Globalization and Development Solved Exam Questions
Course Introduction
This course explores the complex relationship between globalization and development, examining how increasing global interconnectedness influences economic growth, social change, and political dynamics in countries around the world. Students will analyze the impact of international trade, investment, technology transfer, and global governance structures on development outcomes, with particular attention to disparities between and within nations. Through the study of case examples, theoretical frameworks, and policy debates, the course encourages critical reflection on the opportunities and challenges globalization presents for sustainable and equitable development.
Recommended Textbook
Development Economics Theory Empirical Research and Policy Analysis 1st Edition by Julie Schaffner
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608 Verified Questions
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Page 2
Chapter 1: What Is Development Economics Good for
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Sample Questions
Q1) Which is the following statement is true?
A) The objective in development is merely to generate higher income per capita.
B) The objective in development is to make people's lives better.
C) Development can happen over night
D) Income and well-being are exactly same concept
Answer: B
Q2) Development policies can be broken down into three main categories,they are:
A) asset creation policies,safety net policies,and intervention policies
B) asset creation policies,growth policies,and inflation policies
C) growth policies,price control policies,and investment policies
D) safety policies,financial policies,and income growth policies
Answer: A
Q3) Agricultural research to improve corn yield will increase corn farmer's income,which group is most like to be hurt by this research?
A) Consumers who now have to pay higher prices for corn
B) Consumer who now have to pay higher prices for wheat
C) Wheat farmers who now receive a lower price for the same amount of wheat
D) Dairy farmers who feed their cattle a mix of corn and wheat
Answer: C
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Page 3
Chapter 2: Well-Being
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Sample Questions
Q1) What is the normal interest rate charged on a howlats loan?
A) 0%
B) 3.5%
C) 5%
D) 10%
Answer: A
Q2) The magnitude of household's needs can be affected by all of the following except:
A) Households with members that are disabled or sick
B) Cultural norms regarding celebrations and other obligations
C) Income
D) Number of dependants in the household
Answer: C
Q3) By the World Bank definition,with income per capita of $8,890,Mexico is example of ______.
A) Low Income Country
B) Lower Middle Income Country
C) Upper Middle Income Country
D) High Income Country
Answer: C
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Page 4
Chapter 3: Economic Growth
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Sample Questions
Q1) Economic growth is defined as:
A) the rate of increase in an economy's nominal GDP.
B) the rate of increase in an economy's real GDP.
C) the rate of increase in an economy's average income.
D) the rate of increase in an economy's price level.
Answer: C
Q2) Constant returns to scale refers to a situation that when capital and labor both double,
A) output more than doubles
B) output less than doubles
C) output just doubles
D) output does not change
Answer: C
Q3) Economic growth takes place when total income grows ______ the population. A) faster than B) slower than C) at the same speed as D) independently of
Answer: A
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Page 5
Chapter 4: Economic Growth Theory in Historical Perspective
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Sample Questions
Q1) Using the Harrod-Domar growth model,suppose one economy has to maintain a growth rate of GDP of 10 percent per year in order to avoid a decline in the average standard of living.Assume in this economy,the capital-output ratio v is 3 and the depreciation rate d is 5%,what is the required saving rate?
A) 5 percent.
B) 15 percent.
C) 30 percent.
D) 45 percent.
Q2) In the Neoclassical growth model,the steady state equilibrium level of capital per worker is:
A) growing at a constant rate.
B) decreasing
C) constant.
D) we cannot determine it without more information.
Q3) The Neoclassical growth model assumes:
A) diminishing marginal returns.
B) population is constant.
C) endogenous technological improvement.
D) labor is in surplus.
Q4) What is the knife-edge problem in the Harrod-Domar Growth Model?
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Chapter 5: Poverty,Inequality and Vulnerability
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Sample Questions
Q1) When the income of the poorest 20 percent of population grow at the same percentage rate as the incomes of the rich,we can conclude that the poor benefit ________ compared to the non-poor in terms of absolute benefits.
A) more than
B) less than
C) the same as
D) we cannot compare them
Q2) If everyone in an economy had the exactly same level of income,where would the Lorenz curve for this economy locate?
A) 45 degree line.
B) L-shaped curve following the bottom and right sides of the Lorenz curve box.
C) L-shaped curve following the left and top sides of the Lorenz curve box.
D) a curve starts off with a lope lower than 1 then it becomes steeper.
Q3) If we use $10 per day as the global poverty line compared to use $2 per day,the global poverty would be
A) greater.
B) smaller.
C) the same.
D) all of the above are possible.
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Page 7
Chapter 6: Consumption, Time Allocation and Production
Choices
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Sample Questions
Q1) Consumers' preference are described by
A) indifference curves.
