Export your learner materials as an interactive game, a webpage, or FAQ style cheatsheet.
Unsaved Work Found!
It looks like you have unsaved work from a previous session. Would you like to restore it?
Total Categories: 6
The Economic Complexity Index (ECI) is primarily designed to measure a country's current Gross Domestic Product (GDP).
Answer: False
The Economic Complexity Index (ECI) is fundamentally a measure of the productive capabilities and accumulated knowledge embedded within economic systems, rather than a direct measure of current Gross Domestic Product (GDP).
The ECI framework suggests that economic development is driven by the diversification and sophistication of a country's export basket.
Answer: True
The ECI framework posits that economic development is fundamentally linked to the diversity and sophistication of a country's export basket, reflecting embedded productive knowledge.
The ECI metric implies that countries should focus on exporting basic commodities to achieve development.
Answer: False
The ECI metric implies that countries achieve development by moving beyond basic commodities to export increasingly complex and sophisticated products, reflecting accumulated knowledge.
The ECI framework posits that economic development is fundamentally linked to the accumulation and application of productive knowledge.
Answer: True
The ECI framework fundamentally links economic development to the accumulation and application of productive knowledge, which is reflected in the diversity and sophistication of a nation's economic activities.
What is the primary purpose of the Economic Complexity Index (ECI)?
Answer: To assess the productive capabilities and accumulated knowledge of economic systems.
The primary purpose of the Economic Complexity Index (ECI) is to assess the productive capabilities and the embedded knowledge within economic systems, such as countries or regions.
What does the ECI metric imply is required for economic development?
Answer: Accumulating and utilizing productive knowledge in increasingly complex industries.
The ECI metric implies that economic development is achieved through the accumulation and application of productive knowledge, leading to engagement in increasingly complex industries.
What is the core idea underlying the Economic Complexity Index?
Answer: Economic complexity reflects the diversity and sophistication of a country's exports, indicating embedded knowledge.
The core idea of the Economic Complexity Index is that a nation's economic complexity, reflected in the diversity and sophistication of its exports, serves as a proxy for the embedded productive knowledge within its economy.
According to the ECI framework, the knowledge of an economic activity is defined by the average knowledge of the places where it is performed.
Answer: True
Within the ECI framework, the knowledge associated with an economic activity is defined as the average knowledge of the locations where that activity is conducted. This reflects the embedded knowledge within the economic ecosystem.
Data related to the Economic Complexity Index can be found on the World Bank's website.
Answer: False
While the World Bank provides extensive economic data, comprehensive ECI data and visualizations are primarily accessible through The Observatory of Economic Complexity (OEC).
Mathematically, the ECI is derived from the eigenvalue of a matrix representing the connections between products exported by countries.
Answer: False
Mathematically, the ECI is derived from the eigenvalue of a matrix that connects countries to the products they export, not solely between products themselves.
The ECI measures economic complexity by considering only the number of products a country exports.
Answer: False
The ECI measures economic complexity by considering not only the diversity of products a country exports but also the ubiquity of those products (how many other countries export them), reflecting the sophistication and embedded knowledge.
The ECI has only ever been developed using international trade data.
Answer: False
While international trade data is foundational, the ECI framework has been expanded to incorporate other data sources, such as patents and scientific publications, for a more comprehensive analysis.
The Observatory of Economic Complexity (OEC) uses a 4-digit product depth for its rankings.
Answer: False
The Observatory of Economic Complexity (OEC) utilizes a 6-digit product depth for its rankings, providing a more granular analysis.
The ECI defines the knowledge of a location as the diversity of its population's skills.
Answer: False
The ECI defines the knowledge of a location as the average knowledge of the economic activities performed there, not directly the diversity of the population's skills.
The ECI measures complexity based on the ubiquity of products and the diversity of countries exporting them.
Answer: False
The ECI measures complexity by analyzing the structure of the relationship between countries and the products they export, considering factors like product diversity and ubiquity, rather than simply the diversity of countries exporting them.
How does the ECI define the 'knowledge' associated with an economic activity?
Answer: As the average knowledge of the places where that specific economic activity is conducted.
The ECI defines the knowledge associated with an economic activity as the average knowledge of the places where that activity is performed, reflecting the embedded knowledge within the economic ecosystem.
Which institution provides accessible data for the Economic Complexity Index?
Answer: The Observatory of Economic Complexity (OEC)
Accessible data and visualizations for the Economic Complexity Index (ECI) are provided by The Observatory of Economic Complexity (OEC).
The ECI measures economic complexity using which two main factors?
Answer: Product diversity and product ubiquity
The ECI measures economic complexity by analyzing two primary factors: the diversity of products a country exports and the ubiquity of those products across exporting nations.
