Economic Development: Theories, Challenges, and Policies for Sustainable Growth

Question 1

Cognitive psychology primarily focuses on the study of which of the following?

Accepted Answer

Mental processes like perception, attention, memory, and problem-solving

Answer

Biological mechanisms of the brain

Answer

Learning and retention of knowledge

Answer

Influence of emotions on cognitive processes

Question 2

Which of the following is NOT a fundamental concept in cognitive psychology?

Accepted Answer

Emotion

Answer

Consciousness

Answer

Memory

Answer

Attention

Question 3

Distinguish between explicit and implicit attention. Which statement below accurately describes them?

Accepted Answer

Explicit attention is intentional and conscious, while implicit attention is automatic and unconscious.

Answer

Implicit attention is intentional and conscious, while explicit attention is automatic and unconscious.

Answer

Both explicit and implicit attention require conscious effort.

Answer

Both explicit and implicit attention are unconscious processes.

Question 4

Which of the following is NOT a type of attention allocation?

Accepted Answer

Perceptual attention

Answer

Top-down attention

Answer

Bottom-up attention

Answer

Sustained attention

Question 5

Which cognitive impairment is primarily responsible for the difficulty individuals with Alzheimer's disease face in retaining new information?

Accepted Answer

Anterograde amnesia

Answer

Retrograde amnesia

Answer

Working memory impairment

Answer

Semantic memory impairment

Question 6

In cognitive psychology, which of these is NOT a core cognitive process?

Accepted Answer

Dreaming

Answer

Perception

Answer

Attention

Answer

Language

Question 7

Which cognitive process involves selectively directing attentional resources?

Accepted Answer

Attention

Answer

Perception

Answer

Memory

Question 8

In cognitive psychology, attention refers to:

Accepted Answer

Consciously focusing on specific stimuli in the environment

Answer

Recalling information from long-term memory

Answer

Representing knowledge and experiences that guide thoughts and actions

Answer

Generating and evaluating solutions to problems

Question 9

In cognitive psychology, what is the best definition of 'working memory'?

Accepted Answer

The ability to temporarily store and manipulate information.

Answer

The capacity for long-term storage of information.

Answer

The processes involved in perceiving and interpreting sensory information.

Answer

The ability to solve complex mathematical problems.

Question 10

What is a major obstacle to economic development in developing countries?

Accepted Answer

Limited education and skills

Answer

Abundant natural resources

Answer

Stable political and economic environment

Answer

Openness to international trade and investment

Question 11

What is the primary focus of modern economic growth theory?

Accepted Answer

Technological progress and innovation

Answer

Accumulation of physical capital

Answer

Government intervention and regulation

Answer

Natural resource abundance

Question 12

Which of the following is a primary obstacle to creativity and innovation?

Accepted Answer

Fear of failure

Answer

Intrinsic motivation

Answer

Exposure to diverse viewpoints

Answer

Collaboration with others

Question 13

Identify the characteristic that is NOT typically associated with developing countries.

Accepted Answer

Advanced technological infrastructure

Answer

Low income levels

Answer

High levels of inequality

Answer

Rapid population growth

Question 14

According to the Harrod-Domar model, which factor is considered the primary driver of economic growth?

Accepted Answer

Investment in capital

Answer

Technological progress

Answer

Exports

Answer

Government spending

Question 15

Which element is NOT part of the 'Washington Consensus', a set of economic policies for developing countries in the 1980s and 1990s?

Accepted Answer

Government intervention in markets

Answer

Fiscal discipline

Answer

Free trade

Answer

Privatization

Question 16

Which factor hinders sustainable economic growth?

Accepted Answer

Dependence on non-renewable natural resources

Answer

Investment in education

Answer

Technological progress

Answer

Government policies that promote entrepreneurship and innovation

Question 17

Which of the following is **not** a key factor contributing to economic growth?

