54 Questions
What is one of the dimensions of poverty mentioned in the text?
Material deprivation
According to the text, what is the main goal of development policy?
Poverty reduction
Which approach is commonly used for the definition and measurement of poverty, as mentioned in the text?
Monetary approach: a shortfall in consumption or income
What does the Gini coefficient measure?
The level of income inequality in a country
What does the Lorenz curve depict?
The distribution of income among members of a population
What does the area between the Lorenz curve and the line of income equality represent?
The Gini coefficient
What does the term 'intergenerational elasticity' refer to?
How much will your income change if your parents' income changed
What is the numerical range of the Gini coefficient?
0 to 1
In the context of the Lorenz curve, what does a bow away from the line of income equality indicate?
Less equal distribution of income
What does the term 'social mobility' refer to?
The ability to change one's place in society
What does the Gini index of 0 indicate?
Total equality
Which approach to define and measure poverty emphasizes the deprivation of a person's capabilities to live a valued life?
Capability approach
What does the social exclusion approach to define and measure poverty involve?
Alienation or disenfranchisement from societal activities
In which countries are absolute poverty lines used?
Low-income countries
What does the participatory approach to define and measure poverty concern?
Lack of opportunity to participate in decision making
What does the subjective poverty refer to?
Individual understanding and perception of their situation
What are the two types of objective poverty mentioned in the text?
Absolute and relative poverty
What do different methods of defining and measuring poverty involve?
Various judgments and lack of transparency
What is the focus of the monetary approach to define and measure poverty?
Consumption or income shortfall
What are relative poverty lines based on?
Reference value
What type of poverty includes a clear disadvantage in society?
Relative poverty
What type of poverty includes lack of resources for basic needs?
Objective poverty
Which index measures average achievement in key dimensions of human development, including a long and healthy life, knowledge, and a decent standard of living?
HDI
What does the Multidimensional Poverty Index (MPI) measure average achievement in?
Health, education, and decent standards of living
Which index is used to measure development and poverty, and was replaced by the Multidimensional Poverty Index (MPI) in 2010?
HPI
What does the Inequality Adjusted Human Development Index (IHDI) adjust for?
Income inequality
What does the international poverty line reflect as income grows?
It increases
Which index captures the fraction of the poverty line that people are missing?
Poverty headcounts
What does the Easterlin Paradox suggest about life satisfaction as income increases in richer countries?
It decreases
Which index provides cross-country comparable data on human development?
HDI
What does the Poverty Gap Index measure?
The intensity of poverty
What is the current international poverty line as of 2022?
$2.15/day
Which organization classifies countries according to gross national income (GNI) per capita?
The World Bank
When did the history of sustainable development begin?
1972 UN Conference on the Human Environment
What do Sustainable Development Goals (SDGs) aim to promote?
Sustainable, inclusive, and equitable economic growth
What is a challenge of sustainable development?
Meeting the demands of more discerning consumers
What does development involve?
Improvements in the standard of living, economic growth, and reduction of inequality
What are crucial elements in economic development?
Future projections and the convergence and consolidation of supporting SDGs
What do Sustainable Development Goals (SDGs) provide?
A common language and agenda for public and private collaboration
What is part of understanding poverty and development?
The importance of development indicators and the inequality problem
What do sustainable development goals call for?
Efforts to build an inclusive, sustainable, and resilient future
What does the UN use to classify Least Developed Countries (LDCs)?
Indicators such as GNI per capita, HAI, and EVI
What do sustainable development goals emphasize?
Economic growth, social inclusion, and environmental protection
What does the Inequality-Adjusted Human Development Index (IHDI) measure?
Geometric mean of inequality-adjusted dimensional indices in health, education, and income
What happens to IHDI in comparison to HDI as inequality rises?
IHDI < HDI, indicating loss in human development due to inequality
What data source does the IHDI rely on for its calculation?
National household surveys on income/consumption and years of schooling
Which development indicators are used to measure gender inequalities in achievement and gender inequality using three dimensions?
IHDI, Gender Development Index (GDI), and Gender Inequality Index (GII)
What does the adjustment to standard HDI values by the planetary pressures-adjusted HDI indicate?
Increases as the level of human development increases
What does the Genuine Progress Indicator (GPI) measure?
Sustainable economic welfare, incorporating environmental and social elements not found in GDP calculations
What does the Social Progress Index measure?
Society's capacity to meet basic human needs and enhance the quality of life for its citizens
What does the Inclusive Wealth Index measure?
A nation’s capacity to create and maintain human well-being over time using manufactured, human, and natural capital
What is a notable impact of inequality on well-being?
Reduces well-being, with notable increases in prosperity but high inequality persisting and potentially increasing in some places
What factors does measuring inequality depend on?
Reference unit, relevant reference period, and acceptable indicator values to society
How can economic inequality be measured?
Using wealth, market income, or disposable income, with variations in inequality levels among countries
Study Notes
Development Indicators and Inequality
- The Inequality-Adjusted Human Development Index (IHDI) is calculated as the geometric mean of inequality-adjusted dimensional indices, taking into account the distribution of health, education, and income among a country's population.
- IHDI = HDI when there is no inequality, but IHDI < HDI as inequality rises, indicating the loss in human development due to inequality.
- The IHDI relies on data from national household surveys on income/consumption and years of schooling.
- The IHDI, Gender Development Index (GDI), and Gender Inequality Index (GII) are key development indicators used to measure gender inequalities in achievement and gender inequality using three dimensions: reproductive health, empowerment, and the labor market.
- The adjustment to standard HDI values by the planetary pressures-adjusted HDI increases as the level of human development increases.
- The Genuine Progress Indicator (GPI) measures sustainable economic welfare, incorporating environmental and social elements not found in GDP calculations.
- The Social Progress Index measures a society's capacity to meet basic human needs and enhance the quality of life for its citizens.
- The Inclusive Wealth Index measures a nation’s capacity to create and maintain human well-being over time using manufactured, human, and natural capital.
- Inequality reduces well-being, with notable increases in prosperity but high inequality persisting and potentially increasing in some places, particularly problematic in Latin America.
- Inequality manifests in various ways, including rent, wages, consumption, access to opportunities, resources, services, freedoms, and political opportunities.
- Measuring inequality is complex and depends on factors such as the reference unit, relevant reference period, and acceptable indicator values to society.
- Economic inequality can be measured using wealth, market income, or disposable income, with variations in inequality levels among countries.
Test your knowledge of development indicators and inequality with this quiz. Explore concepts such as the Inequality-Adjusted Human Development Index (IHDI), Gender Development Index (GDI), Genuine Progress Indicator (GPI), and more. Gain insight into the impact of inequality on well-being and economic welfare, and understand the complexities of measuring and addressing inequality in different contexts.
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