Development Policy and Planning Exam Review
Course Introduction
Development Policy and Planning explores the fundamental theories, frameworks, and tools necessary for formulating and implementing effective development strategies in various socioeconomic contexts. The course examines how policy decisions influence development processes, addressing critical issues such as poverty reduction, sustainable growth, social equity, and resource management. Students are introduced to the roles of governmental and non-governmental actors, the interplay between global and local forces, and methods for participatory planning. Through case studies and practical exercises, learners gain skills in designing, analyzing, and evaluating policies, as well as understanding the challenges and impacts of development initiatives in both emerging and developed economies.
Recommended Textbook
Economics of Development Seventh Edition by Dwight H. Perkins
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20 Chapters
548 Verified Questions
548 Flashcards
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Page 2
Chapter 1: Patterns of Development
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25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/36754
Sample Questions
Q1) Viktor and Yulia's country comes from which of the following groups of countries?
A) South
B) sub-Saharan Africa
C) transitional
D) third world
Answer: C
Q2) The primary economic activities for three-quarters of Ethiopians are:
A) tending livestock and building computer chips.
B) growing crops and tending livestock.
C) telemarketing and trade.
D) none of the above.
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
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Page 3
Chapter 2: Measuring Economic Growth and Development
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) In order to effectively compare levels of GDP per capita across countries,it is necessary to convert GDP per capita into a:
A) common currency.
B) series of stocks and bonds.
C) time-line series illustrating business cycles.
D) GNP per capita.
Answer: A
Q2) Since the year 2000,economic performance in sub-Saharan Africa has improved; this can be attributed to all of the following reasons EXCEPT for:
A) improved economic policies and management.
B) more democratic and accountable governments.
C) a return to state-directed economic policies.
D) new technologies.
Answer: C
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Chapter 3: Economic Growth: Concepts and Patterns
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26 Verified Questions
26 Flashcards
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Sample Questions
Q1) Which of the following is NOT much of a problem in Botswana?
A) unemployment
B) HIV/AIDS
C) inequality
D) corruption
Answer: D
Q2) Countries with slow growth include all of the following EXCEPT:
A) Madagascar.
B) Nigeria.
C) Kenya.
D) Venezuela.
Answer: A
Q3) The empirical relationship between trade and growth is:
A) strong.
B) weak.
C) strong for natural resource-based exports only.
D) nonexistent.
Answer: A
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Page 5
Chapter 4: Theories of Economic Growth
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31 Verified Questions
31 Flashcards
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Sample Questions
Q1) In the Solow model,an increase in the population growth rate leads to:
A) capital deepening.
B) dynamic economic growth and development.
C) the fulfillment of the Malthusian hypothesis.
D) lower average income per worker.
Q2) Savings,investment
Q3) Solow model,isoquants
Q4) Human capital,effective units of labor
Q5) The capital-output ratio provides an indication of the: A) limits of growth.
B) capital intensity of the production process.
C) a country's production function.
D) the health and educational level of the population.
Q6) Incremental capital-output ratio (ICOR),neoclassical production function
Q7) 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.
Q8) Level of output,rate of change
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Chapter 5: States and Markets
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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) Pareto optimality,aid to the poor
Q2) East Asia's "four tigers" (Korea,Singapore,Hong Kong,and Taiwan)all achieved rapid industrial growth by:
A) eliminating virtually all government interventions.
B) heavily subsidizing exports, while prohibiting competing imports.
C) imposing effective central planning.
D) fostering a development strategy based on export of manufactures.
Q3) South Korea,Taiwan
Q4) Washington Consensus,post-Washington Consensus
Q5) 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.
Q6) Hard governments,soft governments
Q7) Big push,backward linkages
Page 7
Q8) Dual price system,unified market-price system
Q9) Shock therapy,gradualist approach
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Page 8
Chapter 6: Inequality and Poverty
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24 Verified Questions
24 Flashcards
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Sample Questions
Q1) 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.
Q2) According to W.Arthur Lewis's surplus labor model,inequality is not just a necessary effect of economic growth; it is
A) the cause of human suffering and exploitation.
B) a cause of growth.
C) an unintended consequence of modern developmental economics.
D) the leading cause of falling wages.
Q3) Kuznets,Lewis
Q4) A small subsidy to the poorest of the poor will leave which of the following unchanged?
A) headcount index
B) poverty gap
C) income distribution
D) none of the above
Q5) $1.00 a day,$1.25 a day
Page 9
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Chapter 7: Population
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26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/36760
Sample Questions
Q1) Which of the following is NOT considered a "school of thought" on population and development?
A) population optimism
B) population revisionism
C) population pessimism
D) population reactionism
Q2) Rate of natural increase,decline in fertility
Q3) Gary Becker's pioneering work was actually directed at:
A) understanding the impact of HIV/AIDS on Africa.
B) understanding the impact of the cold war on population momentum.
C) understanding declining fertility levels in the United States and other high-income economies.
D) understanding the impact of religious beliefs on population growth.
Q4) World population will continue to grow over the next 50 years for all of the following reasons EXCEPT:
A) the desire for large families.
