← Differences in development

Indicators and their limitations (asked in 2023)

Name the indicator, what it measures, and the specific blind spot.
IndicatorMeasuresDisadvantage
GDP per capitaOutput ÷ populationAn average — hides inequality; ignores unpaid and informal work
GNI per capitaIncome of residentsStill an average; conversion distortions
HDIHealth + education + incomeComposite average; omits environment, freedom, safety
Life expectancyYears expected at birthSays nothing about the QUALITY of those years
HALEYears in good healthHarder to measure; data gaps
Infant mortalityDeaths under 1 per 1 000 birthsNarrow — one dimension only, though very sensitive
Happiness IndexSelf-reported wellbeingSubjective; 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.