How does the ECI define the knowledge of a specific economic activity?
Answer: The average knowledge of the places where the activity is performed.
The ECI defines the knowledge of a specific economic activity as the average knowledge of the places where that activity is performed.
The ECI is mathematically defined as an eigenvalue of which type of matrix?
Answer: A matrix connecting countries to the products they export.
Mathematically, the ECI is derived as an eigenvalue of a matrix that represents the connections between countries and the products they export.
Which specific data depth is used for the rankings in The Observatory of Economic Complexity (OEC)?
Answer: 6-digit
The Observatory of Economic Complexity (OEC) utilizes a 6-digit product depth for its rankings.
Ricardo Hausmann and Cesar Hidalgo are credited with developing the ECI, affiliated with Harvard and MIT respectively.
Answer: True
This statement is true. Ricardo Hausmann, associated with Harvard University, and Cesar Hidalgo, affiliated with MIT, are credited with the development of the Economic Complexity Index (ECI).
Who developed the Economic Complexity Index (ECI)?
Answer: Cesar A. Hidalgo and Ricardo Hausmann
The Economic Complexity Index (ECI) was developed by Cesar A. Hidalgo and Ricardo Hausmann.
The ECI suggests that economic development is hindered by higher economic complexity.
Answer: False
The ECI posits that higher economic complexity, particularly when exceeding expectations based on a country's income level, is a driver of economic development, not a hindrance.
Hidalgo and Hausmann proposed the ECI solely as a descriptive measure of current economic conditions.
Answer: False
Hidalgo and Hausmann proposed the ECI not only as a descriptive tool but also as a predictive measure for economic growth and income inequality.
The ECI has been shown to be a less accurate predictor of GDP per capita growth compared to traditional measures like human capital.
Answer: False
Research suggests that the ECI is a more accurate predictor of GDP per capita growth than traditional measures such as human capital, governance, and competitiveness.
The ECI shows a positive correlation with income inequality.
Answer: False
The ECI demonstrates a strong negative correlation with income inequality, indicating that more complex economies tend to be more inclusive.
The ECI's explanation for income inequality variations is considered less effective than the Kuznets Curve theory.
Answer: False
The ECI provides a statistically stronger explanation for cross-national variations in income inequality compared to the traditional Kuznets Curve theory.
According to the ECI metric, economic development requires the accumulation of productive knowledge in simpler industries.
Answer: False
The ECI metric suggests that economic development is driven by the accumulation and application of productive knowledge in increasingly complex industries, not simpler ones.
The ECI suggests that economies with less knowledge-intensive production structures tend to be more inclusive.
Answer: False
The ECI suggests the opposite: economies with *more* knowledge-intensive production structures tend to be more inclusive and exhibit lower income inequality.
The ECI is considered a less effective predictor of GDP growth than traditional measures like governance.
Answer: False
The ECI has been shown to be a *more* effective predictor of GDP growth than traditional measures such as governance, competitiveness, and human capital.
A country's economic development is driven when its ECI is lower than expected based on its income level.
Answer: False
Economic development, according to the ECI framework, is driven when a country's ECI is *higher* than expected based on its income level, indicating it possesses more productive knowledge than its income suggests.
The ECI provides a weaker explanation for income inequality compared to the Kuznets Curve.
Answer: False
The ECI provides a statistically stronger explanation for income inequality variations than the Kuznets Curve.
What is the relationship between economic complexity (ECI) and economic development suggested by the index?
Answer: Higher complexity, relative to income level, drives economic development.
The ECI suggests that economic development is driven when a country's economic complexity is higher than what would be predicted based on its current income level, indicating an advantage in productive knowledge.
How does the ECI's predictive power for GDP per capita growth compare to traditional metrics?
Answer: It is a more accurate predictor than traditional measures like governance, competitiveness, and human capital.
The ECI demonstrates greater accuracy in predicting GDP per capita growth compared to traditional metrics such as governance, competitiveness indices, and measures of human capital.
What correlation does the ECI demonstrate with income inequality?
Answer: A strong negative correlation, meaning higher complexity is associated with lower inequality.
The ECI demonstrates a strong negative correlation with income inequality, suggesting that economies with greater complexity and embedded knowledge tend to exhibit more inclusive income distribution.
What does the ECI suggest about the link between knowledge-intensive production and income distribution?
Answer: Knowledge-intensive economies tend to be more inclusive, with lower income inequality.
The ECI suggests that economies characterized by knowledge-intensive production structures tend to be more inclusive, correlating with lower levels of income inequality.
