Measuring Development in Economics

Which of the following is a commonly used indicator to measure economic development?

• Gross Domestic Product (GDP)

• Human Development Index (HDI)

• Consumer Price Index (CPI)

• Balance of Payments (BOP)

The Human Development Index (HDI) is composed of which three dimensions?

• Health, Education, and Income

• Employment, Inflation, and Trade

• Population, Technology, and Environment

• Infrastructure, Governance, and Culture

Which of the following is NOT a component of the Human Development Index (HDI)?

• Life expectancy at birth

• Mean years of schooling

• Gross National Income (GNI) per capita

• Unemployment rate

What does the Gini coefficient measure?

• Economic growth

• Income inequality

• Inflation rate

• Trade balance

Which of the following is a limitation of using GDP per capita as a measure of development?

• It accounts for income distribution

• It includes non-market transactions

• It does not consider environmental degradation

• It measures the quality of life

Which index measures the gender gap in human development achievements?

• Gender Development Index (GDI)

• Gender Inequality Index (GII)

• Global Gender Gap Index (GGGI)

• Gender Parity Index (GPI)

What does the term "Purchasing Power Parity" (PPP) refer to in the context of measuring development?

• The exchange rate between two currencies

• The amount of goods and services that can be purchased with a unit of currency

• The balance of trade between two countries

• The level of foreign direct investment in a country

Which of the following is an example of a qualitative measure of development?

• Literacy rate

• GDP growth rate

• Life expectancy

• Political stability

The Multidimensional Poverty Index (MPI) includes which of the following dimensions?

• Health, Education, and Living Standards

• Employment, Income, and Wealth

• Technology, Infrastructure, and Innovation

• Trade, Investment, and Finance

Which of the following is a criticism of using the Human Development Index (HDI) as a measure of development?

• It does not include economic indicators

• It is too complex to calculate

• It does not account for inequality within countries

• It focuses solely on economic growth