Question 1

Bangladesh has had success with:

Accepted Answer

A)   clustering the textile industry.
B)   clustering the fishing industry.
C)   supporting export-led growth policy.
D)   supporting import substitution policy.E) A) and D)
F) B) and D)

Question 2

National health care programs are not as effective as they could be because:

Accepted Answer

A)   health care providers tend to have a low absentee rate.
B)   public health care clinics often run out of important drugs.
C)   doctors rarely diagnose below their knowledge frontier.
D)   many doctors in clinics do not have sufficient knowledge to properly diagnose patients.E) C) and D)
F) None of the above

Question 3

Which of the following industrial policies are effective for developing countries to deal with inflows of capital from overseas?

Accepted Answer

A)   Import substitution, export-led growth, and clustering.
B)   Import substitution, export-led growth, and crowding out.
C)   Import substitution, government subsidy, and clustering.
D)   Market Substitution, government subsidy, and crowding out.E) A) and D)
F) A) and C)

Question 4

Property rights and a strong titling system are seen as important to economic development because they allow:

Accepted Answer

A)   loans to be taken out against the equity of their assets, increasing investment.
B)   loans to be taken out without risk, increasing the quality, not quantity, of investment.
C)   savers to invest in property and capital.
D)   agencies with authority to verify titling to thrive in the economy.E) C) and D)
F) A) and B)

Question 5

For developing countries:

Accepted Answer

A)   it is best if they avoid trade until ready to compete globally.
B)   encouraging imports only tends to be more successful than encouraging exports.
C)   encouraging exports only tends to be more successful than encouraging imports.
D)   trade can be a major source of development.E) B) and C)
F) A) and D)

Question 6

Export-led growth policy involves:

Accepted Answer

A)   favoring industries that export goods over those that only produce domestically consumed goods through high tariffs.
B)   investing heavily in industry through tax breaks and export subsidies with the aim of selling goods around the world.
C)   encouraging private investment in industries that currently export goods, rather than those expanding domestically.
D)   discouraging imports with high tariffs.E) B) and D)
F) None of the above

Question 7

Over the 1980s and 1990s, countries with sound fiscal, monetary, and trade policies and strong rule of law combined with large amounts of aid:

Accepted Answer

A)   grew at 1 percent, indicating the necessity of good policy in conjunction with aid.
B)   still failed to grow, indicating new methods for furthering development are needed.
C)   saw GDP shrink by 1 percent, indicating corruption and inefficient use of funds is rampant.
D)   None of these statements is true.E) None of the above
F) A) and D)

Question 8

Economists like Hernando de Soto feel that a ___________ is the key to economic development.

Accepted Answer

A)   strong national defense
B)   strong currency
C)   strong titling system
D)   stable currencyE) B) and D)
F) A) and B)

Question 9

Thanks to randomized controlled trials, policymakers and program managers can:

Accepted Answer

A)   more confidently channel resources to approaches that work.
B)   more confidently channel resources to approaches that are cost effective.
C)   have at least some evidence that the programs chosen are better than others.
D)   All of these statements are true.E) All of the above
F) B) and C)

Question 10

The Cold War has been over since 1991, and foreign aid:

Accepted Answer

A)   has tapered off and is largely nonexistent now.
B)   is still used as an effective political strategy to prevent communism.
C)   continues and is still largely dedicated toward building public goods.
D)   proved to be an ineffective tool in preventing the spread of communism.E) A) and B)
F) None of the above

Question 11

Industrial policy is an effort by a government to:

Accepted Answer

A)   regulate prices in particular industries.
B)   identify the most profitable industries in the world, and adopt them in their country.
C)   favor some industries over others.
D)   control markets that are industrial.E) B) and C)
F) C) and D)

Question 12

The view Dambisa Moyo promotes in her book "Dead Aid" is:

Accepted Answer

A)   so much corruption and embezzlement exists around aid money, it causes more disruption and inefficiency than it helps.
B)   aid distorts the marketplace, actually hurting local economies.
C)   the intended recipients of the money rarely receive it and, when they do, oftentimes don't know how to use it efficiently to actually progress.
D)   None of these statements is true.E) A) and B)
F) All of the above

Question 13

The capabilities approach allows us to focus on issues of:

Accepted Answer

A)   poverty, inequality, and human development.
B)   income, poverty, and economic growth.
C)   human development, capital development, and technological progress.
D)   personal happiness, individual pleasure, and pain avoidance.E) B) and C)
F) All of the above

Question 14

People who live in countries with ________ average incomes generally live __________ lives.

