4. Development Economics

Measuring Development — Quiz

Test your understanding of measuring development with 5 practice questions.

Practice Questions

Question 1

Which indicator measures average income adjusted for cost of living differences across countries?

Question 2

Given mean years of schooling of 8, with a minimum of 0 and a maximum of 15 years, what is the education index used in the HDI formula?

Question 3

If a country’s life expectancy index is $0.8$, education index is $0.6$, and income index is $0.9$, what is its HDI using the geometric mean?

Question 4

Which Fortson–Groom–Thon (FGT) parameter corresponds to the poverty severity index that weights deeper poverty more heavily?

Question 5

Country A has a headcount ratio of 10% and a poverty gap index of 0.05, while Country B has a headcount ratio of 20% and a poverty gap index of 0.04. Which country has more severe poverty on average?