1. Which of the following could not be considered a major economic system?
a. capitalism.
b. communism.
c. socialism.
d. physical quality of life index.
Answer: D
2. Economic development refers to
a. Economic growth.
b. Economic growth plus changes in output distribution and economic structure.
c. Improvement in the well-being of the urban population.
d. Sustainable increases in Gross National Product.
Answer: D
3. OPEC is the
a. a. Organization of Petroleum Exporting Country.
b. b. Organization of Pre- European Commission.
c. c. Oil Producing Economies Caucus.
d. d. Organization of Problematic Economies Committee.
Answer: B
4. PPP is
a. a theory that tells us that exchange 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 developing countries.
Answer: D
5. The Physical Quality of Life Index (PQLI) combines three indicators. They are
a. infant mortality, life expectancy and adult literacy rate.
b. crime rate, clean environment and quality of housing.
c. air pollution rate, water pollution rate and sanitation.
d. health, education and environment.
Answer: C
6. Infant mortality
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 employment and
social security.
c. is life expectancy up to age 3.
d. reflects the availability of hospitals and childcare facilities, and the parents’
wealth.
Answer: C
7. The Human Development Index (HDI) summarizes a great deal of social performance in