Accepted Answer

Demographic decline

Answer

Technological advancements

Answer

Increased investment

Answer

Higher levels of education

Question 18

Which of the following best describes the concept of poverty traps?

Accepted Answer

Situations where poverty becomes a self-reinforcing cycle due to interconnected factors

Answer

Government policies that inadvertently hinder economic development

Answer

Unfair global trade practices that disadvantage developing countries

Answer

Lack of access to financial services in rural areas

Question 19

Which economic theory emphasizes the role of government intervention in promoting economic development?

Accepted Answer

Keynesianism

Answer

Laissez-faire

Answer

Monetarism

Answer

Classical economics

Question 20

Which of the following is **not** a common indicator used to measure economic inequality?

Accepted Answer

Human Development Index (HDI)

Answer

Gini coefficient

Answer

Kuznets curve

Answer

Share of wealth held by the top 1%

Question 21

Which of the following is NOT a characteristic commonly associated with developing countries?

Accepted Answer

Well-developed infrastructure

Answer

Low per capita income

Answer

High levels of poverty

Answer

Rapid population growth

Question 22

The Human Development Index (HDI) measures a country's progress primarily in terms of:

Accepted Answer

Both economic growth and social development

Answer

Economic growth only

Answer

Social development only

Answer

Neither economic growth nor social development

Question 23

A country experiencing a sustained period of rapid economic growth is said to be undergoing:

Accepted Answer

Economic development

Answer

Economic stagnation

Answer

Economic decline

Answer

Economic recession

Question 24

Which of the following is NOT a common type of economic aid provided to developing countries?

Accepted Answer

Equity investments

Answer

Non-repayable grants

Answer

Low-interest loans

Answer

Technical assistance

Question 25

According to the Harrod-Domar model, what variable predominantly determines a country's economic growth rate?

Accepted Answer

Savings rate

Answer

Labor force size

Answer

Capital-output ratio

Answer

Technological progress

Question 26

Which of the following policies is most likely to effectively reduce poverty in developing nations?

Accepted Answer

Investing in healthcare and education

Answer

Promoting free trade agreements

Answer

Reducing government expenditure

Answer

Raising interest rates to control inflation

Question 27

Which of the following is a commonly used metric for measuring economic inequality?

Accepted Answer

Gini coefficient

Answer

Human Development Index (HDI)

Answer

Gross Domestic Product (GDP) per capita

Answer

Purchasing Power Parity (PPP)

Question 28

According to the Harrod-Domar growth model, how does investment impact economic growth?

Accepted Answer

Investment leads to a proportional increase in growth

Answer

Investment has no direct impact on growth

Answer

Economic growth is solely determined by the amount of capital available

Answer

Investment and growth have an inverse relationship

Question 29

According to the Harrod-Domar model, which of the following is a primary factor influencing economic growth?

Accepted Answer

Capital accumulation

Answer

Technological advancements

Answer

Population growth

Answer

Availability of natural resources

Question 30

The notion of 'trickle-down economics' is based on the assumption that economic benefits will:

Accepted Answer

Gradually reach and benefit lower-income groups

Answer

Flow exclusively to the wealthiest individuals

Answer

Remain concentrated among the upper classes

Answer

Be equally distributed across all societal levels

Question 31

How does financial inclusion contribute to economic development and poverty reduction? Explain the mechanisms through which access to financial services can promote economic growth and reduce income inequality.

Accepted Answer

Financial inclusion provides access to capital, enabling individuals and businesses to invest in productive activities, leading to economic growth and job creation.

Accepted Answer

Access to financial services, such as savings accounts and credit facilities, allows low-income individuals to manage their finances effectively, reduce their dependence on informal lenders, and accumulate wealth. This contributes to reducing income inequality by empowering the poor and improving their financial well-being.

Accepted Answer

Financial inclusion facilitates entrepreneurship by providing micro-entrepreneurs with access to capital and financial support. This enables them to start and grow their businesses, creating jobs and contributing to economic development.

