MCQOPTIONS
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MCQOPTIONS
This section includes 20 Mcqs, each offering curated multiple-choice questions to sharpen your Economics Mcqs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following factors has been suggest as an explanation for the lack of economic growth in many poor nations ? |
| A. | The constraints imposed by dependency on the already-developed nations |
| B. | A steady rate of capital formation |
| C. | An adequate level of social overhead capital |
| D. | The supply of human resources is too high |
| Answer» B. A steady rate of capital formation | |
| 2. |
When economists say that developing countries have a dualistic economy the 2 parts referred to are ? |
| A. | modern sector and traditional sector |
| B. | town and country |
| C. | men and women |
| D. | rich people and poor people |
| Answer» B. town and country | |
| 3. |
The policy that has been the most successful in increasing agricultural output in developing countries is ? |
| A. | mechanization |
| B. | land reform |
| C. | import substitution |
| D. | produce marketing boards |
| Answer» C. import substitution | |
| 4. |
Most of the Third World/Fourth World debt was incurred in ? |
| A. | The colonial period |
| B. | The early 1950s |
| C. | most debt was incurred during the oil shocks of the 1970s |
| D. | the early 1960s |
| Answer» D. the early 1960s | |
| 5. |
Structuralist economists who study developing countries focus their attention on ? |
| A. | changes in industrial structure over time |
| B. | specific barriers to development and how to overcome them |
| C. | The impact of international trade structures on developing countries |
| D. | the caste of class structure and discrimination in the labor market |
| Answer» C. The impact of international trade structures on developing countries | |
| 6. |
An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ? |
| A. | debt rescheduling agreement |
| B. | debt service agreement |
| C. | program for growth |
| D. | stabilization program |
| Answer» B. debt service agreement | |
| 7. |
One of the benefits of putting resources into agricultural projects is that ? |
| A. | Successful agricultural projects produce surplus food to support urban development |
| B. | agricultural investment will prevent the flight of capital abroad |
| C. | agricultural projects usually have low import requirements |
| D. | export prices for agricultural products are more stable than those for industrial products |
| Answer» D. export prices for agricultural products are more stable than those for industrial products | |
| 8. |
Which of the following is NOT one of the problems facing most developing nations ? |
| A. | Food shortages |
| B. | Foreign debt |
| C. | Rapid population growth |
| D. | Labor shortages |
| Answer» E. | |
| 9. |
The main reason why land reform increase agricultural output is that is ? |
| A. | encourages mechanization |
| B. | allows the farmers to set the prices for their agricultural products |
| C. | enables farmers to escape the problem of diminishing return |
| D. | makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers |
| Answer» E. | |
| 10. |
Debt-re-scheduling is ? |
| A. | an agreement with the World Bank to turn some of a debt into other forms |
| B. | a change in debt repayment due to inability to pay |
| C. | regular payments of interest and repayments of capital |
| D. | a program of austerity measures agreed with the IMF to make repayment possible |
| Answer» C. regular payments of interest and repayments of capital | |
| 11. |
Low agricultural productivity in developing countries is mainly caused by ? |
| A. | shortages of inputs including land |
| B. | an over-investment in farm equipment |
| C. | migration from rural areas to urban areas |
| D. | a lack of effective demand for food products |
| Answer» B. an over-investment in farm equipment | |
| 12. |
The term Fourth World has been coined to describe ? |
| A. | the newly industrialized countries like Korea, Taiwan Malaysia |
| B. | The republics of the former Soviet Union |
| C. | Countries that still have a communist government like China and Cuba |
| D. | countries that have fallen far behind the economic advances of the rest of the world |
| Answer» E. | |
| 13. |
85% of the world’s population lives in developing countries and receives about _____ of the world’s income? |
| A. | 40% |
| B. | 10% |
| C. | 20% |
| D. | 30% |
| Answer» D. 30% | |
| 14. |
A policy of developing local industries that can compete with imports is referred to as ? |
| A. | export promotion |
| B. | industrial promotion |
| C. | import substitution |
| D. | unbalanced growth |
| Answer» D. unbalanced growth | |
| 15. |
Experiences over the last three decades has suggested that in order for economic development to occur, it is necessary for an economy to ? |
| A. | stress agricultural development over industrial development |
| B. | promote industrial development over agriculture |
| C. | use a balanced strategy that promotes both agricultural and industrial development |
| D. | stress the importation of agricultural products and the export of manufactured goods |
| Answer» D. stress the importation of agricultural products and the export of manufactured goods | |
| 16. |
The idea that suggests that poverty is self-perpetuating because poor nations are unable to save and invest enough to accumulate the capital stock that would help them grow is ? |
| A. | the vicious circle of poverty hypothesis |
| B. | the dependency theory |
| C. | neo-colonialism |
| D. | the under-consumptionist hypothesis |
| Answer» B. the dependency theory | |
| 17. |
The developed nations have only about 15% of the world’s population, but they are estimated to consume _______ of the world’s output ? |
| A. | 80% |
| B. | 65% |
| C. | 50% |
| D. | 25% |
| Answer» B. 65% | |
| 18. |
Many developing countries instituted import substitution policies because ? |
| A. | the prices of the goods they imported were falling |
| B. | the price of goods they exported were increasing |
| C. | their terms of trade were deteriorating |
| D. | their terms of trade were improving |
| Answer» D. their terms of trade were improving | |
| 19. |
When economists talk about developing countries experiencing flight of capital they mean? |
| A. | money lent to the country being immediately invested abroad |
| B. | People investing their money in urban business rather than agriculture |
| C. | money moving around financial institutions rather than being invested in production |
| D. | people investing money abroad rather than in their own country |
| Answer» E. | |
| 20. |
Developing countries, if compared with other countries, have ? |
| A. | a lower rate of illiteracy |
| B. | a greater degree of equality in the income distribution |
| C. | a lower infant mortality rate |
| D. | a smaller percentage of the labor force in urban areas |
| Answer» E. | |