IGCSE Development Studies: Specimen Questions with Answers 57 - 58 of 98
Passage
Question 57 (7 of 7 Based on Passage)
Explanation
S. no | BOT | BOP |
1. | Transactions concerning trade of goods only are recorded. | All transactions concerning goods, services and capital transfers are recorded. |
2. | Transactions of capital nature are not included in Balance of Trade | Transaction of capital nature is also recorded in balance of payment. |
3. | Balance of Trade is a part of current account of balance of payment | BOP is much larger as it has current and capital accounts which include BOP too. |
4. | When exports of goods are higher than the imports of goods, BOT is considered as favorable. | When net balance of current account is in plus. BOP is considered as favorable. |
Passage
Question 58 (1 of 7 Based on Passage)
Explanation
The HDI examines three important criteria of economic development- Life expectancy, education level and income level. The importance of Human Development Index is-
- The HDI gives an overall index of economic development
It does give a rough ability to make comparisons on issues of economic welfare- much more than just using GDP statistics show.
It gives idea regarding areas of development which requires improvement.
Statistics gives better decision-making areas having wide disparity.
More focus on social & human development rather than only capital accumulation and growth.
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