What is the primary purpose of using composite indices in economics?
Understanding Composite Indices in Economics

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11th Grade - University
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Hard
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
To replace traditional economic indicators
To increase the accuracy of direct measurements
To measure variables that cannot be directly measured
To simplify complex calculations
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a characteristic of composite indices?
They are composed of several variables
They provide a single index value
They are always simple to calculate
They may include weighted indicators
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the MSCI World Index primarily evaluate?
Currency exchange rates
Performance of stocks and shares across various regions
International trade balances
Global economic growth
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is the US given the largest weighting in the MSCI World Index?
It has the largest population
It is the most technologically advanced
It is the most significant region for equity performance
It has the highest GDP
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the three dimensions measured by the Human Development Index?
Income distribution, technological advancement, and cultural diversity
Living standards, health outcomes, and educational attainment
Economic growth, political stability, and environmental sustainability
Employment rates, inflation, and trade balance
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does the Human Development Index categorize countries based on their HDI value?
By economic size
By population density
By level of economic development
By geographical location
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a key limitation of the Human Development Index?
It is not recognized globally
It only measures economic factors
It is too complex to calculate
It does not account for income distribution
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