B) the failure to achieve desired amount of children.
C) population momentum.
D) total fertility rates in all countries will remain above their replacement levels.
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Chapter 8: Education
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25 Verified Questions
25 Flashcards
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Sample Questions
Q1) Gender gap,gender parity
Q2) High unemployment rates among school leavers,including graduates of universities,often reflect failures in promoting economic growth rather than failure in schools-this is especially true in nations such as:
A) Argentina and Egypt.
B) Costa Rica and China.
C) India and Korea.
D) Brazil and Singapore.
Q3) In the past 50 years,what has happened to the gender gap in education?
A) It has been declining.
B) It has been rising.
C) It has stayed the same.
D) It has had a mixed response, first declining, then rising.
Q4) The social return to educating women may exceed that of educating men for all of the following reasons EXCEPT:
A) educating women reduces child mortality.
B) educating women reduces fertility.
C) educating women reduces the spread of HIV/AIDS.
D) educating women leads them to earn a higher income than men.
Q5) Uniforms,students
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Chapter 9: Health
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31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/36762
Sample Questions
Q1) The World Health Organization (WHO)defines health as:
A) the absence of illness or disability that prevents one from engaging in normal functions.
B) a condition of physical well-being, consistent with the standards of one's national culture.
C) a state of complete physical, mental, and social well-being.
D) the absence of a serious need for medical attention.
Q2) As societies age and health improves,the pattern of disease and causes of death also shift in a generally predictable pattern; this shift in disease pattern is known as the:
A) epidemiologic transition.
B) survival deficit.
C) diminishing returns to health.
D) Hippocratic paradox.
Q3) HIV/AIDS,antiretroviral drugs (ARVs)
Q4) Health statistics on morbidity refer to the:
A) incidence of mental-health problems.
B) incidence of disease and illness.
C) fraction of deaths caused by preventable disease.
D) incidence of unnatural death due to accidents, crime, and war.
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Chapter 10: Investment and Savings
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/36763
Sample Questions
Q1) The majority of direct foreign investment in developing countries comes:
A) equally from the private and public sectors.
B) predominantly from the public sector.
C) predominantly from the private sector.
D) from multinational corporations.
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) A positive relationship between FDI and growth can be seen when FDI is aimed at:
A) manufactured projects for the domestic sector.
B) natural resource-based industries.
C) manufactured projects for export.
D) all of the above.
Q4) Cost-benefit analysis,net cash flow
Q5) Positive spillover,negative spillover
Q6) Dependent population,working population
Q7) Net present value,internal rate of return (IRR)
Q8) Public investment,externality
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Chapter 11: Fiscal Policy
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27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/36764
Sample Questions
Q1) A neutral tax system is one that:
A) generates no excess burden.
B) affects government savings and private sector investment decisions equally.
C) balances the government budget.
D) relies, as far as possible, on uniform tax rates.
Q2) Development expenditures,recurrent expenditures
Q3) Personal tax,corporate tax
Q4) 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.
Q5) Developing country governments are more likely to focus on measures to increase investment for:
A) profiteering and graft.
B) health and education.
C) overall growth.
D) enhancing their ability to get more loans from the World Bank.
Q6) Fiscal policy,monetary policy
Q7) Neutral tax,efficient tax system
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Chapter 12: Financial Development and Inflation
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/36765
Sample Questions
Q1) Economic collapse,runaway inflation
Q2) According to the box study "Does Micro Credit Reduce Poverty?," what was the effect of opening micro credit branches in randomly selected slum neighborhoods as compared to slums without these additional branches?
A) Slums with access to more mirco credit experienced a reduction in poverty within 18 months.
B) Slums with access to Spandana loans opened 1.7% more businesses than those without access.
C) There was a significant increase in total consumption expenditures between treatment and control areas.
D) Spandana branches had an influx of borrowers, averaging a total of 70 percent of households taking out loans.
Q3) What is achieved by having an upward adjustment in reserve requirements?
A) The money multiplier is increased, lowering inflation.
B) It reduces the stock of money that can be supported by a given amount of reserves.
C) The money multiplier is decreased.
D) Both b and c, which may help moderate inflation.
Q4) Inflation tax,negative real rates
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Page 15
Chapter 13: Foreign Debt and Financial Crises
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) Foreign borrowing is consistent with development when:
A) the additional investment and imports are put to productive use.
B) it increases total imports.
C) it increases total savings.
D) a country can afford the debt service payments.
Q2) The argument for providing debt relief for the poorest countries relies on the idea:
A) of debt overhang.
B) that creditor governments and institutions are to blame.
C) that much was lent to poorly governed regimes.
D) all of the above.
Q3) Moral hazard,standstill
Q4) Rational panics,bank runs
Q5) From a national perspective,borrowing permits a country to invest more than it can save and:
A) import more than it can export.
B) engage in the pattern of "infant industry" development.
C) export more than it imports.
D) acquire more prestige in international bond markets.
Q6) Default,debt restructuring
Page 16
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Chapter 14: Foreign Aid
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25 Verified Questions
25 Flashcards
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Sample Questions
Q1) Aid falls to about 50 percent of its peak level after:
A) 6 years.
