Master Development Economics: Online Quizzes and Learning Resources

Question 1

According to the Lewis model of economic development, surplus labor from the agricultural sector is expected to be absorbed into the:

Accepted Answer

Industrial sector

Answer

Informal sector

Answer

Service sector

Answer

Public sector

Question 2

Dependency theory posits that:

Accepted Answer

Developing countries are often economically dependent on developed countries

Answer

Foreign aid is always beneficial to developing countries

Answer

Economic growth can only be achieved through government intervention

Answer

Development is a linear process

Question 3

Which of the following is not considered a key challenge to sustainable development?

Accepted Answer

Technological advancements

Answer

Climate change

Answer

Income inequality

Answer

Gender inequality

Question 4

The Human Development Index (HDI) is an indicator used to measure:

Accepted Answer

Human well-being

Answer

Economic growth

Answer

Environmental sustainability

Answer

Political stability

Question 5

The concept of 'inclusive growth' emphasizes the importance of economic growth that:

Accepted Answer

Benefits all segments of society

Answer

Reduces income disparities

Answer

Promotes social justice

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Protects the environment

Question 6

Which of the following theories is NOT widely recognized as a major theory of economic development?

Accepted Answer

Hegel's theory of progress

Answer

Rostow's stages of growth model

Answer

Solow's neoclassical growth model

Answer

Marx's theory of imperialism

Question 7

What is the primary purpose of foreign aid?

Accepted Answer

To support a comprehensive range of development objectives, including financial, social, and environmental goals

Answer

To provide financial support to developing countries

Answer

To exclusively promote economic growth

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To exclusively alleviate poverty

Question 8

Explain the concept of 'trickle-down economics'.

Accepted Answer

The theory posits that economic growth will eventually benefit all members of society, starting with the wealthy.

Answer

The belief that government spending can stimulate economic activity, benefiting all income groups equally.

Answer

The idea that reducing poverty is the best way to promote economic growth, as it expands consumer markets.

Answer

The hypothesis that technological advancements will lead to economic development, primarily benefiting the wealthy.

Question 9

Which of the Millennium Development Goals specifically targets the eradication of extreme poverty and hunger?

Accepted Answer

Goal 1: Eradicate Extreme Poverty and Hunger

Answer

Goal 2: Achieve Universal Primary Education

Answer

Goal 3: Promote Gender Equality and Empower Women

Answer

Goal 4: Reduce Child Mortality

Question 10

Define the concept of 'sustainable development'.

Accepted Answer

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Answer

Development that prioritizes economic growth at any cost, regardless of environmental or social consequences

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Development that focuses solely on poverty reduction in the short term, neglecting long-term environmental and social impacts

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Development that relies heavily on exploiting natural resources without regard for future sustainability

Question 11

Which characteristic is NOT typically associated with developing countries?

Accepted Answer

Well-developed industrial infrastructure

Answer

Low per capita income

Answer

Rapid population growth

Answer

Reliance on primary commodity exports

Question 12

According to the Lewis model, how does surplus labour contribute to economic development?

Accepted Answer

Provides a source of cheap labour for industrialization

Answer

Increases demand for agricultural products

Answer

Reduces investment opportunities

Answer

Lowers productivity levels

Question 13

The concept of 'trickle-down economics' suggests that:

Accepted Answer

Economic prosperity will naturally benefit all members of society

Answer

Government intervention is required to ensure growth benefits the poor

Answer

Export-oriented strategies are crucial for developing countries

Answer

Foreign aid is the most effective tool for promoting development

Question 14

What is the primary objective of microfinance?

Accepted Answer

Expanding financial services to marginalized individuals and businesses

Answer

Curbing inflation in developing economies

Answer

Attracting foreign direct investment

Answer

Stabilizing exchange rates

Question 15

Which factor is NOT typically considered a contributor to economic inequality in developing countries?

