Growth, Development Indices and Theories

Attempt the quiz above first, then review every question with its correct answer and a short explanation below.

1. Q1.The Human Development Index (HDI) is published by the:

   • A.World Bank
   • B.IMF
   • C.WTO
   • D.UNDP✓ Correct Answer

   Explanation: The United Nations Development Programme publishes the Human Development Report and HDI.

2. Q2.Economic growth refers to a sustained increase in a country's:

   • A.real output or real GDP✓ Correct Answer
   • B.population only
   • C.number of banks
   • D.tax rates

   Explanation: Growth is measured by the rise in real GDP over time.

3. Q3.Which of these is NOT a component of the HDI?

   • A.Health (life expectancy)
   • B.Military strength✓ Correct Answer
   • C.Education
   • D.Standard of living (income)

   Explanation: HDI combines health, education and income.

4. Q4.Per capita income is a measure of:

   • A.the income of the richest person
   • B.total government revenue
   • C.total exports
   • D.the average income of a person in the country✓ Correct Answer

   Explanation: It is national income divided by population and hides inequality.

5. Q5.Sustainable development means development that:

   • A.ignores the environment
   • B.benefits only urban areas
   • C.depends only on foreign aid
   • D.meets present needs without compromising the needs of future generations✓ Correct Answer

   Explanation: This definition comes from the Brundtland Commission report.

6. Q6.Which country is known for the concept of Gross National Happiness (GNH)?

   • A.Nepal
   • B.Sri Lanka
   • C.Bhutan✓ Correct Answer
   • D.Maldives

   Explanation: Bhutan's king introduced GNH in the 1970s as a measure of progress.

7. Q7.The value of the HDI lies between:

   • A.0 and 1✓ Correct Answer
   • B.0 and 10
   • C.1 and 100
   • D.-1 and 1

   Explanation: A value closer to 1 indicates higher human development.

8. Q8.The first Human Development Report was published in:

   • A.1975
   • B.1985
   • C.2000
   • D.1990✓ Correct Answer

   Explanation: It was prepared under the leadership of Mahbub ul Haq with inputs from Amartya Sen.

9. Q9.The Gini coefficient is used to measure:

   • A.the rate of inflation
   • B.the size of the fiscal deficit
   • C.inequality in the distribution of income✓ Correct Answer
   • D.the level of literacy

   Explanation: A Gini value of 0 means perfect equality and 1 means perfect inequality.

10. Q10.The Lorenz curve is used to show:

    • A.the supply of money
    • B.the distribution of income or wealth✓ Correct Answer
    • C.the balance of payments
    • D.the business cycle

    Explanation: The further the curve bends from the equality line, the greater the inequality.

11. Q11.The global Multidimensional Poverty Index (MPI) is published by UNDP along with:

    • A.the Oxford Poverty and Human Development Initiative (OPHI)✓ Correct Answer
    • B.the World Economic Forum
    • C.the OECD
    • D.the Asian Development Bank

    Explanation: The MPI measures deprivation in health, education and living standards.

12. Q12.India's national Multidimensional Poverty Index is released by:

    • A.NITI Aayog✓ Correct Answer
    • B.Reserve Bank of India
    • C.Finance Commission
    • D.Election Commission

    Explanation: NITI Aayog has published the national MPI based on survey data.

13. Q13.The Brundtland Commission's 1987 report on sustainable development was titled:

    • A.Our Common Future✓ Correct Answer
    • B.Limits to Growth
    • C.Silent Spring
    • D.Small is Beautiful

    Explanation: The report popularised the idea of sustainable development.

14. Q14.The Sustainable Development Goals (SDGs) adopted in 2015 are how many in number?

    • A.8
    • B.17✓ Correct Answer
    • C.12
    • D.25

    Explanation: The 17 SDGs replaced the eight Millennium Development Goals and cover the period to 2030.

15. Q15.The capability approach to development is associated with:

    • A.Adam Smith
    • B.Amartya Sen✓ Correct Answer
    • C.W. W. Rostow
    • D.Milton Friedman

    Explanation: Sen argued that development means expanding people's real freedoms and capabilities.

16. Q16.The Gender Inequality Index (GII) measures disparities between women and men in:

    • A.military spending, trade and tax
    • B.rainfall, crops and soils
    • C.reproductive health, empowerment and labour market participation✓ Correct Answer
    • D.banking, insurance and stock markets

    Explanation: The GII is published by UNDP in the Human Development Report.

17. Q17.The "Stages of Economic Growth" (1960), which describes a stage of "take-off", was written by:

    • A.Simon Kuznets
    • B.W. W. Rostow✓ Correct Answer
    • C.Paul Samuelson
    • D.Joseph Schumpeter

    Explanation: Rostow listed five stages from traditional society to the age of high mass consumption.

18. Q18.The Harrod-Domar model emphasises that economic growth depends mainly on:

    • A.the size of the army
    • B.the rate of exports only
    • C.the rate of saving and the capital-output ratio✓ Correct Answer
    • D.the level of rainfall

    Explanation: Growth rate = saving rate divided by the capital-output ratio.

19. Q19.The Kuznets curve describes an inverted-U relationship between:

    • A.inflation and unemployment
    • B.interest rates and investment
    • C.exports and imports
    • D.income inequality and economic development✓ Correct Answer

    Explanation: Kuznets suggested inequality first rises and then falls as an economy develops.

20. Q20.The dual-sector model of development, based on surplus labour in agriculture, was proposed by:

    • A.Ragnar Nurkse
    • B.Amartya Sen
    • C.W. Arthur Lewis✓ Correct Answer
    • D.Alfred Marshall

    Explanation: Lewis (1954) described labour moving from a low-productivity traditional sector to a modern sector.