Indicators of Economic Growth for Business Investment

The video tutorial explores economic growth indicators, focusing on GDP, real vs nominal GDP, and purchasing power parity. It discusses GDP per capita as a measure of living standards and the importance of workforce quality and health standards. The tutorial also introduces composite indices like the Human Development Index for assessing market attractiveness.

What does GDP stand for in economic terms?

• Gross Domestic Product

• Gross Development Product

• General Domestic Product

• Global Domestic Product

Why is real GDP considered more reliable than nominal GDP?

• It includes inflation adjustments

• It excludes inflation adjustments

• It measures only goods, not services

• It is calculated annually

What is the main purpose of using Purchasing Power Parity (PPP) in GDP calculations?

• To compare GDP across countries with different currencies

• To calculate GDP annually

• To measure only the services sector

• To adjust GDP figures for inflation

How does PPP adjust GDP figures?

• By measuring only final goods

• By using local inflation rates

• By excluding intermediate goods

• By converting GDP to a common currency basis

What does GDP per capita indicate about a country?

• The total population of the country

• The inflation rate

• The total GDP of the country

• The average income per person

How can changes in GDP per capita affect market attractiveness?

• Higher GDP per capita indicates lower spending

• Higher GDP per capita indicates higher spending

• Lower GDP per capita indicates higher spending

• GDP per capita does not affect spending

Why is workforce quality important for businesses considering investment?

• It affects the productivity and efficiency of operations

• It influences the country's GDP

• It impacts the inflation rate

• It determines the cost of goods

Which indicator is used to measure the quality of a country's workforce?

• Exchange rates

• GDP per capita

• Literacy rates

• Inflation rates

What does the Human Development Index (HDI) measure?

• Only educational attainment

• Only life expectancy

• Health, education, and income indicators

• Only economic growth

How does HDI help businesses in assessing market attractiveness?

• By focusing only on income levels

• By combining multiple development indicators into one index

• By excluding health and education factors

• By providing a single measure of economic growth