Accepted Answer

Natural disasters

Answer

Unequal access to education

Answer

Discriminatory practices

Answer

Government policies

Question 16

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

Accepted Answer

Advanced technological infrastructure

Answer

Low per capita income

Answer

High levels of poverty

Answer

Limited access to healthcare

Question 17

The process of societal transformation from traditional and agrarian to modern and industrial is known as:

Accepted Answer

Economic modernization

Answer

Economic liberalization

Answer

Economic diversification

Answer

Industrial revolution

Question 18

Which of the following is NOT a potential advantage of foreign direct investment (FDI) in developing countries?

Accepted Answer

Environmental pollution

Answer

Increased employment opportunities

Answer

Access to new technologies

Answer

Capital accumulation

Question 19

The economic theory that emphasizes free markets and limited government involvement in promoting economic growth is known as:

Accepted Answer

Neoclassicism

Answer

Structuralism

Answer

Marxism

Answer

Keynesianism

Question 20

According to the World Bank's classification, countries with a GNI per capita below which threshold are considered low-income?

Accepted Answer

Less than $1,045

Answer

Between $1,045 and $4,125

Answer

Between $4,125 and $12,746

Answer

Over $12,746

Question 21

The concept of 'adaptive capacity' refers to the ability of:

Accepted Answer

Individuals, governments, and societies to adjust to changing circumstances

Answer

Governments to respond to economic shocks

Answer

Societies to withstand environmental disasters

Answer

Individuals to respond to social upheaval

Question 22

Which of the following is a central principle of the Structuralist School of development?

Accepted Answer

Government intervention is essential to overcome market failures and promote economic growth

Answer

Capital accumulation is the primary driver of economic growth

Answer

Export-led growth is the best way to achieve development

Answer

Foreign direct investment is the key to economic development

Question 23

What is a key objective of trade liberalization in developing countries?

Accepted Answer

To increase exports and foreign exchange earnings

Answer

To protect domestic industries from foreign competition

Answer

To reduce the cost of living for consumers

Answer

To increase government revenue through tariffs

Question 24

According to the Lewis model of development, which sector initially faces surplus labor?

Accepted Answer

Agriculture

Answer

Manufacturing

Answer

Services

Answer

Construction

Question 25

What is the primary purpose of the Millennium Development Goals (MDGs)?

Accepted Answer

To establish international targets for reducing poverty and advancing human development

Answer

To monitor progress towards sustainable development

Answer

To provide financial aid to developing countries

Answer

To promote international cooperation

Question 26

A hallmark of developing economies is:

Accepted Answer

Low per capita income

Answer

High economic advancement

Answer

Advanced technological infrastructure

Answer

Stable political systems

Question 27

According to the Harrod-Domar model, a key factor in economic growth is:

Accepted Answer

Investment rate

Answer

Population growth rate

Answer

Natural resource abundance

Answer

Government expenditure

Question 28

The concept of 'structural transformation' in developing economies refers to:

Accepted Answer

Shifting from agriculture to manufacturing

Answer

Shrinking service industries

Answer

Increasing foreign investment

Answer

Creating new industries

Question 29

Policies advocated by the World Bank and IMF for economic development include:

Accepted Answer

Structural adjustment programs

Answer

Import substitution

Answer

Nationalization of industries

Answer

High tariffs

Question 30

Human capital contributes to economic development by:

Accepted Answer

Enhancing productivity and innovation

Answer

Reducing healthcare costs

Answer

Increasing government revenue

Answer

Attracting foreign investment

Question 31

A potential advantage of foreign direct investment (FDI) for developing countries is:

Accepted Answer

Job creation and technology transfer

Answer

Increased political instability

Answer

Exploitation of natural resources

Answer

Dependence on developed countries

Question 32

Sustainable development in developing nations entails:

Accepted Answer

Meeting current needs without jeopardizing future generations

Answer

Maximizing economic growth at any cost

Answer

Prioritizing environmental protection over economic development

Answer

Exploiting natural resources for short-term gains

Question 33

A defining characteristic of developing countries is:

