Question:
[Table Data] 2010: Nom GDP=75, Price Level=125, Lit=82, Mort=78. 2020: Nom GDP=120, Price Level=150, Lit=97, Mort=52. Which statement is consistent?
(1) Increase in real GDP and improved living standards
(2) Increase in real GDP and decline in living standards
(3) Decrease in real GDP and decline in living standards
(4) Decrease in real GDP and improved living standards
(5) Decrease in real GDP and improved human development
Correct Answer:
(1)
Answer Explanation:
Real GDP = (Nominal GDP / Price Index) $times$ 100. For 2010: $(75 / 125) times 100 = 60$. For 2020: $(120 / 150) times 100 = 80$. Therefore, Real GDP increased. Literacy rates rose (82 to 97) and mortality fell (78 to 52), clearly indicating that socio-economic living standards also improved.
Topic: Economic Development Year: 2024
Leave a Reply