Answer

Financial inclusion has no significant impact on economic development or poverty reduction. It is primarily a social welfare program that does not address the underlying causes of poverty.

Question 32

Which of the following is NOT a crucial factor in fostering economic development?

Accepted Answer

Political instability

Answer

Investment in infrastructure

Answer

Technological advancement

Answer

Access to education and healthcare

Question 33

The Human Development Index (HDI) is a composite statistic that gauges a country's progress in:

Accepted Answer

Health, education, and living standards

Answer

Economic growth and poverty reduction

Answer

Political freedom and social equality

Answer

Environmental sustainability and efficient resource allocation

Question 34

Which of the following policy interventions is commonly employed to alleviate poverty?

Accepted Answer

Conditional cash transfers

Answer

Fiscal austerity

Answer

Import tariffs

Answer

Interest rate hikes

Question 35

According to the idea of 'trickle-down economics':

Accepted Answer

Economic growth eventually benefits all members of society, including the most vulnerable

Answer

Economic inequality is inevitable and even beneficial for sustained economic growth

Answer

Government policies should prioritize the wealthy to stimulate economic growth

Question 36

Which of the following poses a significant challenge to achieving sustainable development?

Accepted Answer

Climate change

Answer

Technological progress

Answer

Globalization

Answer

Free trade agreements

Question 37

The 'Washington Consensus' refers to a set of economic policies that:

Accepted Answer

Advocated for free markets, privatization, and fiscal discipline in developing countries

Answer

Prioritized social welfare programs and wealth redistribution

Answer

Emphasized state-led industrialization and protectionist measures

Question 38

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

Accepted Answer

Low per capita income

Answer

Strong democratic institutions

Answer

Advanced educational systems

Answer

High levels of technological advancement

Question 39

The term 'Green Revolution' refers to:

Accepted Answer

Technological advancements in agriculture that significantly increased crop yields

Answer

An environmental movement promoting sustainable farming practices

Answer

A period of rapid economic growth driven by industrialization

Question 40

Which of the following is NOT considered a crucial element in driving economic development?

Accepted Answer

Abundance of natural resources alone

Answer

Stable and efficient political institutions

Answer

Investment in human capital

Answer

Access to and utilization of advanced technology

Question 41

The term used to describe the multifaceted strategy aimed at reducing poverty and enhancing living standards in developing countries is:

Accepted Answer

Sustainable development

Answer

Economic growth

Answer

Market liberalization

Answer

Global integration

Question 42

Which economic ideology advocates for reduced government intervention in the economy, emphasizing the power of free markets?

Accepted Answer

Neoliberalism

Answer

Monetarism

Answer

Marxism

Answer

Keynesianism

Question 43

The concept that measures the disparity in income distribution between the wealthiest and poorest members of a society is:

Accepted Answer

Income inequality

Answer

Social stratification

Answer

Economic polarization

Answer

Wage gap

Question 44

The economic theory that champions free markets, individual liberty, and limited government involvement is known as:

Accepted Answer

Classical economic theory

Answer

Marxist economics

Answer

Keynesian economics

Answer

Behavioral economics

Question 45

Which objective is NOT included in the United Nations Sustainable Development Goals (SDGs)?

Accepted Answer

Bolstering military expenditures

Answer

Promoting peace and justice

Answer

Eradicating poverty

Answer

Protecting the environment

Question 46

The process of transforming an agrarian society into one based on industrial production is termed:

Accepted Answer

Industrialization

Answer

Modernization

Answer

Globalization

Answer

Development

Question 47

Which indicator is widely recognized as a key measure of a country's economic well-being?

Accepted Answer

Gross domestic product (GDP) per capita

Answer

Population growth rate

Answer

Life expectancy

Answer

Literacy rate

Question 48

The World Bank categorizes countries into income groups primarily based on their:

Accepted Answer

Gross national income (GNI) per capita

Answer

GDP per capita

Answer

Purchasing power parity (PPP)

Answer

Human Development Index (HDI)

Question 49

Which of the following is considered a key pillar of sustainable development?

