With modern sector enrichment growth, inequality will
(a) first rise and then fall.
(b) first fall and then rise.
(c) remain about the same.
(d) none of the above.
Answer:
The informal sector exhibits
(a) free entry
(b) labor intensive methods
(c) small, competitive firms
(d) all of the above
Answer:
Which of the following is not a rationale for development planning?
(a) capital market failures.
(b) rent seeking behavior.
(c) attitudinal or psychological impact.
(d) all are rationales for development planning in developing countries.
Answer:
In stage III of the demographic transition,
(a) the birth rate and the death rate are relatively low.
(b) the birth rate and the death rate are relatively high.
(c) the birth rate is relatively high and the death rate is relatively low.
(d) the birth rate is relatively low and the death rate is relatively high.
Answer:
Which of the following is an assumption of the Lewis two-sector model?
(a) surplus labor in industry.
(b) positive marginal product of labor in agriculture.
(c) an upward sloping labor supply curve in industry.
(d) none of the above.
Answer:
The O-ring theory places emphasis on
(a) education of the labor force.
(b) skill complementarities.
(c) purchases of machinery and equipment by firms.
(d) none of the above.
Answer:
International dependence theories distinguish between two groups of countries known
as
(a) rich-poor.
(b) developed-developing.
(c) center-periphery.
(d) independent-dependent.
Answer:
In contrast to the earlier neoclassical models of economic growth, in endogenous
growth models, there is more emphasis on
(a) human capital.
(b) externalities.
(c) increasing returns to scale.
(d) all of the above.
Answer:
One of the characteristics of the poor is that they are
(a) more likely to be employed in the modern industrial sector.
(b) more likely to come from small families.
(c) more likely to be well educated.
(d) more likely to live in a rural area.
Answer:
In South Asia and Sub-Saharan Africa, about what share of the labor force works in
agriculture?
(a) One tenth.
(b) One third.
(c) One half.
(d) Two thirds.
Answer:
Write an essay on the economic relationship of greatest concern for development
between education and
(a) the level of growth,
(b) the character of growth,
(c) inequality,
(d) fertility,
(e) absolute poverty,
(f) international migration.
Answer:
Brazil’s growth rate during the 1960’s was 6.0% when poverty weights were used to
evaluate growth, compared with 8.2% when GNP weights were used to evaluate
growth. One can conclude from these numbers that
(a) average income growth was greater for poor households than for rich households.
(b) average income growth was greater for rich households than for poor households.
(c) more and more households were falling below the poverty line.
(d) the size distribution of income was getting worse.
Answer:
Human capital is best defined as
(a) the amount of wealth people have.
(b) the amount of money people have to spend on schooling.
(c) human capacities that raise productivity.
(d) the average education level of the population.
Answer:
With tied aid
(a) MNC investment depends on tax concessions.
(b) aid recipients must use the aid to purchase goods and services from the donor.
(c) aid recipients must follow World Bank/IMF conditionality.
(d) all of the above.
Answer:
In what way do developing countries make the largest contribution to the global
concentrations of greenhouse gases?
(a) vehicle emissions.
(b) deforestation.
(c) mining.
(d) irrigation.
Answer:
Sustainable development means
(a) emphasizing the role of the market.
(b) emphasizing the role of government.
(c) meeting the present generation’s needs without compromising the needs of future
generations.
(d) maintaining output growth at a constant rate.
Answer:
The government of China has explicitly stated that the goal of its strict population
control measures is to raise income per capita. What are the mechanisms at work in
such a claimed relationship? Are there any counterarguments?
Answer:
Which of the following is not an important objective of development?
a. increases in per capita income
b. the expansion of available choices
c. increases in individual and national self-esteem
d. all of the above are important objectives of development
Answer:
What percent of the world’s nations have at least five significant ethnic populations?
a. 010
b. 1020
c. 2030
d. 3040
e. over 40
Answer:
A country with high inflation, rising budget and trade deficits, and a rapidly expanding
money supply
(a) is in transition.
(b) has macroeconomic instability.
(c) is practicing import substitution.
(d) is practicing export promotion.
Answer:
Which of the following is not an argument in favor of export promotion over import
substitution?
(a) international competition compels domestic producers to become more efficient.
(b) exposure to world markets provides greater opportunities to learn new technologies.
(c) producing for export permits greater specialization and economies of scale.
(d) outward-looking development promotes larger firms.
Answer:
In developing countries higher educational facilities have tended to expand to the point
where social benefits exceed private benefits. What is the economic explanation for
this?
Answer:
Explain what is meant by capital flight. How would you distinguish capital flight from
the normal desire of investors to diversify their portfolios by investing abroad?
Answer:
Just what is it that makes a technology “appropriate” for a developing country?
Answer:
Explain the basic idea behind the Big Push model?
Answer:
Describe one important criticism of Rostow’s stages of economic growth theory.
Answer:
Why might improvements in children’s public health care services lower fertility?
Answer:
Explain the dynamic rationale for economic integration among developing countries.
Answer:
In what ways may social evaluations of costs and benefits differ from those implied by
market prices? Explain carefully.
Answer:
In Bangladesh, the government guarantees rice farmers that it will buy rice at a specific
price. Explain the costs and benefits to farmers in good and bad harvest years.
Answer:
Discuss the pros and cons of the recent introduction and expansion of stock markets in
the developing countries.
Answer:
How is poverty measured? What is the extent of poverty in the developing world?
Answer:
Describe the costs of deforestation.
Answer:
Based on the HRV growth diagnostic framework and the case study in Box 4.2, what
are the binding constraints faced by Brazil, El Salvador and the Dominican Republic
and how can these constraints be overcome?
Answer:
What are the three major components of economic growth?
Answer:
What is the relationship between debt, falling commodity prices and rainforest
degradation?
Answer:
Are developing country cities too large, too small, or about right in size? Justify your
answer with evidence from developing economies.
Answer:
What is the Alliance for a Green Revolution in Africa and who are its primary
supporters?
Answer:
What is meant by the demographic transition? What are the differences in the
demographic transition between the current developed economies and developing
countries?
Answer:
Why might the use of more advanced technology not be a sufficient condition for
sustained economic growth?
Answer:
What are the main factors that have contributed to Botswana’s relative economic
success compared to other Sub-Saharan African countries? Why were these factors not
emulated by other SSA countries?
Answer: