The Meaning and Measurement of Economic Development

Show Answers

Correct options are highlighted when revealed.

1.Which of the following best represents the fundamental basic needs?

Food, apparel, and shelterHealthcare, schooling, and decent housingSufficient nutrition, basic education, healthcare, sanitation, access to clean water, and housingLife expectancy and standard of living

2.In the Human Development Index, longevity serves as an indicator of which aspect?

3.Which three indicators are combined to form the Physical Quality of Life Index (PQLI)?

Infant mortality rate, life expectancy, and adult literacy rateCrime statistics, environmental cleanliness, and housing standardsLevels of air pollution, water contamination, and sanitation facilitiesHealthcare quality, educational attainment, and environmental conditions

4.According to researchers Summers and Heston from the University of Pennsylvania, how is the GDP price level calculated using the purchasing power parity (PPP) exchange rate and the actual exchange rate?

Both exchange rates are expressed as the domestic currency price of the US dollarNeither exchange rate is converted into international dollarsBoth exchange rates are fixed or peggedBoth exchange rates are adjusted using the Big Mac PPP method

5.Which type of weights does the Paasche price index utilize?

Weights from the current periodWeights based on the initial yearFisher ideal index weightsWeights derived from Purchasing Power Parity (PPP)

6.What does the acronym OPEC stand for?

Organization of Petroleum Exporting CountriesOrganization of Pre-European CommissionsOil Producing Economic CoalitionOrganization for Problematic Economic Committees

7.According to the World Bank, how are countries categorized based on their GNP per capita?

Newly Industrialized Countries, OPEC members, and G7 nationsLow-income, middle-income, and high-income countriesSoutheastern, Northeastern, and Southwestern regionsContinents such as Asia, America, and Europe

9.Identify the country from the list below that is classified as not being low-income.

EthiopiaRwandaSomaliaSingapore

10.Which formula correctly calculates the economic growth rate from the year 2001 to 2002?

[(GDP in 2002 + GDP in 2001) / GDP in 2001] × 100[(GDP in 2002 minus GDP in 2001) multiplied by GDP in 2001] × 100[(GDP in 2002 minus GDP in 2001) divided by GDP in 2001] × 100[(GDP in 2001 minus GDP in 2002)] × 100