National Income and Economic Development - One Line Questions

1. The GDP Deflator is a measure of the overall price level of all new, domestically produced, final goods and services in an economy. It is calculated as: — (Nominal GDP / Real GDP) * 100
2. Which of the following is an example of 'human capital' that contributes to economic development? — A skilled workforce with good education and training
3. What does 'monetary policy' primarily involve in influencing economic development? — Actions taken by the central bank to manage the money supply and interest rates
4. A country's economic development is often assessed using a combination of economic and social indicators. Which of the following is a key social indicator? — Adult literacy rate
5. What is the 'multiplier effect' in macroeconomics? — An initial change in spending leads to a larger change in national income
6. Which of the following is NOT a component of GDP calculated using the expenditure approach? — Interest payments on national debt
7. Gross National Product (GNP) differs from Gross Domestic Product (GDP) by including: — Net income from abroad
8. Which of the following best describes 'sustainable development'? — Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
9. What does the concept of 'inclusive growth' aim to achieve? — Economic growth that benefits all segments of society, especially the poor and marginalized
10. Which of the following is a potential negative consequence of rapid economic growth without proper planning? — Environmental degradation and increased pollution
11. Which factor is crucial for sustainable economic development? — Environmental protection
12. What does Net National Product (NNP) represent? — GNP minus depreciation
13. What is the primary difference between Gross National Income (GNI) and Gross National Product (GNP)? — GNI includes taxes and subsidies on production and imports, while GNP does not.
14. What does 'fiscal policy' primarily involve in influencing economic development? — Government decisions on taxation and spending
15. Which of the following is a measure of economic development that considers environmental sustainability? — Green GDP
16. What is the most commonly used measure of a country's total economic output? — Gross Domestic Product (GDP)
17. What is the term for the total value of goods and services produced by a country's citizens and companies, regardless of where they are located? — Gross National Product (GNP)
18. Which of the following is a characteristic of a developing economy? — High dependence on agriculture and primary sector
19. The concept of 'stagflation' refers to a situation characterized by: — High inflation and high unemployment
20. What is the main challenge faced by developing countries in achieving economic development? — High levels of poverty and inequality
21. Economic development is a broader concept than economic growth because it includes: — Improvements in living standards and social welfare
22. What does the Gini coefficient measure? — Income inequality
23. Which of the following indicates a positive economic development trend? — Increasing life expectancy and decreasing infant mortality rate
24. What is the primary difference between GDP at factor cost and GDP at market price? — Indirect taxes and subsidies
25. What does 'Real GDP' adjust for? — Inflation
26. What is the role of infrastructure in economic development? — It facilitates trade, reduces transaction costs, and attracts investment
27. Which factor is considered a barrier to economic development in many low-income countries? — Lack of adequate infrastructure
28. Which of the following is considered a non-monetary indicator of economic development? — Literacy rate
29. The 'circular flow of income' model illustrates the flow of: — Money and goods/services between households and firms
30. Per capita income is calculated by dividing: — National income by the total population
31. Which of the following is a measure of national income at current prices? — Nominal GDP
32. Which indicator is used to measure the extent of poverty in a country? — Poverty headcount ratio
33. Which approach to calculating GDP sums up the value added at each stage of production? — Production (Value Added) Approach
34. What does 'economic diversification' mean for a developing economy? — Reducing reliance on a few primary commodities and developing a wider range of industries
35. When calculating national income, 'depreciation' refers to: — The decrease in the value of capital assets due to wear and tear or obsolescence
36. What is the meaning of 'net factor income from abroad' in national income accounting? — The difference between income earned by residents from abroad and income earned by non-residents within the country
37. Which of the following is a key component of the 'capabilities approach' to measuring development, as championed by Amartya Sen? — The freedom of individuals to achieve functionings they value
38. What does the 'dependency ratio' in demography relate to concerning economic development? — The ratio of dependents (children and elderly) to the working-age population
39. The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators. It was developed by: — The United Nations Development Programme (UNDP)
40. What is the main goal of economic planning in many developing countries? — To accelerate economic growth and reduce poverty
41. What is the primary role of the financial sector in economic development? — To channel savings into productive investments
42. What is the purpose of calculating national income at constant prices (Real GDP)? — To compare economic output across different years, removing the effect of price changes
43. What is the primary purpose of calculating national income? — To measure the total value of goods and services produced in an economy
44. What is the primary objective of the 'Millennium Development Goals' (MDGs) and 'Sustainable Development Goals' (SDGs)? — To promote global development and reduce poverty and inequality
45. What is the primary goal of 'poverty alleviation' programs in economic development? — To reduce the number of people living below a certain poverty line
46. What does the term 'structural unemployment' refer to in the context of economic development? — Unemployment resulting from a mismatch between the skills of workers and the jobs available
47. The income approach to calculating national income aggregates sums up: — Wages, rent, interest, and profits
48. Which index is used to measure the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services? — Consumer Price Index (CPI)
49. The 'trickle-down effect' theory suggests that economic growth: — Will eventually benefit the poor after benefiting the wealthy
All One Line Questions
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