Alternative Indicators of Economic Development

The video explores various methods to measure economic development beyond the Human Development Index (HDI). It highlights the limitations of HDI, such as its narrow focus on three dimensions and omission of factors like poverty and inequality. Alternative measures discussed include the Multidimensional Poverty Index (MPI), Gini Index for income inequality, Gender Empowerment Measurement (GEM), and Genuine Progress Indicator (GPI). These indices provide a broader view of development by considering factors like poverty, income distribution, female empowerment, and growth externalities. The video concludes with a preview of the next topic: the economics of happiness.

What are the three dimensions used by the Human Development Index to measure a country's development?

• Culture, environment, and governance

• Income, health, and education

• Poverty, inequality, and happiness

• Employment, infrastructure, and technology

Which index is used to measure poverty and economic deprivation within a country?

• Gender Empowerment Measure

• Multidimensional Poverty Index

• Gini Coefficient

• Human Development Index

In the comparison between Burkina Faso and Congo, what does a higher HDI but lower MPI in Burkina Faso suggest?

• Higher development but higher poverty

• Higher development and lower poverty

• Lower development but higher poverty

• Lower development and lower poverty

What does the Gini coefficient measure in a country?

• Income inequality

• Educational attainment

• Poverty levels

• Economic growth rate

How does the Gini index differ from the HDI in terms of insights it provides?

• It measures overall happiness

• It assesses environmental impact

• It calculates GDP growth

• It evaluates income distribution

What does the Gender Empowerment Measure (GEM) assess?

• The role of women in economic and political life

• The environmental impact of economic growth

• The distribution of national income

• The overall happiness of a population

What is the purpose of the Genuine Progress Indicator (GPI)?

• To measure the net impact of economic growth

• To calculate the GDP of a country

• To assess the level of education

• To evaluate the health outcomes