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.
Which set of indicators is used to calculate the Human Development Index (HDI)?
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?
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?
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?
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?
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?
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.
That was 6 of 36 Measuring development questions.
Practise all 36 freeA student argues: 'Country M's total GDP, measured in US dollars at purchasing power parity, is ten times that of Country N, so living standards in Country M must be higher.' Which step in the argument is unjustified?
See the correction →StateAO1 · 1–2 marks
One word or one short sentence. No explanation, no working: the mark is for the fact itself.
DistinguishAO2 · 2–10 marks
Make the difference clear for BOTH terms — a definition of one of them is only half an answer.
ExplainAO2 · 2–10 marks
Give reasons or causes: say what happens AND why, linking each step with 'because' or 'so that'.
36 Measuring development questions — free with an account. Spaced repetition, streaks and full exam simulations included.
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