(9.) Economics Hl. Development Economics, Definitions.

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3. The ratio of the area between the line of equality and the Lorenz curve, to the total area under the line of equality is called the ...

Gino index

Gini index

Qini index

Queuing index

4. A basic definition of economic development could be "an improvement in welfare"

True

False

However, be aware of the fact that the concept of development is multidimensional. It is about a lot of things; reducing poverty, improving education, health care, maintain law and order etc.

Explanation

However, be aware of the fact that the concept of development is multidimensional. It is about a lot of things; reducing poverty, improving education, health care, maintain law and order etc.

5. There is another "gender index". This is an index which measures the extent to which women is able to activiely participate in political and economic life. This index is known as ...

GEM

HPI

OECD

GEM - Gender empowerment measure

Explanation

GEM - Gender empowerment measure

6. The provision of small loans to individuals with no access to traditional sources are known as ...

Small-credit loans

Development loans

Micro-credit loans

Grant loans

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8. One growth model states that the rate of growth of GDP (economic growth) is determined by the national savings ratio and the ratio of capital to output in the economy. Which growth model is this?

Lewis dual sector model

San Diego consensus model

Harrod-Domar growth model

Export promotion model

9. The Human Development Index (HDI) is a composite index for measuring economic development. It brings together three variables, thus not one of the following. Which one?

Long, healthy life

Decent standard of living

Steady economic growth

Improved education

10. The HDI adjusted for gender inequality is known as the ...

GDI

WDI

GEM

GDI = Gender-related development index

Explanation

GDI = Gender-related development index

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13. Aid given for a specific project in a country is known as "commodity aid"

True

False

It is known as "project aid". Commodity aid is grant given by countries to increase productivity in developing economies (e.g. it provides funds to purchase commodities including raw materials)

Explanation

It is known as "project aid". Commodity aid is grant given by countries to increase productivity in developing economies (e.g. it provides funds to purchase commodities including raw materials)

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15. Foreign aid that must be spent in the country providing the aid (the donor country) is known as ...

Commodity aid

Tied aid

Project aid

Project grant

16. Micro-finance is believed to have much potential, but the positive effects of it has not been clearly demonstrated yet

True

False

Micro-credit schemes have been extremely successful.

Explanation

Micro-credit schemes have been extremely successful.

17. "Index for measuring economic development, which measures the proportion of people who are deprived of the opportunity to reach a basic level in the areas; a long and healthy life, education, the ability to meet basic needs" What index is this?

HDI - Human development index

GDP index

HPI - Human poverty index

HPM - Human poverty measure

18. The San Diego consensus model explains the growth of a country in terms of a labor transition between two sectors (usually primary --> manufacturing).

True

False

There is no model called "San Diego consensus model". The model described above is the Lewis Dual Sector Model.

Explanation

There is no model called "San Diego consensus model". The model described above is the Lewis Dual Sector Model.