31. Which of the following best describes the concept of ‘Happiness Index’?
a) It is a fiscal tool to measure subsidies
b) It tracks consumer preferences in luxury goods
c) It measures subjective well-being of people
d) It is linked to tax-to-GDP ratio
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Answer: c) It measures subjective well-being of people Explanation:
The Happiness Index evaluates the subjective well-being of individuals based on multiple indicators, such as mental health, living standards, governance quality, social support, and freedom to make life choices. For example, Finland, which regularly tops the World Happiness Report, invests heavily in public services, equality, and mental wellness programs, contributing to overall happiness.
32. Which of the following is an example of economic growth without development?
a) Increasing GDP with improved literacy rates
b) Rising per capita income along with environmental sustainability
c) GDP growth with worsening child malnutrition
d) High export growth with reduced poverty
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Answer: c) GDP growth with worsening child malnutrition Explanation:
This is a classic case of growth without development. While GDP increases, indicators like health and nutrition decline, showing that benefits of growth are not inclusive. For instance, India in early 2000s saw high GDP growth, but high infant mortality and malnutrition levels persisted, especially in rural areas.
33. The term ‘Green GDP’ refers to:
a) GDP growth from agriculture only
b) GDP after adjusting for inflation
c) GDP including tax revenues from green technology
d) GDP adjusted for environmental degradation
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Answer: d) GDP adjusted for environmental degradation Explanation: Green GDP subtracts the cost of environmental degradation and resource depletion from traditional GDP. For example, if economic growth comes at the cost of pollution and deforestation, Green GDP reflects the true net gain. This helps governments balance ecological and economic policies.
34. Which of the following is not a feature of human development approach?
a) Expansion of choices
b) Focus on individual capabilities
c) Maximizing industrial production
d) Equitable access to opportunities
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Answer: c) Maximizing industrial production Explanation:
The human development approach is centered on people and their capabilities—not just economic production. It aims at freedom of choice, education, health, and dignity. Merely maximizing industrial output, without focus on people’s welfare, is not aligned with this approach.
35. Which report first introduced the Human Development Index (HDI)?
a) UN World Economic Report, 1987
b) Human Development Report, 1990
c) World Development Report, 1992
d) UN Millennium Goals Report, 2000
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Answer: b) Human Development Report, 1990 Explanation:
The Human Development Index was introduced in the first Human Development Report in 1990 by UNDP. It was formulated by Pakistani economist Mahbub ul Haq, with support from Amartya Sen, to provide a holistic measure of development beyond GDP.
36. Which one of the following is not among the 17 Sustainable Development Goals (SDGs)?
a) Zero Hunger
b) Clean Water and Sanitation
c) Space Exploration
d) Gender Equality
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Answer: c) Space Exploration Explanation: Space exploration is not part of the 17 SDGs set by the United Nations in 2015. The SDGs focus on goals like poverty reduction, hunger, gender equality, climate action, clean energy, and more, aiming to be achieved by 2030. “Zero Hunger” is SDG 2, “Clean Water and Sanitation” is SDG 6, and “Gender Equality” is SDG 5.
37. Which of the following best captures the essence of the Capability Approach?
a) Enhancing trade competitiveness
b) Promoting fiscal discipline
c) Enabling individuals to live the life they value
d) Expanding industrial exports
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Answer: c) Enabling individuals to live the life they value Explanation:
The Capability Approach, developed by Amartya Sen, emphasizes the freedom and ability of individuals to achieve well-being. It’s not about just economic gains but about expanding real freedoms like access to education, health, and justice. For example, a literate person choosing not to read is different from someone who cannot read due to lack of education—capability lies in the option.
38. Which of the following is true regarding Gross National Product (GNP)?
a) It excludes foreign income of domestic citizens
b) It includes incomes earned abroad by nationals
c) It is equal to GDP minus tax revenue
d) It ignores depreciation of capital assets
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Answer: b) It includes incomes earned abroad by nationals Explanation: GNP = GDP + Net Factor Income from Abroad (NFIA). It considers income earned by nationals abroad (like remittances) and excludes foreigners’ income within the country. For example, if an Indian software engineer earns in the US, that income is part of India’s GNP, not its GDP.
39. Which among the following indices includes inequality adjustment in its calculation?
a) HDI
b) IHDI
c) MPI
d) GDI
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Answer: b) IHDI Explanation:
The Inequality-adjusted Human Development Index (IHDI) refines HDI by factoring in inequalities in distribution of health, education, and income. If inequality is zero, IHDI = HDI. Higher the inequality, larger the gap between HDI and IHDI. This gives a truer picture of development.
40. Which of the following would most likely decrease the value of HDI in a country?
a) Rising life expectancy
b) High per capita income
c) Low mean years of schooling
d) Low infant mortality rate
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Answer: c) Low mean years of schooling Explanation: Education is a major pillar of HDI. A low average number of years of schooling indicates poor educational attainment, reducing the HDI value. For example, countries in sub-Saharan Africa often face this issue despite some economic progress.
