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Development in an African Context

Simple, composite and qualitative measures of development

  • 3 things to know
  • Component 3 Section B

Overview

Simple measure of development, gross national income per capita and purpose of expressing income at purchasing power parity.

What you need to know

Answer each one before you reveal it.

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Key term

What is a simple measure of development?

Key term

Define gross national income per capita.

Key term

How does gross domestic product differ from gross national income?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a simple measure of development?

    Model answer

    A simple measure of development uses a single indicator such as literacy rate or life expectancy. One figure is easy to compare but captures only one aspect of development.

  2. 2

    Define gross national income per capita.

    Model answer

    Gross national income per capita is the total income earned by a country's residents divided by its population. The measure includes income earned abroad and excludes income paid out to foreigners.

  3. 3

    How does gross domestic product differ from gross national income?

    Model answer

    Gross domestic product counts output produced inside a country's borders. Gross national income counts income earned by its residents wherever that income is produced.

  4. 4

    What is the purpose of expressing income at purchasing power parity?

    Model answer

    Purchasing power parity is a conversion that reflects what money actually buys in each country. Ghana's income gap with the United Kingdom narrows sharply once local prices are used.

  5. 5

    State the World Bank income group and income per head for Botswana and Ghana in 2022.

    Model answer

    Botswana was an upper-middle-income economy, with gross national income per capita of roughly $7,300 in 2022. Ghana was lower-middle-income at around $2,350 in the same year.

  6. 6

    What is a composite measure of development?

    Model answer

    A composite measure combines several indicators into a single index. The Human Development Index is the best known example.

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