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Economic Development Theories and Indicators Quiz

#1

What is the primary focus of the Human Development Index (HDI) as an indicator?

Life expectancy
Explanation

Emphasizes life expectancy as a measure of development.

#2

Which economic indicator is used to measure the overall health of an economy and is calculated as the sum of consumer spending, business investment, government spending, and net exports?

Gross Domestic Product (GDP)
Explanation

GDP is a comprehensive measure of economic activity.

#3

Which indicator is used to measure the overall level of prices in an economy?

Consumer Price Index (CPI)
Explanation

CPI measures inflation by tracking price changes in a basket of goods.

#4

Which economic indicator measures the percentage change in the average prices of a basket of goods and services over time?

Consumer Price Index (CPI)
Explanation

CPI tracks inflation over time.

#5

Which economic indicator measures the percentage of the labor force that is unemployed and actively seeking employment?

Unemployment Rate
Explanation

Unemployment rate measures joblessness in the labor force.

#6

Which economic development theory emphasizes the role of technology and innovation in driving economic growth?

Endogenous Growth Theory
Explanation

Focuses on internal factors like technology for economic growth.

#7

Which economist is associated with the concept of 'creative destruction' in economic development?

Joseph Schumpeter
Explanation

Schumpeter introduced the concept of creative destruction.

#8

According to the Solow Growth Model, what is the main driver of long-term economic growth?

Technological progress
Explanation

Technological progress is central to sustained growth in this model.

#9

What is the key focus of the Rostow's Stages of Economic Growth model?

Modernization and development stages
Explanation

Focuses on stages of development and modernization.

#10

What does the term 'Gini Coefficient' measure in the context of economic development?

Income Inequality
Explanation

Measures the degree of income inequality in a society.

#11

According to Dependency Theory, what is a key factor contributing to the underdevelopment of certain nations?

Colonial history and exploitation
Explanation

Colonial exploitation is central to underdevelopment according to this theory.

#12

In the context of economic development, what does the 'Lewis Model' focus on?

Dual economy and surplus labor
Explanation

Examines transition from traditional to modern economy with surplus labor.

#13

Which economic development theory emphasizes the role of institutions, property rights, and the rule of law in fostering economic growth?

Institutional Theory
Explanation

Institutions and property rights are central in this theory.

#14

In the context of economic development, what does the 'Big Push' theory propose?

Large-scale simultaneous investments in various sectors
Explanation

Proposes massive investments across sectors for development.

#15

Which economic development theory argues that international trade tends to perpetuate global inequalities?

Dependency Theory
Explanation

States that international trade perpetuates global inequalities.

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