8. Measuring Development Flashcards
What is Gross Domestic Product (GDP)?
The total value of all goods and services produced within a country’s borders in a specific time period.
Define Gross National Income (GNI).
The total income earned by a country’s residents, including income from abroad, in a specific time period.
What is the Human Development Index (HDI)?
A composite index measuring average achievement in key dimensions of human development: health, education, and standard of living.
How is HDI calculated?
By combining normalized indices of life expectancy, education level, and per capita income.
What does the Gini coefficient measure?
Income inequality within a nation, ranging from 0 (perfect equality) to 1 (perfect inequality).
Explain the Multidimensional Poverty Index (MPI).
An index that measures acute poverty by assessing multiple deprivations in health, education, and living standards.
What is Purchasing Power Parity (PPP)?
An economic theory that compares different countries’ currencies through a “basket of goods” approach, adjusting for cost of living differences.
How does the Gender Inequality Index (GII) assess development?
By measuring disparities between genders in reproductive health, empowerment, and labor market participation.
What role do literacy rates play in measuring development?
High literacy rates indicate better education systems and are linked to improved economic and social outcomes.
Why is life expectancy used as a development indicator?
It reflects the overall health conditions and quality of life in a country.
