Master Economic Development: Theories, Policies, and Challenges

Question 1

Which of the following best describes a characteristic of underdeveloped economies?

Accepted Answer

Low life expectancy

Answer

High literacy rates

Answer

Advanced infrastructure

Answer

Minimal unemployment

Question 2

Which type of foreign aid provides funding without imposing specific conditions?

Accepted Answer

Grants

Answer

Loans

Answer

Technical assistance

Answer

Debt restructuring

Question 3

Which factor does NOT directly contribute to economic expansion?

Accepted Answer

Cultural norms and values

Answer

Accumulation of capital resources

Answer

Advancements in technology

Answer

Government policies

Question 4

In the Lewis model of economic development, surplus workers from the rural sector primarily transition to which sector?

Accepted Answer

Manufacturing industry

Answer

Agricultural sector

Answer

Service industry

Answer

Construction sector

Question 5

Human capital refers to:

Accepted Answer

Skills and knowledge acquired through education and training

Answer

Physical assets used in production

Answer

Natural resources available to an economy

Answer

Financial assets held by individuals

Question 6

Which framework succeeded the Millennium Development Goals (MDGs)?

Accepted Answer

Sustainable Development Goals (SDGs)

Answer

United Nations Framework Convention on Climate Change (UNFCCC)

Answer

World Health Organization (WHO) Global Health Goals

Answer

Paris Agreement on Climate Change

Question 7

Which of the following is NOT considered a primary factor driving economic growth in developing countries?

Accepted Answer

Climate change and environmental sustainability

Answer

Technological progress and innovation

Answer

Investment in education and human capital

Answer

Political stability and a favorable business climate

Question 8

According to the World Bank, what is the primary objective of economic development?

Accepted Answer

Reducing poverty and promoting more equitable income distribution

Answer

Achieving the highest possible economic growth rate

Answer

Protecting the environment and ensuring sustainable development

Answer

Enhancing international trade and globalization

Question 9

What is the primary purpose of the Human Development Index (HDI)?

Accepted Answer

To assess the well-being and standard of living of a country's population

Answer

To measure economic growth and prosperity

Answer

To compare international trade performance and competitiveness

Answer

To evaluate environmental sustainability and resource management

Question 10

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

Accepted Answer

Extensive industrialization and a highly developed manufacturing sector

Answer

High rates of illiteracy and low educational attainment

Answer

Elevated infant mortality rates and limited access to healthcare

Answer

Rapid urbanization and migration to cities

Question 11

Describe the interconnected relationship between economic development and human capital?

Accepted Answer

There is a mutually reinforcing relationship between economic development and human capital, where each enhances the other

Answer

Economic development creates opportunities for human capital development, such as education and healthcare

Answer

Human capital, in the form of skilled labor and knowledge, drives economic growth and innovation

Answer

Economic development and human capital are independent factors with no significant interrelationship

Question 12

According to the Solow growth model, which of the following is a primary driver of economic growth?

Accepted Answer

Capital accumulation and technological progress

Answer

Population growth and government intervention

Answer

Natural resource abundance and foreign investment

Answer

Low inflation and stable exchange rates

Question 13

The Kuznets curve suggests that:

Accepted Answer

Income inequality initially increases with economic development but eventually declines.

Answer

Income inequality is unrelated to the level of economic development.

Answer

Income inequality persistently worsens as a country becomes more developed.

Answer

Income inequality remains constant throughout the economic development process.

Question 14

Which of the following is NOT a characteristic of sustainable economic development?

Accepted Answer

Encouragement of rapid population growth

Answer

Prioritization of environmental conservation

Answer

Promotion of equitable income distribution

Answer

Emphasis on long-term economic well-being

Question 15

The concept of 'structural transformation' refers to:

Accepted Answer

The gradual shift in economic activity from agriculture to industry and services

Answer

The decline in the manufacturing sector as an economy develops

Answer

The increase in foreign trade as a country becomes more integrated into the global economy

Answer

The rapid urbanization that accompanies economic growth

Question 16

Which of the following is an example of human capital investment?

Accepted Answer

Training workers in new skills

Answer

Building a new highway

Answer

Vaccination programs for the population

Answer

Investing in stock markets

Question 17

The primary objective of microcredit is to:

Accepted Answer

Provide small loans to low-income entrepreneurs

Answer

Reduce interest rates for large corporations

Answer

Promote investment in renewable energy

Answer

Fund social welfare programs

Question 18

In the Harrod-Domar model, which factor is considered the main driver of economic growth?

Accepted Answer

National savings rate

Answer

Government spending

Answer

Population growth

Answer

Exchange rate

Question 19

The Solow-Swan model identifies several key factors driving long-term economic growth. Which of these is NOT considered a fundamental determinant?

Accepted Answer

Government spending

Answer

Physical capital

Answer

Human capital

Answer

Technological progress

Question 20

Which factor is NOT considered a primary determinant of economic growth in the Harrod-Domar model?

