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Economic Development Indicators
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1
Question
What is one primary economic indicator used to compare development levels across countries?
Page 2
Answer
GNI per capita
2
Question
What does GNI stand for in the context of economic development metrics?
Page 2
Answer
Gross National Income
3
Question
How is GNI per capita typically calculated?
Page 2
Answer
Total GNI divided by midyear population
4
Question
Why is GNI per capita useful for comparing economic development between countries?
Page 2
Answer
It standardizes total national income by population size, reflecting average living standards
5
Question
What limitation might GNI per capita have in measuring true development?
Page 2
Answer
It does not capture income distribution, non-market activities, or quality of life aspects
6
Question
Name two health indicators used to differentiate countries' development levels.
Page 2
Answer
Infant mortality and malnutrition rates
7
Question
What is the infant mortality rate?
Page 2
Answer
Number of deaths of infants under one year per 1,000 live births
8
Question
Why do developing countries often have higher infant mortality rates?
Page 2
Answer
Due to poor healthcare access, sanitation, nutrition, and maternal education
9
Question
What does a high malnutrition rate indicate about a country's development?
Page 2
Answer
Inadequate food access, poor dietary quality, and health vulnerabilities
10
Question
How does malnutrition impact economic development?
Page 2
Answer
Reduces productivity, increases healthcare costs, and hinders cognitive development
11
Question
What education metric is listed as a way countries differ in development?
Page 2
Answer
Education scores
12
Question
Why are low education scores common in less developed countries?
Page 2
Answer
Limited school access, poor quality teaching, and child labor demands
13
Question
How do higher education scores contribute to economic growth?
Page 2
Answer
Build human capital, innovation, and higher productivity
14
Question
What is a demographic indicator for comparing development?
Page 2
Answer
Population growth rates
15
Question
Why do developing countries typically have higher population growth rates?
Page 2
Answer
High fertility rates due to low contraceptive use, high infant mortality, and cultural factors
16
Question
What negative effect can high population growth have on development?
Page 2
Answer
Strains resources, reduces per capita investment, and slows poverty reduction
17
Question
Define dependency ratio.
Page 2
Answer
Ratio of dependents (under 15 and over 65) to working-age population (15-64)
18
Question
How does a high dependency ratio affect economic development?
Page 2
Answer
Reduces savings and investment as fewer workers support more dependents
19
Question
What is institutional quality in economic development?
Page 2
Answer
Effectiveness of governance, rule of law, and control of corruption
20
Question
Why is low institutional quality a barrier to development?
Page 2
Answer
Discourages investment, fosters corruption, and undermines policy effectiveness
21
Question
Name one common pattern of poverty in the developing world.
Page 2
Answer
High rural poverty
22
Question
Why is rural poverty high in developing countries?
Page 2
Answer
Dependence on low-productivity agriculture, lack of infrastructure, and limited markets
23
Question
What is the informal sector in developing economies?
Page 2
Answer
Unregulated economic activities outside formal institutions and taxes
24
Question
Why are informal sectors large in the developing world?
Page 2
Answer
Barriers to formal entry like regulations, lack of skills, and capital constraints
25
Question
What challenge does limited access to finance pose in developing countries?
Page 2
Answer
Hind ers entrepreneurship, investment, and poverty alleviation
26
Question
Why are developing countries more vulnerable to climate change?
Page 2
Answer
Heavy reliance on rain-fed agriculture, weak infrastructure, and poor adaptation capacity
27
Question
What does lower technological adoption mean for developing countries?
Page 2
Answer
Slower productivity growth and limited competitiveness
28
Question
Define economic convergence.
Page 2
Answer
Poor countries catching up to richer ones in income levels
29
Question
Under what condition does convergence occur?
Page 2
Answer
Only if institutions and policies are strong
30
Question
What causes economic divergence?
Page 2
Answer
Rich countries pulling ahead due to differences in capital, education, and technology