Development Economics
Final Exam
Course Introduction
Development Economics explores the economic aspects of the development process in low-income countries, focusing on the challenges and opportunities these economies face. The course examines theories of economic growth, poverty, and inequality; the role of institutions, education, health, and infrastructure in development; and the impact of globalization, trade, foreign aid, and policy interventions. Through case studies and empirical analysis, students learn to evaluate the effectiveness of various development strategies and gain a deeper understanding of the complex interplay between economic, social, and political factors that shape development outcomes.
Recommended Textbook
Economics of Development Seventh Edition by Dwight H. Perkins
Available Study Resources on Quizplus
20 Chapters
548 Verified Questions
548 Flashcards
Source URL: https://quizplus.com/study-set/1842
Page 2
Chapter 1: Patterns of Development
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/36754
Sample Questions
Q1) Which of the following statements is true about globalization?
A) It is a term used by different people to mean different things.
B) It covers more than just economics.
C) It is not a new phenomenon.
D) All of the above.
Answer: D
Q2) All of the following reasons have contributed to the enhancement of economic development among the developing nations of the world EXCEPT for:
A) the information revolution.
B) the globalization of culture.
C) lower transport costs.
D) the spread of democracy.
Answer: B
Q3) The poorest nations in the world,representing 12 percent of humanity,are primarily located in:
A) Southeast Asia.
B) Eastern Europe.
C) sub-Saharan Africa.
D) Latin America.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Measuring Economic Growth and Development
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/36755
Sample Questions
Q1) A criticism of using GDP to measure growth is that it does not include "social bads"; these include all of the following EXCEPT:
A) crime.
B) pollution.
C) inflation.
D) congestion.
Answer: C
Q2) All of the regions will meet Target 1 (to halve the number of poor)EXCEPT:
A) Europe and Central Asia.
B) the Middle East and North Africa.
C) sub-Saharan Africa and South Asia.
D) South America.
Answer: C
Q3) The total number of Millennium Development Goals established in the year 2000 were:
A) 5.
B) 8.
C) 10.
D) 18.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Economic Growth: Concepts and Patterns
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/36756
Sample Questions
Q1) Malaysia's growing life expectancy over the past generation can be largely attributed to:
A) new hybrid crops.
B) a serious reduction in the incidence of malaria.
C) the widespread production and consumption of organic foods.
D) the eradication of tuberculosis.
Answer: B
Q2) Economist Stephen Radelet has demonstrated that,by stabilizing economic and political problems in the mid-1990s,17 sub-Saharan African countries experienced an annual average total factor productivity growth rate of:
A) 0.25 percent.
B) 1.5 percent.
C) 2.75 percent.
D) 7.75 percent.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Theories of Economic Growth
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/36757
Sample Questions
Q1) When an economy increases the amount of capital per worker,it is called:
A) capital widening.
B) capital deepening.
C) labor widening.
D) labor deepening.
Q2) Savings,investment
Q3) Consider the Harrod-Domar relationship for an economy: g = (s/v)- d
Assume that the depreciation rate is 0.A country can only save 15 percent but wants to grow 15 percent.Assuming the ICOR is 3,the gap of ________ should be provided by foreign aid.
A) 10 percent
B) 0 percent
C) 5 percent
D) We cannot say without more information.
Q4) Harrod-Domar equation,L-shaped isoquants
Q5) Every model of economic growth embodies:
A) risk theory.
B) aggregate production functions.
C) an isoquant map.
D) the basic theories of growth espoused by Adam Smith.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: States and Markets
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/36758
Sample Questions
Q1) It is argued that the Marshall plan succeeded in rebuilding war-torn nations after World War II due to:
A) the people's knowledge and understanding of the role of government and government-created institutions.
B) the directives laid out within the plan by Marshall and Truman.
C) a desire to pursue corporatism an a new economic model.
D) the influence of the Protestant work-ethic, as described by Max Weber.
Q2) Big push,backward linkages
Q3) China and Vietnam are examples of formerly planned economies that:
A) adopted the shock-therapy approach to liberalization.
B) began their reform programs by privatizing large state-owned industrial enterprises.
C) suffered severe economic contraction during the transition to a market system.
D) managed the transition to a market economy in gradual steps.
