Deck 9: Development: The Challenge of Global Poverty

Question 1

That the poor in sub-Saharan Africa are more vulnerable and constrained in their ability to overcome poverty than the poor in Scandinavia is tantamount to the fact that poverty ______.

A) is defined by material deprivation
B) equates powerlessness
C) is multidimensional
D) is globally unclear

Answer 1

C

Question 2

Economic growth, improving living standards, and/or the enhancement of people's control over their own lives can be referred to as ______.

A) modernization
B) freedom of opportunity
C) democratization
D) development

Answer 2

D

Question 3

Measures such as GDP and GDP (PPP) contribute to an understanding of development as ______.

A) welfare of people
B) level of economic growth
C) wealth of places
D) evidence of modernization

Answer 3

C

Question 4

Measures such as HDI and the Gini contribute to an understanding of development as ______.

A) welfare of people
B) level of economic growth
C) welfare of places
D) evidence of modernization

Question 5

Economic development, life expectancy, and education are taken into account in which measure of development?

A) Gini Index of Inequality
B) Human Development Index
C) Purchasing Power Parity
D) Poverty Headcount Ratio

Question 6

The share of national income earned by each percentage of the population is the ______.

A) Gini Index of Inequality
B) Human Development Index
C) Purchasing Power Parity
D) Poverty Headcount Ratio

Question 7

The population in a country living in extreme poverty is best captured by the ______.

A) Gini Index of Inequality
B) Human Development Index
C) Purchasing Power Parity
D) Poverty Headcount Ratio

Question 8

State-run grants offered for developing health-care services for citizens are examples of ______.

A) investment
B) innovation
C) public goods
D) creative destruction

Question 9

State-supported initiatives geared toward the improvement of health-care methods and technologies are examples of ______.

A) investment
B) innovation
C) public goods
D) creative destruction

Question 10

The provision and maintenance of a court system to protect intellectual property rights is an example of ______.

A) investment
B) innovation
C) a public good
D) a transaction cost

Question 11

Which of the following best describes the notion of creative destruction?

A) the process whereby goods developed to meet the needs of LDCs are repackaged as low-cost innovative goods for rich countries
B) innovations that create a new market and value network, displacing established firms, products, and alliances
C) the desired break in existing patterns of behavior in response to a highly creative message
D) the termination of old technologies or ways of doing things to make way for new ones, at the risk of hurting some groups in society

Question 12

The head of a low-income family is given the opportunity to earn extra money for the household by working additional hours full time. However, the boost to household income is reduced by an increase in income tax and health insurance deductibles. This is an example of ______.

A) a poverty trap
B) conflicting ideologies
C) a welfare trap
D) extractive institutions

Question 13

That some LDCs will explain away poverty and a lack of development as the result of hostile forces--not of reforms and their initiatives--is an example of the power of ______.

A) the poverty trap
B) ideology
C) inclusive institutions
D) extractive institutions

Question 14

Institutions that favor a small group at the expense of the rest of society are referred to as ______.

A) inclusive institutions
B) extractive institutions
C) exploitative institutions
D) authoritarian institutions

Question 15

Institutions that are centralized and that require input from the larger society as a whole are referred to as ______.

A) inclusive institutions
B) extractive institutions
C) exploitative institutions
D) democratic institutions

Question 16

A resource-rich country suffering from an economic resource curse is one in which ______.

A) the country suffers from lack of growth due to overexploitation of natural resources
B) the economy is so focused on the resource industry that other sectors are neglected
C) there is no incentive for the government to provide economic support or respond to its citizens
D) inclusive institutions gradually transition into extractive institutions

Question 17

A resource-rich country suffering from a political resource curse is one in which ______.

A) there is no incentive for the government to invest in and respond to its citizens
B) the government is characterized by chiefly extractive institutions
C) the country suffers lack of growth due to overexploitation of natural resources
D) inclusive institutions gradually transition into extractive institutions

Question 18

Modernization theory argues that ______.

A) there are stages of growth for each society, and that poor countries should replicate rich countries' path of development
B) rich countries got rich at the expense of poor countries, and that the international economy structurally favors rich countries
C) growth occurs if and when the state plays an active role in investment and innovation to build the competitiveness of national industries
D) poor countries can develop quickly and efficiently by focusing on competition and commodification in all parts of life

Question 19

Dependency theory argues that ______.

A) there are stages of growth for each society, and that poor countries should replicate rich countries' path of development
B) rich countries got rich at the expense of poor countries, and that the international economy structurally favors rich countries
C) growth occurs if and when the state plays an active role in investment and innovation to build the competitiveness of national industries
D) poor countries can develop quickly and efficiently by focusing on competition and commodification in all parts of life

Question 20

Developmental states theory argues that ______.

A) there are stages of growth for each society, and that poor countries should replicate rich countries' path of development
B) rich countries got rich at the expense of poor countries, and that the international economy structurally favors rich countries
C) growth occurs if and when the state plays an active role in investment and innovation to build the competitiveness of national industries
D) poor countries can develop quickly and efficiently by focusing on competition and commodification in all parts of life

Question 21

Neoliberalism argues that ______.

A) there are stages of growth for each society, and that poor countries should replicate rich countries' path of development
B) rich countries got rich at the expense of poor countries, and that the international economy structurally favors rich countries
C) growth occurs if and when the state plays an active role in investment and innovation to build the competitiveness of national industries
D) poor countries can develop quickly and efficiently by focusing on competition and commodification in all parts of life

Question 22

To develop its economy and industrial capacity, in the 1960s and 1970s Argentina focused its industrial policies toward the promotion of automobile manufacturing. This is an example of ______.

