Measures of Development

Question 1

Single Indicators

Answer 1

Measurements that only include one indicator to assess development

Question 2

GDP per capita

Answer 2

Average income per person

Question 3

Limitations of GDP per capita

Answer 3

No pollution, externalities, inequalities. This is why its becoming used less

Question 4

GNI

Answer 4

Total income generated by country’s FOP

Question 5

Why is GNI used instead of GDP?

Answer 5

Repatriations could feed into GDP, even when the money isn’t added to the original country’s economy

Question 6

PPP

Answer 6

Purchasing Power Parity - shows how far the currency can go in your own country, providing an “equal basis”

Question 7

Health Measures

Answer 7

High rankings mean:
Hospitals are good, so high quality doctors who had high quality education. Linked industries must be strong (sanitation)

Question 8

Education Measures

Answer 8

High rankings mean:

Potential for higher earning jobs improve, teaching jobs flourishing

Question 9

HDI

Answer 9

Life Expectancy
Adult Literacy
Social Enrolment
GDP per capita

Closer to 1 is best

Question 10

HDI pros?

Answer 10

Includes 4 different single indicators, giving more accurate measure
Only focuses on development outcomes as opposed to economic
Gives us a clear idea of underdeveloped countries

Question 11

HDI cons?

Answer 11

No mention of inequality or distribution of income
Arbitrary weighting - GDP/capita is regarded as biggest driver of development but this isn’t shown
Freedom and choice isn’t included at all
Neither is crime/corruption, negative externalities