Pearson Edexcel · A-Level · Economics B

    Course version: 9EB0 · Version from Sept 2015

    B) Indicators of growth: o GDP per capita o literacy o health o Human…

    Full specification wording

    Developed, emerging and developing economies: b) Indicators of growth: o GDP per capita o literacy o health o Human Development Index (HDI)

    GDP per capita measures average income, calculated as total GDP divided by population.

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    • Point 2 of 4
    • 4 key terms

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    GDP per capita measures average income, calculated as total GDP divided by population. It indicates economic growth but ignores income distribution. Literacy rates (percentage of adults who can read and write) and health indicators (like life expectancy at birth or infant mortality rates) reflect the quality of human capital and standard of living. The Human Development Index (HDI) is a composite measure combining GNI per capita, life expectancy, and mean/expected years of schooling. It provides a broader measure of economic development than GDP alone, scoring countries between 0 and 1.

    What earns the marks

    • Identify GDP per capita as total economic output divided by population size.
    • Recognise that literacy rates indicate the educational attainment and skill level of the workforce.
    • Explain how health indicators, such as life expectancy, reflect living standards and healthcare quality.
    • Define the HDI as a composite index of life expectancy, education, and per capita income.
    • Evaluate the limitations of using single indicators compared to composite measures like the HDI.

    Common mistakes and how to put them right

    • Confusing GDP with GDP per capita.

      Put it right: GDP is total output, whereas GDP per capita divides this by the population to show average income.

    • Assuming HDI includes environmental factors.

      Put it right: HDI only measures health, education, and income, ignoring environmental sustainability.

    • Believing high GDP per capita guarantees high living standards for all.

      Put it right: GDP per capita is an average and does not account for income inequality within a country.

    Exam tips

    • When evaluating growth, always contrast single economic measures like GDP per capita with broader development measures like HDI.
    • Remember the three specific components of the HDI: life expectancy, education (mean and expected years of schooling), and GNI per capita.
    • Use specific examples of countries where GDP growth has not translated into improved health or literacy to demonstrate analytical depth.

    Try the lesson

    The start of the Developed, emerging and developing economies: b) Indicators of growth: o GDP per capita o literacy o health o Human Development Index (HDI) lesson, made from checked teaching notes for this specification point.

    Have a go first

    The Human Development Index (HDI) is a composite statistic used to measure a country's overall achievement in its social and economic dimensions. Which of the following indicators are used to calculate the HDI?

    Listen

    GDP per capita measures average income, calculated as total GDP divided by population. It indicates economic growth but ignores income distribution. Literacy rates (percentage of adults who can read and write) and health indicators (like life expectancy at birth or infant mortality rates) reflect the quality of human capital and standard of living. The Human Development Index (HDI) is a composite measure combining GNI per capita, life expectancy, and mean/expected years of schooling. It provides a broader measure of economic development than GDP alone, scoring countries between 0 and 1. A strong answer earns marks for these points. Identify GDP per capita as total economic output divided by population size. Recognise that literacy rates indicate the educational attainment and skill level of the workforce. Explain how health indicators, such as life expectancy, reflect living standards and healthcare quality. Define the HDI as a composite index of life expectancy, education, and per capita income. A common slip: Confusing GDP with GDP per capita. Instead, GDP is total output, whereas GDP per capita divides this by the population to show average income. Exam tip: When evaluating growth, always contrast single economic measures like GDP per capita with broader development measures like HDI.

    See it

    A top-down flowchart. The top node reads 'Indicators of growth' and branches into four nodes: 'GDP per capita', 'Literacy', 'Health' and 'Human Development Index (HDI)'. The HDI node then branches into three further nodes: 'GNI per capita', 'Life expectancy' and 'Mean/expected years of schooling'.
    This shows the indicators of growth listed in the note, with the HDI broken down into its three components.

    Key words

    Say what each word means before you turn the card.

    GDP per capita

    Try answering aloud or in your head before turning the card.

    Literacy rates

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    Health indicators

    Try answering aloud or in your head before turning the card.

    Human Development Index (HDI)

    Try answering aloud or in your head before turning the card.

    See every definition
    GDP per capita
    Total GDP divided by population, measuring average income and indicating economic growth but ignoring income distribution.
    Literacy rates
    The percentage of adults who can read and write, reflecting the quality of human capital and standard of living.
    Health indicators
    Measures such as life expectancy at birth or infant mortality rates that reflect the quality of human capital and standard of living.
    Human Development Index (HDI)
    A composite measure combining GNI per capita, life expectancy, and mean/expected years of schooling, scoring countries between 0 and 1 and providing a broader measure of economic development than GDP alone.

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A top-down flowchart. The top node reads 'Indicators of growth' and branches into four nodes: 'GDP per capita', 'Literacy', 'Health' and 'Human Development Index (HDI)'. The HDI node then branches into three further nodes: 'GNI per capita', 'Life expectancy' and 'Mean/expected years of schooling'.
    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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