Economic Development

Question 1

What is economic development?

Answer 1

Economic development refers to the process by which a nation improves the economic, political, and social well-being of its people.

Question 2

True or False: Economic growth and economic development are the same.

Answer 2

False

Question 3

Fill in the blank: Economic development often involves improvements in _____ and _____.

Answer 3

living standards, quality of life

Question 4

What are the main indicators of economic development?

Answer 4

GDP per capita, literacy rates, life expectancy, and income distribution.

Question 5

Multiple Choice: Which of the following is NOT a component of economic development? A) Education B) Health C) Environmental sustainability D) Profit maximization

Answer 5

D) Profit maximization

Question 6

What is the Human Development Index (HDI)?

Answer 6

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, used to rank countries into four tiers of human development.

Question 7

True or False: Economic development is solely focused on economic growth.

Answer 7

False

Question 8

What role do institutions play in economic development?

Answer 8

Institutions provide the framework for economic activity, influencing policy-making, governance, and economic stability.

Question 9

Fill in the blank: Sustainable development seeks to balance _____, _____, and _____ aspects of growth.

Answer 9

economic, social, environmental

Question 10

Multiple Choice: Which of the following is a characteristic of developing countries? A) High GDP per capita B) Low literacy rates C) Advanced technology D) High employment in service sector

Answer 10

B) Low literacy rates

Question 11

What is meant by ‘poverty alleviation’?

Answer 11

Poverty alleviation refers to efforts aimed at reducing the level of poverty in a population.

Question 12

True or False: Economic development can occur without economic growth.

Answer 12

True

Question 13

What is the significance of foreign direct investment (FDI) in economic development?

Answer 13

FDI can provide capital, technology, and expertise to developing countries, fostering growth and development.

Question 14

Fill in the blank: The term ‘microfinance’ refers to financial services aimed at _____ and _____.

Answer 14

small businesses, low-income individuals

Question 15

What are the main challenges to economic development?

Answer 15

Corruption, political instability, lack of infrastructure, and inadequate education.

Question 16

Multiple Choice: Which of the following is a measure of income inequality? A) GDP B) Gini coefficient C) HDI D) CPI

Answer 16

B) Gini coefficient

Question 17

What does the term ‘human capital’ refer to?

Answer 17

Human capital refers to the skills, knowledge, and experience possessed by an individual or population.

Question 18

True or False: Economic development is a linear process.

Answer 18

False

Question 19

What is a ‘developing country’?

Answer 19

A developing country is a nation with a lower living standard, underdeveloped industrial base, and low Human Development Index relative to other countries.

Question 20

Fill in the blank: ‘Inclusive growth’ aims to ensure that economic growth benefits _____ segments of society.

Answer 20

all

Question 21

What is the role of technology in economic development?

Answer 21

Technology drives innovation, increases productivity, and can improve quality of life.

Question 22

Multiple Choice: Which of the following is a key factor in determining a country’s level of economic development? A) Natural resources B) Military strength C) Population size D) Geographic location

Answer 22

A) Natural resources

Question 23

What does the term ‘sustainable economic development’ imply?

Answer 23

Sustainable economic development implies meeting the needs of the present without compromising the ability of future generations to meet their own needs.