Economic Development: Theories, Measures, and Impacts

Question 1

In what ways do factors such as education, gender equality, and social mobility influence economic development efforts in developing countries?

Accepted Answer

They can enhance human capital, empower marginalized groups, and promote a more inclusive society, contributing to economic growth.

Answer

They can lead to decreased government spending on infrastructure, resulting in economic stagnation.

Answer

They can discourage foreign investment, hindering economic development.

Answer

They can contribute to increased poverty, leading to social unrest and economic instability.

Question 2

In the context of economic development, which approach effectively balances economic growth with environmental sustainability?

Accepted Answer

Adopting a circular economy model that minimizes resource depletion and promotes recycling

Answer

Prioritizing economic growth without considering environmental impact

Answer

Implementing strict environmental regulations without considering economic feasibility

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Relying solely on renewable energy sources regardless of their economic impact

Question 3

What are the potential causes and consequences of income inequality in developing countries? Suggest policy interventions that could address these issues.

Accepted Answer

Progressive taxation and expanded social welfare programs

Accepted Answer

Investment in education, healthcare, and infrastructure

Accepted Answer

Minimum wage regulations and strengthened labor unions

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Unrestricted trade liberalization and privatization of state-owned enterprises

Question 4

The Human Development Index (HDI) incorporates the following components:

Accepted Answer

Life expectancy, education, and income

Answer

Political stability, literacy rate, and healthcare access

Answer

GDP per capita, corruption index, and government spending

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Population growth, unemployment rate, and environmental sustainability

Question 5

Which of the following factors does NOT contribute to the problem of poverty?

Accepted Answer

Access to quality education

Answer

Natural disasters and climate change

Answer

Insufficient employment opportunities

Answer

Political instability and conflict

Question 6

What is a potential advantage of foreign direct investment (FDI) in developing economies?

Accepted Answer

Job creation and economic growth

Answer

Environmental degradation

Answer

Increased national debt

Question 7

Which of the following is a common criticism of using GDP as a measure of economic development?

Accepted Answer

It does not account for environmental sustainability

Answer

It is difficult to calculate accurately

Answer

It accurately reflects the overall well-being of a population

Question 8

What is a primary objective of sustainable economic development?

Accepted Answer

Striking a balance between economic growth and environmental conservation

Answer

Maximizing economic growth regardless of environmental consequences

Answer

Reducing poverty and inequality but neglecting environmental concerns

Question 9

Which challenge significantly hinders economic development in sub-Saharan Africa?

Accepted Answer

Political instability and violent conflicts

Answer

Abundant natural resources

Answer

Well-developed infrastructure

Answer

High levels of literacy and education

Question 10

What is a potential role of multinational corporations (MNCs) in fostering economic development?

Accepted Answer

Investing in infrastructure and creating employment opportunities

Answer

Exacerbating poverty and social inequality

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Promoting cultural imperialism and eroding local traditions

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Exploiting workers and depleting natural resources

Question 11

What is a key principle of the theory of comparative advantage?

Accepted Answer

Countries should specialize in producing and exporting goods and services where they have a lower opportunity cost

Answer

All countries should strive for self-sufficiency

Question 12

What is the definition of Gross Domestic Product (GDP)?

Accepted Answer

The total value of goods and services produced in a country over a specific period

Answer

The level of poverty in a country

Answer

The average income of a country's citizens

Question 13

Which of the following is a characteristic of an economically developed country?

Accepted Answer

High levels of productivity and technology adoption

Answer

Low levels of education

Answer

Limited access to basic healthcare

Answer

High rates of unemployment

Question 14

What does the Human Development Index (HDI) measure?

Accepted Answer

A country's overall achievement in three basic dimensions of human development: life expectancy, education, and income

Answer

A country's economic growth rate

Answer

A country's level of inequality

Question 15

Which of the following is a potential benefit of economic development?

Accepted Answer

Improved health and living standards

Answer

Growing wealth inequality

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Increased environmental degradation

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Decreased access to education

Question 16

What is a potential consequence of a high poverty rate in a country?

Accepted Answer

Low levels of social and economic well-being

Answer

Rapid economic growth

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Increased investment and foreign aid

Answer

Improved infrastructure and technology

Question 17

Which of the following can hinder economic development?

Accepted Answer

Political instability and corruption

Answer

High levels of education

Answer

Access to natural resources

Answer

Skilled labor force

Question 18

What is a key role of government in economic development?

Accepted Answer

Providing infrastructure, regulation, and social services

Answer

Leaving the economy entirely unregulated

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Directly controlling all industries

Question 19

What is a limitation of using GDP as a measure of economic progress?

Accepted Answer

It does not account for environmental sustainability or overall well-being

Answer

It accurately reflects the distribution of wealth within a society

Answer

It is easy to calculate and compare across countries

Question 20

What is the goal 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 focus solely on reducing poverty

Answer

To maximize economic growth at any cost

Question 21

What is the most commonly used measure of a country's overall economic production?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Gini coefficient

Answer

Literacy Rate

Answer

Human Development Index (HDI)

Question 22

The Human Development Index (HDI) considers which three factors to measure a country's progress?

Accepted Answer

Life expectancy, education levels, and income per capita

Answer

Income inequality, environmental sustainability, and technological advancement

Answer

Trade balance, foreign direct investment, and government spending

Question 23

Which of the following is NOT a limitation of using GDP alone to measure economic development?

Accepted Answer

GDP reflects the total value of goods and services produced within a country.

Answer

GDP ignores income inequality within a country.

Answer

GDP doesn't consider the environmental impact of economic activity.

Question 24

A country with a high GDP per capita can still have significant:

Accepted Answer

Income inequality

Answer

Industrial production

Answer

Technological advancement

Answer

Foreign investment

Question 25

Which of the following is an example of a trade barrier that can hinder economic development?

Accepted Answer

High import tariffs

Answer

Technological innovation

Answer

Free trade agreements

Answer

Foreign direct investment

Question 26

According to Rostow's Stages of Economic Growth, what is the final stage of development a country goes through?

Accepted Answer

Age of High Mass Consumption

Answer

Traditional Society

Answer

Preconditions for Take-off

Answer

Drive to Maturity

Question 27

What is a key characteristic of the informal economy?

Accepted Answer

Lack of government regulation and oversight

Answer

Large-scale industrial production

Answer

Payment of taxes

Answer

Formal contracts and employee benefits

Question 28

Sustainable development aims to meet the needs of the present generation without:

Accepted Answer

Compromising the ability of future generations to meet their own needs

Answer

Promoting economic growth

Answer

Using technological advancements

Question 29

What is the term for the process where businesses and organizations become increasingly interconnected globally?

Accepted Answer

Globalization

Answer

Industrialization

Answer

Privatization

Answer

Urbanization