A higher international interest rate will decrease FDI since it means a higher cost of fund in international market, and vice versa. Interest rate is a measure of the cost of capital. A higher interest rate implies more costly investment and, therefore, the higher the interest rate, the more it is likely to defer FDI and the relationship between FDI and the interest rate is expected to be negative. Love and Lage-Hidalgo (2000) and Erdal and Tatoglu (22002), amongst others, find that an increase in the interest rate leads to a decrease in FDI. Interest rate and FDI can both be the cause and effect of other.

Correct Option: B

A higher international interest rate will decrease FDI since it means a higher cost of fund in international market, and vice versa. Interest rate is a measure of the cost of capital. A higher interest rate implies more costly investment and, therefore, the higher the interest rate, the more it is likely to defer FDI and the relationship between FDI and the interest rate is expected to be negative. Love and Lage-Hidalgo (2000) and Erdal and Tatoglu (22002), amongst others, find that an increase in the interest rate leads to a decrease in FDI. Interest rate and FDI can both be the cause and effect of other.

The sectoral distribution of GDP index measures the development of a country across several economic activities. It the market value of all final goods and services produced in a period (quarterly or yearly). It is one of the primary indicators used to gauge the health of a country’s economy.

Correct Option: B

The sectoral distribution of GDP index measures the development of a country across several economic activities. It the market value of all final goods and services produced in a period (quarterly or yearly). It is one of the primary indicators used to gauge the health of a country’s economy.

Supply-side economics emphasizes economic growth achieved by tax and fiscal policy that creates incentives to produce goods and services. It lays great emphasis on entrepreneurs, investors and producers who are treated the prime movers on which the economy depends. Supply-side economics is better known to some as “Reaganomics,” or the “trickle-down” policy.

Correct Option: A

Supply-side economics emphasizes economic growth achieved by tax and fiscal policy that creates incentives to produce goods and services. It lays great emphasis on entrepreneurs, investors and producers who are treated the prime movers on which the economy depends. Supply-side economics is better known to some as “Reaganomics,” or the “trickle-down” policy.

A majority of economists such as Simon Kuznets, Meier and Baldwin, Hicks D. Samuelson, Pigeon and others consider national income as the most suitable index of economic development. However, the UNO experts in their report on ‘Measures of Economic Development of Under-Developed Countries’ have Per Capita Real Income as the best measurement of economic development. They contend that economic growth is meaningless if it does not improve the standard of living of the common masses. They define economic development as a process by which the real per capita income increases over a long period of time.

Correct Option: A

A majority of economists such as Simon Kuznets, Meier and Baldwin, Hicks D. Samuelson, Pigeon and others consider national income as the most suitable index of economic development. However, the UNO experts in their report on ‘Measures of Economic Development of Under-Developed Countries’ have Per Capita Real Income as the best measurement of economic development. They contend that economic growth is meaningless if it does not improve the standard of living of the common masses. They define economic development as a process by which the real per capita income increases over a long period of time.

Some economists believe that economic growth is meaningless if it is not distributed across different segments of population. So per capita income is considered by some as a better indicator of economic growth since it measures the average income earned per person in countryin a specified year. It serves as an indicator of a country's living standards and how wealth or income is distributed across the population. However, to a vast majority Gross Domestic Product (GDP) is the most comprehensive measure of overall economic performance.

Correct Option: B

Some economists believe that economic growth is meaningless if it is not distributed across different segments of population. So per capita income is considered by some as a better indicator of economic growth since it measures the average income earned per person in countryin a specified year. It serves as an indicator of a country's living standards and how wealth or income is distributed across the population. However, to a vast majority Gross Domestic Product (GDP) is the most comprehensive measure of overall economic performance.