Measurement and Challenges of Economic Development Flashcards
What does GDP per capita measure?
The average economic output per person in a country.
Name three dimensions included in the Human Development Index (HDI).
Life expectancy, education, and per capita income.
How is income inequality measured within a country?
Using the Gini coefficient, which ranges from 0 (perfect equality) to 1 (maximum inequality).
What does the Multidimensional Poverty Index (MPI) assess?
It considers deprivations in health, education, and living standards to measure poverty.
Why is environmental sustainability a challenge to economic development?
Balancing growth with ecological preservation is crucial to prevent long-term damage.
What is a significant consequence of political instability on economic development?
It deters investment, disrupts economic activities, and undermines effective policies.
How do infrastructure deficits impact economic growth?
They limit access to services and constrain productivity and trade.
Give an example of a global economic shock that affects development.
Commodity price fluctuations or financial crises.
Why is reducing poverty essential for economic development?
High poverty levels hinder economic progress and social stability.
What multifaceted approach is needed for sustainable economic development?
Investment in human and physical capital, good governance, technological innovation, and global economic integration.
