All Flashcards
Why is GNI considered a more accurate measure than GDP?
It accounts for international trade (exports - imports).
Why are per capita values important?
To compare countries with different population sizes, leveling the playing field.
What does a large formal economy indicate?
Usually indicates a more developed country.
Why is the Gender Development Index (GDI) important?
Highlights gender-based disparities even in countries with high HDI scores.
What are the impacts of trade deficits?
May indicate over-reliance on foreign goods, can lead to currency outflow, may signal decline in domestic industries.
What do high infant mortality rates suggest?
Poor healthcare.
What do high literacy rates indicate?
High educational levels.
What do high social indicators correlate with?
High levels of development.
What are the limitations of using only economic indicators?
They do not account for the distribution of wealth or social and environmental well-being.
What are the impacts of gender inequality?
Limits women's potential, hinders societal development, and perpetuates cycles of poverty.
What is GDP per capita?
Total value of goods/services produced in a country, divided by its population.
What is Gross National Income (GNI)?
GDP + (Exports - Imports). Accounts for international trade.
What is the Human Development Index (HDI)?
A composite score based on life expectancy, education, and income.
What is the Multidimensional Poverty Index (MPI)?
Looks at poverty through health, education, and living standards.
What is the Gender Development Index (GDI)?
Measures gender inequalities in life expectancy, education, and income.
What is the Environmental Performance Index (EPI)?
Assesses a country's environmental health and sustainability.
What is Gross Domestic Product (GDP)?
The total monetary value of all goods and services produced within a country’s borders in a year.
What is 'per capita'?
Dividing a total value by the population to get an average per person.
What is a trade deficit?
When a country imports more than it exports.
What are fertility rates?
Number of children born to a woman. High rates can indicate a lack of access to family planning.
What are infant mortality rates?
Deaths of infants under one year per 1,000 births. High rates suggest poor healthcare.
What are literacy rates?
Percentage of the population that can read and write. Indicates educational levels.
What is the formal economy?
Organized, regulated, and taxed by the government. Included in GDP/GNI calculations.
What is the informal economy?
Unregulated, untaxed, and often cash-based.
Cause and effect of high fertility rates?
Cause: Lack of access to family planning. Effect: Strain on resources, slower development.
Cause and effect of trade deficits?
Cause: Importing more than exporting. Effect: Currency outflow, potential devaluation.
Cause and effect of a large informal economy?
Cause: Lack of regulation and taxation. Effect: Lower tax revenue, slower development.
Cause and effect of gender inequality?
Cause: Discrimination in education and employment. Effect: Reduced economic growth, societal instability.
Cause and effect of high access to healthcare?
Cause: Government investment and infrastructure. Effect: Increased life expectancy, healthier population.
Cause and effect of high literacy rates?
Cause: Investment in education. Effect: Increased economic productivity, improved quality of life.
Cause and effect of low infant mortality rates?
Cause: Access to quality healthcare and nutrition. Effect: Increased life expectancy, healthier population.
Cause and effect of high GDP?
Cause: Increased production and consumption. Effect: Higher living standards, improved infrastructure.
Cause and effect of high GNI?
Cause: Strong international trade. Effect: Increased national income, improved economic stability.
Cause and effect of high HDI?
Cause: High life expectancy, education, and income. Effect: Improved quality of life, sustainable development.