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Measuring Development · Paper 1 — Free Economics SL Practice Questions

1FoundationSAQ-SHuman Development Index (HDI) and other development indicators4 marksPaper 1~6 min

Data

- Life expectancy at birth: 7272 years - Mean years of schooling: 8.08.0 years - Expected years of schooling: 14.014.0 years - GNI per capita (PPP): USD 12 00012\,000 The Education Index is calculated as the arithmetic mean of two sub-indices. The Mean Years of Schooling Index =8.015= \dfrac{8.0}{15} and the Expected Years of Schooling Index =14.018= \dfrac{14.0}{18}.
A country has the following
(a)
State what the Human Development Index (HDI) measures. [1 mark]
(b)
Calculate the Education Index for this country, giving your answer to two decimal places. [1 mark]
(c)
Explain why a country with a high GNI per capita might still have a low HDI score. Use a real-world example to support your answer. [2 marks]

Solutions

2FoundationSAQ-SHuman Development Index (HDI) and other development indicators7 marksPaper 1~11 min
Country A has a mean years of schooling of 66 years and an expected years of schooling of 1212 years. Country B has a mean years of schooling of 44 years and an expected years of schooling of 1010 years. The Education Index for each country is calculated using the formula: Education Index=Mean Years Index+Expected Years Index2\text{Education Index} = \frac{\text{Mean Years Index} + \text{Expected Years Index}}{2} where each sub-index is calculated as: Sub-index=actual value−minimum valuemaximum value−minimum value\text{Sub-index} = \frac{\text{actual value} - \text{minimum value}}{\text{maximum value} - \text{minimum value}} The minimum and maximum values are: mean years of schooling — minimum 00, maximum 1515; expected years of schooling — minimum 00, maximum 1818.
(a)
State the two indicators used to measure the knowledge dimension of the Human Development Index (HDI). [1 mark]
(b)
Calculate the Education Index for Country A and for Country B. [2 marks]
(c)
A policymaker argues that improving expected years of schooling is more important than improving mean years of schooling for raising a country's HDI knowledge score. Using your results from (b) and your knowledge of HDI, evaluate this claim. [4 marks]

Solutions

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