Economic Development Exam 1 Varghese || Graded A+.
LDCs correct answers less developed countries
DCS correct answers developed countries
BRICs correct answers Brazil, Russia, India, China, South Africa
MINT correct answers Mexico, Indonesia, Nigeria, Turkey
transitional economies correct answers countries in Russia and Eastern Europe that are trying to
convert from communism to capitalism, with various degrees of success(examples- Poland,
Ukraine)
China and India correct answers 50% of LDCs come from which two countries
growth correct answers sustained growth in per capita income
development correct answers no formal definition, more of a process with multiple features
institutions, high education, low infant mortality, high employment
Gulf Oil producing states (Libya, Quatar) correct answers High growth but not much
development
Sri lanka, cuba correct answers high development but not much growth
Exchange rate correct answers does not take into account the differences in cost of non traded
goods and services
, Understatement ratio correct answers LDCs GNPs areusually undervalued because presence of
non traded goods. The non traded good price in LDCs < non traded good price in DCs.
Ex) same meal in US costs $10, in China costs $2
Same meal- still want to give same value
Understatement Ratio=GNP @ PPP/ GNP @ ER
GNP (PPP) correct answers "actual" corrected GNP
GNP (exchange rate) correct answers not corrected GNP
HDI (Human Devlopment Index) correct answers "development index"
combines health (life expectancy), education ( many years of schooling), GNI per capita
Education Index correct answers Expected years of schooling Index + Mean years of schooling
index/ 2
Income Index correct answers Ln( gross income per capita) - ln( gross national income per
capita) / ln (max GNI per capita)- Ln(min gni per capita)
Human Development Index (HDI) correct answers (Health Index X Education X Income
Index)^1/3
gnp correct answers Gross National Product, counts only products produced by nationals
(citizens) of a country, whether they live in the country or not
when gnp> gdp- more workers abroad
gdp correct answers gross domestic product- counts any goods/services produced
IDOMESTICALLY (INSIDE a country), includes foreign residents
LDCs correct answers less developed countries
DCS correct answers developed countries
BRICs correct answers Brazil, Russia, India, China, South Africa
MINT correct answers Mexico, Indonesia, Nigeria, Turkey
transitional economies correct answers countries in Russia and Eastern Europe that are trying to
convert from communism to capitalism, with various degrees of success(examples- Poland,
Ukraine)
China and India correct answers 50% of LDCs come from which two countries
growth correct answers sustained growth in per capita income
development correct answers no formal definition, more of a process with multiple features
institutions, high education, low infant mortality, high employment
Gulf Oil producing states (Libya, Quatar) correct answers High growth but not much
development
Sri lanka, cuba correct answers high development but not much growth
Exchange rate correct answers does not take into account the differences in cost of non traded
goods and services
, Understatement ratio correct answers LDCs GNPs areusually undervalued because presence of
non traded goods. The non traded good price in LDCs < non traded good price in DCs.
Ex) same meal in US costs $10, in China costs $2
Same meal- still want to give same value
Understatement Ratio=GNP @ PPP/ GNP @ ER
GNP (PPP) correct answers "actual" corrected GNP
GNP (exchange rate) correct answers not corrected GNP
HDI (Human Devlopment Index) correct answers "development index"
combines health (life expectancy), education ( many years of schooling), GNI per capita
Education Index correct answers Expected years of schooling Index + Mean years of schooling
index/ 2
Income Index correct answers Ln( gross income per capita) - ln( gross national income per
capita) / ln (max GNI per capita)- Ln(min gni per capita)
Human Development Index (HDI) correct answers (Health Index X Education X Income
Index)^1/3
gnp correct answers Gross National Product, counts only products produced by nationals
(citizens) of a country, whether they live in the country or not
when gnp> gdp- more workers abroad
gdp correct answers gross domestic product- counts any goods/services produced
IDOMESTICALLY (INSIDE a country), includes foreign residents
