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Economic Growth and Development, Measures of Development — GK Questions with Answers

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26 questions
  1. Economic growth in country X will necessarily have to occur if — (UPSC, 2013)
    1. there is technical progress in the world economy
    2. there is population growth in X
    3. there is capital formation in X
    4. the volume of trade grows in the world economy
    Show answer

    Answer: (C) there is capital formation in X

    Capital formation inside that country is what raises its productive capacity; the other three are outside conditions that do not by themselves bring growth.

  2. Which one of these indicators is not used in determining the Gender Development Index in the Human Development Report — (UPPCS, 2008)
    1. Life expectancy of females
    2. Female adult literacy and gross enrolment
    3. Female political empowerment
    4. Female per capita income
    Show answer

    Answer: (C) Female political empowerment

    Political empowerment belongs to other gender indices, not to the GDI. The GDI looks at health, education and command over resources.

  3. Which statements about the Human Development Index are correct — 1. The World Bank introduced the HDI. 2. India is a medium human development country. 3. Among the BRICS countries Russia stands first in HDI rank.
    1. Only 1
    2. 1 and 2
    3. 2 and 3
    4. All of them
    Show answer

    Answer: (C) 2 and 3

    The HDI was introduced by the UNDP, not the World Bank, so the first statement is wrong and the other two are right.

  4. Consider these statements — 1. Economic development is a broader and normative concept, concerned with structural change in the economy. 2. Economic growth is a narrow concept, concerned with a rise in output.
    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (C) Both 1 and 2

    Both statements are correct — this is the basic distinction the chapter is built on.

  5. What are the three dimensions of the Gender Inequality Index
    1. Health, education, income
    2. Reproductive health, empowerment, the labour market
    3. Life expectancy, literacy, infant mortality
    4. Nutrition, education, standard of living
    Show answer

    Answer: (B) Reproductive health, empowerment, the labour market

    The GII shows women's disadvantage in these three dimensions and is worked out from five indicators.

  6. Choose the correct pairing for Gross National Happiness and the Global Peace Index
    1. GNH — Steve Killelea
    2. Global Peace Index — Jigme Singye Wangchuck
    3. GNH — Jigme Singye Wangchuck and Global Peace Index — Steve Killelea
    4. Both were the work of one person
    Show answer

    Answer: (C) GNH — Jigme Singye Wangchuck and Global Peace Index — Steve Killelea

    GNH is the idea of Bhutan's King Jigme Singye Wangchuck and the Global Peace Index is that of Steve Killelea.

  7. Which one is taken as the fittest yardstick of economic growth
    1. Total GDP
    2. Per capita Net Domestic Product
    3. Total GNP
    4. Gross fixed capital formation
    Show answer

    Answer: (B) Per capita Net Domestic Product

    Per capita NDP accounts for both population and depreciation, which is why it is held to be the most appropriate.

  8. Growth that comes from squeezing more out of the very same resources is called
    1. Extensive growth
    2. Intensive growth
    3. Inclusive growth
    4. Jobless growth
    Show answer

    Answer: (B) Intensive growth

    Growth from putting in more resources is extensive; getting more out of the same resources is intensive.

  9. For which countries is economic development held to be more important
    1. Developed countries
    2. Developing countries
    3. Equally for both
    4. For neither
    Show answer

    Answer: (B) Developing countries

    Developed countries already have the basic structure in place, so growth is their focus; for developing countries development matters more.

  10. What is the biggest weakness of measuring development by per capita income
    1. The data is not available
    2. Purchasing power and the value of non-traded goods are left out
    3. It applies only to developed countries
    4. It does not include population
    Show answer

    Answer: (B) Purchasing power and the value of non-traded goods are left out

    Converting at the official exchange rate leaves out purchasing power and the value of goods that are never traded.

  1. Purchasing Power Parity as an idea came from whom
    1. I B Kravis
    2. Gustav Cassel
    3. Michael Todaro
    4. Morris David Morris
    Show answer

    Answer: (B) Gustav Cassel

    Gustav Cassel gave the concept in 1918; the IMF first used it in 1988 to measure standards of living.

  2. Which of these is not included in the Physical Quality of Life Index
    1. Life expectancy
    2. Basic literacy rate
    3. Infant mortality rate
    4. Per capita income
    Show answer

    Answer: (D) Per capita income

    The chief feature of the PQLI is that income is not in it at all; it is the average of three social indicators only.

