The Meaning and Measurement of Economic Development

A. Purchasing Power Parity
B. Physical Quality of Life Index
C. Human Development Index
D. The Laspeyres index

A. is defined as the annual number of deaths of infant under 1 year old per 1,000 live births
B. reflects the availability of primary education the rights of employments and social security
C. is life expectancy up to age 3
D. reflects the availability of hospitals and childcare facilities and the parents wealth

A. a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries
B. GDP divided by exchange rate
C. a measure of income inequality
D. a measure of infant mortality in develog countries

A. GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods
B. The economic contribution of a housewife is a peasant family may not be measured is GNP is poor country
C. GNP in understated for develog countries since many of their labor intensive good have no impact on exchange rate since they are not traded
D. GNP is overstated for for countries where the price of foreign exchange is less than market clearing price

A. P = ∑Poqo/∑poqo
B. P = ∑Poqo/∑pnqn
C. P = ∑Pnqo/∑poqo
D. P = ∑Poqn/∑poqo

A. less than $900, $900-$9000 and more than $9000
B. less than $5000, $5000-$15000 and more than $15000
C. less than $100, $100-$1000 and more than $1000
D. less than $5000, $5000-$150000 and more than $150000

A. United Arab Emirates
B. Armenia
C. Sudan
D. Bangladesh

A. The boundary between rich and poor countries has become clearer in 1990s
B. The fastest growing countries must be the ones with the highest per capita GNP
C. A few poor countries like South Korea and Malaysia in the 1950s grew much more rapidly than some higher-income countries like Uruguay and New Zealand
D. Today all high and Upper-middle income countries are Western.

A. 276,000
B. 1576,086
C. 0.276
D. 3.623

A. 6500
B. 130
C. 0.0065
D. 650