B) budget lines.
C) their wealth.
D) price level in the economy.
Q2) Suppose there is a reduction in the price of food while consumers' income and the price of non-food stay the same,which of the following statement is true?
A) spending on food consumption will always increase.
B) budget line will rotate out from the endpoint on the axis of food.
C) budget line will rotate out from the endpoint on the axis of non-food.
D) the slope of the budget line will stay the same.
Q3) The price of home time is ________.
A) not measurable
B) the opportunity cost of time
C) increasing with higher income
D) depends on how many hours the labor supplier works
Q4) Most analysts agree that if prices and wages had held constant,adoption of Green Revolution seed varieties would have increased the quantity of labor demanded in agriculture.Discuss.
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Chapter 7: Houesholds
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Sample Questions
Q1) In the Farm households model,value of the marginal product of labor schedule is
A) the farm household's supply for labor
B) the farm household's demand for labor
C) the marginal cost to the household of an additional day of his time.
D) upward sloping
Q2) Which of the following is true about the wage labor households?
A) Wages are their only income.
B) Wage labor households all live in urban areas.
C) Wage labor households earn wages in high-skill work.
D) Wage labor households function simultaneously as both labor suppliers and consumers.
Q3) If a farm household's net market labor supply is positive,it means ________.
A) some family labor is hired out through labor markets
B) non-family labor is hired in through labor markets
C) all of the family labor is working for other farms
D) this household is a subsistence farm household
Q4) How can rising incomes reduce gender gaps in consumption?
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Page 9
Chapter 8: Domestic Markets for Goods and Services
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Sample Questions
Q1) Private producers will only choose to sell their output when the benefit outweighs the cost.Which of the following could prevent a market from developing?
A) High transportation costs
B) High transfer costs
C) Poor legal system
D) All of the above could prevent a market from developing.
Q2) If a market is in autarky equilibrium,an increase in supply will:
A) Increase local production but leave the local price unchanged
B) Increase local production and the local price
C) Decrease local production and the local price
D) Increase local production and decrease the local price
Q3) The logic of ____________ indicates that new opportunities for exchange between people with diverse production capabilities increase productivity and expand consumption opportunities by allowing people to specialize in the types of production they do relatively well.
A) Proportionate advantage
B) Relative advantage
C) Comparative advantage
D) Absolute advantage
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Page 10
Chapter 9: Labor Markets
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Sample Questions
Q1) Employment in jobs that make poor use of their skills or employ only a fraction of the labor time they are willing to offer is referred to as:
A) Underemployment
B) Unemployment
C) Is not counted as employed or unemployed
D) Is a discouraged worker phenomenon
Q2) In order for economic growth from an investment or innovation to lead to increases in the standards of living for _______,it should cause the _______schedule to rise,causing a ________for labor and an increase in wages.
A) Skilled laborers; demand; increase in demand
B) Unskilled laborers; supply; decrease in supply
C) Unskilled laborers; VMPL; increase in demand
D) Skilled laborers; supply; increase in supply
Q3) Under which conditions can investments and innovations that lead to the same rate of economic growth make it more likely to channel benefits to low-wage workers than others?
Q4) What has empirical research pointed to as the most important determinants of migration decisions? Include four or more conditions that could lead to increased migration.
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Chapter 10: Investment and Financial Markets
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Sample Questions
Q1) Suppose that only three states of the world - bad (b),normal (n)and good (g)- are possible,and suppose that the normal state occurs with probability 0.5,while the bad and good states each occur with probability 0.25.Consider two investment projects for which the returns in the three states are given in What is the expected return for Project 1?
A) 200
B) 150
C) 100
D) 120
Q2) When people invest they are
A) Buying stocks
B) Undertaking costly activities today with the hopes of returns in the future
C) Buying bonds
D) Selling bonds
Q3) What is the net return of an investment?
A) The total benefit from the investment asset
B) The total improvements in the investor's life circumstances from the investment
C) The difference between gross return and the operating and maintenance costs
D) The difference between the gross return and the interest rate
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Chapter 11: International Markets and General Equilibrium
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Sample Questions
Q1) In the specific factors model,because of the diminishing returns to labor,which of the following statement is true?
A) Production possibilities frontier is a straight line.
B) Production possibilities frontier is bowed out from the origin.
C) Production possibilities frontier is bowed in toward the origin.
D) Production possibilities frontier can have any shape.
Q2) What resources is specific in the textile sector in the specific factors model?
A) labor
B) land
C) capital
D) entrepreneurial ability
Q3) The real exchange rate between two currencies measures:
A) the relative price levels in these two countries.