Accepted Answer

Low per capita income

Answer

High levels of industrialization

Answer

Advanced technological infrastructure

Answer

Stable political systems

Question 34

The Lewis model of economic development emphasizes the:

Accepted Answer

Shift of labor from agriculture to manufacturing

Answer

Importance of capital investment in agriculture

Answer

Benefits of import substitution policies

Answer

Expansion of the service sector

Question 35

The concept of 'human capital' refers to:

Accepted Answer

The knowledge and skills possessed by people

Answer

The amount of physical capital available in a society

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The natural resources of a country

Answer

The financial wealth of individuals

Question 36

The concept of sustainable development emphasizes the need to:

Accepted Answer

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

Answer

Maximize economic growth at any cost

Answer

Preserve natural resources for future use

Answer

Reduce poverty and inequality

Question 37

Identify the most crucial factor among the following, considered essential for fostering economic development?

Accepted Answer

The combination of all mentioned factors

Answer

Amplified educational investments

Answer

Embracing free market principles

Answer

Establishing macroeconomic stability

Question 38

In the 1980s, what primarily triggered the debt crisis experienced by many developing nations?

Accepted Answer

Excessive government borrowing

Answer

Rapid devaluation of exchange rates

Answer

Diminished foreign aid

Answer

Reduced prices for commodities

Question 39

What does the 'human development index' (HDI) measure?

Accepted Answer

Health and education levels

Answer

Economic growth rate

Answer

Income distribution

Answer

Political stability

Question 40

The 'structuralist approach' to development economics emphasizes:

Accepted Answer

The need for government intervention to address market failures

Answer

The importance of growth driven by exports

Answer

The role of foreign investment in promoting industrialization

Answer

The benefits of free trade

Question 41

Which principle is central to the 'Human Capital' approach to economic development?

Accepted Answer

Prioritizing education and skill development for economic growth.

Answer

Emphasizing the importance of physical capital, such as machinery and infrastructure.

Answer

Suggesting that population growth alone drives economic progress.

Answer

Advocating for a minimal role of government in economic development.

Question 42

Which of the following is a defining characteristic of developing countries?

Accepted Answer

Low levels of human capital

Answer

High per capita income

Answer

Advanced industrial sector

Answer

Stable political systems

Question 43

Which of the following is a primary objective of trade liberalization policies in developing countries?

Accepted Answer

Fostering economic growth

Answer

Reducing government revenue

Answer

Protecting domestic industries

Answer

Limiting foreign investment

Question 44

Which policy approach focuses on providing access to essential services for the poor?

Accepted Answer

Inclusive growth

Answer

Trickle-down economics

Answer

Neoliberalism

Answer

Import substitution

Question 45

Which concept is central to Amartya Sen's capability approach to development?

Accepted Answer

Freedom

Answer

Entitlements

Answer

Basic needs

Answer

Human capital

Question 46

Which of the following is a key component of the World Bank's Human Capital Index?

Accepted Answer

Health and nutrition

Answer

Agricultural productivity

Answer

Political stability

Answer

Trade openness

Question 47

Evaluate the potential risks and benefits of trade liberalization for developing countries, considering market access, competition, and domestic industry impacts.

Accepted Answer

Increased exports and economic growth, but potential job losses in specific industries.

Accepted Answer

Improved access to foreign goods and services, but potential decline in domestic production.

Accepted Answer

Enhanced competitiveness, but potential widening of income inequality.

Accepted Answer

Increased foreign investment, but potential loss of control over domestic resources.

Question 48

How can behavioral economics insights enhance the design of development interventions in developing countries?