  3. Which body publishes the Human Development Index
    1. The World Bank
    2. The International Monetary Fund
    3. The United Nations Development Programme
    4. The World Economic Forum
    Show answer

    Answer: (C) The United Nations Development Programme

    The HDI appears in the UNDP's Human Development Report; the World Bank classifies countries by per capita income.

  4. Which Indian economist helped Mahbub ul Haq in building the HDI
    1. Amartya Sen
    2. V K R V Rao
    3. P C Mahalanobis
    4. Manmohan Singh
    Show answer

    Answer: (A) Amartya Sen

    Amartya Sen helped develop the index, which was made in 1989 and published in 1990.

  5. How many indicators of education are used in the HDI
    1. One
    2. Two
    3. Three
    4. Four
    Show answer

    Answer: (B) Two

    Education has two — expected years of schooling and mean years of schooling. That is why three factors give four indicators.

  6. An HDI value of 0.685 falls in which group
    1. Very high human development
    2. High human development
    3. Medium human development
    4. Low human development
    Show answer

    Answer: (C) Medium human development

    The medium group runs from 0.550 to 0.699, so India's 0.685 falls inside it.

  7. What is India's rank in the Human Development Report 2025
    1. 110 of 193
    2. 130 of 193
    3. 134 of 193
    4. 146 of 193
    Show answer

    Answer: (B) 130 of 193

    India stands 130th among 193 countries, up from 133rd last time.

  8. Which country stands first in the Human Development Report 2025
    1. Norway
    2. Switzerland
    3. Iceland
    4. Sweden
    Show answer

    Answer: (C) Iceland

    Iceland is first and South Sudan is 193rd, that is, last.

  9. Which BRICS country is highest by HDI rank
    1. China
    2. Brazil
    3. Russia
    4. South Africa
    Show answer

    Answer: (C) Russia

    Russia stands at 64, followed by China at 78, Brazil at 84, South Africa at 106 and India at 130.

  10. When are the IHDI and the HDI equal
    1. When there is no inequality at all
    2. When income is at its highest
    3. When population is steady
    4. They are never equal
    Show answer

    Answer: (A) When there is no inequality at all

    With zero inequality the two are equal; as inequality grows the IHDI keeps falling below the HDI.

  1. On which two indicators does the Planetary pressures-adjusted HDI rest
    1. Life expectancy and literacy
    2. CO₂ emissions per person and material footprint per person
    3. Per capita income and education
    4. Water use and forest cover
    Show answer

    Answer: (B) CO₂ emissions per person and material footprint per person

    The PHDI was first released in 2020 and accounts for the pressure human development puts on the planet.

  2. How many indicators does the Multidimensional Poverty Index have
    1. Three
    2. Five
    3. Eight
    4. Ten
    Show answer

    Answer: (D) Ten

    Three dimensions — standard of living, education and health — carry ten indicators between them.

  3. When is a person counted as multidimensionally poor under the MPI
    1. When deprived in 33% of the weighted indicators
    2. When income is below 1.25 dollars a day
    3. When illiterate
    4. When without a house
    Show answer

    Answer: (A) When deprived in 33% of the weighted indicators

    The MPI counts deprivations, not income; crossing the threshold of 33% of weighted indicators makes a person multidimensionally poor.

  4. Who calculates the Global Hunger Index
    1. The UNDP
    2. The World Bank
    3. IFPRI
    4. The FAO
    Show answer

    Answer: (C) IFPRI

    IFPRI works it out each year, together with Concern Worldwide and Welthungerhilfe.

  5. Who gave the most famous definition of sustainable development
    1. The Rio Declaration, 1992
    2. The Brundtland Commission, 1987
    3. The Johannesburg Summit, 2002
    4. The Millennium Summit, 2000
    Show answer

    Answer: (B) The Brundtland Commission, 1987

    It was the Brundtland Commission that said so in 1987, and the wording has been quoted ever since.

  6. How many Sustainable Development Goals are there and what is their deadline
    1. 8 goals, by 2015
    2. 17 goals, by 2030
    3. 17 goals, by 2025
    4. 169 goals, by 2030
    Show answer

    Answer: (B) 17 goals, by 2030

    The 2030 Agenda has 17 goals and 169 targets; 8 goals with a 2015 deadline belonged to the Millennium Development Goals.

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