B) 12 years.
C) 18 years.
D) 24 years.
Q2) In terms of total amount,which country gives the most aid?
A) United States
B) Japan
C) United Kingdom
D) Norway
Q3) 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.
Q4) Aid,growth
Q5) Bilateral assistance,multilateral assistance
Q6) Flypaper effect,government spending
Q7) Foreign aid,nonconcessional assistance
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Q8) Official development assistance (ODA),Development Assistance Committee (DAC)
Chapter 15: Managing Short-Run Crises in an Open Economy
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Official exchange rate,devaluation
Q2) Starting from an equilibrium in both markets,an increase in absorption will cause:
A) the supply curve to shift to the left for both tradables (T) and nontradables (N).
B) the demand curve to shift to the right for both T and N.
C) the demand curve to shift to the right for N and to the left for T.
D) no shift in the curves, but the economy moves to a position of inflation and external surplus.
Q3) The domestic price of a tradable good is determined by which equation?
A) Pt = e/P*t
B) Pt = P*t/e
C) Pt = eP*t
D) Pt = e -P*t
Q4) Internal balance,external balance
Q5) Fiscal policy,austerity
Q6) Phase diagram,self-correcting tendencies
Q7) Nontradable goods,absorption
Page 18
Q8) International Monetary Fund,balance of trade
Q9) Exchange-rate anchor,monetary policy
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Page 19
Chapter 16: Agriculture and Development
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25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/36769
Sample Questions
Q1) Marginal product of labor,average product
Q2) Stability linkage operates primarily at the:
A) microeconomic level.
B) daily exchange rate.
C) macroeconomic level.
D) poorest areas in a society.
Q3) All of the following are key characteristics of the agricultural production function EXCEPT:
A) seasonality.
B) geographic dispersion.
C) sources of technical change.
D) diminishing returns to labor.
Q4) Agricultural productivity,technical change
Q5) Labor surplus model,neoclassical model
Q6) The neoclassical model argues that there must be a balance between:
A) imports and exports.
B) industry and agriculture.
C) tariffs and quotas.
D) the pace of modernization and respect for tradition.
Q7) Subsistence-oriented farmers,market-oriented farmers
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Chapter 17: Agricultural Development: Technology, policies, and Institutions
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31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/36770
Sample Questions
Q1) Supply response,nonprice constraints
Q2) International Maize and Wheat Improvement Center (CIMMYT),International Rice Research Institute (IRRI)
Q3) Common property resources,land tilting
Q4) 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.
Q5) Intercropping,optimal crop mix
Q6) Actual performance,potential performance
Q7) Which economist compared the actual performance of agricultural producers with their potential performance?
A) Arthur Mosher
B) Angus Deaton
C) Esther Duflo
D) Simon Kuznets
Q8) Pastoral nomadism,settled agriculture Page 21
Q9) Overvalued exchange rates,ceilings on interest rates
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Page 22
Chapter 18: Trade and Development
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31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/36771
Sample Questions
Q1) Which of the following refers to the accumulation of foreign assets,usually financed by primary product export earnings?
A) offshore bank account
B) foreign investment
C) sovereign wealth fund
D) international hedge fund
Q2) Tradable goods,nontradable goods
Q3) Adam Smith's term for the situation in which a country has the capacity to produce more than it can sell in the domestic market is known as:
A) safety stock.
B) leftover goods.
C) capacity maximization.
D) vent for surplus.
Q4) Which of the following is the price at which anyone holding foreign exchange can convert it into local currency?
A) real exchange rate
B) nominal exchange rate
C) foreign exchange rate
D) national exchange rate
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Chapter 19: Trade Policy
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25 Verified Questions
25 Flashcards
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Sample Questions
Q1) What credit-market policy did the Korean government use to promote exports in its transition toward a rapidly industrializing nation?
A) The government liberalized financial markets and let market forces allocate credit.
B) The government set high interest rates on loans to exporters to screen out low-productivity investments.
C) The government cut off credit to exporters to make them compete for loans overseas.
D) The government used low-interest-rate loans as a form of indirect subsidy to exporters.
Q2) Trade liberalization,benefits of exporting
Q3) 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
Q4) Import quota,deadweight loss
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Chapter 20: Sustainable Development
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25 Verified Questions
25 Flashcards
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Sample Questions
Q1) The socially optimal outcome is achieved when the owner of property rights is a(n)________ and sells output in a competitive market.
A) experienced manager
B) profit-maximizer
C) skilled land owner
D) wealthy investor
Q2) Present value,optimal target
Q3) Pollution,greenhouse gases
Q4) Common-pool resources,nonrenewable resource
Q5) Payments for environmental services (PES)programs,marketable permits
Q6) Pollution,rich countries
Q7) Natural capital,intangible capital
Q8) Which organization declared the requirement that consumption by today's generation must be accompanied by sufficient conservation of resources to protect the future generation's ability to consume as well?
A) Brundtland Commission
B) The Club of Rome
C) Millennium Project
D) The Earth Institute
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