Comparative Economic Development Quiz

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Questions and Answers

Which country has the highest Human Development Index (HDI) value?

Norway (correct)

Sweden

Iceland

Denmark

What characteristic is generally associated with developing countries?

Lower population growth rates

Higher levels of industrialization

Greater social fractionalization (correct)

Higher levels of human capital

Which of the following factors affects the differences between low-income countries and developed countries in their earlier stages?

Availability of natural resources

Population age structures

Urbanization rates

Technological research and development capabilities (correct)

Which country has a Human Development Index (HDI) value of 0.950?

Ireland Signup and view all the answers

What is a common barrier faced by developing countries in their economic growth?

Adverse geography Signup and view all the answers

What is the primary purpose of Purchasing Power Parity (PPP)?

To compare living standards using a common currency. Signup and view all the answers

Which indicator is a measure of a population's health based on average lifespan?

Life expectancy Signup and view all the answers

What does undernourishment refer to?

Consuming too little food to maintain normal levels of activity. Signup and view all the answers

What key dimensions does the Human Development Index (HDI) measure?

Average achievement in health, education, and living standards. Signup and view all the answers

Which country had the highest HDI in 2022?

Switzerland Signup and view all the answers

Which indicator measures the number of live births per 1,000 people?

Birth rate Signup and view all the answers

What does functional literacy entail?

Comprehending texts for daily activities. Signup and view all the answers

Which of the following is NOT part of the basic indicators of development?

Political influence Signup and view all the answers

What is the significance of comparative development in economics?

It provides insight into disparities in economic, social, and political development. Signup and view all the answers

Which of the following is used as an indicator of economic development?

Gross National Income (GNI) Signup and view all the answers

How does the World Bank classify countries by income group?

Lower Middle Income, Upper Middle Income, and High Income Signup and view all the answers

What is one concern associated with using Gross National Income for per capita comparisons?

It may exaggerate comparisons between developed and less developed countries. Signup and view all the answers

What classifies a country as 'severely indebted'?

Countries with high levels of international debts. Signup and view all the answers

Which of the following countries would be classified as high income in the Southeast Asia Ranking for 2023-2024?

Brunei Signup and view all the answers

What is one indicator that is NOT typically associated with measuring economic development?

Cultural diversity Signup and view all the answers

Which of the following classifications includes 'Emerging Markets'?

International Finance Corporation Classification Signup and view all the answers

Study Notes

Learning Objectives

Comparison of economic development reveals disparities in global economic conditions.
Important indicators for measuring development include GDP, GNI, and HDI.
Distinguishing characteristics identify developed versus developing nations.

Development Economics

Focuses on economic growth and development in poorer nations.
Addresses issues like poverty, inequality, and stagnation.
Investigates policies for sustainable growth and improved living standards.
Current poverty threshold in the Philippines: Php 13,875/month for a family of five (NEDA, 2024).

Comparative Development

Analyzes economic, social, and political variations across countries.
Aids in understanding developmental differences through comparative analysis.

Classification of Countries by Income Group

World Bank categorizes economies into four groups:
- High Income
- Upper Middle Income
- Lower Middle Income
- Low Income
Southeast Asia examples for 2023-2024:
- Lower Middle Income: Philippines, Myanmar, Cambodia, Laos, Vietnam
- Upper Middle Income: Indonesia, Thailand, Malaysia
- High Income: Singapore, Brunei

Other Classification Methods

International Indebtedness:
- Categorizes countries as severely indebted, moderately indebted, or less indebted.
Economic Situation Classification:
- Distinguishes between developed, transition, and developing economies.
International Finance Corporation:
- Defines emerging and frontier markets.

Basic Indicators of Development

Real Income: A crucial measure of economic activity.
Gross National Income (GNI):
- Total income earned by residents, including abroad earnings, excluding foreign residents’ income.
- Adjustments necessary for accurate per capita comparisons.
Purchasing Power Parity (PPP):
- Measures GNI considering domestic purchasing power to allow accurate living standard comparisons.

Health Indicators

Life Expectancy: Average expected lifespan based on mortality data.
Undernourishment: Inadequate food intake affecting activity levels.
Birth Rate: Number of live births per 1,000 individuals within a specific period.
Literacy Rate:
- Basic Literacy: Ability to read/write letters.
- Functional Literacy: Capability to read/write and comprehend everyday texts.

Holistic Measures of Development

Human Development Index (HDI):
- United Nations metric assessing health, knowledge, and living standards.
- Measures achievement across three dimensions: life expectancy, education, and income.

Top 10 Countries with Lowest HDI (2022)

Somalia: 0.380
South Sudan: 0.381
Central African Republic: 0.387
Niger: 0.394
Chad: 0.394
Mali: 0.410
Burundi: 0.420
Yemen: 0.424
Burkina Faso: 0.438
Sierra Leone: 0.458

Top 10 Countries with Highest HDI (2022)

Switzerland: 0.967
Norway: 0.966
Iceland: 0.959
Hong Kong: 0.956
Denmark: 0.952
Sweden: 0.952
Ireland: 0.950
Germany: 0.950
Singapore: 0.949
Australia: 0.946

Characteristics of the Developing World

Lower living standards, productivity, and human capital (health, education, skills).
High levels of inequality and absolute poverty.
Significant rural populations with rapid urban migration.
Underdeveloped financial and market systems.
Impact of colonial history and reliance on external support.

Differences Between Low-Income and Developed Countries

Resource endowments vary widely affecting growth potential.
Disparities in per capita income and GDP levels.
Geographic and climatic variations may influence development.
Historical context of migration impacts present economic conditions.
Differences in trade benefits and access to technology or research infrastructure.
Quality and effectiveness of domestic institutions significantly affect development rates.

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Description

Test your knowledge on comparative economic development concepts and indicators such as GDP, GNI, and HDI. This quiz will help you understand the characteristics of developed versus developing countries and their significance in economic studies.