3. GDP V HDI

Which of the following is an advantage of using GDP as a measure of economic prosperity?

• A. It includes non-market transactions.

• B. It provides a comprehensive measure of human development.

• C. It is a well-defined and universally accepted measure.

• D. It accounts for income distribution.

What is a disadvantage of using GDP as a measure of economic prosperity?

• A. It includes dimensions beyond income, such as education and health.

• B. It does not account for how income is distributed among the population.

• C. It helps policymakers identify areas needing improvement to enhance human well-being.

• D. It emphasizes the quality of life, considering life expectancy, education level, and standard of living.

Which of the following is an advantage of using HDI as a measure of economic prosperity?

• A. It excludes non-market transactions like household labor and volunteer work.

• B. It can be adjusted to account for inequality, offering insights into disparities within a country.

• C. It does not account for resource depletion or pollution.

• D. It provides a snapshot of economic activity.

What is a disadvantage of using HDI as a measure of economic prosperity?

• A. It encompasses the total value of goods and services produced.

• B. It is useful for tracking economic growth over time.

• C. It relies on data that may not be consistently available or reliable across all countries.

• D. It is best suited for measuring overall economic activity and growth.

Which measure is best suited for measuring overall economic activity and growth?

• A. HDI

• B. GDP

• C. IHDI

• D. GNP

Which measure is less effective in capturing well-being, quality of life, and sustainability?

• GDP

• HDI

• Both GDP and HDI

• Neither GDP nor HDI

What does HDI incorporate to provide a more holistic view of prosperity?

• Economic output and growth

• Health, education, and income

• Quality of life and sustainability

• Economic activity and development

Which measure is more effective in reflecting general well-being and human development?

• GDP

• HDI

• Both GDP and HDI

• Neither GDP nor HDI

What is a limitation of GDP as a measure of economic prosperity?

• It oversimplifies complex issues

• It does not fully capture economic activity

• It falls short in addressing quality of life and sustainability

• It is not a robust measure of economic output and growth

What would provide a more accurate understanding of economic prosperity?

• Using GDP alone

• Using HDI alone

• A combination of GDP and HDI along with other indicators

• Ignoring both GDP and HDI