Measuring Development

Question 1

GDP definition

Answer 1

The total value of all finished goods and services produced by a country in a year. Expressed in amount per head in USD

Question 2

GNP definition

Answer 2

Total value of all finished goods and services produced by a country in a year - plus all net income earned by that country and its population from overseas sources. Expressed in amount per head in USD

Question 3

Weakness’s of GDP & GNP

Answer 3

1. A country can have a high GDP but it’s concentrated on a few people.
2. May be differences in wealth between regions of a country. (Eg. UK - poor north, rich south)
3. Doesn’t take into account the local cost of living or purchasing power of income

Question 4

HDI defintion

Answer 4

Human development index. Rank countries development based of life expectancy, literacy, education and standards of living based on purchasing power of income

Question 5

HDI criticism

Answer 5

Countries in the developing world could have the same HDI as some countries in the developed world. This can happen if a country promotes development even though their income is low