Course Introduction
Development Economics
Textbook Exam Questions
Development Economics explores the economic aspects of the development process in low- and middle-income countries, examining the causes of poverty, inequality, and underdevelopment. The course addresses topics such as economic growth, structural change, human capital, institutions, and the role of governments and international organizations in fostering development. Students analyze models and empirical studies illustrating the challenges and opportunities faced by developing nations, including issues related to health, education, agriculture, finance, and globalization. Through case studies and policy discussions, the course equips students with a comprehensive understanding of strategies aimed at promoting sustainable and inclusive economic development worldwide.
Recommended Textbook
International Economics 6th Edition by James Gerber
Available Study Resources on Quizplus 17 Chapters
830 Verified Questions
830 Flashcards
Source URL: https://quizplus.com/study-set/1295
Page 2
Chapter 1: The United States in a Global Economy
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/25715
Sample Questions
Q1) The trade-to-GDP ratio is calculated by
A)exports divided by GDP.
B)imports divided by GDP.
C)exports plus imports divided by GDP.
D)exports minus imports divided by GDP.
E)exports divided by imports.
Answer: C
Q2) How has the composition of trade flows changed from the early twentieth century to today? Compared to the past,is anything about trade today new?
Answer: Prior to World War I,most trade consisted of agricultural commodities and raw materials,while today trade is primarily manufactured consumer goods and capital goods.Given recent advances in telecommunications,services now can be outsourced and service industries face growing international competition.
Q3) Which nations does the acronym BRIC stand for?
Answer: Brazil,Russia,India and China
Q4) Most of what we buy and sell never makes it out of domestic markets.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: International Economic Institutions Since World War
Ii
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/25716
Sample Questions
Q1) Which of the following is TRUE?
A)A common market is more deeply integrated than a customs union.
B)The European Union is a shallower and broader form of integration than NAFTA.
C)NAFTA is an example of a customs union.
D)Customs unions require the creation of a common currency.
Answer: A
Q2) One of the strongest motivations for holding the Bretton Woods Conference was to design new international institutions that would
A)contain communism.
B)help countries avoid the mistakes of the 1920s and 1930s.
C)provide a collective defense security for Western Europe and North America.
D)ensure that world prices were not rising too rapidly.
E)create a single currency in Western Europe.
Answer: B
Q3) Trade policies in which industries have been the most contentious in the Doha Round?
Answer: Agriculture and services
Q4) Which round of GATT led to the formation of the WTO?
Answer: The Uruguay Round
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Comparative Advantage and the Gains From Trade
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/25717
Sample Questions
Q1) Given that Sandy can produce 10 economics reports or 2 sales calls and Tim can produce 2 economics reports or 1 sales call,which of the following would NOT be a mutually agreeable terms of trade for Sandy and Tim?
A)1 economics report for 1 sales call
B)1 sales call for 3 economics reports
C)1 sales call for 4 economics reports
D)1 economics report for 1/4 of a sales call
Answer: A
Q2) The nation as a whole is better off from trade as long as the gains from the winners exceed the losses from the losers.
A)True
B)False
Answer: True
Q3) A country is likely to be better off in the long run if it pursues self sufficiency.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Comparative Advantage and Factor
Endowments
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/25718
Sample Questions
Q1) Forces inside a nation that cause people to think about leaving that nation are called what in migration theory?
Q2) The Stolper-Samuelson Theorem predicts
A)the level of productivity in export industries.
B)which factors are abundant.
C)the income distribution effects of trade.
D)which goods will be exported.
E)the importance of intraindustry trade.
Q3) Offshoring by domestic firms causes job losses not job expansion in the home market.
A)True B)False
Q4) What is the source of comparative advantage in the Heckscher-Ohlin model?
Q5) Describe the product cycle,including addressing the various inputs that are required over time and the resulting production location decisions.
Q6) OLI theory is a direct contradiction of trade theory,especially trade theory based on comparative advantage.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Beyond Comparative Advantage
Available Study Resources on Quizplus for this Chatper
43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/25719
Sample Questions
Q1) Describe how Mexico's development strategy changed from the 1950s to today and how that changed the production location decisions of firms.
Q2) If the United States and Canada trade hydro-powered electricity for Hollywood films,what type of trade does this represent?
Q3) Which of the following is NOT a likely result of intraindustry trade based on internal economies of scale?
A)Job creation at domestic firms entering international trade
B)Lower prices for the domestic consumers of the product now being traded
C)Increased sales and lower per unit costs for the firm doing the exporting
D)Higher prices for the exported product
Q4) Intraindustry trade relies on
A)economies of scale.
B)the product cycle.
C)differences in factor endowments.
D)government industrial policies.
E)monopoly pricing.
Q5) The United States does not use subsidies as part of its policies.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: The Theory of Tariffs and Quotas
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/25720
Sample Questions
Q1) Nominal rates of protection
A)are always greater than effective rates of protection.
