Question 1

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) None of the above
F) All of the above

Question 2

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) None of the above
F) A) and C)

Question 3

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) None of the above
F) C) and D)

Question 4

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) A) and B)
F) A) and C)

Question 5

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) B) and C)
F) All of the above

Question 6

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) A) and C)
F) None of the above

Question 7

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 C)
F) A) and B)

Question 8

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) All of the above
F) A) and C)

Question 9

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) A) and B)

Question 10

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 B)
F) None of the above

Question 11

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) A) and D)
F) A) and C)

Question 12

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) B) and C)
F) A) and D)

Question 13

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) C) and D)
F) B) and C)

Question 14

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) C) and D)
F) B) and C)

Question 15

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 D)
F) A) and C)

Question 16

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) None of the above
F) A) and C)

Question 17

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) C) and D)
F) B) and C)

Question 18

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) B) and C)
F) A) and C)

Question 19

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) C) and D)
F) B) and C)

Question 20

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) B) and C)
F) A) and D)

Exam 19: Development Economics

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

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

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A recent push in development economics is to:

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

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Bangladesh has had success with:

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Export-led growth policy involves:

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The capabilities approach allows us to focus on issues of:

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

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For developing countries:

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

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

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

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

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Industrial policy is an effort by a government to:

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

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

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

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

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National health insurance programs:

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

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

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