Global variations in levels of economic development: Practice Questions

Which measure of development is defined as the total value of goods and services produced by a country, plus money earned from and paid to other countries, divided by the total population?

How do microfinance loans function as a strategy to reduce the global development gap?

In the Demographic Transition Model (DTM), which stage is characterized by a high birth rate and a high death rate, resulting in a very low rate of natural increase?

Which of the following is a physical factor that contributes to uneven development by limiting a country's ability to trade goods directly via international sea routes?

Which strategy designed to reduce the global development gap involves a group of creditor nations agreeing to cancel debts owed to them by lower-income countries, provided the saved funds are reinvested in public services?

Identify one reason why intermediate technology is often more effective than high-tech solutions in reducing the development gap for rural communities in Lower Income Countries (LICs).

Discuss how a country's shift from Stage 2 to Stage 3 of the Demographic Transition Model provides evidence of significant improvements in its level of economic development and social infrastructure.

Development is measured using various indicators to compare the quality of life between countries.
a) Define the Human Development Index (HDI).
b) Identify three separate components or indicators that are used to calculate the HDI score.
c) Briefly explain why HDI is considered a more reliable measure of a country's development than using Gross National Income (GNI) per head alone.