1
2 marks
State two of the indicators used to calculate the Human Development Index (HDI).
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Measuring Economic Development (DP IB Economics: SL): Exam Questions
45 mins15 questions
2
2 marks
Case Study
Text A, Paragraph 1
In a recent international economic review, various developing countries, including those in Asia, have been analysing their economic performance. Policymakers are keen to assess the long-term effects of increasing cross-border trade and investment on their overall economic indicators, including gross national income (GNI).
Define the term gross national income (GNI) as indicated in (Text A, Paragraph 1).
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3
2 marks
Case Study
Text B, Paragraph 1
Governments in various African nations have been discussing how to improve their rankings in global development measures. They are evaluating current strategies in sectors like healthcare, education, and economic stability, all of which are key factors in their Human Development Index (HDI).
Define the term Human Development Index (HDI) as indicated in (Text B, Paragraph 1).
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4
2 marks
Case Study
Text C, Paragraph 2
Countries like Sweden have been commended for their strong performance on the Gender Inequality Index (GII), reflecting progress in promoting gender equality in various sectors of the economy. Recent policy initiatives have focused on empowering women in the workforce.
Define the term Gender Inequality Index (GII) as indicated in (Text C, Paragraph 2).
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5
2 marks
Case Study
Text D, Paragraph 2
Recent studies in Asia have explored the value of using composite indicators like the Human Development Index (HDI) to provide a fuller picture of a country’s economic and social progress. These measures allow countries to evaluate multiple dimensions of development simultaneously.
Outline one purpose of using composite indicators as indicated in bold (Text D, Paragraph 2).
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6
2 marks
Case Study
Text B, Paragraph 3
While the HDI is widely used, researchers in Eastern Europe are exploring its limitations, particularly when it comes to capturing inequalities within countries. These discussions are part of a broader effort to improve development metrics for a more complete understanding of national progress.
State two limitations of the Human Development Index (HDI) as indicated in bold (Text B, Paragraph 3).
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7
2 marks
Case Study
Text D, Paragraph 3
In comparing different economies, several nations have looked at both GNI and GDP as part of their analyses. Researchers are working to better understand the implications of these two indicators for policy planning, particularly in relation to foreign investment.
Outline the difference between gross national income (GNI) and gross domestic product (GDP) as indicated in bold (Text D, Paragraph 3).
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8
2 marks
Case Study
Text D, Paragraph 1
Economic planners across Europe have been adjusting their models to better compare living standards between countries. Discussions have focused on how these adjustments may affect future policy directions in trade and development, with a particular emphasis on purchasing power parity (PPP).
Define the term purchasing power parity (PPP) as indicated in (Text D, Paragraph 1).
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1
4 marks
Extract B, Paragraph 2
Case Study
Angola's government reports GDP growth of 15% in nominal terms for the past year, while inflation stands at 8%. The statistical office also publishes data showing increased industrial output, though living standards indicators present a mixed picture. International organisations note the challenges of measuring real economic progress.
Explain the difference between nominal GDP per capita and real GDP per capita at PPP as indicators of development.
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2
4 marks
Case Study
Extract A, Paragraph 2
Senegal has invested significantly in its healthcare and education systems over the past decade. Government statistics show changes in literacy rates, school enrolment, and infant mortality rates. Development agencies note particular improvements in youth literacy and maternal health indicators.
Explain two single indicators that could be used to measure Senegal's development progress.
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3
4 marks
Case Study
Extract A, Paragraph 3
Tanzania's statistical office publishes data on income distribution, education access, and healthcare provision. While some regions show improving Gini coefficients, others face persistent inequalities. Development planners emphasise the need to track multiple social and economic indicators simultaneously.
Explain two economic and social inequality indicators used to measure development.
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4
4 marks
Case Study
Extract B, Paragraph 1
India's development statistics reveal significant regional variations in income, education, and health outcomes. While the country's overall HDI score has improved, analysts note that averages mask substantial inequalities between different population groups and geographical areas.
Explain how the Inequality-adjusted Human Development Index (IHDI) differs from the HDI.
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5
4 marks
Case Study
Extract C, Paragraph 1
Costa Rica ranks highly on the Happy Planet Index despite having a lower GDP per capita than many developed nations. The country shows strong performance in life expectancy and wellbeing measures while maintaining a relatively low ecological footprint. Development experts debate the significance of different measurement approaches.
Explain the difference between the Happy Planet Index (HPI) and the Human Development Index (HDI).
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6
4 marks
Case Study
Extract C, Paragraph 3
The Dominican Republic shows varying performance across different development metrics. While life expectancy has reached 74 years and mean years of schooling has increased to 9.3, GNI per capita remains modest. Development agencies note the importance of considering multiple dimensions when assessing progress.
Explain how the Human Development Index measures development progress.
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7
5 marks
[4]
Case Study
Table 3 — Kenya: Selected Development Indicators (2019–2024)
Indicator | 2019 | 2020 | 2021 | 2022 | 2023 | 2024* |
|---|---|---|---|---|---|---|
Population (millions) | 52.5 | 53.7 | 54.9 | 56.2 | 57.5 | 58.9 |
Real GDP (US$ bn, 2015 prices) | 87.1 | 86.4 | 89.2 | 91.7 | 94.6 | 97.0 |
GNI per capita (PPP, US$) | 4,470 | 4,390 | 4,530 | 4,620 | 4,750 | 4,890 |
Life expectancy (years) | 66.7 | 67.1 | 67.4 | 67.6 | 67.9 | 68.1 |
Mean years of schooling | 6.8 | 6.9 | 7.0 | 7.1 | 7.2 | 7.2 |
HDI | 0.611 | 0.613 | 0.617 | 0.620 | 0.628 | 0.631 |
(i) Identify two components of the Human Development Index (HDI) shown in Table 3, and explain how one of them may have contributed to Kenya’s development between 2019 and 2024.
[3]
(ii) Outline why Kenya’s HDI increased between 2019 and 2024.
[2]
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