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1.How is infant mortality rate defined?

The yearly number of deaths of infants under one year old per 1,000 live birthsIndicates access to primary schooling, employment rights, and social welfareRepresents the average lifespan until the age of threeShows the availability of hospitals, childcare services, and the economic status of parents

2.What does the term PPP represent?

A theory stating that currency exchange rates are balanced when the purchasing power is equal in two nationsThe gross domestic product divided by the currency exchange rateAn indicator used to assess income distribution disparitiesA statistic measuring infant death rates in less developed countries

3.Which of the following is not an issue when comparing the GNP of developed and developing nations?

GNP tends to be underestimated for developed countries because some items counted in their national income are intermediate products.In poor countries, the economic value of a housewife’s work in a peasant family may not be reflected in the GNP.GNP is undervalued for developing countries since many of their labor-intensive goods do not affect exchange rates as they are not traded internationally.GNP is exaggerated in countries where the foreign exchange rate is set below the market equilibrium price.None of the above.

4.What is the correct formula for the Laspeyres price index, where 'o' denotes the base year and 'n' represents the current year?

P = (Σ Po × qo) / (Σ po × qo)P = (Σ Po × qo) / (Σ pn × qn)P = (Σ Pn × qo) / (Σ po × qo)P = (Σ Po × qn) / (Σ po × qo)

5.According to the World Bank, what are the GNP per capita thresholds that define low-income, middle-income, and high-income countries?

Below $900, between $900 and $9,000, and above $9,000Under $5,000, from $5,000 to $15,000, and over $15,000Less than $100, ranging from $100 to $1,000, and exceeding $1,000Under $5,000, from $5,000 to $150,000, and above $150,000

7.Which of the following is not classified as a high-income nation?

United KingdomSingaporeJapanHungary

8.Based on the information from chapter 2, which statement is accurate?

The divide between wealthy and poor nations became more distinct during the 1990s.Countries with the highest per capita GNP are always the fastest growing economies.In the 1950s, certain low-income countries such as South Korea and Malaysia experienced much faster growth than some wealthier nations like Uruguay and New Zealand.Currently, all countries classified as high or upper-middle income are located in the Western world.

9.Given that the Maldives had a GDP of $435 million in 2012 and the GDP per capita was $1,576.09, what was the approximate population of the country at that time?

10.Given that Palau, a small nation located southeast of the Philippines, had a GDP of $130 million in 2012 and a population of 20,000, what was its GDP per capita?

65001300.0065650

11.What does the term 'economic development' primarily signify?

An increase in economic outputEconomic growth along with shifts in output allocation and structural changesEnhancement of living standards specifically in citiesA steady rise in the Gross National Product

12.Which of the following nations is NOT classified as a high-income country?

SingaporeUnited KingdomJapanSouth Africa

13.Given that Liechtenstein, a microstate with a population of 29,000 situated on the Rhine River between Switzerland and Austria, had a GNP per capita at constant prices of US$555 in 2011 and US$560 in 2012, what was the real economic growth rate from 2011 to 2012?

14.Tuvalu consists of 9 coral atolls spread over a 360-mile chain in Polynesia and became independent in 1978. With a population of 9,700 and a Gross National Product (GNP) of $300 million in 2005, what is the GNP per capita of Tuvalu?

The Meaning and Measurement of Economic Development – MCQs