Deck 2: Measuring Economic Growth and Development

Question 1

Since the year 2000,economic performance in sub-Saharan Africa has improved; this can be attributed to all of the following reasons EXCEPT for:

A) improved economic policies and management.
B) more democratic and accountable governments.
C) a return to state-directed economic policies.
D) new technologies.

Answer 1

C

Question 2

Most economists agree that an effective way of comparing income levels between countries around the world is through the use of:

A) employment statistics.
B) GDP divided by GNP.
C) foreign investment.
D) purchasing power parity.

Answer 2

D

Question 3

The human development index is a composite of three basic measures of human welfare.Which of the following is NOT a component of the human development index?

A) life expectancy
B) dollars of income
C) infant mortality rate
D) years of schooling

Answer 3

C

Question 4

Based on Maddison's research,with an annual world income growth rate of 1.3 percent,average income doubles in:

A) 21 years.
B) 30 years.
C) 55 years.
D) 90 years.

Question 5

In some nations,illegal activities may even be included when calculating GDP; this is most notable in Afghanistan where the GDP includes:

A) military expenses.
B) child trafficking.
C) money laundering.
D) poppy production.

Question 6

In 2009,Bangladesh's GNP was 9 percent higher than its GDP; this occurred due to the fact that:

A) large numbers of Bangladeshi men and women work abroad.
B) Bangladesh is rich in ore and mineral deposits.
C) Bangladesh is subject to frequent and unpredictable changes in weather patterns.
D) foreign investment has been robust in the country.

Question 7

All of the regions will meet Target 1 (to halve the number of poor)EXCEPT:

A) Europe and Central Asia.
B) the Middle East and North Africa.
C) sub-Saharan Africa and South Asia.
D) South America.

Question 8

More than three-quarters of Angola's national income is derived from:

A) cotton.
B) oil.
C) rubber trees.
D) tourism.

Question 9

For which of the following countries is the divergence between GNP per capita measured at official exchange rates and at purchasing power parity (PPP)likely to be largest?

A) Japan
B) United States
C) Brazil
D) Ethiopia

Question 10

According to Maddison,rapid economic growth in the world's per capita income as we know it began around the year:

A) 1000.
B) 1492.
C) 1820.
D) 1914.

Question 11

According to economists,the objective of economic growth is to:

A) increase happiness.
B) provide more choices.
C) increase development.
D) decrease corruption.

Question 12

In order to effectively compare levels of GDP per capita across countries,it is necessary to convert GDP per capita into a:

A) common currency.
B) series of stocks and bonds.
C) time-line series illustrating business cycles.
D) GNP per capita.

Question 13

GNP or GDP divided by total population provides a measure of:

A) the wellness index.
B) the gap between the rich and poor.
C) per capita income.
D) the poverty index.

Question 14

A country's nominal GNP for a given year is defined as the total market value of:

A) labor plus capital plus technical change.
B) all final goods and services produced.
C) all final plus intermediate goods and services produced.
D) all final goods and services consumed.

Question 15

When world GDP (2009)is calculated by converting each nation's GDP into a common currency using market exchange rates,world output by low- and middle-income economies account for:

A) 17 percent.
B) 29 percent.
C) 58 percent.
D) 67 percent.

Question 16

A criticism of using GDP to measure growth is that it does not include "social bads"; these include all of the following EXCEPT:

A) crime.
B) pollution.
C) inflation.
D) congestion.

Question 17

The total number of Millennium Development Goals established in the year 2000 were:

A) 5.
B) 8.
C) 10.
D) 18.

Question 18

The Easterlin paradox concerns itself with the study of:

A) wealth.
B) happiness.
C) environmental damage caused by development.
D) the demise of the developed nations at the expense of the rapidly developing ones.

Question 19

One of the problems in measuring GDP is that family farm production of food for personal consumption is not included; this is illustrated by the problem of calculating Cambodia's GDP where unpaid family workers represent:

A) 75 percent of the labor force.
B) 57 percent of the labor force.
C) 33 percent of the labor force.
D) 9 percent of the labor force.

Question 20

The 1980s are often referred to as "the lost decade" in:

A) Asia.
B) the Middle East.
C) Scandinavia.
D) Latin America.

Question 21

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Gross national product (GNP),gross domestic product (GDP)

Question 22

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
HDI,GNP per capita

Question 23

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
MDGs,economic progress

Question 24

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Exchange rate conversion method,nontraded goods

Question 25

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
GNP,net economic welfare

Question 26

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.

-Happiness,economic growth

Question 27

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Economic development,capabilities

Question 28

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Sen,Easterlin