Question 1

According to the dependence theory, the developing world is known as the

Accepted Answer

A) backward areas. 
B) periphery. 
C) first world. 
D)  center. 
A) backward areas. 
B) periphery. 
C) first world. 
D)  center. B

Question 2

In the public choice (or new political economy) approach to development the emphasis is on

Accepted Answer

A) growth in the rural sector. 
B) the self-interested behavior of public officials. 
C) the dependence of LDCs on former colonial powers. 
D)  the inherent efficiency of developing country markets. 
A) growth in the rural sector. 
B) the self-interested behavior of public officials. 
C) the dependence of LDCs on former colonial powers. 
D)  the inherent efficiency of developing country markets. B

Question 3

International dependence theories distinguish between two groups of countries known as

Accepted Answer

A) rich-poor. 
B) developed-developing. 
C) center-periphery. 
D)  independent-dependent. 
A) rich-poor. 
B) developed-developing. 
C) center-periphery. 
D)  independent-dependent. C

Question 4

Implicit assumptions from which theories evolve are known as

Accepted Answer

A) A paradigm. 
B) Biases. 
C) Stylized facts. 
D)  Normative economics. 
A) A paradigm. 
B) Biases. 
C) Stylized facts. 
D)  Normative economics.

Question 5

Why is the debate between the international dependence and the neoclassical counter-revolution schools referred to as "finger pointing?"

Accepted Answer

The text stresses that most members of t

Question 6

The underlying assumption of the Harrod-Domar growth model is that

Accepted Answer

A) the incremental capital-output ratio is given b₌y Y/K. 
B) growth is mainly determined by capital accumulation. 
C) growth can be sustained only if agricultural productivity rises. 
D)  developing countries save too much and invest too little. 
A) the incremental capital-output ratio is given b₌y Y/K. 
B) growth is mainly determined by capital accumulation. 
C) growth can be sustained only if agricultural productivity rises. 
D)  developing countries save too much and invest too little.

Question 7

On which of the following does the neoclassical counter-revolution school most blame underdevelopment?

Accepted Answer

A) Misguided government policies 
B) Relatively rigid cultural traditions 
C) The legacy of colonialism 
D)  Unfair trade practices on the part of developed countries 
A) Misguided government policies 
B) Relatively rigid cultural traditions 
C) The legacy of colonialism 
D)  Unfair trade practices on the part of developed countries

Question 8

The market-friendly approach to development emphasizes

Accepted Answer

A) self-interested behavior of public officials in LDCs. 
B) the dependence of LDCs on former colonial powers. 
C) the inherent efficiency of markets in developing countries. 
D)  that markets in LDCs fail sometimes and selective interventions can promote economic development. 
A) self-interested behavior of public officials in LDCs. 
B) the dependence of LDCs on former colonial powers. 
C) the inherent efficiency of markets in developing countries. 
D)  that markets in LDCs fail sometimes and selective interventions can promote economic development.

Question 9

Which of the following is an assumption of the Lewis two-sector model?

Accepted Answer

A) Surplus labor in the rural sector 
B) High unemployment in the urban modern sector 
C) Rising real urban wages 
D)  Rising marginal product of labor in the rural sector 
A) Surplus labor in the rural sector 
B) High unemployment in the urban modern sector 
C) Rising real urban wages 
D)  Rising marginal product of labor in the rural sector

Question 10

Dependency theory characterizes countries as being either in the center or on the periphery. Explain these two concepts. If this theory is correct, what are the implications for development strategy?

Accepted Answer

Grading would depend on what is covered

Question 11

What are the main differences between the linear stages and international dependency models?of development?

Accepted Answer

Lack of development is generated interna

Question 12

Describe some of the advantages and disadvantages of each of the following schools: linear stages, structural change, dependence, and neoclassical.

Accepted Answer

Discussed in detail

Question 13

The linear stages theory of economic growth fails to recognize that increased investment is

Accepted Answer

A) both a necessary and a sufficient condition. 
B) a necessary but not a sufficient condition. 
C) a sufficient but not a necessary condition. 
D)  neither a necessary nor a sufficient condition. 
A) both a necessary and a sufficient condition. 
B) a necessary but not a sufficient condition. 
C) a sufficient but not a necessary condition. 
D)  neither a necessary nor a sufficient condition.

Question 14

According to the theory of structural patterns of development, which of the following tends to occur as a country develops?

Accepted Answer

A) A shift from agriculture to industry and services 
B) An increase in the percentage of income spent on food 
C) Growth of the rural sector 
D)  A decline in trade as a share of GNP 
A) A shift from agriculture to industry and services 
B) An increase in the percentage of income spent on food 
C) Growth of the rural sector 
D)  A decline in trade as a share of GNP

Question 15

Which of the following is a criticism of the neoclassical counter-revolution school's approach?

Accepted Answer

A) Markets are not competitive in developing countries. 
B) Externalities are common in developing countries. 
C) Inequality may worsen when interventions are removed in developing countries. 
D)  All of the above. 
A) Markets are not competitive in developing countries. 
B) Externalities are common in developing countries. 
C) Inequality may worsen when interventions are removed in developing countries. 
D)  All of the above.

Question 16

Describe one important criticism of Rostow's stages of economic growth theory.

