MCQs of Economics - The Meaning and Measurement of Economic Development – Multiple Choice Question

Question 1 of 36

1. Question

Lespeyres type indexes use weights from

current period
base-period
forecasting
future year

Question 2 of 36

2. Question

The formula to calculate Passche price index is (o is the base year and n is the given year)

P = ΣPnqn/Σpoqn
P = ΣPoqo/Σpnqn
P = ΣPnqo/Σpoqo
P = ΣPnqn/Σpoqo

Question 3 of 36

3. Question

Tuvalu is composed of 9 coral atolls along a 360-mile chain in Polynesia They gained independence in 1978 The former Ellice Island are home to 9,700 people if GNP of Tuvalu is $300 million in 2005 GNP per capital is:

9700 (1978 / 2005)
300 / 360
300 000 000 / 9700
32.333

Question 4 of 36

4. Question

If GDP for Barbados is $260 million in 2011 and its population is 260,000 GDP per capita is:

1000
260
0.001
259740

Question 5 of 36

5. Question

IF GNP per capita at constant prices for Liechtenstein a microstate of 29,000 people located on the Rhine River between Switzerland and Austri is US$555 and US$560 in 2011 and 2012 respectively, the real economic growth from 2011 to 2012 is:

5%
0.901%
0.090%
0.991%

Question 6 of 36

6. Question

Economic growth from current year (c) to previous year (p) is given by:

[(GDPc - GDPp)/ DGPp]100
[(GDPc - GDPp) DGPp]100
GNPc - DGPp100)
[GDPp - GDPc]100

Question 7 of 36

7. Question

All of the following are high income countries except:

Singapore
U.K
Japan
South Africa

Question 8 of 36

8. Question

Which of the following countries is not a low income country?

Indonesia
India
Malaysia
Nigeria

Question 9 of 36

9. Question

Economic development refers to:

economic growth
economic growth plus changes in (c) output distribution and economic structure
improvement in the well-being of the urban population
sustainable increase in Gross National Product

Question 10 of 36

10. Question

If GNP for Vatican City the smallest country in the world is 200 million euros in year 2011 and its population is 890 GNP per capita is

2000 - 890
200/890
200,000,000/890
200

Question 11 of 36

11. Question

If GDP for Palau a small country near southeast of the Philippines is $130 million in 2012 and its population is 20,000 GDP per capita is:

6500
130
0.0065
650

Question 12 of 36

12. Question

If GNP per capita at constant prices for Ghana is US$360 and US$364 in 1996 and 1997 respectively, The real economic growth from 1996 to 1997 is:

4%
1.11%
0.011%
11%

Question 13 of 36

13. Question

IF GDP for Maldivies is $435 million in 2012 and the GDP per capita is $1576.087 the population of the country must be

276,000
1576,086
0.276
3.623

Question 14 of 36

14. Question

The formula to calculate economic growth from 2001 to 2002 is given by

[(GDP2002 + GDP2001)/GDP2001]100
[(GDP2002 - GDP2001) GDP2001]100
[(GDP2002 - GDP2001)/GDP2001]100
[(GDP2001 - GDP2002]100

Question 15 of 36

15. Question

According to chapter 2 in the text which of the following is true?

The boundary between rich and poor countries has become clearer in 1990s
The fastest growing countries must be the ones with the highest per capita GNP
A few poor countries like South Korea and Malaysia in the 1950s grew much more rapidly than some higher-income countries like Uruguay and Newzealand
Today all high and Upper-middle income countries are Western.

Question 16 of 36

16. Question

Which of the following countries is not a low income country?

Ethiopia
Rwanda
Somalia
Singapore

Question 17 of 36

17. Question

All of the following are high income countries except:

the United kingdom
Singapore
Japan
Hungary

Question 18 of 36

18. Question

Which of the following are low income countries income country?

