Measures Of Development

Question 1

Adv of HDI to using this as a measure of development

Answer 1

Broad based
Increased healthcare and education.

Question 2

DISADS of using HDI to measure development

Answer 2

-Doesn’t take into account income distribution (but you can use IHDI to combat this problem )

-Arbitrary weighting , meaning that it will be less effective as there can be arguments stating that one is more important than another.

-Doesn’t take into account for freedom and the choice that people have .

Question 3

What do u use to measure HDI?

Answer 3

Living standards
Literacy/education
Health

Question 4

Alternatives of using HDI AS MEASURE OF DEVELOPMENT (evaluation )

Answer 4

Multidimensional poverty index
Sustainable economic development

Question 5

What do they state in order to explain why primary product dependency is not good. ?
Prebish- singer hypothesis

Answer 5

Demand for primary products are income inelastic, therefore prices don’t increase much compared to secondary products.

Question 6

Give an exception for why using primary products could be effective way to increase growth.

Answer 6

By diversifying the products that they produce and sell to other countries. For eg : Kenya who sold tea and flowers

Question 7

Name another evaluation point for why using primary products to export are an effective way to increase growth.

Answer 7

Ricardo suggests that countries should specialise in their comparative advantage. Meaning specialise on what you know you are good at. Eg: country has a lot of sun then focus on agriculture.

Question 8

How does primary product dependency influence growth in a country

Answer 8

Low income because they don’t increase over time
Meaning falling terms of trade = value of exports/ value of imports.