B) how many units of one currency can be exchanged for one unit of the other currency.
C) how many units of representative baskets of goods and services in one country can be exchanged for one unit of the representative baskets of goods and services in the other country.
D) how much appreciation of one currency against the other currency.
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13
Chapter 12: Institutions and Cooperation
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Sample Questions
Q1) When people harvest fish,wood or water from sources held in common,they enjoy the full benefit of what they harvest ________,much of which falls on others as harvesting becomes more difficult or conflict breaks out.
A) and bear the full cost
B) and bear most of the cost
C) and bear only a fraction of the cost
D) and bear none of the cost
Q2) A situation in which each player has chosen a strategy that is the best possible response to the strategies chosen by other players is called:
A) strategic equilibrium
B) steady state equilibrium
C) competitive equilibrium
D) Nash equilibrium
Q3) According to,what is the Nash equilibrium of this game?
A) Both players remain silent
B) Both players confess
C) There is no equilibrium in this game
D) There isn't enough information to solve this game
Q4) What is the important lesson that the prisoners' dilemma game show us?
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Chapter 13: Policy Governance and Political Economy
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Sample Questions
Q1) Positive externalities imply _________by others,that private actors cannot appropriate,and result in a tendency for private actors to undertake _______ of the activity.
A) Costs experienced; too much
B) Benefits enjoyed; too much
C) Benefits enjoyed; too little
D) Costs experienced; too little
Q2) According to figure 13.2 if the market is unregulated:
A) The private decision-maker only considers his marginal private benefit and the quantity consumed will be QP
B) The private decision-maker only considers his marginal private benefit and the quantity consumed will be Qs
C) The social decision-maker considers the marginal social benefit and the quantity consumed will be QP
D) The private decision-maker considers his marginal social benefit and the quantity consumed will be QP
Q3) How can agents be held accountable for their choices and under what conditions will various schemes work to ensure feasible accountability?
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Chapter 14: Policy Analysis
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Sample Questions
Q1) Which of the following effects from a policy would be considered a spillover effect?
A) After a famer adopts a new technology food supply increases,which lowers the price he charges for selling his crop
B) A farmer adopts a new technology and enjoys better profits
C) Any effect on the well-being of groups other than the directly affected
D) All of the above are spillover effects
Q2) The budgetary cost of a policy includes_________.
A) The currency value of any resources used in policy implementation
B) The currency value of any resources used in policy implementation,less any fees or taxes collected
C) The social costs from a policy
D) Spillover and feedback effects
Q3) A policy's objectives include_________.
A) Setting the target group
B) Social costs
C) Typically involves improving the well-being for society as w whole
D) Spillover and feedback effects
Q4) What are the fundamental objectives in policy analysis?
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Page 16
Chapter 15: Targeted Transfer Programs
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Sample Questions
Q1) Some programs employ proxy means tests which:
A) Are less restrictive than a categorical restriction
B) Are more restrictive than means testing
C) Employ short questionnaires often called "poverty score cards"
D) Uses easy to observe characteristics such as having at least one child
Q2) Eligibility rules can include all of the following except:
A) Means testing
B) Proxy means tests
C) Poverty score cards
D) Target lifestyles
Q3) Why is a food transfer unlikely to increase food consumption by the full amount of the transfer?
A) If there is a food shortage a cash transfer may do a better job increasing consumption
B) The food transfers reduce leakages to the non-poor
C) Some of the free food can substitute for food the recipient would have purchased,and can now be used to increase spending on other goods.
D) All of the above are reasons why a food transfer may not increase food consumption by as much as intended
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Page 17
Chapter 16: Workfare
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Sample Questions
Q1) According to figure 16.1 which person faces a higher wage in her alternative activities?
A) Jane
B) Mary
C) Neither the wages are the same
D) There is not enough information to tell who earns a higher wage for alternative activities
Q2) All of the following are reasons why a household would choose to participate in a workfare program except:
A) If they already have a job as a high skilled worker at a less than competitive wage
B) If they are aware of the program
C) If they believe the benefits outweigh the costs
D) If they are deemed eligible
Q3) Why do emergency employment programs get criticized for creating infrastructure of low quality or duration?
Q4) Under what conditions can workforce programs reduce vulnerability for workers?
Q5) Discuss the cost and benefits or raising a program wage.
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Page 18
Chapter 17: Agricultural Market Interactions and Reforms
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Sample Questions
Q1) Developing countries tend to ________ agriculture,while developed countries tend to _______ agriculture,keeping prices down and ____________ export profits of developing countries.
A) Tax; subsidize; limiting
B) Subsidize; subsidize; limiting
C) Tax; tax; encouraging
D) Subsidize; tax; limiting
Q2) How can an increase in the price of a good introduce intra-household effects?
