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Measuring development practice questions.

36 exam-style questions on Measuring development — topic 4.8 of The global economy in the IB Economics syllabus — with answers and explanations. Samples below; the full set is free with an account.

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About this topic

Syllabus code
4.8
Subject
IB Economics
Unit
4 · The global economy
Questions
36 with worked answers
Question types
13 multiple-choice questions · 7 flashcards · 7 fill-in-the-gap questions · 7 true/false questions · 2 matching tasks
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Sample questions on Measuring development

Which set of indicators is used to calculate the Human Development Index (HDI)?

  • Life expectancy, Gini coefficient, unemployment rate
  • Life expectancy; years of schooling; GNI per capita (PPP)
  • Infant mortality, adult literacy, GDP growth rate
  • Life expectancy, carbon emissions per capita, GDP per capita

Answer: Life expectancy; years of schooling; GNI per capita (PPP)

The HDI combines a health dimension (life expectancy at birth), an education dimension (mean and expected years of schooling) and a standard-of-living dimension (GNI per capita at PPP).

Why is GNI per capita usually converted at purchasing power parity (PPP) when comparing living standards across countries?

  • PPP removes the effect of income inequality within countries
  • PPP measures the size of the informal economy
  • PPP adjusts for differences in population growth rates
  • PPP adjusts for price differences to show real buying power

Answer: PPP adjusts for price differences to show real buying power

Because prices are lower in many developing countries, converting at PPP shows the real purchasing power of income rather than its value at market exchange rates.

Which of the following is a valid limitation of using GDP per capita to measure economic development?

  • It ignores how income is distributed among households
  • It cannot be calculated for economies that export goods
  • It automatically overstates development in every country
  • It includes the value of unpaid household work

Answer: It ignores how income is distributed among households

GDP per capita is an average: it says nothing about distribution, and it also excludes non-market activity, the informal sector and quality-of-life factors.

A country ranks 25th in the world by GNI per capita but only 70th by HDI. Which is the most likely explanation?

  • Its price level is lower than in other countries
  • Its Gini coefficient is unusually low
  • Its health and education lag behind its income
  • Its GNI per capita has been adjusted for inflation

Answer: Its health and education lag behind its income

A lower HDI rank than income rank means income has not translated into human development: the health and/or education components must be pulling the index down.

The Gender Inequality Index (GII) measures inequality between men and women across which three dimensions?

  • Income, wealth, land ownership
  • Reproductive health, empowerment, labour market
  • Education, life expectancy, savings
  • Political representation, GDP per capita, literacy

Answer: Reproductive health, empowerment, labour market

The GII covers reproductive health (maternal mortality, adolescent births), empowerment (parliamentary seats, secondary education) and labour market participation.

Which composite indicator explicitly includes a country's ecological footprint in its calculation?

  • Human Development Index
  • Gender Inequality Index
  • Gini coefficient
  • Happy Planet Index

Answer: Happy Planet Index

The Happy Planet Index relates well-being and life expectancy to the ecological footprint, showing how efficiently a country turns resource use into long, happy lives; the HDI, GII and Gini coefficient contain no environmental component.

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