L1 - Race for development

Question 1

What is GDP per capita and what does it show?

Answer 1

• Gross domestic product per person.
• Total value of goods and services divided by population
• Allows a comparison between nations but doesn’t show the distribution of wealth (hides inequality) and doesn’t consider informal economy

Question 2

What is GNI and what does it show?

Answer 2

• Gross national income - same as GDP taking into account debt and wealth made outside of the country.

Question 3

What is PPP and what does it show?

Answer 3

• Purchasing power parity
• GNI with living costs variation taken into account.
• For example, in India one dollar would buy more than it does for USA

Question 4

What is the Gini coefficient?

Answer 4

• Shows the inequality within distribution of wealth
• From 0-1, the number 0 means no inequality (everyone has same income
• The number 1 means that one person has all the GDP.

Question 5

Name some economic development indicators.

Answer 5

• GDP, GNI, PPP, Gini Coefficient

Question 6

Name some social development indicators.

Answer 6

• Literacy rates

* Fertility/Infant mortality rate

Question 7

Name a political development indicator and state what it shows.

Answer 7

• Corruption perception index - from 0 (corrupt) - 100 (clean)

Question 8

Name a composite development indicator and what it shows.

Answer 8

• HDI - human development index
• Takes into account life expectancy, education and income (not environmental indicators), to class countries into 4 levels of human development