Q3) The sizes of an export tax's impacts on production,consumption,exports and the government budget depend on what primarily?
A) The autarky price
B) Elasticities of the local supply and demand schedules
C) The world price
D) Whether there is a world shortage or surplus for that crop
Q4) Which of the following spillover effects from a price increase would be a negative?
A) Increased wages reduce profits
B) If aggregate income rises then demand for all other normal goods increase
C) Increase in demand for complimentary non-labor tools
D) Decreased wages increase profits
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Chapter 18: Infrastructure Policies and Programs
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Sample Questions
Q1) All of the following affects a household's decision to put a particular infrastructure service to use and how much of the service to use except.
A) The price of the service
B) The degree of appreciation of the benefits of that service
C) The positive externalities that spill over to third parties
D) The nature of complimentary policies
Q2) Why would giving ownership of an infrastructure investment community make sense?
A) It guarantees a source of funding for maintenance
B) The local community will have access to more technical information
C) It gives the community the incentive to maintain the infrastructure
D) It does not make sense to turn over control of maintenance and operations to local communities
Q3) All of the following have been discussed as potential rationales for intervention except:
A) Public goods problems
B) Liquidity constraints
C) externalities
D) Economies of scale problems
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Page 20
Chapter 19: Education
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Sample Questions
Q1) Policymakers influence some implementation outcomes indirectly through school management choices including all of the following except?
A) Decisions regarding the numbers of teachers needed in each school
B) Textbook choices
C) Hiring,firing,promotion and management of teachers
D) Decisions regarding school fees
Q2) Which of the following is not a Proximate Goal?
A) Increasing the number of children who start school
B) Improve the lives of current students when they become adults
C) Increase the number of years children complete before leaving school
D) Increase the value of children learn while in school
Q3) When does the efficiency of with which educational services are implemented increase?
A) When tuition rises
B) When the cost of providing a given set of educational opportunities falls
C) When the indirect costs of educational services are maximized
D) When subsidies to the school decrease
Q4) How have many low and middle income countries have achieved nearly universal primary enrollment according to the gross enrollment rates (GERs)presented in the text?
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Chapter 20: Agricultural Research and Extension
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Sample Questions
Q1) Which of the following would not be classified as an extension agent?
A) Farmers,when they share knowledge about technologies with their neighbors
B) Any actor who in forms farmers about the use of new technologies
C) Agricultural researcher in a developed country
D) All of the above could be considered an extension agent
Q2) When do agricultural research and extension agents actually introduce change into economic systems?
A) When the up-front cost of the new technologies outweighs the perceived benefits
B) When farmers adopt the new technologies
C) When farmers are introduced to new farming technologies
D) When the government introduces new technologies to the population
Q3) Which three groups are crucial to putting technical change in agriculture into practice?
A) Managers,laborers,and farmers
B) Agricultural researchers,extension agents,and end users
C) Farmers,bankers,and government bureaucrats
D) Managers of agricultural research institutions,large corporations,and small businesses
Q4) What are some rationales for government intervention in agricultural research?
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Chapter 21: Microfinance
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Sample Questions
Q1) As interest rates increase the cost of borrowing_____,profit for microenterpirses_____ and participation in microfinance programs__________?
A) increases; increases; increases
B) increases; decreases; decreases
C) decreases; decreases; increases
D) increases; stays the same; decreases
Q2) Why might a government intervene in a fully sustainable MFI?
A) Being profitable doesn't guarantee the credit services are being supplied in a socially optimum way
B) To save scarce resources for other purposes
C) To add competition to existing commercial banks
D) To avoid bankruptcy
Q3) Microfinance programs were first created by Nobel prize winning economist Muhamed Yunus in what decade?
A) 1950's
B) 1960's
C) 1970's
D) 1990's
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23
Chapter 22: Public Health, Health Care and Health Insurance
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Sample Questions
Q1) Health care is provided efficiently when a given array of services is provided ____________,and when providers expend any effort or resources on a patient's care for which the likely social benefits _______ the social costs.
A) At the lowest cost per person; equal B) To the most people; equal C) Using the fewest resources; outweigh D) At the lowest cost; outweigh
Q2) The traditional response of Governments and NGOs to apparent failures of the health care system was in a ________________fashion,setting up a government hospital or clinic to provide care ________.
A) Supply side; indirectly
B) Supply side; directly
C) Demand side; indirectly
D) Demand side; directly
Q3) How is the DALYs lost to a disease in a given year calculated?
Q4) Within developing countries,why is ill health is a greater burden for the poor than the non-poor?
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