Economic Development: Rich vs Poor

What is GDP often used to indicate in a country?

The total number of goods and services produced
The total market value of goods and services imported
The total income of the government
The average well-being of the population (correct)

What is GDP per capita an estimate of?

The total market value of goods and services produced
The total number of people living in poverty
The total income of the country
The average income produced per person in the economy (correct)

According to the World Bank, what is poverty?

Having a job, but no access to education
Lack of food and shelter only
Lack of income only
More than lack of income, including lack of shelter, healthcare, education, and job opportunities (correct)

What is the main difference between a 'rich' and a 'poor' person?

Their income, wealth, goods, or services (C) Signup and view all the answers

What is the total market value of all final goods and services produced in an economy in a given year?

Gross Domestic Product (GDP) (B) Signup and view all the answers

What is the universal theme reflected in the World Bank's quotes about poverty?

Poverty is more than lack of income, it is inherently multidimensional (D) Signup and view all the answers

What is the primary goal of poor countries?

Economic development (C) Signup and view all the answers

What is the main difference between economic growth and economic development?

Economic growth is necessary but not sufficient for economic development (B) Signup and view all the answers

What is the classification of countries based on their income?

Low-income, Lower-middle-income, Upper-middle-income, and High-income (D) Signup and view all the answers

What is the focus of welfare economics?

All of the above (D) Signup and view all the answers

What is the Human Development Index (HDI) used for?

Assessing the standard of living (B) Signup and view all the answers

What is the main difference between the First World and the Third World?

The First World is high-income, while the Third World is low- and middle-income (B) Signup and view all the answers

What is one way to measure economic development mentioned in the text?

Standardized testing results (D) Signup and view all the answers

Which of the following is NOT mentioned as a change accompanying economic development in the text?

Frequent elections (D) Signup and view all the answers

What does economic development refer to?

Economic growth accompanied by changes in output distribution and economic structure (B) Signup and view all the answers

What is an example of economic development given in the text?

Building a new railway (D) Signup and view all the answers

What aspect of the labor force is mentioned to increase with economic development in the text?

Education and skills (D) Signup and view all the answers

What does economic development enable producers and consumers to do more efficiently, as per the text?

Live wealthier lives (A) Signup and view all the answers

What is the main idea behind the concept of development mentioned in the text?

Enhancing human freedoms to lead fulfilling lives (A) Signup and view all the answers

Which of the following is NOT mentioned as a major source of unfreedom that development seeks to eliminate?

Excessive government intervention (A) Signup and view all the answers

In the given example of the construction worker, what signifies progress and development?

Switching from consuming sardines to consuming chicken (B) Signup and view all the answers

What describes the focus of Economic Development as mentioned in the text?

Employing economic theories and approaches to achieve progress (A) Signup and view all the answers

What is the relationship between Development Economics and Economic Development?

They have the same goals and objectives and are considered synonymous for the class (D) Signup and view all the answers

What is one reason for the differences in economic growth rate of nations?

Total factors productivity (TFP) (B) Signup and view all the answers

How does the text define the process of development?

Enhancement of freedoms to enable people to live meaningful lives (D) Signup and view all the answers

Which factor plays a crucial role in promoting faster economic growth?

Institutions providing incentives for innovation (B) Signup and view all the answers

What is a significant way for countries to escape poverty?

Increasing total factors productivity (TFP) (B) Signup and view all the answers

How can international trade contribute to increasing productivity in less-developed countries?

By providing markets for goods produced (C) Signup and view all the answers

What is a key indicator of economic growth?

Rising levels of income (C) Signup and view all the answers

What defines economic growth in a nation?

Sustained increase over time in production of goods and services (C) Signup and view all the answers