Theories Of Economic Development MCQs

Option A: capitalism exploits the worker and socialism exploits the property owner

Option B: capitalism relies on the market to make economic decisions and socialism uses central planning

Option C: capitalism grows through rent seeking and socialism grows through government direction

Option D: capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

Correct Answer: capitalism relies on the market to make economic decisions and socialism uses central planning ✔

Option A: monopolistic business from abroad

Option B: reactionary ruling coalitions

Option C: weak domestic middle class

Option D: All of the above

Correct Answer: All of the above ✔

Option A: Organization for Economic Cooperation and Development and Development

Option B: Oil Exporting Countries Development

Option C: Organization for Environmental cooperative Department

Option D: Open Economies Caucus on Development

Correct Answer: Organization for Economic Cooperation and Development and Development ✔

Option A: Supply

Option B: infrastructure

Option C: agriculture

Option D: services

Correct Answer: infrastructure ✔

Option A: a country is poor because it has lower productivity but high savings

Option B: as countries grow richer they save less

Option C: poverty perpetuates itself in mutually reinforcing circles on supply and demand sides

Option D: market size is large in LDCs

Correct Answer: poverty perpetuates itself in mutually reinforcing circles on supply and demand sides ✔

Option A: I and II only

Option B: II and III only

Option C: I, II and III only

Option D: IV only

Correct Answer: II and III only ✔

Option A: I and II only

Option B: II and III only

Option C: I , II and III only

Option D: I , II , III and IV

Correct Answer: I , II , III and IV ✔

Option A: I only

Option B: I and II only

Option C: I , II and III only

Option D: IV only

Correct Answer: I only ✔

Option A: directly related to savings and inversely related to the capital/output ratio

Option B: directly related to the capital/output ratio and inversely related to savings

Option C: indirectly related to savings and the capital/output ratio

Option D: directly related to savings and the capital/output ratio

Correct Answer: directly related to savings and inversely related to the capital/output ratio ✔

Option A: based on an alliance between landowners and peasants

Option B: based on an alliance between peasants and the foreign bourgeoisie

Option C: transferred from one elite to another when revolution occurs

Option D: derived from domestic opponents of nationalism

Correct Answer: transferred from one elite to another when revolution occurs ✔

Option A: the difficulty of testing the stages scientifically

Option B: conditions for takeoff are contradicted by historical evidence

Option C: characteristics of one stage are not unique to that stage

Option D: All of the above are correct

Correct Answer: All of the above are correct ✔

Option A: benefits if each acts in his/her own interest

Option B: will increase their profits in a free market

Option C: should act to maximize economic growth

Option D: should act to promote the public interest

Correct Answer: benefits if each acts in his/her own interest ✔

Option A: with an average product of labor in agriculture that is negative

Option B: with a downward-sloping supply curve of labor

Option C: with a marginal productivity of labor zero or negligible in industry

Option D: with a traditional agricultural sector and an industrial capitalist sector

Correct Answer: with a traditional agricultural sector and an industrial capitalist sector ✔

Option A: I and II only

Option B: II and III only

Option C: I, II and III only

Option D: I , II III and IV

Correct Answer: II and III only ✔

Option A: balanced growth

Option B: capitalization

Option C: elasticity of capital

Option D: indivisibilities

Correct Answer: balanced growth ✔

Option A: The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction

Option B: The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption

Option C: the preconditions for consumption the replication the drive to maturity and the age of high mass consumption

Option D: the learning curve the age of high mass consumption post takeoff, and the drive to maturity

Correct Answer: The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption ✔

Option A: The French Revolution

Option B: The rise of industrial and capitalist production

Option C: Political and labor revolts

Option D: a growing spiritual rationalism

Correct Answer: a growing spiritual rationalism ✔

Option A: Adam Smith

Option B: Thomas R. Malthus

Option C: John Stuart Mill

Option D: John Maynard Keynes

Correct Answer: John Maynard Keynes ✔

Option A: neoclassicism

Option B: Marxism

Option C: Rostow’s model

Option D: classical appraoch

Correct Answer: neoclassicism ✔

Option A: LDCs are overpopulated

Option B: labor contributes nothing to output in LDCs

Option C: the marginal products of labor is closed to zero in LDCs

Option D: urban unemployment is high in LDCs

Correct Answer: the marginal products of labor is closed to zero in LDCs ✔

Option A: growing government assistance create addiction to welfare programs

Option B: low income levels create pressure for money creation

Option C: low income levels create pressure for cheap imports

Option D: low per capita incomes creates low savings that keep incomes low

Correct Answer: low per capita incomes creates low savings that keep incomes low ✔

Option A: technology levels do not allow for self sufficiency

Option B: it was previously too poor to save and invest

Option C: underemployment is too widespread

Option D: resource allocation is poor

Correct Answer: it was previously too poor to save and invest ✔

Option A: much available data contradicts his thesis about the takeoff stage

Option B: there is no explanation of why growth occurs after takeoff

Option C: his hypothesis of the stages of growth is difficult to test empirically

Option D: All of the above are correct

Correct Answer: All of the above are correct ✔