A) developmental state policy
B) export-oriented industrialization
C) import substitution industrialization
D) neoliberal policy

Question 23

To develop its economy and speed up industrialization, in the 1950s and 1960s Taiwan launched a program focused on expanding manufacturing to leverage global comparative advantages. This is an example of ______.

A) modernization policy
B) export-oriented industrialization
C) import substitution industrialization
D) neoliberal policy

Question 24

Of the following, which proposes a set of recommendations for poor countries focused on privatization, liberalization, and deregulation?

A) Washington Consensus
B) Beijing Consensus
C) post-Washington Consensus
D) Structural Adjustment Program

Question 25

In addition to the promotion of neoliberal practices, which of the following emphasizes the element of good governance?

A) Washington Consensus
B) Beijing Consensus
C) post-Washington Consensus
D) Structural Adjustment Program

Question 26

Which of the following emphasizes an economic model featuring state-subsidized economic development focused on global competition, thereby contributing to domestic growth?

A) Structural Adjustment Program
B) post-Washington Consensus
C) export-oriented industrialization
D) Beijing Consensus

Question 27

Which of the following provides the best example of Ha-Joon Chang's "kicking away the ladder" argument?

A) Many developing countries are subject to the one-size-fits-all nature of conditionality and SAPs, which assumes that all poor countries face the same challenges.
B) Many developing countries must observe international climate accords that limit industrial expansion even though the developed world did not have to do so.
C) Many developing countries are unable to subsidize or protect domestic industries over the course of industrialization even though the developed world did not have to do so.
D) Many developing countries are required to comply with enacting structural and economic reforms to receive foreign assistance, but do not do so after they have received the aid.

Question 28

Although it has appeared as though spending on foreign aid has ballooned since the turn of the millennium, compared to the 1980s and 1990s, the poorest countries in the developing world have not been the largest recipients of aid because ______.

A) developing countries' economies have also grown
B) aid as a share of recipients' overall economies has not risen
C) aid has become more targeted for specific countries
D) military aid is also included in these data

Question 29

Some ODA programs target specific groups in society to receive loans, such as small business owners so that they may expand their businesses. This type of aid is known as ______.

A) microcredit
B) conditional cash transfers
C) unconditional cash transfers
D) microfinance

Question 30

Some poverty-alleviating programs involve direct payments from governments to citizens to incentivize development in specific areas, such as ensuring child health care and nutrition. This type of aid is known as ______.

A) microcredit
B) conditional cash transfers
C) unconditional cash transfers
D) microfinance

Question 31

Some aid programs provide assistance directly to citizens, with the understanding that the recipients will know best what to do with the aid they receive. This type of aid is known as ______.

A) microcredit
B) conditional cash transfers
C) unconditional cash transfers
D) microfinance

Question 32

Developing countries' decisions to pursue ISI or EOI policies are often a response to the demands and pressures of ______.

A) global forces
B) communications technology
C) shifting centers of power
D) global governance

Question 33

Although greater access to information benefits citizens in the poorest countries, this does not by extension guarantee emergence from poverty or government responsiveness. This represents one of the challenges involving poverty and ______.

A) global forces
B) communications technology
C) shifting centers of power
D) global governance

Question 34

Criticism of the principles underlying the Washington Consensus and the alternative paths to development taken by the BRICS countries indicate that how the challenges of poverty are approached nowadays is subject to ______.

A) global forces
B) communications technology
C) shifting centers of power
D) global governance

Question 35

In light of the mixed success of support from the IMF, World Bank, and others, some developing countries have established alternative IGOs such as the New Development Bank in order to ensure better representation and address the challenges of ______.

A) global forces
B) communications technology
C) shifting centers of power
D) global governance

Question 36

Purchasing Power Parity (PPP) is a method for adjusting per capita GDP to better compare development across countries.

Question 37

While the global population under extreme poverty has declined, the number of countries categorized as LDCs has remained largely constant.

Question 38

The Millennium and Sustainable Development Goals are chiefly concerned with economic growth in LDCs.

Question 39

Extreme poverty refers to the share of the poorest LDCs.

Question 40

Increasing a country's wealth and improving the welfare of people is as much a product of planning as it is luck.

Question 41

"Dutch Disease" explanations for lack of growth and development account for the quality of resource-rich countries' institutions.

Question 42

The East Asian miracle describes the rise of the newly industrialized countries in Asia in the 1980s and 1990s.

Question 43

Because of the emphasis on protecting private property, an impartial judiciary, low corruption, and government transparency, good governance is equated with democratic governance.

Question 44

Availability of and access to financial support for LDCs from the IMF is dependent on the conditionality of that support.

Question 45

Official development assistance can be granted directly to a receiving country via foreign embassies.

Question 46

Discuss the competing explanations for why some countries are poor--and remain so. Illustrated with real-world examples, contrast the explanations and form an argument as to which approach makes the strongest case.

Question 47

Solutions for LDCs and their citizens to emerge from poverty abound, both in theory and in practice. Explain the various theories and approaches, and make an argument as to which one provides the most promising road map to development. Use real-world examples to illustrate your claims.

Question 48

What constitutes foreign aid, and how is it granted? Discuss the different types and approaches on foreign aid, and assess their merits according to their conditions and how they are distributed.

Question 49

Does the use of official development assistance (ODA) actually make a difference in terms of the wealth of places and the welfare of people? If so, does ODA have a positive impact or a negative one? Consider arguments for and against the use of ODA, and pick a side, providing evidence for your claim.

Question 50

In recent years, approaches to tackling the challenges of poverty have gone beyond the traditional macro-level view of global economics. In light of traditional concepts and approaches to foreign aid, discuss recent innovations in the study of poverty and methods of alleviation, potential obstacles and trade-offs, and make an argument as to which approach holds the most promise.