Accepted Answer

By leveraging cognitive biases and social norms in intervention design

Answer

By assuming individuals in developing countries always make rational decisions

Answer

By disregarding cultural and contextual factors influencing economic decision-making

Question 49

According to 'dependency theory', developing nations often encounter obstacles due to:

Accepted Answer

Exploitation by wealthier nations

Answer

Limited access to advanced technologies

Answer

Ineffective governance

Answer

Cultural barriers hindering economic advancement

Question 50

The 'human capital approach' to development places importance on:

Accepted Answer

Investing in education and healthcare

Answer

Providing access to financial resources

Answer

Attracting foreign direct investment

Answer

Minimizing government intervention in the economy

Question 51

The 'big push' theory suggests that developing countries can escape poverty traps by:

Accepted Answer

Investing heavily in infrastructure and industry

Answer

Implementing gradual economic reforms

Answer

Relying solely on foreign aid

Answer

Reducing government spending

Question 52

The concept of 'trickle-down economics' implies that:

Accepted Answer

Economic benefits of growth will eventually reach the poor

Answer

Government policies should prioritize the wealthy

Answer

Foreign aid is the most effective tool for fostering economic development

Answer

Economic inequality is a necessary condition for economic growth

Question 53

Which of the following is NOT a potential economic or social consequence of climate change in developing countries?

Accepted Answer

Increased agricultural productivity in some areas due to altered climate conditions

Answer

Coastal erosion and displacement of populations due to sea-level rise

Answer

Exacerbation of extreme weather events such as cyclones, droughts, and flooding

Answer

Spread of infectious diseases due to altered environmental conditions

Question 54

Which of the following is a defining characteristic of developing countries?

Accepted Answer

Low per capita income

Answer

Strong political institutions

Answer

Advanced educational systems

Answer

High levels of industrialization

Question 55

According to the Harrod-Domar model, what factors are crucial for sustained economic growth?

Accepted Answer

High savings and investment rates

Answer

A large labor force

Answer

Foreign aid

Answer

Abundant natural resources

Question 56

What is the primary aim of the Millennium Development Goals (MDGs)?

Accepted Answer

To address global poverty and improve well-being

Answer

To address environmental concerns

Answer

To promote economic growth in developed nations

Answer

To enhance technological advancements

Question 57

Which of the following is a critique of the structuralist approach to development?

Accepted Answer

It overemphasizes external factors and downplays domestic policies

Answer

It assumes that developing countries are inherently inferior

Answer

It promotes rapid industrialization at the expense of agriculture

Question 58

How does international trade contribute to economic development?

Accepted Answer

It allows countries to specialize in their comparative advantages

Answer

It stifles competition and fosters domestic monopolies

Answer

It leads to job losses in developed countries

Question 59

What is a key challenge associated with achieving sustainable development?

Accepted Answer

Finding a balance between economic growth and environmental conservation

Answer

Reducing income inequality

Answer

Providing healthcare and education for all

Question 60

What is the purpose of the World Bank's Ease of Doing Business Index?

Accepted Answer

To rank countries based on the simplicity of starting and operating a business

Answer

To measure economic growth and prosperity

Answer

To assess corruption levels in countries

Question 61

Which of the following is an example of a top-down development approach?

Accepted Answer

Central planning and government-led industrialization

Answer

Community-led development with participatory planning

Answer

Microfinance and support for entrepreneurs at the local level

Question 62

What is the essence of 'trickle-down economics' in a development context?

Accepted Answer

The belief that economic growth among the wealthy will eventually benefit the poor

Answer

The idea that development should focus primarily on infrastructure and public services

Answer

The conviction that foreign aid is indispensable for economic growth

Question 63

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

Accepted Answer

High levels of industrialization

Answer

High prevalence of poverty

Answer

Limited access to quality education and healthcare

Answer

Low per capita income

Question 64

The Human Development Index (HDI) measures a country's development based on which three key dimensions?

Accepted Answer

Life expectancy, education attainment, and per capita income

Answer

Economic growth rate and inflation

Answer

Foreign investment and trade balance

Answer

Military strength and political stability