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theories of economic development MCQs

Practise focused theories of economic development questions with marked answers for exam preparation and subject revision.

theories of economic development Mcqs

1. OECD stands for ?
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A. Open Economies Caucus on Development

B. Oil Exporting Countries Development

C. Organization for Economic Cooperation and Development and Development

D. Organization for Environmental cooperative Department

2. The Vicious circle theory states that ?
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A. low income levels create pressure for cheap imports

B. growing government assistance create addiction to welfare programs

C. low per capita incomes creates low savings that keep incomes low

D. low income levels create pressure for money creation

3. The synchronized application of capital to a wide range of different industries is called __________ by its advocates?
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A. indivisibilities

B. balanced growth

C. elasticity of capital

D. capitalization

4. For Rosentein Rodan a major indivisibility is in ?
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A. infrastructure

B. agriculture

C. Supply

D. services

5. One criticism of Rostows theory of economic growth is that ?
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A. his hypothesis of the stages of growth is difficult to test empirically

B. there is no explanation of why growth occurs after takeoff

C. All of the above are correct

D. much available data contradicts his thesis about the takeoff stage

6. Rostows economics stages are ?
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A. the learning curve the age of high mass consumption post takeoff, and the drive to maturity

B. the preconditions for consumption the replication the drive to maturity and the age of high mass consumption

C. The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption

D. The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction

7. According to the supply side of the vicious circle theory of development a country is poor because ?
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A. resource allocation is poor

B. it was previously too poor to save and invest

C. underemployment is too widespread

D. technology levels do not allow for self sufficiency

8. Which of the following was not a classical economist ?
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A. Thomas R. Malthus

B. John Maynard Keynes

C. Adam Smith

D. John Stuart Mill

9. The Vicious circle theory indicates that ?
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A. market size is large in LDCs

B. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides

C. as countries grow richer they save less

D. a country is poor because it has lower productivity but high savings

10. Karl Marxs historical materialism views were shaped by all of the following EXCEPT ?
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A. The rise of industrial and capitalist production

B. Political and labor revolts

C. a growing spiritual rationalism

D. The French Revolution

11. A major dependency theorist Andre Gunder Frank Suggests that the following economic activities have contributed to underdevelopment:
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A. Forming an unskilled labor force to work in factories and mines and on plantations

B. #NAME?

C. Closing the economy to trade with and investment from, developed countries

D. Workers migrating from villages to foreign-dominated urban complexes

12. During the 1980s and 1990s a period of economic conservative governments in much of West and Japan, a leading approach among development economists was ?
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A. Rostows model

B. classical appraoch

C. neoclassicism

D. Marxism

13. Criticisms of Rostows stages of development include ?
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A. conditions for takeoff are contradicted by historical evidence

B. the difficulty of testing the stages scientifically

C. characteristics of one stage are not unique to that stage

D. All of the above are correct

14. Barans Neo-Marxist thesis has been criticized for ignoring the probability that power is frequently ?
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A. derived from domestic opponents of nationalism

B. based on an alliance between peasants and the foreign bourgeoisie

C. based on an alliance between landowners and peasants

D. transferred from one elite to another when revolution occurs

15. Adam Smith advocated ?
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A. laissez faire

B. #NAME?

C. the invisible hand

D. competitive markets

16. What is Barans explanation for underdevelopment in Asia, Africa, and Latin America ?
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A. reactionary ruling coalitions

B. monopolistic business from abroad

C. weak domestic middle class

D. All of the above

17. The essential difference between capitalism and socialism is that ?
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A. capitalism exploits the worker and socialism exploits the property owner

B. capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

C. capitalism relies on the market to make economic decisions and socialism uses central planning

D. capitalism grows through rent seeking and socialism grows through government direction

18. Surplus labor theories assume that ?
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A. the marginal products of labor is closed to zero in LDCs

B. urban unemployment is high in LDCs

C. LDCs are overpopulated

D. labor contributes nothing to output in LDCs

19. Feudalism was undercut by?
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A. the rise of the business corporation

B. the migration of serfs to the town

C. #NAME?

D. factory competition with handicraft and manorial production

20. The Lawis model explains how growth gets started in a less developed economy ?
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A. with an average product of labor in agriculture that is negative

B. with a traditional agricultural sector and an industrial capitalist sector

C. with a downward-sloping supply curve of labor

D. with a marginal productivity of labor zero or negligible in industry

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