Q4) Dual price system,unified market-price system
Q5) Structural adjustment,economic distortions
Q6) South Korea,Taiwan
Q7) Shock therapy,gradualist approach
Q8) General Agreement on Tariffs and Trade (GATT),World Trade Organization (WTO)
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Inequality and Poverty
Available Study Resources on Quizplus for this Chatper
24 Verified Questions
24 Flashcards
Source URL: https://quizplus.com/quiz/36759
Sample Questions
Q1) Kuznets speculated on the relationship between growth and inequality,arguing that inequality rose when:
A) industrialization and urbanization rose.
B) everyone remained in the agriculture sector.
C) service sector jobs reigned supreme as a model for job expansion.
D) people failed to live by the premise found within It Takes a Village.
Q2) To draw a Lorenz curve showing the distribution of income by household,one should first rank all households according to:
A) household size.
B) age of head of household.
C) wage level.
D) income or consumption level.
Q3) The single most important variable explaining the number of people in poverty in a given country is:
A) the literacy rate.
B) the HDI.
C) per capita income.
D) population.
Q4) Inequality and weighted population,inequality and unweighted population
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Population
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/36760
Sample Questions
Q1) Which of the following is NOT a lesson learned from China's family planning policy?
A) Economic growth at the same time helps decline in population growth.
B) Though successful, family planning policies may have long-term consequences.
C) Gender imbalance may result.
D) Other nations can replicate China's policies.
Q2) The three reproductive norms promoted in China's wan xi shao program after 1971 included which of the following elements?
A) Families should plan for longer spacing between births.
B) Families should continue bearing children until a male child is born and then stop.
C) China can care for all children because it has achieved the Marxist-Leninist utopia.
D) Having no children is best.
Q3) Dependency ratio,asset accumulation
Q4) New household economics,child quality
Q5) Rate of natural increase,decline in fertility
Q6) Coale-Hoover model,capital widening
Q7) Infant death rate,life expectancy
Q8) Implicit costs of children,explicit costs of children
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Education
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/36761
Sample Questions
Q1) Explicit costs of schooling,implicit costs of schooling
Q2) The introduction of textbooks improved reading scores for all students in:
A) Jamaica.
B) the Philippines.
C) Kenya.
D) all of the above.
Q3) Social rate of return,educated unemployment
Q4) In low-income countries,the demand for education: A) remains high across all segments of the population.
B) is confined mostly to urban areas.
C) is confined mostly to social elites, both urban and rural.
D) is not very strong, due to poverty and hopelessness.
Q5) Uniforms,students
Q6) Deworming,attendance
Q7) Which of the following is NOT true concerning the deworming study in Kenya?
A) Deworming is more cost-effective than free school uniforms.
B) Deworming increased attendance.
C) Deworming increased student learning as measured by test scores at the time of treatment.
D) Deworming increased student concentration levels when they were in school.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Health
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/36762
Sample Questions
Q1) In developing countries,major gains in life expectancy have been achieved primarily by reducing mortality rates for which population group?
A) the elderly
B) rural workers
C) the very young
D) women of childbearing age
Q2) With a few exceptions,famine no longer seems to be a threat in Asia; however,this country marks a clear exception to that premise:
A) China.
B) Vietnam.
C) North Korea.
D) Laos.
Q3) Which of the following statements about the Panama Canal construction is NOT true?
A) Yellow fever was eradicated.
B) Malaria was eradicated.
C) Both yellow fever and malaria were transmitted through mosquitos.
D) Before the United States had the right to build the canal, many workers died from yellow fever and malaria.
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Investment and Savings
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/36763
Sample Questions
Q1) Economic project appraisal,shadow prices
Q2) Today,FDI is aimed primarily at all of the following broad categories EXCEPT:
A) natural resource-based activities.
B) alternative and "green energy" production.
C) manufacturing and services aimed at the domestic market in the host country.
D) labor-intensive manufacturing aimed for export on world markets.
Q3) When a private firm undertakes investment analysis,it conducts:
A) risk aversion strategy.
B) commercial project appraisal.
C) a random walk.
D) asymmetric information analysis.
Q4) Investment,growth
Q5) Multinational corporations:
A) avoid spillovers whenever possible.
B) often encourage horizontal spillover.
C) often encourage vertical spillover.
D) encourage both horizontal and vertical spillover.
