This article includes multiple choice question for Development Economics.
- Which of the following is NOT considered a factor of production?
- Land
- Labor
- Capital
- Money
- The Human Development Index (HDI) measures which of the following?
- Economic Growth
- Poverty
- Education
- Inflation
- __________ is NOT an example of foreign aid.
- Grand
- Foreign Investment
- Loans
- Technical Assistance
- The concept of “GDP per capita” refers to _____________.
- Total GDP of a country
- GDP growth rate
- GDP divided by population
- GDP of the primary sector
- Which of the following is NOT a measure of income inequality?
- Gini coefficient
- Lorenz curve
- Palma ratio
- Human Development Index
- Which of the following is an example of an “economic multiplier”?
- Foreign Direct Investment
- Foreign Aid
- Government Spending
- Inflation rate
- The Harrod-Domar model emphasizes the importance of __________.
- Population Growth
- Capital Accumulation
- Technological Progress
- Government Intervention
- Which of the following is a measure of poverty?
- Gini coefficient
- Inflation rate
- Poverty headcount ratio
- Gross domestic ratio
- THe “Lewis dual sector model” is associated with:
- Economic Growth
- Industrialization
- Agricultural Development
- Human Capital
- ____________ is an example of a demand-side policy to stimulate economic growth.
- Supply side tax cuts
- Monetary policy
- Public infrastructure spending
- Deregulation
- ____________ is NOT a type of unemployment.
- Structural unemployment
- Frictional unemployment
- Cyclical unemployment
- Inflationary unemployment
- The “Big-Push” theory of economic development is associated with:
- Rostow
- Rosenstein-Rodan
- Harrod-Domar
- Arthur Lewis
- ____________ is NOT a source of economic growth.
- Technological progress
- Human Capital Development
- Increase in population
- Capital accumulation
- Which of the following is NOT a characteristic of economic development?
- Increase in per capita income
- Reduction in poverty and inequality
- Growth in GDP
- Decrease in unemployment rate
- ___________ is an example of a market-oriented approach to economic development.
- Command Economy
- Mixed economy
- Free market economy
- Planned economy
- ___________________ is not a type of foreign aid.
- Bilateral aid
- Multilateral aid
- Military aid
- Market aid
- Which of the following is not a barrier to development?
- Lack of access to education
- Corruption
- Technological advancements
- Political instability
- Which of the following is not a characteristic of a market economy?
- Private ownership of resources
- Central planning of production
- Consumer Sovereignty
- Competition among firms
- Which of the following is not a goal of development economics?
- Economic growth
- Income redistribution
- Environmental sustainability
- Profit maximization
- What is the main goal of a microcredit program?
- To provide loans to large corporations
- To provide loans to individuals living in poverty to start small business
- To provide subsidies to farmers
- To provide healthcare services to rural communities
- What is the concept of “brain drain” in the context of development economics?
- The migration of skilled workers from developed countries to developing countries
- The migration of skilled workers from developing countries to developed countries
- The movement of capital from developed countries to developing countries
- The movement of capital from developing countries to developed countries
- Which of the following is NOT a characteristic of a less developed country (LDC)?
- Low per capita income
- High level of industrialization
- High rate of population growth
- Low level of human capital
- Which of the following is NOT a type of economic growth?
- Extensive Growth
- Intensive Growth
- Inclusive Growth
- Deflationary Growth
- What is the main goal of microfinance?
- Maximizing profits for lenders
- Providing financial services to low-income individuals
- Funding large scale infrastructure projects
- Promoting consumer spending
- What is the meaning of the term “inclusive growth”?
- Economic growth that benefits all segments of society, including the poor and marginalized.
- Economic growth that focused only on the rich and elite.
- Economic growth that is environmentally sustainable
- Economic growth that promotes export-oriented industries.
- What is the meaning of the “Poverty Cycle” ?
- The intergenerational transmission of poverty from one generation to the next.
- The cyclical pattern of economic growth and recession in a country
- The fluctuation in the exchange rate of a country’s currency.
- The process of inflation leading to decreased purchasing power.
- Which of the following is a measure of income inequality?
- Gross domestic product
- Gross national product
- Gini coefficient
- Human Development Index
- Which of the following is NOT a Millennium Development Goals (MDG) set by the United Nations?