Canada
United States
Mexico
Australia

Question 19 of 36

19. Question

All of the following are low income countries except:

United Arab Emirates
Armenia
Sudan
Bangladesh

Question 20 of 36

20. Question

One classification of development levels used by the World Bank divides countries into three group on the basis of GNP per capita They are:

NIC, OPEC and G7
Low income , middle income and high income
Southeast Northeast and Southwest
Asia, America and Europe

Question 21 of 36

21. Question

The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is

less than $900, $900-$9000 and more than $9000
less than $5000, $5000-$15000 and more than $15000
less than $100, $100-$1000 and more than $1000
less than $5000, $5000-$150000 and more than $150000

Question 22 of 36

22. Question

OPEC is the:

Organization of Petroleum Exporting Country
Organization of Pre-European Commission
Oil Producing Economies Caucus
Organization of Problematic Economies Committee

Question 23 of 36

23. Question

The formula for the Laspeyres price index is (o is the base year and n is the given year):

P = ∑Poqo/∑poqo
P = ∑Poqo/∑pnqn
P = ∑Pnqo/∑poqo
P = ∑Poqn/∑poqo

Question 24 of 36

24. Question

The Paasche index uses ____ weights

current-year
base-year
fisher-ideal index
Purchasing Power Parity (PPP)

Question 25 of 36

25. Question

Which of the following is not a problem in comparing developed and developing countries GNP?

GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods
The economic contribution of a housewife is a peasant family may not be measured is GNP is poor country
GNP in understated for developing countries since many of their labor intensive good have no impact on exchange rate since they are not traded
GNP is overstated for for countries where the price of foreign exchange is less than market clearing price

Question 26 of 36

26. Question

The University of Pennsylvania researchers Summers and Heston compute the price level of GDP as the ratio of purchasing power parity (PPP) exchange rate to the actual exchange rate where

both exchange rates are measured s the domestic currency price of the US-dollar
both exchange rates are not converted into international dollars
both exchange rate are pegged
both exchange rate are converted into Big Mac PPP formula

Question 27 of 36

27. Question

PPP is:

a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries
GDP divided by exchange rate
a measure of income inequality
a measure of infant mortality in developing countries

Question 28 of 36

28. Question

The Physical Quality of Life Index (PQLI) combines three indicators They are:

infant mortality life expectancy and adult literacy rate
crime rate clean environment and quality of housing
air pollution rate, Water pollution rate and sanitation
health education and environment

Question 29 of 36

29. Question

Infant mortality:

is defined as the annual number of deaths of infant under 1 year old per 1,000 live births
reflects the availability of primary education the rights of employments and social security
is life expectancy up to age 3
reflects the availability of hospitals and childcare facilities and the parents wealth

Question 30 of 36

30. Question

The three measure of welfare indicators above comprise the:

Purchasing Power Parity
Physical Quality of Life Index
Human Development Index
The Laspeyres index

Question 31 of 36

31. Question

The Human Development Index (HDI) summarizes a great deal of social performances in a single composite index combining

disparity reduction rate, human resource development rate and the composite index
longevity, education and living standard
minimum schooling, adult literacy and tertiary educational attainment
human resource training development and R&D

Question 32 of 36

32. Question

Longevity is proxy for ____ in the Human Development Index.

health and nutrition
living standard
infant mortality
Purchasing Power Parity

Question 33 of 36

33. Question

Which of the following is not one of the Newly Industrialized Countries (NICs)?

Japan
South Korea
Taiwan
Singapore

Question 34 of 36

34. Question

According to the next basic needs include:

food, clothing and housing
health, education and quality housing
adequate nutrition, primary education health sanitation water supply and housing
longevity and living standards

Question 35 of 36

35. Question

Which of the following statement is not true about LDCs?

Most LDCs have less than 1/10 the per capita GNP of the U.S
A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S
Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible
Most LDCs have a greater shortage of qualified teachers than the U.S does

Question 36 of 36

36. Question

Imitating labor standards from rich countries in LDCs may increase

equality
poverty
employment
human development

Economics - The Meaning and Measurement of Economic Development

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