What does the ECI suggest about the relationship between a country's complexity and its income level regarding development?
Answer: Development occurs when complexity is higher than expected for the income level.
The ECI suggests that economic development is fostered when a country's complexity exceeds what is typically associated with its current income level, indicating a surplus of productive knowledge.
Compared to the Kuznets Curve, the ECI offers a ______ explanation for income inequality variations.
Answer: Statistically stronger
The ECI offers a statistically stronger explanation for variations in income inequality compared to the traditional Kuznets Curve theory.
A high ECI score for a country like Germany indicates it exports many common goods and has a less diversified economy.
Answer: False
A high ECI score, as seen in countries like Germany, indicates a diversified economy that exports numerous less common and sophisticated goods, rather than many common ones.
Countries like Angola typically have low ECI scores because they export a wide variety of sophisticated products.
Answer: False
Countries like Angola typically have low ECI scores because they export a limited range of common products, reflecting a less diversified and less sophisticated economic structure.
Bangladesh and Venezuela are cited as examples of countries that have successfully diversified their know-how, leading to high growth prospects.
Answer: False
Bangladesh and Venezuela are cited as examples of countries that have *not* successfully diversified their know-how, leading to low growth prospects according to the ECI framework.
India and the Philippines are highlighted as countries that have added productive capabilities and entered new sectors, potentially driving future growth.
Answer: True
India, Turkey, and the Philippines are highlighted as countries that have demonstrated an ability to add productive capabilities and enter new economic sectors, suggesting potential for future growth.
The Atlas rankings for 2023 show Chad having the highest Economic Complexity Index.
Answer: False
The Atlas rankings for 2023 indicate that Chad had the *lowest* Economic Complexity Index, not the highest.
Switzerland's Economic Complexity Index score increased significantly between 2013 and 2023.
Answer: False
According to the Atlas data, Switzerland's Economic Complexity Index score *decreased* by 1 point between 2013 and 2023.
Hong Kong experienced a substantial increase in its Economic Complexity Index between 2018 and 2023.
Answer: True
The Atlas rankings show that Hong Kong experienced a notable increase of 12 points in its Economic Complexity Index between 2018 and 2023.
The United States' Economic Complexity Index score remained stable between 2013 and 2023.
Answer: False
The Atlas data indicates that the United States' Economic Complexity Index score *decreased* by 2 points between 2013 and 2023.
Armenia demonstrated the most significant positive change in its Economic Complexity Index over the 2013-2023 period.
Answer: True
According to the Atlas data, Armenia showed the most significant positive change, increasing its Economic Complexity Index by 10 points between 2013 and 2023.
Cuba experienced a minor decrease in its Economic Complexity Index between 2013 and 2023.
Answer: False
Cuba experienced a substantial decrease of 96 points in its Economic Complexity Index between 2013 and 2023, according to the Atlas data.
Singapore's Economic Complexity Index saw a decrease over the five years from 2018 to 2023.
Answer: False
According to the Atlas data, Singapore's Economic Complexity Index saw an *increase* of 4 points between 2018 and 2023.
Japan's Economic Complexity Index decreased between 2018 and 2023.
Answer: True
According to the Atlas data, Japan's Economic Complexity Index decreased by 2 points between 2018 and 2023.
Taiwan's Economic Complexity Index showed a significant decrease over the ten-year period from 2013 to 2023.
Answer: False
Taiwan's Economic Complexity Index actually showed a significant *increase* of 6 points over the ten-year period from 2013 to 2023, according to the Atlas data.
Germany's Economic Complexity Index remained unchanged between 2013 and 2023.
Answer: False
Germany's Economic Complexity Index *decreased* by 2 points between 2013 and 2023, according to the Atlas data.
The United Kingdom's Economic Complexity Index decreased between 2018 and 2023.
Answer: False
According to the Atlas data, the United Kingdom's Economic Complexity Index *increased* by 4 points between 2018 and 2023.
South Korea's Economic Complexity Index saw a notable increase between 2013 and 2023.
Answer: False
South Korea's Economic Complexity Index remained stable (0 points change) between 2013 and 2023, according to the Atlas data.
Countries with high ECI scores are typically characterized by exporting a limited range of common products.
Answer: False
Countries with high ECI scores are characterized by exporting a *wide* range of less common and sophisticated products, indicating high diversification and complexity.
What does a high ECI score, like that of Japan or Germany, typically signify about their economies?
Answer: Their economies are highly diversified and export numerous less common, sophisticated goods.
A high ECI score, exemplified by countries such as Japan and Germany, signifies economies that are highly diversified and export a wide array of less common, sophisticated goods, reflecting advanced productive capabilities.
