7.3.1Economic Development Measures Quiz

What is the primary difference between GDP and GNP?

• GDP includes only domestic goods and services, while GNP includes both domestic and international goods and services.
• GDP includes international goods and services, while GNP includes only domestic goods and services.
• GDP is a measure of income distribution, while GNP measures economic output.
• GDP is used to measure energy consumption, while GNP measures sectoral structure.

Why is economic data often stated as 'per capita'?

• To adjust for inflation.
• To make data more easily comparable by accounting for population size.
• To exclude informal economic activities.
• To focus on the tertiary sector of the economy.

Which sector of the economy typically pays more in developed countries?

• Primary sector
• Secondary sector
• Tertiary sector
• Informal sector

What does a higher Gini Coefficient indicate?

• Higher income equality
• Higher income inequality
• Higher GDP
• Higher renewable energy usage

Which of the following is NOT typically included in the formal economy?

• Manufacturing
• Retail
• Black market goods
• Education

How does the use of fossil fuels differ between MDCs and DCs?

• MDCs have lower per capita consumption of energy.
• DCs have higher per capita consumption of energy.
• MDCs have the highest per capita consumption of energy.
• DCs primarily use nuclear energy.

What is the relationship between the formal economy and a country's development?

• A larger formal economy generally indicates less development.
• A larger formal economy generally indicates more development.
• The formal economy has no relation to development.
• The formal economy is only important in LDCs.

Which energy source is increasing in use in MDCs?

• Coal
• Nuclear energy
• Oil
• Natural gas

What does the Gini Coefficient measure?

• The total economic output of a country
• The distribution of income within a population
• The level of renewable energy usage
• The size of the informal economy

Which of the following is a characteristic of the informal economy?

• Regulated by the government
• Included in GDP & GNI
• Mostly illegal products
• Higher average per capita income