4.8 Measuring Economic Development (DP IB Economics: SL): Flashcards
0Still learning
Know0
Define a single indicator of development.
Was this flashcard helpful?
Cards in this collection (29)
Define a single indicator of development.
A single indicator is one factor, such as GDP per capita, used to measure only one development characteristic within a country.
Define sustainable economic development.
Sustainable economic development is a multi-dimensional concept that occurs at the intersection of economic growth, environmental care and social progress.
Into which three categories can the elements of economic development be separated?
The elements of economic development can be separated into economic, social and environmental categories.
The overlap of the economy and society, where their interaction happens with some attention to well-being, is described as .
The overlap of the economy and society, where their interaction happens with some attention to well-being, is described as equitable.
Define real GDP.
Real GDP is the value of all goods and services produced in an economy in a one-year period, adjusted for inflation.
How is GDP per capita calculated?
GDP per capita is calculated as GDP divided by the population.
Why is real GDP per capita more useful than real GDP for comparing countries?
Real GDP per capita is more useful because it takes population differences into account.
Real GNI per capita is a more realistic metric for analysing the income available per person than per capita.
Real GNI per capita is a more realistic metric for analysing the income available per person than GDP per capita.
Define gross national income (GNI).
Gross national income (GNI) measures the income earned by a country's citizens operating outside of the country, added to its GDP.
True or False?
GNI includes income earned by a country's citizens operating outside its borders.
True.
GNI adds the income earned by citizens operating outside the country to its GDP.
Define purchasing power parity (PPP).
Purchasing power parity (PPP) is a conversion factor that calculates the relative purchasing power of different currencies to make standard of living comparisons between countries more accurate.
True or False?
A single indicator measures several development characteristics at once.
False.
A single indicator measures only one development characteristic within a country.
Give two single indicators used to measure health.
Two single health indicators are infant mortality rate and life expectancy (others include doctors per 1,000 people and diabetes incidence).
Which single indicator is commonly used to measure income inequality?
The Gini coefficient is a single indicator commonly used to measure income inequality.
Define a composite indicator of development.
A composite indicator combines several single indicators into one measure, such as the HDI, IHDI, GII or HPI.
Define the Human Development Index (HDI).
The Human Development Index (HDI) is a composite indicator developed by the United Nations that combines three dimensions — health, education and income — into a single score.
What three dimensions make up the Human Development Index?
The HDI combines health, education and income.
How is the education dimension of the HDI measured?
It is measured by combining the mean years of schooling received by 25-year-olds with the expected years of schooling for a pre-school child.
Within the Human Development Index, each of the three indicators is given weighting.
Within the Human Development Index, each of the three indicators is given equal weighting.
On what scale does the HDI rank countries?
The HDI ranks countries on a scale between 0 and 1.
True or False?
A Human Development Index score closer to 1 indicates a higher level of economic development.
True.
The closer the HDI score is to 1, the higher the level of economic development and the better the standard of living.
Define the Inequality-adjusted Human Development Index (IHDI).
The Inequality-adjusted Human Development Index (IHDI) measures the level of human development once inequality is accounted for.
When is the IHDI equal to the HDI value?
The IHDI equals the HDI when there is no inequality, and falls below it as inequality rises.
The difference between the HDI and the IHDI represents the loss in due to inequality.
The difference between the HDI and the IHDI represents the loss in potential human development due to inequality.
Define the Gender Inequality Index (GII).
The Gender Inequality Index (GII) measures gender inequality across three dimensions: reproductive health, empowerment and the labour market.
True or False?
On the Gender Inequality Index, a higher value indicates greater equality between men and women.
False.
On the GII a lower value indicates greater equality between men and women; a higher value means more inequality.
Define the Happy Planet Index (HPI).
The Happy Planet Index (HPI) measures sustainable wellbeing by ranking how efficiently countries deliver long, happy lives using the earth's scarce resources.
Which three variables make up the Happy Planet Index?
The HPI is made up of wellbeing, life expectancy and ecological footprint.
How does a country's ecological footprint affect its HPI score?
A lower ecological footprint raises the HPI score, because wellbeing multiplied by life expectancy is divided by the ecological footprint.
Sign up to unlock flashcards
or