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Barriers to Development Key Terms

Total questions: 17

Worksheet time: 9mins

Name
Class
Date
1.

Happy Planet Index (HPI)

a)

An index that measures only life expectancy.

b)

An index that combines elements of well-being, life expectancy, inequality of outcomes, and ecological footprint.

c)

An index that focuses solely on economic growth.

d)

An index that evaluates only environmental sustainability.

2.

debt relief (cancellation)

a)

A reduction of the debt burden of developing countries organized by the World Bank and the IMF.

b)

A program to increase the debt of developed countries.

c)

A strategy to eliminate all forms of taxation in developing countries.

d)

A method to encourage borrowing from international markets.

3.

governance

a)

The act of managing a company's finances and operations.

b)

Refers to the way of governing, and the exercise of power in the management of an economy’s economic and social resources, in order to achieve particular objectives such as economic growth and development.

c)

A method of evaluating employee performance in an organization.

d)

The process of creating laws and regulations for a country.

4.

economic development

a)

A process that focuses solely on increasing GDP without considering social factors.

b)

A multidimensional concept involving a sustained increase in living standards that implies higher levels of income and thus greater access to goods and services, better education and health, a better environment to live in as well as individual empowerment.

c)

An approach that prioritizes environmental sustainability over economic growth.

d)

A strategy that aims to reduce poverty by limiting access to education and healthcare.

5.

inequality-adjusted human development index (IHDI)

a)

A measure of a country's economic growth over time.

b)

A composite indicator consisting of an average of a country’s achievements in health, education and income all adjusted for the degree of inequality characterizing each.

c)

An index that ranks countries based solely on their GDP.

d)

A tool used to measure environmental sustainability in countries.

6.

poverty cycle (poverty trap)

a)

A circular chain of events that starts and ends in wealth.

b)

A linear progression from poverty to wealth.

c)

Any circular chain of events starting and ending in poverty—for example, low income leads to low savings, leads to low investment, leads to low growth, leads to low income.

d)

A temporary state of low income without long-term effects.

7.

property rights

a)

The exclusive, legal authority to own property and determine how that property is used, whether it is owned by the government or by private individuals.

b)

The right to use property without any restrictions from the government.

c)

The ability to sell property without any legal obligations.

d)

The permission to occupy land without ownership rights.

8.

Gender Inequality Index (GII)

a)

A measure of economic growth in a country

b)

A composite indicator that measures gender inequalities in three dimensions of human development

c)

A tool for assessing environmental sustainability

d)

An index that ranks countries based on their military strength

9.

land rights

a)

Legal rights to own and sell land

b)

Property (ownership) legal rights over land holdings that include rights to possess, occupy and use the land.

c)

Rights to use land without ownership

d)

Rights to access land owned by others

10.

informal economy

a)

Refers to the part of an economy where activity is officially recorded, regulated or taxed.

b)

Refers to the part of an economy where activity is not officially recorded, regulated or taxed. The activities of the informal economy are not included in a country’s national income figures.

c)

Refers to the part of an economy that is only regulated by government policies.

d)

Refers to the part of an economy that is fully documented and contributes to national income.

11.

capital flight

a)

Occurs when money and other assets flow out of a country to seek a “safe haven” in another country.

b)

A term used to describe the increase in domestic investments within a country.

c)

The process of transferring funds from one bank account to another within the same country.

d)

A government policy aimed at restricting the outflow of capital from the country.

12.

human development index (HDI)

a)

A measure of economic growth based solely on GDP.

b)

A composite index of development that reflects the three basic goals of development, which are a long and healthy life, improved education, and a decent standard of living.

c)

An index that only considers life expectancy as a measure of development.

d)

A ranking of countries based on their military strength.

13.

sustainable development

a)

Refers to the degree to which the current generation is able to meet its needs today but still conserve resources for the sake of future generations.

b)

A method of economic growth that prioritizes short-term gains over long-term sustainability.

c)

A strategy that focuses solely on environmental conservation without considering social equity.

d)

An approach that encourages the depletion of natural resources for immediate benefits.

14.

infrastructure

a)

Physical capital typically financed by governments that is essential for economic activity to take place, including roads, power, telecommunications and sanitation, generating significant positive externalities.

b)

A type of financial capital that is used for investments in stocks and bonds.

c)

A form of social capital that refers to the networks and relationships among people in a society.

d)

A temporary structure used for construction purposes, such as scaffolding.

15.

composite indicator

a)

An indicator that is comprised as an average of more than one economic variable, for example, the HDI.

b)

A single economic variable used to measure economic performance.

c)

An indicator that only considers social factors in its calculation.

d)

A measure that combines only environmental variables.

16.

primary sector

a)

Anything derived from the factor of production land, including agricultural products, metals, and minerals.

b)

The sector that focuses on manufacturing and industrial processes.

c)

A sector that deals primarily with services and intangible goods.

d)

The sector that involves the distribution of products and goods.

17.

appropriate technology

a)

Technology that relies mostly on the relatively abundant factor an economy is endowed with.

b)

Technology that is only suitable for developed countries.

c)

Technology that requires extensive training and education to use.

d)

Technology that is expensive and not widely accessible.