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

question 58

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:

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.

Average Total Cost

The total cost divided by the number of units produced, calculating the cost to produce an average unit of output.

Chairs

Objects designed for seating, typically consisting of a seat, back, legs, and sometimes armrests, used for various purposes including dining and office work.

MC

Short for Marginal Cost, it is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.