Economic Problems Of Developing Countries MCQs

Option A: debt rescheduling agreement

Option B: debt service agreement

Option C: program for growth

Option D: stabilization program

Correct Answer: debt rescheduling agreement ✔

Option A: changes in industrial structure over time

Option B: specific barriers to development and how to overcome them

Option C: The impact of international trade structures on developing countries

Option D: the caste of class structure and discrimination in the labor market

Correct Answer: specific barriers to development and how to overcome them ✔

Option A: Food shortages

Option B: Foreign debt

Option C: Rapid population growth

Option D: Labor shortages

Correct Answer: Labor shortages ✔

Option A: mechanization

Option B: land reform

Option C: import substitution

Option D: produce marketing boards

Correct Answer: land reform ✔

Option A: Successful agricultural projects produce surplus food to support urban development

Option B: agricultural investment will prevent the flight of capital abroad

Option C: agricultural projects usually have low import requirements

Option D: export prices for agricultural products are more stable than those for industrial products

Correct Answer: agricultural projects usually have low import requirements ✔

Option A: The constraints imposed by dependency on the already-developed nations

Option B: A steady rate of capital formation

Option C: An adequate level of social overhead capital

Option D: The supply of human resources is too high

Correct Answer: The constraints imposed by dependency on the already-developed nations ✔

Option A: the prices of the goods they imported were falling

Option B: the price of goods they exported were increasing

Option C: their terms of trade were deteriorating

Option D: their terms of trade were improving

Correct Answer: their terms of trade were deteriorating ✔

Option A: 80%

Option B: 65%

Option C: 50%

Option D: 25%

Correct Answer: 80% ✔

Option A: a lower rate of illiteracy

Option B: a greater degree of equality in the income distribution

Option C: a lower infant mortality rate

Option D: a smaller percentage of the labor force in urban areas

Correct Answer: a smaller percentage of the labor force in urban areas ✔

Option A: money lent to the country being immediately invested abroad

Option B: People investing their money in urban business rather than agriculture

Option C: money moving around financial institutions rather than being invested in production

Option D: people investing money abroad rather than in their own country

Correct Answer: people investing money abroad rather than in their own country ✔

Option A: an agreement with the World Bank to turn some of a debt into other forms

Option B: a change in debt repayment due to inability to pay

Option C: regular payments of interest and repayments of capital

Option D: a program of austerity measures agreed with the IMF to make repayment possible

Correct Answer: a change in debt repayment due to inability to pay ✔

Option A: The colonial period

Option B: The early 1950s

Option C: most debt was incurred during the oil shocks of the 1970s

Option D: the early 1960s

Correct Answer: most debt was incurred during the oil shocks of the 1970s ✔

Option A: modern sector and traditional sector

Option B: town and country

Option C: men and women

Option D: rich people and poor people

Correct Answer: modern sector and traditional sector ✔

Option A: encourages mechanization

Option B: allows the farmers to set the prices for their agricultural products

Option C: enables farmers to escape the problem of diminishing return

Option D: makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers

Correct Answer: makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers ✔

Option A: shortages of inputs including land

Option B: an over-investment in farm equipment

Option C: migration from rural areas to urban areas

Option D: a lack of effective demand for food products

Correct Answer: shortages of inputs including land ✔

Option A: stress agricultural development over industrial development

Option B: promote industrial development over agriculture

Option C: use a balanced strategy that promotes both agricultural and industrial development

Option D: stress the importation of agricultural products and the export of manufactured goods

Correct Answer: use a balanced strategy that promotes both agricultural and industrial development ✔

Option A: the vicious circle of poverty hypothesis

Option B: the dependency theory

Option C: neo-colonialism

Option D: the under-consumptionist hypothesis

Correct Answer: the vicious circle of poverty hypothesis ✔

Option A: export promotion

Option B: industrial promotion

Option C: import substitution

Option D: unbalanced growth

Correct Answer: import substitution ✔

Option A: 40%

Option B: 10%

Option C: 20%

Option D: 30%

Correct Answer: 20% ✔

Option A: the newly industrialized countries like Korea, Taiwan Malaysia

Option B: The republics of the former Soviet Union

Option C: Countries that still have a communist government like China and Cuba

Option D: countries that have fallen far behind the economic advances of the rest of the world

Correct Answer: countries that have fallen far behind the economic advances of the rest of the world ✔

Option A: the newly industrialized countries like Korea, Taiwan Malaysia

Option B: The republics of the former Soviet Union

Option C: Countries that still have a communist government like China and Cuba

Option D: countries that have fallen far behind the economic advances of the rest of the world

Correct Answer: countries that have fallen far behind the economic advances of the rest of the world ✔