Which of the following countries is cited as an example of a nation failing to diversify its know-how and facing low growth prospects?
Answer: Angola
Angola is cited as an example of a country that has not sufficiently diversified its productive know-how, leading to diminished growth prospects according to the ECI framework.
Which countries are highlighted for successfully adding productive capabilities and entering new sectors, potentially driving future growth?
Answer: India, Turkey, and the Philippines
India, Turkey, and the Philippines are highlighted as nations that have successfully expanded their productive capabilities and entered new economic sectors, indicating potential drivers for future economic growth.
According to the Atlas rankings for 2023, which country holds the highest Economic Complexity Index?
Answer: Singapore
The Atlas rankings for 2023 identify Singapore as holding the highest Economic Complexity Index.
Which country had the lowest Economic Complexity Index in the Atlas rankings for 2023?
Answer: Chad
Chad registered the lowest Economic Complexity Index in the Atlas rankings for 2023.
What was the change in Switzerland's Economic Complexity Index between 2013 and 2023?
Answer: Decreased by 1 point
According to the Atlas data, Switzerland's Economic Complexity Index experienced a decrease of 1 point between 2013 and 2023.
According to the Atlas data, how did Hong Kong's ECI change between 2018 and 2023?
Answer: Increased by 12 points
According to the Atlas data, Hong Kong's Economic Complexity Index increased by 12 points between 2018 and 2023.
How did Japan's ECI change between 2018 and 2023 according to Atlas data?
Answer: Decreased by 2 points
According to the Atlas data, Japan's Economic Complexity Index decreased by 2 points between 2018 and 2023.
The Product Complexity Index (PCI) is a different metric from the Economic Complexity Index (ECI).
Answer: True
The Product Complexity Index (PCI) and the Economic Complexity Index (ECI) are distinct metrics. While related, the ECI measures the complexity of a country's export basket, whereas the PCI measures the complexity of individual products.
Japan leads in the Trade Index according to the Observatory data for 2023.
Answer: True
According to the Observatory data for 2023, Japan leads with a Trade Index score of 2.07.
Switzerland recorded the highest Technology Index score in 2021 among the countries listed.
Answer: True
Switzerland recorded the highest Technology Index score in the Observatory data for 2021, with a value of 1.22.
The United States achieved the highest Research Index score in the Observatory data for 2023.
Answer: True
The United States achieved the highest Research Index score in the Observatory data for 2023, with a value of 2.52.
According to the Observatory data, China had a positive Research Index score in 2023.
Answer: False
According to the Observatory data, China had a negative Research Index score of -0.77 in 2023.
The United States had a higher Trade Index score than Japan in the Observatory rankings.
Answer: False
In the Observatory rankings for 2023, Japan had a Trade Index score of 2.07, while the United States had a score of 1.50, indicating Japan's higher score.
Switzerland's Technology Index score was lower than its Research Index score in the Observatory rankings.
Answer: True
In the Observatory rankings, Switzerland's Technology Index score was 1.22, while its Research Index score was 1.98, making the Technology Index lower.
The United States recorded the highest Research Index score among the listed countries in the Observatory data.
Answer: True
The United States recorded the highest Research Index score in the Observatory data for 2023.
Germany's Technology Index score was higher than its Research Index score in the Observatory rankings.
Answer: False
In the Observatory rankings, Germany's Technology Index score was 1.55, while its Research Index score was 1.68, indicating the Technology Index was lower than the Research Index.
Taiwan's Technology Index score was higher than its Research Index score in the Observatory rankings.
Answer: True
In the Observatory rankings, Taiwan's Technology Index score was 0.66, while its Research Index score was -0.17. Therefore, the Technology Index score was higher.
The Observatory data shows missing values for the Technology Index for countries like Gabon and Niger.
Answer: True
The Observatory data indicates missing values for the Technology Index for countries including Gabon and Niger, among others.
Based on the Observatory data for 2023, which country leads in the Trade Index?
Answer: Japan
In the Observatory data for 2023, Japan leads in the Trade Index.
Which country recorded the highest Technology Index score in the Observatory data for 2021?
Answer: Switzerland
Switzerland recorded the highest Technology Index score in the Observatory data for 2021.
Which country achieved the highest Research Index score in the Observatory data for 2023?
Answer: United States
The United States achieved the highest Research Index score in the Observatory data for 2023.
Which of the following countries had a negative Research Index score in 2023 according to Observatory data?
Answer: China
According to Observatory data for 2023, China had a negative Research Index score.
Which of the following countries showed missing values for the Technology Index in the Observatory data?
Answer: Gabon
The Observatory data indicates missing values for the Technology Index for Gabon, among other countries.