1.3 Indicators of Economic Development

This set of vocabulary flashcards explores various economic development indicators, including Real National Income, HDI, and GNP, along with their conceptual limitations and historical context.

Human Development Index (HDI)

An indicator of economic development developed by the United Nations Development Programme (UNDP).

Real National Income

A method to measure economic development characterized by an increase in the economy's income over a long period of time, where higher income serves as an index for higher development.

Economic Retardation

A condition that occurs when the growth in population happens at a faster rate than the rise in real national income.

Robert Mc Namara

The Governor of the World Bank who, in February $1970$, admitted the failure of using the GNP growth rate as an index of economic development.

Material living standard index

An index used by some economists as a metric to indicate economic development.

Price changes

Inevitable variations that must be ruled out when calculating real national income to accurately measure economic development.

Social costs

One of the factors that the real national income indicator fails to reveal to society during the measurement of development.

Distribution of income

A conceptual element that real national income fails to explain or account for within the economy.

GNP per capita

An indicator of economic development used by some economists that calculates Gross National Product divided by the total population.

United Nations Development Programme (UNDP)

The organization responsible for developing the Human Development Index (HDI).