Question 1

A multinational organization dedicated to providing financial and technical assistance to developing countries is called the:

Accepted Answer

A)  World Bank.
B)  United Nations Development Plan.
C)  International Monetary Organization.
D)  All of these statements are true.E) B) and C)
F) None of the above

Question 2

A financing gap is:

Accepted Answer

A)  the difference between the savings rate within an economy and the amount of investment needed to achieve sustainable growth.
B)  the extra savings a country has beyond that needed to achieve sustainable growth.
C)  the difference in the amount of investment dollars coming in to a country and the amount of investment dollars going out of a country.
D)  the extra investment developing countries need in foreign aid to sustain their current rate of growth.E) All of the above
F) A) and B)

Question 3

Realizing the problems with import substitution,some Asian countries have:

Accepted Answer

A)  supported export-led growth.
B)  become isolationist,like North Korea.
C)  practiced contractionary monetary policy.
D)  worked to maintain a fixed exchange rate.E) A) and B)
F) C) and D)

Question 4

In terms of capabilities,education can be seen as:

Accepted Answer

A)  contributing to better family planning.
B)  a factor that reduces income inequality in countries.
C)  a feature of more democratic regimes.
D)  All of these statements are true.E) B) and C)
F) None of the above

Question 5

When governments choose to favor some industries over others,they undertake:

Accepted Answer

A)  industrial espionage.
B)  corporate growth policy.
C)  corporate pricing policy.
D)  industrial policy.E) C) and D)
F) B) and C)

Question 6

The Nobel Prize-winning economist from Harvard who developed the capabilities approach is:

Accepted Answer

A)  Amartya Sen.
B)  Milton Friedman.
C)  John Kenneth Galbraith.
D)  Gary Becker.E) None of the above
F) A) and B)

Question 7

Governments choose to pursue industrial policy to:

Accepted Answer

A)  raise tax revenue.
B)  spur economic growth.
C)  create publicly owned companies.
D)  regulate the growth of certain industries.E) A) and B)
F) A) and C)

Question 8

Development economics focuses on how countries can promote:

Accepted Answer

A)  health.
B)  education.
C)  good governance.
D)  All of these are central to development economics.E) A) and D)
F) B) and D)

Question 9

In terms of economic growth,educated workers are generally:

Accepted Answer

A)  more productive.
B)  less productive.
C)  less healthy.
D)  healthier.E) A) and B)
F) A) and C)

Question 10

A problem associated with import substitution as an industrial policy is:

Accepted Answer

A)  it removes the incentive for industries to be efficient.
B)  industries are often chosen for political,not economic,reasons.
C)  it often stays in place long after it was expected to lapse.
D)  All of these are problems associated with import substitution policy.E) A) and B)
F) A) and C)

Question 11

Economist Douglass North's definition of institutions:

Accepted Answer

A)  is the rules of the game in a society.
B)  is the humanly devised constraints that shape human interactions.
C)  includes laws enforced by the government as well as cultural norms.
D)  All of these statements are true.E) B) and C)
F) A) and B)

Question 12

Randomized controlled trials:

Accepted Answer

A)  choose people randomly to measure the impact of a particular intervention,saving the cost of evaluating all participants.
B)  randomly assign people into control and treatment groups in order to focus on the impact of a particular intervention.
C)  control how much of a treatment is given to each participant in order to measure the ideal quantity.
D)  None of these statements is true.E) All of the above
F) A) and D)

Question 13

Policies which promote education are central to:

Accepted Answer

A)  economic development.
B)  economic growth.
C)  increasing the capabilities of a society.
D)  All of these statements are true.E) All of the above
F) A) and B)

Question 14

In the last few decades,there has been:

Accepted Answer

A)  great growth in free trade worldwide.
B)  very little growth in free trade worldwide.
C)  a decline in free trade worldwide.
D)  no growth in free trade worldwide.E) A) and C)
F) B) and C)

Question 15

An example of an industrial policy would be:

Accepted Answer

A)  subsidies.
B)  trade barriers.
C)  tax breaks.
D)  All of these statements are true.E) A) and C)
F) B) and C)

Question 16

Bangladesh has had success with:

Accepted Answer

A)  clustering the textile industry.
B)  clustering the fishing industry.
C)  supporting export-led growth policy.
D)  supporting import substitution policy.E) B) and C)
F) A) and C)

Question 17

Export-led growth policy involves:

Accepted Answer

A)  favoring those industries that export goods over those that only produce domestically consumed goods through high tariffs.
B)  investing heavily in an industry through tax breaks and export subsidies with the aim of selling goods around the world.
C)  encouraging private investment in industries that currently export goods,rather than those expanding domestically.
D)  discouraging imports with high tariffs.E) A) and B)
F) B) and D)

Question 18

If average incomes of a nation don't rise over time:

Accepted Answer

A)  improvements in health are impossible.
B)  improvements in health are still possible.
C)  improvements in health are still very likely.
D)  it will have no impact on the nation's ability to improve health.E) A) and D)
F) A) and B)

Question 19

Private donations of aid are:

Accepted Answer

A)  a dwindling portion of aid given to foreign countries.
B)  larger than the entire budget for official foreign aid provided by the U.S.
C)  a significant portion of aid,nearly half as much as the budget for official foreign aid provided by the U.S.
D)  None of these statements is true.E) A) and B)
F) B) and C)

Question 20

The traditional industrial policy of import substitution:

Accepted Answer

A)  has been successful for those countries that managed to pick the "right" industries.
B)  has been successful for the great majority of countries.
C)  is unsuccessful in the real world.
D)  is used by most countries with some degree of success.E) A) and B)
F) A) and C)

Exam 35: Development Economics

Export-led growth policy involves:

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Economist Douglass North's definition of institutions:

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A problem associated with import substitution as an industrial policy is:

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An example of an industrial policy would be:

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Private donations of aid are:

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Realizing the problems with import substitution,some Asian countries have:

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Bangladesh has had success with:

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Development economics focuses on how countries can promote:

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When governments choose to favor some industries over others,they undertake:

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In terms of capabilities,education can be seen as:

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In terms of economic growth,educated workers are generally:

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If average incomes of a nation don't rise over time:

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The Nobel Prize-winning economist from Harvard who developed the capabilities approach is:

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The traditional industrial policy of import substitution:

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Randomized controlled trials:

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Policies which promote education are central to:

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A financing gap is:

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A multinational organization dedicated to providing financial and technical assistance to developing countries is called the:

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Governments choose to pursue industrial policy to:

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In the last few decades,there has been:

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