Accepted Answer

Technological progress

Answer

Capital stock

Answer

Labor force

Answer

Savings rate

Question 21

Which of the following is a characteristic of an underdeveloped economy?

Accepted Answer

Low levels of education

Answer

High levels of capital intensity

Answer

Advanced technology

Answer

Industrialized manufacturing

Question 22

Which of the following international organizations plays a leading role in promoting economic development globally?

Accepted Answer

World Bank

Answer

United Nations

Answer

World Economic Forum

Answer

European Union

Question 23

The concept of 'sustainable development' in the context of economic development emphasizes:

Accepted Answer

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

Answer

Prioritizing economic growth over environmental concerns

Answer

Adopting a laissez-faire approach to development

Answer

Focusing solely on reducing poverty

Question 24

Which of the following is a potential drawback of globalization for economic development?

Accepted Answer

Increased environmental degradation

Answer

Increased foreign direct investment

Answer

Higher living standards

Answer

Spread of technology and knowledge

Question 25

How does 'creative destruction' contribute to economic growth?

Accepted Answer

It replaces outdated technologies and industries with newer, more efficient ones.

Answer

It can lead to job losses in declining industries.

Answer

It hinders the development of new technologies and industries.

Answer

It refers to the environmental damage caused by rapid industrialization.

Question 26

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

Accepted Answer

Climate stability

Answer

Technological advancements

Answer

Human capital development

Answer

Natural resource abundance

Question 27

Which of the following theories describes economic development as a sequence of distinct stages from traditional to modern societies?

Accepted Answer

Rostow's stages of economic growth model

Answer

Lewis's two-sector development theory

Answer

Kuznets' inverted U-curve hypothesis

Answer

Sen's capability approach

Question 28

Which of the following indicators is commonly used to measure economic inequality?

Accepted Answer

Gini coefficient

Answer

Purchasing Power Parity

Answer

Gross Domestic Product

Answer

Human Development Index

Question 29

The primary purpose of microfinance institutions is:

Accepted Answer

Providing financial services to unbanked and marginalized populations

Answer

Promoting investment and economic growth

Answer

Reducing inflation and stabilizing currencies

Answer

Managing international trade and foreign exchange rates

Question 30

Which of the following best defines the concept of sustainable economic development?

Accepted Answer

Balancing economic progress with environmental preservation and social equity

Answer

Maximizing short-term economic output without regard to long-term consequences

Answer

Minimizing government intervention in the economy

Answer

Prioritizing international trade and investment over domestic development

Question 31

According to the Human Development Index (HDI), which indicator is a key measure of economic development?

Accepted Answer

Gross domestic product (GDP) per capita

Answer

Life expectancy at birth

Answer

Literacy rate

Answer

Access to clean water and sanitation

Question 32

Which economic doctrine advocates for minimal government intervention in the economy?

Accepted Answer

Neoclassical economics

Answer

Keynesian economics

Answer

Marxist economics

Answer

Socialist economics

Question 33

Which economic sector is often seen as a driver of diversification and job creation in developing countries?

Accepted Answer

Service sector

Answer

Agriculture

Answer

Manufacturing

Answer

Tertiary sector

Question 34

According to the Kuznets curve hypothesis, which statement about inequality is generally true?

Accepted Answer

It increases in the early stages and decreases in the later stages of economic development.

Answer

It consistently decreases throughout all stages of economic development.

Answer

It increases in both the early and advanced stages of economic development.

Answer

It remains relatively stable throughout the stages of economic development.

Question 35

Which economic development strategy emphasizes the significant role of government intervention and central planning?

Accepted Answer

Structuralism

Answer

Neoliberalism

Answer

Keynesianism

Answer

Monetarism

Question 36

According to the Solow growth model, which of the following is NOT a factor contributing to economic growth?

Accepted Answer

Natural disasters

Answer

Capital accumulation

Answer

Expansion of the labor force

Answer

Technological advancements

Question 37

According to the Human Development Index (HDI), which component is not included?

Accepted Answer

Gross domestic product (GDP)

Answer

Life expectancy

Answer

Education level

Answer

Per capita income

Question 38

Which economic development theory emphasizes the importance of capital accumulation and investment as key drivers of growth?

Accepted Answer

Neoclassical theory

Answer

Structuralist theory

Answer

Dependency theory

Answer

Keynesian theory

Question 39

Which indicator is used to measure economic well-being at the individual level?

Accepted Answer

Human Development Index (HDI)

Answer

Gross domestic product (GDP)

Answer

Gini coefficient

Answer

Purchasing power parity (PPP)

Question 40

What is a primary objective of the World Trade Organization (WTO)?

Accepted Answer

Promoting free and fair international trade

Answer

Providing financial assistance to developing countries

Answer

Regulating the global monetary system

Answer

Protecting the interests of multinational corporations