Chapter 16 : Agriculture and Development
MULTIPLE CHOICE
1. Between 2006 and 2008, the world experienced its worst food crisis since the:
a.
swine flu epidemic.
c.
1970s.
b.
1930s.
d.
fall of the Soviet Union.
2. According to the Food and Agricultural Organization (FAO) of the United Nations, high food prices in
2008 pushed how many additional people into hunger?
a.
20 million
c.
57 million
b.
40 million
d.
1 billion
3. Among countries categorized as low income by the World Bank in 2008, agriculture accounts for:
a.
10% of GDP
c.
50% of GDP
b.
25% of GDP
d.
65% of GDP
4. Among the poor households of developing countries, household food expenditures amount to:
a.
25% of income.
c.
50–70% of income.
b.
30–50% of income.
d.
90% of income.
5. All of the following are key characteristics of the agricultural production function EXCEPT:
a.
seasonality.
c.
sources of technical change.
b.
geographic dispersion.
d.
diminishing returns to labor.
6. The argument that the proportion of income spent on food declines as income rises is known as:
a.
Say’s Law.
c.
Engel’s law.
b.
the Malthusian trap.
d.
health consciousness.
7. ___________ is the systematic changes in sector proportions as economies grow.
a.
Structural transformation
c.
Developmental devolution
b.
Technical innovation
d.
Unit-elastic supply
8. In the growth process, two-sector models recognize the prime importance of:
a.
time and money.
c.
imports and exports.
b.
labor and capital.
d.
complements and substitutes.
9. Disguised unemployment refers to:
a.
the underground economy.
b.
unemployment that fluctuates in the rural countryside.
c.
earning two incomes annually, but reporting only one.
d.
people who claim to be looking for a job, but have no intention of working.
10. These two basic assumptions of David Ricardo have played an important role in two-sector models:
a.
rents and taxation.
b.
buyers and sellers.
c.
diminishing returns and labor surplus.
d.
constant returns to scale and economic efficiency.
11. The Fei-Ranis model can be used to explore the implications of:
a.
population growth and a rise in agricultural productivity.
b.
enclosure movements and the rise of urban laborers.
c.
becoming a resource exporting country.
d.
using barter as the primary method of exchanging goods.
12. The neoclassical two-sector model was developed and formalized by:
a.
Alfred Marshall.
c.
Dale Jorgenson.
b.
John Stuart Mill.
d.
John Maynard Keynes.
13. The neoclassical model argues that there must be a balance between:
a.
imports and exports.
b.
industry and agriculture.
c.
tariffs and quotas.
d.
the pace of modernization and respect for tradition.
14. The nutritional linkage from agriculture to economic growth is based on evidence gathered by which
Nobel-winning economic historian?
a.
Robert Fogel
c.
Joseph Schumpeter
b.
Robert Heilbroner
d.
Leon Walras
15. Stability linkage operates primarily at the:
a.
microeconomic level.
c.
macroeconomic level.
b.
daily exchange rate.
d.
poorest areas in a society.
SHORT ANSWER
IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in
pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two
terms and (2) the relationship between them.
1. Food and Agricultural Organization (FAO), food price shock
ANS:
Answer will vary
2. Agricultural productivity, technical change
ANS:
Answer will vary
3. Structural transformation, Engel’s Law
ANS:
Answer will vary
4. Agricultural output per worker, nonagricultural output per worker
ANS:
Answer will vary
5. Diminishing returns, labor surplus
ANS:
Answer will vary
6. Marginal product of labor, average product
ANS:
Answer will vary
7. Subsistence level, institutionally fixed wage
ANS:
Answer will vary
8. Labor surplus model, neoclassical model
ANS:
Answer will vary
9. Intersectoral linkages, indirect linkages
ANS:
Answer will vary
10. Subsistence-oriented farmers, market-oriented farmers
ANS:
Answer will vary