similar deprivations as poor people in developing countries

Question 9

How can all countries achieve universal literacy and primary education regardless of per capita income?

Answer 9

Governments must allocate enough resources to education services and ensure that all children have access to them

Question 10

Composite indicator

Answer 10

Summary measures of more than one dimension of development

Question 11

Human Development Index (HDI)

Answer 11

A composite indicator that measures development on a scale of 0 to 1 using three indicators:
life expectancy
mean years of schooling and expected years of schooling
GNI per capita

Question 12

Inequality-adjusted Human Development Index (IHDI)

Answer 12

Measures the same three dimensions as the HDI but adjusts for inequality in each dimension

Question 13

Gender Inequality Index (GII)

Answer 13

Composite indicator that measures inequalities between genders using the indicators:
maternal mortality ratio
adolescent birth rate
share of parliamentary seats held by women
proportion of women with at least some secondary education
proportion of women in the labor force