Q6) Net present value,internal rate of return (IRR)
Q7) Foreign direct investment (FDI),multinational corporations (MNCs)
Q8) Foreign savings,domestic savings
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Fiscal Policy
Available Study Resources on Quizplus for this Chatper
27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/36764
Sample Questions
Q1) Investments that,in general,generate a stream of income or services into the future are known as:
A) future markets.
B) public (development) expenditures.
C) recurrent expenditures.
D) private (luxury) expenditures.
Q2) When governments raise expenditures or cut taxes on individuals and corporations so that they can raise their expenditures,such actions are referred to as:
A) fiscal policy.
B) monetary policy.
C) indexing.
D) regressive taxation.
Q3) The term public good refers to a good or service that:
A) results in income and profit.
B) is free and portable.
C) has a value of zero.
D) exhibits nonrival consumption and nonexcludability.
Q4) Development expenditures,recurrent expenditures
Q5) State-owned enterprises (SOEs),subsidies
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Financial Development and Inflation
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/36765
Sample Questions
Q1) Financial assets,nonfinancial assets
Q2) Medium of exchange,M2
Q3) Fiscal policy,stimulus package
Q4) Open-market operations,moral suasion
Q5) Under a system of fixed exchange rates,a large increase in export revenues (without a corresponding jump in imports)has what effect on the domestic money supply?
A) The money supply will increase.
B) The money supply will decline.
C) The money supply will not be affected.
D) The answer depends on whether the central bank has imposed credit controls on the commercial banks.
Q6) If a country wants to enact policies for growth in the real size of the financial system,financial deepening,it will require:
A) a negative real interest rate.
B) a negative GDP.
C) a positive real interest rate.
D) a decrease in inflation.
Q7) Commercial banks,financial intermediation
Q8) Shallow finance,informal credit market
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Foreign Debt and Financial Crises
Available Study Resources on Quizplus for this Chatper
27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/36766
Sample Questions
Q1) Common characteristics of countries caught in the Asian crises include which of the following?
A) middle and upper-middle national incomes
B) receipt of large flows of private international capital
C) large government budget deficits
D) all of the above
Q2) Stabilization,structural adjustment
Q3) Fixed exchange rates create problems because they:
A) tend to encourage short-term capital inflows.
B) tend to be undervalued.
C) create instability among investors.
D) all of the above.
Q4) Assume that,as was the case in 1994,Mexican goods are 22 percent more expensive than U.S.goods.If capital markets are fully liberalized and the Central Bank of Mexico is committed to a pegged peso/dollar exchange rate,then:
A) foreign investors are likely to perceive this as an overvaluation of the peso.
B) there is likely to be a net outflow of short-term capital.
C) the central bank likely will need to raise interest rates.
D) all of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Foreign Aid
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/36767
Sample Questions
Q1) Primarily,the World Bank provides:
A) foreign aid.
B) loans to middle-income countries at market rates.
C) investment in private companies.
D) settlement of international disputes.
Q2) Aid,growth
Q3) Commitment to development index,foreign aid
Q4) A study on the flypaper effect in Indonesia revealed that aid:
A) crowded out government spending.
B) crowded in government spending.
C) was neutral to government spending.
D) was harmful to government spending.
Q5) In terms of aid as a percentage of GNI,which country gives the most aid?
A) United States
B) Japan
C) United Kingdom
D) Sweden
Q6) Flypaper effect,government spending
Q7) Aid dependency,aid agencies
Q8) Iraq,motivations for aid
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Managing Short-Run Crises in an Open Economy
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/36768
Sample Questions
Q1) Internal balance,external balance
Q2) Which of the following events will cause the external-balance line in the phase diagram to shift to the left?
A) an appreciation of the exchange rate
B) a decline in the interest rate on foreign debt
C) a decline in the absorption
D) a decline in export earnings
Q3) Which of the following should be classified as a nontradable?
A) rural road construction services
B) wheat production wholly consumed within the country
C) computer equipment that cannot be produced locally
D) all of the above
Q4) An unexpected feature of Chile's stabilization program in the 1970s was that:
A) export growth was weak after the real exchange rate appreciated.
B) the economy stabilized without requiring fiscal austerity.
C) the market's self-correcting mechanisms worked smoothly and quickly to eliminate the imbalances.
