Measuring Living Standards Quiz

What is GDP?

• The total value of goods and services produced by the economy in a given period

• The measure of changes to living standards

• The total value of non-material living standards

• The distribution of goods and services

What are the limitations of GDP as a measure of living standards?

• Some production is not included

• No measure is taken of the quality of changes considered

• GDP provides no information on how the goods and services are distributed

• All of the above

What is the GPI index?

• An index that measures the sustainable level of economic welfare

• An index that measures the wellbeing of people in different countries

• An index that measures the quality of life across countries

• An index that measures the changes in living standards of society

What are negative adjustments made in the GPI index?

• Environmental damage, depletion of non-renewable energy resources, reduced leisure time

• Inequality in the distribution of income, dependence on foreign debt, increased crime

• Expenditure on defensive items, spending on repairs and medical expenses, increased crime

• All of the above

What are positive adjustments made in the GPI index?

• Ongoing services provided by consumer durable household items, contributions derived from performing housework

• Ongoing services provided by public infrastructure, contributions derived from parenting

• Ongoing services provided by consumer durable household items, contributions derived from completing unpaid community voluntary work

• All of the above

What is the Human Development Index (HDI)?

• A measure of changes to living standards

• A measure of the sustainable level of economic welfare

• A measure that compares the wellbeing of people in different countries

• A measure that compares the quality of life across countries

What are the three indices used to calculate the HDI?

• Life Expectancy, Mean Years of Schooling, Gross National Income per capita

• Life Expectancy, Expected Years of Schooling, Income Index

• Life Expectancy, Mean Years of Schooling, Income Index

• Life Expectancy, Expected Years of Schooling, Gross National Income per capita

What are the weaknesses of the HDI?

• Subjective nature of indicators, unreliability of statistical data

• Subjective nature of indicators, lack of comprehensive data

• Unreliability of statistical data, lack of comprehensive data

• All of the above

What is the quality-of-life index?

• A measure of economic growth with environmental consequences factored in

• A measure of human wellbeing and environmental impact

• A measure of the best opportunity for a healthy, safe and prosperous life

• A measure of the changes in living standards of society

What are the ten quality-of-life factors used in the index?

• Material wellbeing, life expectancy, political freedoms

• Job security, climate, personal physical security

• Quality of community life, governance, gender equality

• All of the above