← Differences in development
Indicators and their limitations (asked in 2023)
Name the indicator, what it measures, and the specific blind spot.| Indicator | Measures | Disadvantage |
|---|---|---|
| GDP per capita | Output ÷ population | An average — hides inequality; ignores unpaid and informal work |
| GNI per capita | Income of residents | Still an average; conversion distortions |
| HDI | Health + education + income | Composite average; omits environment, freedom, safety |
| Life expectancy | Years expected at birth | Says nothing about the QUALITY of those years |
| HALE | Years in good health | Harder to measure; data gaps |
| Infant mortality | Deaths under 1 per 1 000 births | Narrow — one dimension only, though very sensitive |
| Happiness Index | Self-reported wellbeing | Subjective; culturally variable |
The answer to "explain the disadvantages" is always: name the blind spot, then name what a second indicator would reveal that this one hides.
The Gini coefficient, a less common but useful indicator to know
- It measures INCOME INEQUALITY within a country, from 0 (perfect equality) to 1 (all income to one person).
- This directly addresses the biggest weakness of GDP/GNI/HDI — that they are averages hiding inequality — so naming the Gini coefficient alongside another indicator is a strong "cross-checking" answer.
- Its own limitation: it says nothing about the ABSOLUTE level of income, only its distribution — a country could have low inequality but still be very poor overall.
Practice for this standard covers the whole topic — flashcards and quiz.