- Eradicate extreme poverty and hunger
- Achieve universal primary education
- Promote gender equality and empower women
- Reduce carbon emission to combat climate change
- What does the “vicious circle of poverty” refer to?
- A cycle of poverty that is difficult to break
- A positive feedback loop that leads to economic growth
- A strategy for poverty alleviation
- A theory of economic development
- Which of the following is NOT a characteristic of sustainable development?
- Environmental Conservation
- Economic growth
- Social inclusivity
- Resource depletion
- What is the definition of economic development?
- The process by which a country increases its level of industrialization
- The process by which a country improves the well-being of its citizens
- The process by which a country increases its GDP
- The process by which a country becomes a developed country
- What is the difference between economic growth and economic development?
- Economic growth refers to the increase in GDP, white economic development refers to the improvement in the well-being of citizen
- Economic growth refers to the improvement in the well-being of citizens, while economic development refers to the increase in GDP
- Economic growth and economic development are the same thing
- Economic growth refers to the increase in exports, while economic development refers to the increase in imports.
- What is the Harrod-Domar model?
- A model that explains the relationship between economic growth and the availability of natural resources.
- A model that explains the relationship between economic growth and population growth.
- A model that explains the relationship between savings, investment, and economic growth.
- A model that explains the relationship between economic growth and government policies.
- _____________ is an example of a market-oriented development strategy.
- Import substitution industrialization
- Command economy
- Export-oriented industrialization
- Planned economy
- ______________ is an example of an external source of finance for development.
- Foreign Direct Investment (FDI)
- Domestic savings
- Government budget
- Remittances
- Which of the following is not a measure of poverty in development economics?
- Human Development Index (HDI)
- Gross Domestic Product (GDP)
- Poverty headcount ratio
- Multidimensional Poverty Index (MPI)
- _______________ is NOT a goal of the United Nations’ Sustainable Development Goals (SDGs).
- Gender equality
- Poverty reduction
- Economic growth
- Military expansion
- The “Lewis Model” of economic development suggests that:
- A country should focus on industrializing its urban areas first, before spreading development to rural areas
- A country should focus on developing its service sector first, before moving on to industrialization.
- A country should focus on developing its agriculture sector first, before moving on to industrialization
- A country’s economy will experience a transition from a labor-surplus to a labor-scarce stage as it develops
- _________ is a policy measure to promote economic development in a developing country.
- Trade barriers
- Import substitutions
- Fiscal Austerity
- Deregulation
- _________ is an example of a social indicator of development.
- Human Capital Index (HCI)
- Stock market Index
- Consumer Price Index (CPI)
- Gross Domestic Product (GDP)
- Which of the following is not a feature of a subsistence economy.
- Self-sufficiency
- Limited Specialization
- Low levels of technology
- High levels of trade
- Which of the following is an example of a traditional economic system?
- Subsistence Agriculture
- Mixed economy
- Command Economy
- Market Economy
- Which of the following best defines the term “human capital”?
- Physical capital owned by individuals
- Financial capital owned by individuals
- Social capital owned by individuals
- Knowledge, skills, and health of individuals
- Which of the following is an example of a poverty alleviation program?
- Food subsidies
- Cash transfers
- Education subsidies
- All of the above
- Which of the following is a strategy for promoting economic development?
- Import substitution
- Export-oriented industrialization
- Microcredit
- All of the above
- Which of the following is NOT a source of economic growth?
- Labor force growth
- Technological innovation
- Capital accumulation
- Brain Drain
- Which of the following is an example of a social indicator used to measure development?
- Gross Domestic Product (GDP)
- Employment rate
- Life expectancy at birth
- Consumer Price index
- Which of the following is an example of a traditional sector in developing countries?
- Manufacturing
- Services
- Agriculture
- Finance
- What is the “informal sector” in the context of economic development?
- The sector of the economy that is regulated by the government
- The sector of the economy that includes only large multinational corporations
- The sector of the economy that operates outside of formal regulations and protections
- The sector of the economy that focuses on high-tech industries
- What is the “dependency theory” in economics?
- A theory that emphasizes the role of international trade in economic development
- A theory that advocates for government intervention in the economy to promote development
- A theory that focuses on the importance of education and human capital in economic development
- A theory that suggests that developing countries are dependent on developed countries for their economic growth
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