characteristics and institutions of developing countries Mcqs
1. A dual economy is distinguished from other economies by having ?
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A. an industrial sector and a manufacturing sector

B. an industrial sector that concentrates on manufacturing and construction

C. state owner ship of the means of production

D. a traditional agricultural sector and a modern industrial sector
2. Which of the following statement is true about low-income countries ?
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A. the average agriculture family produces surplus large enough only to supply small non-agriculture population

B. less than 10% of the labor force is in agriculture

C. share of labor force is about 30%

D. One-third of the labor force produce food

3. Economic rent ?
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A. is productive activity to obtain private benefit from public action and resources

B. is the wage used to pay unskilled workers?

C. are the payments above the minimum essential to attract the resources to the market?

D. does not include monopoly profits

4. Dual economies are countries ?
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A. with a modern manufacturing sector as well as traditional agriculture sector

B. that specialize in labor intensive products more than capital intensive products

C. with double capital and labor/

D. with foreign owned and domestically owned capital

5. The informal sector includes ?
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A. rtisans, cottage industrialists, petty traders, teashop proprietors

B. activities with little capital skill and entry barriers

C. garbage pickers jitney unauthorized taxis repair persons

D. #NAME?

6. What is gross domestic product (GDP) ?
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A. income earned through foreign exchange

B. the number of dollars earned in industry

C. goods received from the nations residents

D. income earned within a countrys boundaries
7. The low-income economies generally have the following except ?
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A. deficient infrastructures

B. low life expectancies

C. low savings

D. a per capital GNP of more than $900
8. Increases in real GNP per capita occur when ?
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A. the level of consumption expenditures rises relative to the level of saving

B. the rate of growth of real GNP is greater than the rate of growth of population

C. tariffs and quotas prevent dollars from leaving the country

D. government programs direct resources away from investment goods to consumer goods.

9. Which one of the following countries is not a high-income country ?
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A. Mexico

B. United Kingdom

C. Germany

D. Canada

10. Peasants are ?
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A. rural politicians

B. rural, religious group

C. rural industrialist

D. rural cultivators
11. Clientelism ?
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A. #NAME?

B. commands equals wealth, status or influence, based on unconditional loyalties and involving mutual benefits

C. is also known as patrimonialism

D. is the dominant pattern in many LDCs

12. Industrialization?
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A. inhibits development

B. id inversely related to development

C. is positively related to development

D. causes development

13. Increasing in the real GNP per capita occur when ?
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A. tariffs and quotas prevent countries from trading and thus prevent dollars from leaving each country

B. government programs direct resources away from investment goods to consumer goods.

C. the level of consumption expenditures rises relative to the level of savings

D. the rate of growth in real GNP is greater than the rate of growth in the population
14. Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?
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A. $25

B. $40,000

C. $100

D. $145

15. A countrys export commodity concentration ratio is the ?
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A. proportion of the primary export commodity in total exports

B. total annual investment made in production of exported commodities

C. ratio of four leading commodities to total merchandise exports

D. average annual investment made in production of exported commodities

16. Two or more nuclear families of parent(s) and children is known as ?
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A. dual family

B. institutional family

C. extended family

D. two-tier family tree

17. Export primary commodity concentration ratios are ?
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A. total merchandise export divided by Gross National Income

B. food, raw materials minerals and organic oils and fat as a percentage of total merchandise exports

C. commodity exports as a percentage of GDP per capita of exporting country divided by importing country

D. export earnings as a ratio of population

18. What is the ratio of population density of developing countries to the population of developed countries ?
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A. no more than 1

B. 10

C. 2

D. 20

19. Which of the following is not a requirement for economic development ?
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A. natural resources

B. a temperate climate

C. an adequate capital bases

D. technological advance

20. A countrys capital stock is the ?
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A. difference between GDP and capital consumption

B. sum of previous gross investment minus depreciation

C. approximated investment minus actual investment

D. inflow of investment from abroad

21. According to Lewiss model the dual economy grows only when ?
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A. agricultural sector uses modern equipment

B. modern manufacturing sector is labor intensive

C. agricultural sector hires labor economically

D. the modern sector increases its output share relative to the traditional sector
22. The following statements are true about informal sector except ?
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A. May be enterprises with less than 10 workers

B. Production is capital intensive

C. Uses no mechanical power

D. Uses family workers

23. In low-income countries the average agricultural family produces a surplus ?
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A. of zero

B. large enough to feed 25 other families

C. enough to supply only a small nonagricultural population

D. large enough of feed five other families

24. As economic development proceeds income inequality tends to follow a(n) _____ curve?
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A. S-Shaped

B. convex

C. inverted U shaped

D. L-shaped