1. Emerging and developing economies: measures of development
Microeconomics Topic 1: The Economic Problem
Emerging and developing economies: measures of development

2. Microeconomics Topic 1: The Economic Problem
4.3.1 Unit content
Students should be able to:
Define the three dimensions of the Human Development Index, HDI, (education, health and living standards) and explain how they are measured and combined
Assess the advantages and limitations of HDI in making comparisons between countries and over time
Interpret and use other measures of development such as the % of adult males working in agriculture

3. Macroeconomic measurements recap from 2.1.1
The main methods of measuring national economic performance are

4. Bobby Kennedy and GDP (1968): take notes

5. HDI definition
The United Nations calculates a measure of economic development called the Human Development Index. This is based on three indicators of development:
Longevity
Education
Income
It uses these to create an overall score between 0 (low) and 1 (high), the higher the value the __________ the level of development.

6. Longevity, education and income
Longevity refers to average _____________________ So this measure is a measure of the health of the population.
Education attainment looks at ___________ years of schooling for an adult aged __ and expected years of schooling for a _________________ child
Income Index refers to the standard of ________ as measured by real ___ per capita at purchasing power parities. So this measure is looking at living standards.

7. GDP, GNI and GNP recap from 2.1.1
What is gross domestic product (GDP)?
GDP does not include earnings by its ________ while __________ of the country.
Gross National Income (GNI) is GDP plus income paid into the country by other _________ for such things as interest and dividends.
Gross National Product (GNP) is GDP plus income that residents have received from_________, minus ________ claimed by non-residents.
abroad, countries, income, outside, residents

8. HDI examples

9. Limitations of using HDI to compare countries
Microeconomics Topic 1: The Economic Problem
Limitations of using HDI to compare countries

10. Advantages of using HDI to compare countries

11. Other measures: the inequality-adjusted HDI (IHDI)
Introduced in 2010
IHDI is HDI adjusted for ___________ in the distribution of achievements in each dimension of the HDI (health, education and __________)
IHDI = HDI value when there is _____ inequality
But IHDI < HDI value as inequality ______
The difference between the HDI and the IHDI represents the ‘loss’ in potential _________ development due to inequality and can be expressed as a percentage.
human, income, inequalities, no, rises

12. Other measures: the multi-dimensional poverty index (MPI)
This identifies deprivations across the three HDI dimensions (health, __________ and standard of living).
It shows the __________ of people who are multi-dimensionally _______ (suffering deprivations in 33% of _________ indicators) and the number of deprivations with which poor households typically contend.
It can be deconstructed by_______, ethnicity and other groupings as well as by dimension, making it a useful tool for policymakers.
education, number, poor, region, weighted

13. Other measures to compare countries

14. Why might a measure such as the % working in agriculture be useful?