Q71. The Physical Quality of Life Index was developed in the 1970s by which prominent scholar?
Measurement of Development: HDI and Related Indices: RAS Prelims MCQs
100 RAS Prelims MCQs on the measurement of development cover the Human Development Index and related indices. The creator of HDI, its three dimensions, the goalposts used in the Education Index, the logarithm applied to income, min-max scaling, India’s category and the Gender Development Index are asked as facts and statements.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 71–80 of 100 questions
Q72. Which of the following indicators is NOT a component of the Physical Quality of Life Index?
Explanation
This specific social index was designed to be independent of economic metrics. It consists of three components: the infant mortality rate, the percentage of the population that is literate, and life expectancy at the age of one. By excluding monetary figures, it aimed to provide a direct assessment of whether the basic human needs of the population were being successfully met.
Q73. Why did the creator of the Physical Quality of Life Index intentionally exclude Gross National Product from its calculation?
Explanation
The creator of this social index intentionally omitted national income figures because he believed that economic expansion does not always improve the actual lives of people. He argued that total production can increase while health and literacy remain poor. Therefore, he focused on non-monetary indicators to provide a clearer picture of societal progress and the actual fulfillment of essential human requirements.
Q74. Consider the following statements regarding the Physical Quality of Life Index:
I. It was developed by Morris D. Morris in the 1970s.
II. It is calculated by taking an unweighted average of its three components.
III. It utilizes life expectancy at age one rather than life expectancy at birth.
IV. The index components are scaled from 1 to 100, where 100 represents the best outcome.
V. It has completely replaced the Human Development Index in modern economic assessments.
Which of the above combinations of statements is incorrect?
I. It was developed by Morris D. Morris in the 1970s.
II. It is calculated by taking an unweighted average of its three components.
III. It utilizes life expectancy at age one rather than life expectancy at birth.
IV. The index components are scaled from 1 to 100, where 100 represents the best outcome.
V. It has completely replaced the Human Development Index in modern economic assessments.
Which of the above combinations of statements is incorrect?
Explanation
This social index, developed in the 1970s, uses an unweighted average of its three scaled components. It is unique for utilizing life expectancy at age one. While it was an important step in development thinking, it has not replaced modern metrics like the Human Development Index. Instead, it serves as a historical predecessor that paved the way for more comprehensive multidimensional assessments.
Q75. Match the items in List I with those in List II:
| Scholar/Institution | Associated Development Index |
|---|---|
| A. Morris D. Morris | i. Human Development Index |
| B. Mahbub ul Haq | ii. Global Hunger Index |
| C. OPHI and UNDP | iii. Physical Quality of Life Index |
| D. Concern Worldwide and Welthungerhilfe | iv. Multidimensional Poverty Index Options: |
Explanation
Different scholars and institutions are responsible for various development metrics. Morris D. Morris pioneered the physical quality of life index, while Mahbub ul Haq created the human development index. Collaborative efforts between Oxford and the UNDP led to the multidimensional poverty index. Finally, the global hunger index is published annually through a partnership of NGOs dedicated to monitoring nutritional well-being.
Q76. The Ease of Doing Business Index, which measured regulations directly affecting businesses, was published by which international organization before its discontinuation?
Explanation
This influential index was published for nearly two decades to rank countries based on the regulatory environment for private firms. It aimed to show how easily businesses could operate and grow under national laws. However, the report was eventually discontinued after internal reviews found significant issues with data integrity. It remains a notable example of how international organizations track and promote economic reforms.
Q77. The Ease of Doing Business Index aggregated scores across how many primary parameters or topics regulating the life cycle of a business?
Explanation
To evaluate the business environment, the index analyzed ten specific areas that cover the life cycle of a company. These parameters included processes like starting a firm, obtaining electricity, and paying taxes. By aggregating data across these diverse topics, the report provided a single score that allowed for the comparison of regulatory efficiency and business friendliness across different global economies.
