Deck 16: Agriculture and Development

Question 1

In the growth process,two-sector models recognize the prime importance of:

A) time and money.
B) labor and capital.
C) imports and exports.
D) complements and substitutes.

Answer 1

B

Question 2

Among countries categorized as low income by the World Bank in 2008,agriculture accounts for:

A) 10% of GDP
B) 25% of GDP
C) 50% of GDP
D) 65% of GDP

Answer 2

B

Question 3

Disguised unemployment refers to:

A) the underground economy.
B) unemployment that fluctuates in the rural countryside.
C) earning two incomes annually, but reporting only one.
D) people who claim to be looking for a job, but have no intention of working.

Answer 3

B

Question 4

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Agricultural output per worker,nonagricultural output per worker

Question 5

The neoclassical model argues that there must be a balance between:

A) imports and exports.
B) industry and agriculture.
C) tariffs and quotas.
D) the pace of modernization and respect for tradition.

Question 6

The argument that the proportion of income spent on food declines as income rises is known as:

A) Say's Law.
B) the Malthusian trap.
C) Engel's law.
D) health consciousness.

Question 7

All of the following are key characteristics of the agricultural production function EXCEPT:

A) seasonality.
B) geographic dispersion.
C) sources of technical change.
D) diminishing returns to labor.

Question 8

According to the Food and Agricultural Organization (FAO)of the United Nations,high food prices in 2008 pushed how many additional people into hunger?

A) 20 million
B) 40 million
C) 57 million
D) 1 billion

Question 9

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Food and Agricultural Organization (FAO),food price shock

Question 10

Among the poor households of developing countries,household food expenditures amount to:

A) 25% of income.
B) 30-50% of income.
C) 50-70% of income.
D) 90% of income.

Question 11

The nutritional linkage from agriculture to economic growth is based on evidence gathered by which Nobel-winning economic historian?

A) Robert Fogel
B) Robert Heilbroner
C) Joseph Schumpeter
D) Leon Walras

Question 12

The Fei-Ranis model can be used to explore the implications of:

A) population growth and a rise in agricultural productivity.
B) enclosure movements and the rise of urban laborers.
C) becoming a resource exporting country.
D) using barter as the primary method of exchanging goods.

Question 13

Between 2006 and 2008,the world experienced its worst food crisis since the:

A) swine flu epidemic.
B) 1930s.
C) 1970s.
D) fall of the Soviet Union.

Question 14

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Structural transformation,Engel's Law

Question 15

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Diminishing returns,labor surplus

Question 16

___________ is the systematic changes in sector proportions as economies grow.

A) Structural transformation
B) Technical innovation
C) Developmental devolution
D) Unit-elastic supply

Question 17

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Agricultural productivity,technical change

Question 18

The neoclassical two-sector model was developed and formalized by:

A) Alfred Marshall.
B) John Stuart Mill.
C) Dale Jorgenson.
D) John Maynard Keynes.

Question 19

These two basic assumptions of David Ricardo have played an important role in two-sector models:

A) rents and taxation.
B) buyers and sellers.
C) diminishing returns and labor surplus.
D) constant returns to scale and economic efficiency.

Question 20

Stability linkage operates primarily at the:

A) microeconomic level.
B) daily exchange rate.
C) macroeconomic level.
D) poorest areas in a society.

Question 21

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Labor surplus model,neoclassical model

Question 22

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Subsistence level,institutionally fixed wage

Question 23

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Subsistence-oriented farmers,market-oriented farmers

Question 24

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Intersectoral linkages,indirect linkages

Question 25

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
Marginal product of labor,average product