Measuring Development

Question 1

Most common measurements

Answer 1

GDP (total value of all goods and services produced)

GNP (GDP + incomes earned)

Question 2

Old classification of measurements of development divide the world

Answer 2

First, second and third world

Question 3

Define NICs

Answer 3

Countries that have began to develop through industrialisation in the last 40 years e.g. Singapore.

Question 4

Centrally planned economies

Answer 4

Communist countries still exist, but only a few e.g. North Korea

Question 5

Oil rich countries

Answer 5

High GNP per head, but concentrated wealth

Question 6

TNC

Answer 6

Company that has the power to coordinate and control economic operations in more than one country. It does not have to own the operations outside its home country.

Question 7

North-south divide

Answer 7

Line that separates the richer countries of the north from the poorer ones in the south. First suggested in 1980.

Question 8

Development continuum

Answer 8

The development process, with countries at various stages of development and developing in different ways.

Question 9

HDI

Answer 9

Measures life expectancy, literacy and real GDP per capita.

Criticised- some Low Countries have the same HDI to high income countries