Topic Questions (MCQ – EASY): Economic Development, Indicators of Living Standards – 3auk

The data below represents a specific country for the four years indicated:

What can be inferred from these data?

The economy experienced a growth rate of 11% between Year 2 and Year 3.

The level of economic development in Year 2 surpassed that of Year 1.

Both economic growth and an improvement in economic development occurred between Year 2 and Year 3.

It is inconclusive whether the level of economic development in Year 4 was superior to that of Year 3.

Which indicator would best demonstrate that a country has undergone economic development?

an increase in the value of the country's currency

a enhancement in the quality of life for the average citizen

a rise in the country's trade balance

a rise in the country's real GDP

In an island economy with a small manufacturing base, limited mineral resources, and limited agricultural land, which approach is most likely to foster sustainable growth?

expanding the size of fishing boats to enable fishermen to benefit from economies of scale

deforesting rainforests to create agricultural land for the production of essential foodstuffs

providing training to farmers and agricultural workers in new production techniques to enhance crop yields

utilizing domestic mineral resources to achieve a rapid boost in manufacturing output

The diagram illustrates the Kuznets curve.

Which statement accurately corresponds to an economy's description and its corresponding letter on the Kuznets curve?

Economy W exhibits characteristics of a market economy.

Economy X can be classified as a developed economy.

Economy Y represents a developing economy.

Economy Z is associated with a Gini coefficient of 0.

A government adopts personal disposable income per capita as an indicator of the standard of living.

What aspect is not considered by this measure?

fluctuations in the general price level

the magnitude of direct taxes

the level of national income

the population size

Which economic measure combines GNI per capita, life expectancy, and education to derive a value ranging from 0 (low) to 1 (high)?

Happiness Index

Human Development Index

Human Poverty Index

Measure of Economic Welfare

Which of the following indicators is least suitable for measuring the relative economic development of a country?

percentage of adults with literacy skills

average life expectancy at birth

real GNP per capita

total population size