Economic Development: Theories, Models, and Factors Influencing Growth and Inequality

Question 1

Which of the following factors is NOT directly related to economic growth?

Accepted Answer

Climate conditions

Answer

Natural resources

Answer

Human capital

Answer

Political stability

Question 2

According to the Rostow Model of Economic Development, what is the sequence of stages that societies progress through?

Accepted Answer

Traditional, Take-off, Drive to Maturity, High Mass Consumption

Answer

Pre-industrial, Industrial, Post-industrial, Information Age

Answer

Agricultural, Industrial, Service, Knowledge

Answer

Feudal, Mercantilist, Capitalist, Socialist

Question 3

Which economic sector is typically associated with the highest levels of productivity growth?

Accepted Answer

Quaternary sector

Answer

Primary sector

Answer

Secondary sector

Answer

Tertiary sector

Question 4

The Kuznets Curve suggests that:

Accepted Answer

Economic inequality initially increases as a country develops but eventually decreases.

Answer

Economic inequality decreases as a country develops.

Answer

Economic inequality remains constant as a country develops.

Answer

There is no relationship between economic development and economic inequality.

Question 5

What is the primary objective of sustainable economic development?

Accepted Answer

To meet the needs of the present without compromising the ability of future generations to meet their own needs.

Answer

To maximize economic growth at any cost.

Answer

To reduce economic inequality.

Answer

To promote technological innovation.

Question 6

Which characteristic is NOT included in Rostow's Stages of Economic Growth model?

Accepted Answer

Consumer society as a distinct stage

Answer

Traditional society as the starting point

Answer

Rapid industrialization during the take-off stage

Question 7

Which of the following factors can significantly influence economic development?

Accepted Answer

All of the above: political stability, social institutions, and cultural values

Answer

Political stability only

Answer

Social institutions only

Answer

Cultural values only

Question 8

Which of the following is considered a primary factor contributing to economic growth in developing countries?

Accepted Answer

Investment in education and human capital

Answer

Complete elimination of corruption

Answer

Solely abundant natural resources

Answer

Absolute political stability

Question 9

Which of the following accurately describes the concept known as the Kuznets curve?

Accepted Answer

It illustrates the relationship between economic growth and income inequality

Answer

It measures the economic convergence between different countries

Answer

It is a model that predicts population growth patterns

Question 10

One of the main criticisms of the Human Development Index (HDI) is that it:

Accepted Answer

Does not incorporate measures of environmental sustainability

Answer

Is overly complex and challenging to measure accurately

Answer

Solely considers economic factors in its calculation

Question 11

Which of the following is a potential advantage associated with economic globalization?

Accepted Answer

Increased opportunities for trade and investment

Answer

Environmental degradation

Answer

Exacerbated income inequality

Answer

Reduced cultural diversity

Question 12

In a laissez-faire economic system, which of the following characteristics is typically present?

Accepted Answer

Limited government intervention in economic activities

Answer

Dominant state ownership of key industries

Answer

Centralized planning and control of the economy

Question 13

In developing countries, which sector of the economy generally contributes the largest share to Gross Domestic Product (GDP)?

Accepted Answer

Agriculture

Answer

Manufacturing

Answer

Services

Answer

Tourism

Question 14

Which of the following is a defining characteristic of a developed country?

Accepted Answer

High levels of per capita income

Answer

Abundant natural resources

Answer

Large population size

Question 15

Which of the following is a potential negative consequence of significant economic inequality within a society?

Accepted Answer

Increased social unrest and tensions

Answer

Reduced environmental degradation

Answer

Improved healthcare outcomes for all

Answer

Accelerated economic growth

Question 16

Which of the following is NOT a key factor driving economic growth?

Accepted Answer

Government corruption

Answer

Human capital

Answer

Technological advancement

Answer

Natural resources

Question 17

The Kuznets Curve suggests that:

Accepted Answer

Income inequality initially increases during early stages of economic development, but later declines.

Answer

Income inequality is unaffected by economic development.

Answer

Income inequality always increases during economic development.

Question 18

Which of the following is a characteristic of a developed economy?

Accepted Answer

High levels of per capita income

Answer

Low levels of urbanization

Answer

Limited access to education and healthcare

Answer

Subsistence agriculture as the main economic activity

Question 19

Which model of economic development emphasizes the role of state intervention and government planning?

Accepted Answer

Structuralist model

Answer

Dependency theory

Answer

Neoclassical model

Answer

World systems theory

Question 20

Which of the following is a potential benefit of foreign direct investment (FDI)?

Accepted Answer

Creation of employment opportunities

Answer

Increased inflation

Answer

Exploitation of local resources without any benefits to the local economy

Answer

Environmental degradation

Question 21

Which of the following is a criticism of the World Bank and the International Monetary Fund (IMF)?

Accepted Answer

Imposing structural adjustment programs on developing countries without considering their specific needs and circumstances.

Answer

Promoting global economic cooperation

Answer

Providing financial assistance to developing countries

Question 22

Which of the following is a key concept in the Human Development Index (HDI)?

Accepted Answer

Life expectancy

Answer

Gross domestic product (GDP)

Answer

Military expenditure

Question 23

Which of the following is a consequence of economic globalization?

Accepted Answer

Increased interdependence between countries

Answer

Increased barriers to trade

Answer

Decreased economic growth

Answer

Reduced cultural diversity