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Globalisation

Measuring development: GDP, HDI and the Gender Inequality Index

  • 3 things to know
  • Papers 2 and 3

Overview

Recall questions on GDP and GNI per capita, the three HDI dimensions, and what the Gender Inequality Index measures.

What you need to know

Answer each one before you reveal it.

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Key term

What three dimensions make up the Human Development Index?

Key term

What does GDP per capita measure?

Key term

What is the difference between GDP per capita and GNI per capita?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What does GDP per capita measure?

    Model answer

    The average economic output per person in a country, calculated by dividing total GDP by population.

  2. 2

    What is the difference between GDP per capita and GNI per capita?

    Model answer

    GDP per capita measures average domestic economic output per person, while GNI per capita measures average income per person including income received from abroad.

  3. 3

    How does economic sector balance indicate a country's level of development?

    Model answer

    By examining the proportion of employment or GDP contribution from primary, secondary and tertiary sectors; more developed economies typically have larger tertiary sectors.

  4. 4

    Why do more developed economies typically have larger tertiary sectors?

    Model answer

    As economies develop, they shift from agriculture and manufacturing towards service-based industries, reflecting higher productivity, technological advancement and changing consumer demands.

  5. 5

    What advantage do composite indices have over single indices when measuring development?

    Model answer

    Composite indices combine multiple indicators into a single measure, providing a more holistic assessment of development than single indices which only capture one dimension.

  6. 6

    What is the Human Development Index (HDI)?

    Model answer

    A composite measure of social development combining life expectancy, education indicators, and GNI per capita.

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