Accepted Answer

The stages are only necessary and not su

Question 17

Which of the following is an assumption of the Lewis two-sector model?

Accepted Answer

A) Surplus labor in industry 
B) Positive marginal product of labor in agriculture 
C) An upward sloping labor supply curve in industry 
D)  None of the above 
A) Surplus labor in industry 
B) Positive marginal product of labor in agriculture 
C) An upward sloping labor supply curve in industry 
D)  None of the above

Question 18

Which of the following are components of economic growth?

Accepted Answer

A) Growth in labor force 
B) Technological progress 
C) Investment 
D)  All of the above 
A) Growth in labor force 
B) Technological progress 
C) Investment 
D)  All of the above

Question 19

The false paradigm model attributes lack of development to

Accepted Answer

A) Inadequate attention to price incentives. 
B) Inappropriate advice from rich country economists. 
C) Low levels of savings and investment. 
D)  A lack of government regulation. 
A) Inadequate attention to price incentives. 
B) Inappropriate advice from rich country economists. 
C) Low levels of savings and investment. 
D)  A lack of government regulation.

Question 20

A situation in which government intervention in the economy worsens the economic outcome is termed

Accepted Answer

A) neoclassical failure. 
B) socialism. 
C) government failure. 
D)  dependency revolution. 
A) neoclassical failure. 
B) socialism. 
C) government failure. 
D)  dependency revolution.

According to the dependence theory, the developing world is known as the

In the public choice (or new political economy) approach to development the emphasis is on

International dependence theories distinguish between two groups of countries known as

Implicit assumptions from which theories evolve are known as

Why is the debate between the international dependence and the neoclassical counter-revolution schools referred to as "finger pointing?"

The underlying assumption of the Harrod-Domar growth model is that

On which of the following does the neoclassical counter-revolution school most blame underdevelopment?

The market-friendly approach to development emphasizes

Which of the following is an assumption of the Lewis two-sector model?

Dependency theory characterizes countries as being either in the center or on the periphery. Explain these two concepts. If this theory is correct, what are the implications for development strategy?

What are the main differences between the linear stages and international dependency models?of development?

Describe some of the advantages and disadvantages of each of the following schools: linear stages, structural change, dependence, and neoclassical.

The linear stages theory of economic growth fails to recognize that increased investment is

According to the theory of structural patterns of development, which of the following tends to occur as a country develops?

Which of the following is a criticism of the neoclassical counter-revolution school's approach?

Describe one important criticism of Rostow's stages of economic growth theory.

Which of the following is an assumption of the Lewis two-sector model?

Which of the following are components of economic growth?

The false paradigm model attributes lack of development to

A situation in which government intervention in the economy worsens the economic outcome is termed

Economics, Institutions, and Development: a Global Perspective

Comparative Economic Development

Contemporary Models of Development and Underdevelopment

Poverty, Inequality, and Development

Population Growth and Economic Development: Causes, Consequences, and Controversies

Urbanization and Ruralurban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market, State, and Civil Society

International Trade Theory and Development Strategy

Balance of Payments, Developing-Country Debt, and the Macroeconomic Stabilization Controversy

Foreign Finance, Investment, and Aid: Controversies and Opportunities

Finance and Fiscal Policy for Development

Some Critical Issues for the Twenty-First Century

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Exam 3: Classic Theories of Economic Growth and Development

According to the dependence theory, the developing world is known as the

In the public choice (or new political economy) approach to development the emphasis is on

International dependence theories distinguish between two groups of countries known as

Implicit assumptions from which theories evolve are known as

Why is the debate between the international dependence and the neoclassical counter-revolution schools referred to as "finger pointing?"

The underlying assumption of the Harrod-Domar growth model is that

On which of the following does the neoclassical counter-revolution school most blame underdevelopment?

The market-friendly approach to development emphasizes

Which of the following is an assumption of the Lewis two-sector model?

Dependency theory characterizes countries as being either in the center or on the periphery. Explain these two concepts. If this theory is correct, what are the implications for development strategy?

What are the main differences between the linear stages and international dependency models?of development?

Describe some of the advantages and disadvantages of each of the following schools: linear stages, structural change, dependence, and neoclassical.

The linear stages theory of economic growth fails to recognize that increased investment is

According to the theory of structural patterns of development, which of the following tends to occur as a country develops?

Which of the following is a criticism of the neoclassical counter-revolution school's approach?

Describe one important criticism of Rostow's stages of economic growth theory.

Which of the following is an assumption of the Lewis two-sector model?

Which of the following are components of economic growth?

The false paradigm model attributes lack of development to

A situation in which government intervention in the economy worsens the economic outcome is termed

Economics, Institutions, and Development: a Global Perspective

Comparative Economic Development

Contemporary Models of Development and Underdevelopment

Poverty, Inequality, and Development

Population Growth and Economic Development: Causes, Consequences, and Controversies

Urbanization and Ruralurban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market, State, and Civil Society

International Trade Theory and Development Strategy

Balance of Payments, Developing-Country Debt, and the Macroeconomic Stabilization Controversy

Foreign Finance, Investment, and Aid: Controversies and Opportunities

Finance and Fiscal Policy for Development

Some Critical Issues for the Twenty-First Century

Filters