The Commitment to Development Index (CDI) That Measures the Quantity

question 73

Multiple Choice

The Commitment to Development Index (CDI) that measures the quantity and quality of foreign aid provided to poor countries ranked the United States low on providing direct foreign aid, but this result may be misleading because __________.

• A) the index relies on questionable indicators of development such as the extent to which a country has incorporated technology in its business enterprises
• B) the quality and quantity of exports that contribute to the economic development of a country are not taken into account in the data from which the index is compiled
• C) the index judges development primarily on how well a country can provide military security for its population
• D) the index ignores important factors such as the degree to which rich-country trade policies encourage poor-country imports and the degree to which rich countries are open to migrants from poor countries
• E) the index relies on qualitative judgments to produce quantitative data, includes possibly inessential components, and may be based on a false premise.

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Definitions:

Interest Rate

The percentage of an amount of money charged for its use over a specified period of time, often expressed as an annual percentage.

Gnome Molds

Tools or containers used to shape garden gnome statues during their production process.

Plaster

A mixture of water, lime, or gypsum, sand, and possibly other materials, used in construction and repair of buildings for coatings, molding, or casting surfaces.

Labor

The human effort, both physical and mental, used in the creation of goods and services.