development planning and policy making the state and the market Mcqs
1. Governments use of coordinated policies to achieve national economic objectives is ?
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A. public physical policy

B. development planning

C. entrepreneurial programs

D. commanding heights

2. Branko Horvats historical review of the last two and one-half century indicates that in large part market or decentralized socialism ?
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A. has failed

B. is widely used in sub Saharan Africa

C. is the only way to eradicate poverty?

D. works well in Utopia

3. Planning in many LDCs has failed because detailed programs for the public sector have not been worked out and ?
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A. governments depend primarily on their colonial masters

B. the brain drains cost government substantially

C. monopolies dominate in the agricultural sector

D. excessive controls are used in the private sector
4. Deepak Lal argues that development economics is dominated by _______ approach that favors government intervention into LDC prices?
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A. Commanding heights

B. dirigiste

C. Keynesian

D. soft budget

5. Under Soviet-type economy-wide central planning ?
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A. resources are privately owned by capitalists

B. most resource lack freedom to move to their highest value uses

C. resources owned by private entities moves to efficient use but not those owned publicly

D. resources are free to move to their lowest cost uses

6. According to Oskar Langes model socialist enterprises should produce where ?
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A. The monopoly profit maximization rule applies

B. marginal revenue equals average cost

C. total revenue equals total cost

D. Product price equals marginal cost
7. Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?
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A. indicative plan

B. central planning

C. instrument variables

D. central bank policies

8. Worker-managed socialism helped contribute to ________ s rapid economic growth from 1959 to 1979?
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A. Vietnam

B. Yugoslavia

C. Japan

D. Chile

9. A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ?
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A. slow economic growth under colonial capitalism

B. western countries, nation-state ideology

C. minimizing public spending in the rural areas

D. Keeping balanced budget, a price target

10. Which of the following assumptions underlying input-output analysis raises about its validity ?
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A. There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects

B. #NAME?

C. There is no technical change

D. The technical coefficients are fixed which means so substitution between inputs occurs

11. The market efficiently allocates scarce resource among alternative ends such that ?
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A. #NAME?

B. Production resources hire out to maximize income)

C. the market distributes income among rich individuals

D. consumers receive goods for which they are willing to pay

12. Most mixed or capitalist developing countries are limited to an indicative plan, which indicates expectations, aspirations, and intentions ?
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A. of implementation through foreign aid

B. but falls short of authorization

C. with immediate implementation

D. of the central bank

13. A medium-term plan can be a(n) ________ revised at the end of each year?
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A. rolling plan

B. perspective plan

C. instrument variable

D. seasonal expenditure

14. Annual GNP growth of 6% poverty reduced by 1% point of the population Balance of payments deficit not in excess of $200 million For a planner, the above are ?
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A. achieved only through socialism

B. bound by soft budget

C. recurrent expenditures

D. target variables
15. The input-output table, when divided vertically shows ?
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A. the planned public capital divided by feasible actual industrial projects public capital

B. the inputs to each industry from other industries and sectors

C. development planning and the required information on national income growth

D. how the output of each industry is distributed within the sectors of the economy

16. Polish economist Oskar Langes model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?
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A. mixed economy

B. monopoly

C. capitalism

D. market socialism
17. Takatoshi Ito (1992) contends that parliamentary governments manipulate the timing of _____ while presidential governments manipulate the timing of _____?
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A. economic policies; political policies

B. monetary policy, fiscal policy

C. tax collection, tax implementation

D. elections; economics policies
18. Which of the following is not a public policy to promote the private sector ?
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A. Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies

B. Providing adequate infrastructure for public and private agencies

C. Investigating development potential through scientific and market research and natural resources surveys

D. Increasing market monopolies and oligopolies to help producers