7.3 Measures of Development

• Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders
• The Human Development Index (HDI) is a composite index measuring life expectancy, education, and standard of living
• Match the development measure with its usage:

  GDP ↔️ Indicates economic output

  GDP per capita ↔️ Reflects average income
• Order the following development measures from economic to social:

  1️⃣ GDP

  2️⃣ GDP per capita

  3️⃣ GNI

  4️⃣ GNI per capita

  5️⃣ HDI

  6️⃣ Gini coefficient

  7️⃣ Poverty rate
• GDP per capita provides a measure of the average income and living standards of residents.

  True
• The Human Development Index (HDI) measures human development based on life expectancy, education, and standard of living.


  True
• What is the Human Development Index (HDI)?

  A composite index
• What does GDP per capita focus solely on?

  Economic output
• Social measures include HDI, Gini coefficient, and poverty rate
• What does GDP (Gross Domestic Product) measure?

  Total monetary value
• GDP measures economic activity, while GDP per capita gauges individual well-being.


  True
• GNP includes income from overseas operations, whereas GDP only considers domestic production.
• Match the dimension of HDI with its indicator:

  Life Expectancy ↔️ Life expectancy at birth

  Education ↔️ Mean and expected years

  Standard of Living ↔️ GNI per capita
• What is the purpose of Purchasing Power Parity (PPP)?

  Equalize purchasing power
• What are the Sustainable Development Goals (SDGs)?

  17 global goals
• The SDGs emphasize the interconnectedness of different development factors
• The Sustainable Development Goals (SDGs) were adopted by the United Nations in the year 2015
• What do the SDGs emphasize about development factors?

  Interconnectedness
• A higher Gini coefficient indicates greater income inequality in a country.


  True
• GNI per capita provides a more accurate measure of average income
• What are the two main types of development measures?

  Economic and social
• GDP per capita is calculated by dividing GDP by the total population
• Match the development measure with its definition:

  GDP ↔️ Total value of goods and services produced within a country

  GDP per capita ↔️ GDP divided by population
• What does GNP measure that GDP does not?

  Overseas income
• What are the three key dimensions of the HDI?

  Life expectancy, education, standard of living
• What is the Human Development Index (HDI) used for?

  Ranking countries by human development
• Unlike GDP per capita, the HDI includes social and health factors.


  True
• PPP per capita provides a more accurate comparison of living standards
• The SDGs emphasize the interconnectedness of development factors.

  True
• The Gini coefficient measures income inequality
• How is GNI per capita calculated?

  GNI divided by population
• What is the main strength of the HDI as a development measure?

  Considers social and economic dimensions
• Development measures are quantitative indicators used to assess a country's level of economic and social development
• GDP per capita reflects the average income of a country's population.

  True
• The Gini coefficient ranges from 0 to 1, with 0 indicating perfect equality.


  True
• GDP measures economic activity, while GDP per capita gauges the economic well-being of individuals
• Gross Domestic Product (GDP) is the total value of all goods and services produced within a country's borders
• Match the development measure with its key difference from GDP:

  GNP ↔️ Includes income from abroad

  GNP per capita ↔️ Provides a more accurate income measure
• HDI values range from 0 to 1, with higher values indicating higher levels of human development
• One dimension of the HDI is life expectancy