B)are always smaller than effective rates of protection.
C)refer to the tariffs placed on intermediate goods used to make the final good or service.
D)cannot be negative.
Q2) Which of the following would be a deadweight loss from a tariff?
A)The shift of consumer surplus to government
B)The increase in producer surplus
C)The decrease in consumer surplus
D)The decrease in consumer surplus due to a drop in consumption
E)All of the above.
Q3) Large countries can improve their welfare by levying a tariff only if it does not
A)encourage rent seeking elsewhere in the economy.
B)discourage innovation.
C)lead to retaliation by the nation's trading partners.
D)All of the above.
E)None of the above.
Q4) What is the name of the agreement related to intellectual property rights?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Commercial Policy
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/25721
Sample Questions
Q1) One reason why consumers are unlikely to be too upset about tariffs is because
A)most consumers benefit from protection.
B)tariffs are an inexpensive way to create jobs.
C)consumer losses are not real losses.
D)the costs are so spread out that no one pays a big share of the total.
E)the gains of producers are larger.
Q2) A major difficulty with the infant industry argument for protection is that
A)government revenue will fall with a tariff.
B)it requires the nation to fall into the large country case for tariff protection.
C)effective rates of protection are usually greater than nominal rates.
D)the measurement of production externalities is hard and uncertain.
E)the productivity of infant industries is usually declining.
Q3) Critique the infant industry or the labor argument for protection.
Q4) The WTO's Doha Development Agenda is only considering market access issues in agriculture,such as tariffs and quotas,because export subsidies and production subsidies are considered less harmful and have not been part of the GATT or WTO agenda.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: International Trade and Labor and Environmental Standards
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/25722
Sample Questions
Q1) Which of the following is NOT an obstacle to increased international economic integration?
A)Monopoly powers given to domestic companies of individual nations
B)High tariff rates imposed by industrialized nations
C)Health and safety standard requirements
D)Labor and environmental standard requirements
E)Income disparities among and within trading partners
Q2) While Africa has the largest numbers of working children,Asia has the highest proportion of working children,with an estimated one in four employed.
A)True
B)False
Q3) In what industrial sector are children most likely to be working?
Q4) What are two main obstacles to increased international integration?
Q5) Low labor standards are usually associated with
A)nondemocratic governments.
B)high-income countries.
C)high-wage countries.
D)low foreign investment.
Q7) Which region has the most children (total number)working? Page 10
Q6) Which region has the highest proportion of its children working?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Trade and the Balance of Payments
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/25723
Sample Questions
Q1) Based on Table 9.1,the statistical discrepancy is A)+100. B)+200. C)0) D)-100. E)-200.
Q2) Based on Table 9.3,the capital account balance is equal to A)+25. B)-25. C)-125. D)+125. E)-225.
Q3) The United States international investment position is negative. A)True B)False
Q4) Looking at the financial account data,it is possible to determine the total amount of official reserves available to a nation. A)True B)False
Q5) How do recent current account deficits compare to GNP and to past ratios?
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Exchange Rates and Exchange Rate Systems
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/25724
Sample Questions
Q1) Covered interest arbitrage involves both
A)the purchase of a foreign asset and a forward contract in the market for foreign exchange.
B)the purchase of a domestic asset and a spot contract in the market for foreign exchange.
C)the sale of a foreign asset and the purchase of a forward contract in the market for foreign exchange.
D)the sale of domestic stocks and the purchase of foreign bonds.
E)None of the above.
Q2) Suppose that the nominal exchange rate between the U.S.dollar and the Mexican peso is 0.10 dollars per peso.If Mexico's inflation is 10 percent and the United States' inflation is 0 percent,from the U.S.point of view,the real exchange rate
A)appreciates to 0.11 dollars per peso.
B)depreciates to 0.11 dollars per peso.
C)appreciates to 0.09 dollars per peso.
D)depreciates to 0.09 dollars per peso.
E)appreciates to 0.2 dollars per peso.
Q3) The most important participants in foreign exchange markets are ________.
Q4) What is the largest center for currency trading?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: An Introduction to Open Economy
Macroeconomics
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/25725
Sample Questions
Q1) If a component of aggregate demand increases,
A)GDP in the United States is likely to increase less than that component of spending increased.
B)GDP in the United States is likely to increase more than that component of spending increased.
C)GDP in the United States is likely to decrease.
D)GDP in the United States will not change.
Q2) The J-curve effect of a currency depreciation results is due to
A)the initial effect having positive effects on the current account balance.
B)the value of imports increasing by more than the value of exports at the time of devaluation.
C)exports and imports being totally unresponsive to changes in exchange rates.
D)decreases in the dollar price of imports.
E)None of the above.
Q3) Which nations make up the G8?
Q4) Economic growth would be illustrated by
A)a rightward shift of aggregate demand.