Accepted Answer

Balancing economic growth with environmental conservation and social inclusion

Answer

Economic growth without regard for environmental consequences

Answer

Environmental protection alone

Question 50

The Human Development Index (HDI) measures a country's progress in which areas?

Accepted Answer

Health (life expectancy), education, and standard of living (income)

Answer

Military spending, technological advancement, and infrastructure development

Answer

Political stability, social harmony, and environmental sustainability

Answer

Economic growth, inflation, and unemployment

Question 51

A high Gini coefficient indicates:

Accepted Answer

Substantial income inequality in a country

Answer

High rates of unemployment

Answer

Low levels of poverty

Answer

Strong economic growth

Question 52

Which of the following is a fundamental principle of the 'dependency theory' of economic development?

Accepted Answer

Developing countries are persistently disadvantaged by their dependence on developed nations

Answer

Free market policies guarantee equitable development outcomes

Answer

Industrialization is the primary driver of economic progress

Question 53

What is the central message of the 'Washington Consensus' approach to economic development?

Accepted Answer

Market liberalization, privatization of industries, and fiscal discipline are fundamental for economic prosperity

Answer

Sustainable development should prioritize environmental protection over economic growth

Answer

Government intervention and social welfare programs are essential to promote development

Question 54

Which of the following is a potential factor contributing to the 'middle-income trap'?

Accepted Answer

Insufficient investment in education and innovation

Answer

Diversification of the economy

Answer

Strong governance and effective institutions

Question 55

The concept of 'inclusive growth' focuses on:

Accepted Answer

Economic expansion that benefits all segments of society, especially the poor and marginalized

Answer

Rapid economic growth without regard to social equity

Answer

Prioritizing technological advancement as the sole driver of growth

Question 56

The 'resource curse' refers to:

Accepted Answer

The paradoxical phenomenon where countries with an abundance of natural resources often experience slower economic growth and development

Answer

The sustainable exploitation of natural resources for economic benefit

Question 57

A country's 'human capital' encompasses:

Accepted Answer

The knowledge, skills, health, and overall well-being of its population

Answer

The level of industrialization

Answer

The amount of natural resources available

Question 58

Which of the following is NOT a characteristic of developing countries?

Accepted Answer

High levels of industrial development

Answer

Low levels of human capital

Answer

High income inequality

Answer

Significant reliance on agricultural activities

Question 59

The Human Development Index (HDI) measures a country's progress in all of the following areas EXCEPT:

Accepted Answer

Economic growth

Answer

Life expectancy

Answer

Standard of living

Answer

Education

Question 60

Which theory of economic development emphasizes the role of foreign direct investment and technology transfer in promoting growth?

Accepted Answer

Modernization Theory

Answer

Dependency Theory

Answer

Endogenous Growth Theory

Answer

Structuralist Theory

Question 61

The 'Dutch Disease' refers to:

Accepted Answer

The negative impact of natural resource wealth on other sectors of the economy

Answer

The decline in agricultural productivity due to urbanization

Answer

The rapid industrialization of a developing country

Question 62

Which of the following is NOT a major objective of sustainable development?

Accepted Answer

Maximizing economic growth at all costs

Answer

Protecting the environment

Answer

Ensuring intergenerational equity

Answer

Promoting social equity

Question 63

The 'poverty trap' is a situation where:

Accepted Answer

Low income levels prevent individuals from investing in human capital and escaping poverty

Answer

Government intervention leads to increased poverty

Answer

High levels of education lead to mass unemployment

Question 64

Which of the following is an example of a microfinance program designed to empower women in developing countries?

Accepted Answer

Providing small loans to women for starting their own businesses

Answer

Investing in large-scale infrastructure projects

Answer

Imposing trade barriers to protect domestic industries