D) inflation stayed high despite tight monetary policy and a big drop in the fiscal deficit.
Q5) Tradable goods,real exchange rate
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Agriculture and Development
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/36769
Sample Questions
Q1) Disguised unemployment refers to:
A) the underground economy.
B) unemployment that fluctuates in the rural countryside.
C) earning two incomes annually, but reporting only one.
D) people who claim to be looking for a job, but have no intention of working.
Q2) Agricultural output per worker,nonagricultural output per worker
Q3) The nutritional linkage from agriculture to economic growth is based on evidence gathered by which Nobel-winning economic historian?
A) Robert Fogel
B) Robert Heilbroner
C) Joseph Schumpeter
D) Leon Walras
Q4) ___________ is the systematic changes in sector proportions as economies grow.
A) Structural transformation
B) Technical innovation
C) Developmental devolution
D) Unit-elastic supply
Q5) Agricultural productivity,technical change
Q6) Diminishing returns,labor surplus
Q7) Food and Agricultural Organization (FAO),food price shock
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Agricultural Development: Technology, policies, and Institutions
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/36770
Sample Questions
Q1) The food policy dilemma,as defined by Timmer,Falcon,and Pearson,refers to:
A) the continual battle within governments over what is to be grown in the agricultural sector.
B) the push to move agricultural laborers to industrial jobs in the urban areas.
C) the production of agricultural goods for domestic consumption vs. for export.
D) conflicting interests of producers and consumers in regard to food prices.
Q2) Planting and harvesting time,the lean season
Q3) Intensive annual crops,mixed farming
Q4) What is the margin between farm-gate price and retail price called?
A) marginal return
B) net profit
C) marketing margin
D) base price
Q5) Before the 1950s,agriculture in nearly all developing countries relied on:
A) hybrid crops and irrigation.
B) traditional technologies and crop varieties.
C) the new and emerging Green Revolution.
D) grants and charity provided by the developed nations of the world.
Q6) Actual performance,potential performance
Q7) Perennial crops,livestock systems Page 19
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 18: Trade and Development
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/36771
Sample Questions
Q1) Openness to trade,rate of growth in GDP per capita
Q2) Which country is the largest trading partner of the United States?
A) Mexico
B) Canada
C) China
D) Japan
Q3) Almost half of Asia's exports today are sent to:
A) North America.
B) Europe.
C) other Asian countries.
D) the Middle East.
Q4) The best prevention for Dutch disease effects is to avoid or reverse the initial real ________ of the currency.
A) appreciation
B) depreciation
C) devaluation
D) purchasing power
Q5) Tradable goods,nontradable goods
Q6) Geographic location,trade
Q7) Export pessimism,relative price movements
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 19: Trade Policy
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/36772
Sample Questions
Q1) Rent seeking,import licensing
Q2) The essence of outward-looking development is that it:
A) relies on primary exports until domestic industry is efficient enough to compete in export markets.
B) gets prices right and lets the free market dictate the development of manufactured exports.
C) establishes an incentive system that induces firms to seek export markets.
D) subsidizes export-oriented manufacturing firms.
Q3) Effective rate of protection,value added
Q4) When the government auctions import licenses,it captures the quota rent.Who gets the quota rent when the government administratively allocates import licenses?
A) the foreign producer of the imported product
B) the importers
C) the domestic consumer
D) the domestic producers of the import substitutes
Q5) Overvalued exchange rate,import-GDP ratio
Q6) East Asian Tigers,export-orientation
Q7) Trade protection,political economy
Q8) Tariff revenue,quota rent
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 20: Sustainable Development
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/36773
Sample Questions
Q1) As of 2006,which country overtook the United States as the world's leading source of carbon dioxide emissions?
A) India
B) China
C) Russia
D) Japan
Q2) Marginal abatement cost,optimal pollution
Q3) The combination of produced capital,natural capital,and intangible capital make up which of the following terms?
A) complete wealth
B) total assets
C) comprehensive wealth
D) comprehensive resources
Q4) Public disclosure of information about a factory's environmental performance to local stake holders is an example of:
A) informal regulation.
B) formal regulation.
C) unofficial guidelines.
D) transparency parameters.
To view all questions and flashcards with answers, click on the resource link above. Page 23