Accepted Answer

A)   lower; shorter
B)   lower; longer
C)   higher; shorter
D)   higher; more meaningfulE) A) and D)
F) B) and C)

Question 15

A recent push in development economics is to:

Accepted Answer

A)   fund only those programs that prove to be effective.
B)   put more focus on a program's effectiveness.
C)   stop the trial and error process of funding programs that "might" work.
D)   All of these statements are true.E) A) and B)
F) A) and C)

Question 16

National health insurance programs:

Accepted Answer

A)   can increase use of health clinics versus traditional village doctors, who often have no training.
B)   are starting to be implemented in poorer areas like Ghana to increase access to health care.
C)   still face challenges in some areas to provide good, high quality care.
D)   All of these statements are true.E) B) and D)
F) B) and C)

Question 17

An example of a capability considered in the capabilities approach would be:

Accepted Answer

A)   earning a livable wage.
B)   living free of the fear of violence
C)   being able to afford a nice home.
D)   to have the ability to purchase an item you really want.E) A) and B)
F) C) and D)

Question 18

A major reason for the increase in school attendance by children between 1999 and 2015 throughout the world was:

Accepted Answer

A)   the abolishment of school fees.
B)   the creation of labor laws forbidding child labor.
C)   an increase in the minimum wages adults could earn.
D)   the imposition of legislation that forced children to become educated.E) None of the above
F) A) and B)

Question 19

Economist Douglass North suggests that the term used to describe government bodies, development agencies, and international groups should be:

Accepted Answer

A)   organizations.
B)   institutions.
C)   agencies.
D)   groups.E) All of the above
F) A) and B)

Question 20

When one country can produce a good more efficiently than another country:

Accepted Answer

A)   that country should produce that good and be the sole "winner" of trade.
B)   that country can specialize in that good and choose only to export goods.
C)   both can specialize in the industry in which they have comparative advantage and experience mutual gains.
D)   that country has no basis for trading with another nation.E) None of the above
F) C) and D)

Exam 19: Development Economics

Export-led growth policy involves:

Correct AnswerverifiedShow Answer

Which of the following industrial policies are effective for developing countries to deal with inflows of capital from overseas?

Correct AnswerverifiedShow Answer

The Cold War has been over since 1991, and foreign aid:

Correct AnswerverifiedShow Answer

When one country can produce a good more efficiently than another country:

Correct AnswerverifiedShow Answer

National health care programs are not as effective as they could be because:

Correct AnswerverifiedShow Answer

Economist Douglass North suggests that the term used to describe government bodies, development agencies, and international groups should be:

Correct AnswerverifiedShow Answer

Over the 1980s and 1990s, countries with sound fiscal, monetary, and trade policies and strong rule of law combined with large amounts of aid:

Correct AnswerverifiedShow Answer

The capabilities approach allows us to focus on issues of:

Correct AnswerverifiedShow Answer

Economists like Hernando de Soto feel that a ___________ is the key to economic development.

Correct AnswerverifiedShow Answer

Bangladesh has had success with:

Correct AnswerverifiedShow Answer

A recent push in development economics is to:

Correct AnswerverifiedShow Answer

For developing countries:

Correct AnswerverifiedShow Answer

Industrial policy is an effort by a government to:

Correct AnswerverifiedShow Answer

A major reason for the increase in school attendance by children between 1999 and 2015 throughout the world was:

Correct AnswerverifiedShow Answer

Thanks to randomized controlled trials, policymakers and program managers can:

Correct AnswerverifiedShow Answer

The view Dambisa Moyo promotes in her book "Dead Aid" is:

Correct AnswerverifiedShow Answer

People who live in countries with ________ average incomes generally live __________ lives.

Correct AnswerverifiedShow Answer

National health insurance programs:

Correct AnswerverifiedShow Answer

An example of a capability considered in the capabilities approach would be:

Correct AnswerverifiedShow Answer

Property rights and a strong titling system are seen as important to economic development because they allow:

Correct AnswerverifiedShow Answer

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People who live in countries with average incomes generally live __ lives.

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