B)a leftward shift of aggregate demand.
C)a rightward shift of aggregate supply.
D)a leftward shift of aggregate supply.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: International Financial Crises
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/25726
Sample Questions
Q1) Which one of the following countries refused to accept the IMF conditions during the East Asian financial crisis?
A)South Korea
B)Indonesia
C)Malaysia
D)Thailand
E)Singapore
Q2) If the banking sector borrows internationally and lends locally,how does this intensify a financial crisis?
Q3) It is normal and typical in a debt crisis for debtors to completely repudiate all their debts.
A)True
B)False
Q4) The international institution that serves as a lender of last resort is called the A)IBRD.
B)WTO.
C)IMF.
D)World Bank.
E)GATT.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: The United States in the World Economy
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/25727
Sample Questions
Q1) Twenty-four years before CUSTA,another agreement between the same countries covered trade in
A)textiles.
B)steel.
C)autos.
D)agriculture.
E)telecommunications.
Q2) Why are trade agreements between the U.S.and Mexico more controversial than trade agreements between the U.S.and Canada?
Q3) Why is the U.S.putting less emphasis on multilateral and more emphasis on bilateral trade agreements?
Q4) One problem with NAFTA that is not shared by other trade blocs is that
A)national environmental laws differ greatly.
B)the countries are at very different stages of economic development.
C)the countries speak different languages.
D)the countries are not natural trading partners.
E)the United States and Mexico have a history of conflict.
Q5) When did NAFTA go into effect?
Q6) What is the main problem with rules of origin?
Q7) What two trends was Canada trying to address in negotiating CUSTA?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/25728
Sample Questions
Q1) After implementation of the Single European Act,value added taxes in the EU were
A)completely harmonized.
B)unchanged.
C)partially harmonized with minimum and maximum permissible values set by the EU.
D)eliminated except on a few items in each country.
E)cut in half in order to increase the role of corporate taxes.
Q2) As Europe explored monetary union,evidence to date suggests that increased variability in exchange rates
A)reduces foreign trade and investment.
B)increases foreign trade and investment.
C)does not seem to have an impact on foreign trade and investment.
D)hurts foreign investment but not trade.
E)hurts foreign trade but not investment.
Q3) The primary legislative branch of the European Union is called the
A)European Commission.
B)European Parliament.
C)European Court of Justice.
D)European Council of Ministers.
E)Council of the European Union.
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 15: Trade and Policy Reform in Latin America
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/25729
Sample Questions
Q1) The difference between an orthodox stabilization plan and a heterodox stabilization plan is that the orthodox plan
A)targets the problem of inflation,while the heterodox plan targets unemployment.
B)reduces trade flows less than the heterodox plan.
C)does not include higher taxes and the heterodox plan does.
D)does not include wage and price controls and the heterodox plan does.
E)eliminates budget deficits,while the heterodox plan only reduces them.
Q2) At the end of the populist cycle,workers are better off than they were before the populist cycle began in terms of real wages and job creation.
A)True
B)False
Q3) Which of the following is NOT a characteristic of populist regimes?
A)Nationalistic ideologies
B)Focus on economic growth
C)Focus on income redistribution
D)Using economic tools to reach specific goals regarding labor,the orientation of business or the role of foreigners
E)Focus on controlling inflation
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 16: Export-Oriented Growth in East Asia
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/25730
Sample Questions
Q1) The voices of business and industry are less likely to influence government policy than the voices of consumers in the HPAE.
A)True
B)False
Q2) Deliberation councils have no private sector input.
A)True
B)False
Q3) The experience of the HPAEs has brought attention to predictions about income inequality made by Kuznets.He predicted that at first income inequality would ________ as economies began to develop.In the HPAEs experience it ________.
A)rise;rose
B)decrease;decreased
C)rise;fell
D)fall;rose
E)There was no pattern.
Q4) Each of the HPAE promoted manufactured exports.
A)True
B)False
Q5) Which factors account for most of the growth in the HPAEs?
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 17: The Bric Countries in the World Economy
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/25731
Sample Questions
Q1) Which of the following is FALSE? All the BRICs
A)rank among the world's top 10 in population.
B)have been transformed by reforms.
C)have become more isolated and focused on domestic issues.
D)are among the world's top 11 economies.
E)have yet to fully realize their economic potential.
Q2) Direct foreign investment has been most critical for China's domestic consumer market.
A)True
B)False
Q3) Analysts that favor a fast transition to market economies argue that China's success with a gradual transition is a special case because
A)its trade flows were relatively large.
B)so much of its labor force was in agriculture.
C)heavy industry already had a strong foothold when the transition began.
D)its coastal areas were already relatively well developed.
E)its labor force was relatively well educated.
Q4) China has few state-owned enterprises left in its economy.
A)True
B)False
Page 20
To view all questions and flashcards with answers, click on the resource link above.