Q78. Which of the following was NOT one of the parameters measured in the Ease of Doing Business Index?
Explanation
The parameters used in this business-focused index were designed to measure the ease of administrative and legal processes for companies. While it covered things like enforcing contracts and dealing with construction permits, it did not include measures of environmental sustainability or compliance. The focus was strictly on the regulatory burden and the efficiency of government services related to the commercial life of a firm.
Q79. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): The publication of the Ease of Doing Business report was officially discontinued in 2021.
Reason (R): Internal audits revealed data irregularities and ethical concerns regarding the manipulation of data for specific countries in previous reports.
Reason (R).
Assertion (A): The publication of the Ease of Doing Business report was officially discontinued in 2021.
Reason (R): Internal audits revealed data irregularities and ethical concerns regarding the manipulation of data for specific countries in previous reports.
Explanation
The decision to stop publishing this major business report in 2021 was driven by serious internal investigations. These audits uncovered that data had been manipulated in previous years to change the rankings of certain countries. This ethical crisis undermined the credibility of the index, leading the institution to discontinue it and begin developing a more transparent and reliable replacement framework.
Q80. Read the following statements carefully:
Statement I: India’s ranking in the Ease of Doing Business index deteriorated significantly between 2014 and 2019.
Statement II: Reforms such as the introduction of the Insolvency and Bankruptcy Code played a crucial role in altering India’s business environment metrics.
Which of the following is correct?
Statement I: India’s ranking in the Ease of Doing Business index deteriorated significantly between 2014 and 2019.
Statement II: Reforms such as the introduction of the Insolvency and Bankruptcy Code played a crucial role in altering India’s business environment metrics.
Which of the following is correct?
Explanation
India saw a dramatic improvement in its business environment rankings during the late twenty-teens. This rapid rise was fueled by significant legal and administrative reforms, such as the implementation of a new insolvency framework and a simplified tax system. These changes directly addressed several parameters measured by international organizations, making the country a much more attractive and efficient place for private investment.Answer key for these questions
| Q | Correct answer |
|---|---|
| 71 | (d) Morris D. Morris |
| 72 | (a) Per capita income |
| 73 | (c) Growth not reflecting social outcome changes |
| 74 | (c) V only |
| 75 | (a) A-iii, B-i, C-iv, D-ii |
| 76 | (b) World Bank Group |
| 77 | (b) 10 |
| 78 | (d) Environmental sustainability compliance |
| 79 | (a) Both A and R are true and R is the correct explanation of A. |
| 80 | (d) Statement I is incorrect but Statement II is correct |
Key facts from Measurement of Development: HDI and Related Indices
- Mahbub ul Haq is credited with creating the Human Development Index.
- The three dimensions of HDI are health, education and standard of living.
- Income is transformed by a logarithm to account for diminishing marginal utility of income.
- The maximum goalposts in the Education Index are 18 years for expected years of schooling and 15 years for mean years of schooling.
- HDI values are normalised by min-max scaling; India falls in the Medium Human Development category.
- The Gender Development Index is the ratio of the female HDI to the male HDI; Sri Lanka has consistently been placed higher than India among its neighbours.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Measurement of Development: HDI and Related Indices?
This page has 100 practice MCQs on Measurement of Development: HDI and Related Indices (Indian Economy). Each has the correct answer, and most have an explanation.
Who created the Human Development Index?
The economist Mahbub ul Haq, who developed it with Amartya Sen’s ideas for the UNDP’s first Human Development Report in 1990. It measures achievement in health, education and standard of living, not income alone.
Why is income transformed using a logarithm in HDI?
To account for diminishing marginal utility of income. Each additional rupee adds less to human well-being at higher incomes, so the index counts a rise in income at low levels as more important than the same rise at high levels.
What does the Gender Development Index measure?
It measures gender gaps in human development achievements by taking the ratio of the female HDI to the male HDI. A value of 1 means that women and men have equal achievement.