Problems of Economic Development

Description: This quiz covers the challenges and obstacles faced by developing countries in their pursuit of economic progress.
Number of Questions: 15
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Tags: economic development developing countries challenges obstacles
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Which of the following is a major obstacle to economic development in many countries?

  1. High levels of education

  2. Abundant natural resources

  3. Political instability

  4. Advanced technology


Correct Option: C
Explanation:

Political instability can lead to uncertainty, corruption, and a lack of investment, all of which can hinder economic growth.

What is the term used to describe the widening gap between rich and poor countries?

  1. Economic convergence

  2. Economic divergence

  3. Income equality

  4. Poverty reduction


Correct Option: B
Explanation:

Economic divergence refers to the increasing disparity in economic development between countries, with some countries becoming wealthier while others fall behind.

Which of the following is a common challenge faced by developing countries in their efforts to achieve economic growth?

  1. High levels of foreign investment

  2. Skilled labor force

  3. Efficient infrastructure

  4. Lack of access to capital


Correct Option: D
Explanation:

Lack of access to capital, such as loans and investments, can make it difficult for businesses to expand and create jobs, hindering economic growth.

What is the term used to describe the process of a country transitioning from a traditional agricultural economy to a modern industrial economy?

  1. Economic diversification

  2. Industrialization

  3. Urbanization

  4. Globalization


Correct Option: B
Explanation:

Industrialization involves the shift from an economy based on agriculture to one based on manufacturing and industry.

Which of the following is a key factor contributing to economic growth in developing countries?

  1. High levels of government regulation

  2. Limited access to education

  3. Strong property rights

  4. Widespread poverty


Correct Option: C
Explanation:

Strong property rights encourage investment and entrepreneurship, which can lead to economic growth.

What is the term used to describe the process of a country becoming more integrated with the global economy?

  1. Economic isolation

  2. Globalization

  3. Protectionism

  4. Autarky


Correct Option: B
Explanation:

Globalization refers to the increasing interconnectedness and interdependence of countries through trade, investment, and technology.

Which of the following is a common challenge faced by developing countries in their efforts to achieve sustainable economic growth?

  1. Abundant natural resources

  2. High levels of foreign aid

  3. Environmental degradation

  4. Skilled labor force


Correct Option: C
Explanation:

Environmental degradation, such as deforestation and pollution, can hinder economic growth by reducing productivity and increasing health costs.

What is the term used to describe the process of a country's economy becoming more diverse, with a wider range of industries and sectors?

  1. Economic diversification

  2. Industrialization

  3. Urbanization

  4. Globalization


Correct Option: A
Explanation:

Economic diversification involves reducing dependence on a single industry or sector and expanding into new areas of economic activity.

Which of the following is a key factor contributing to economic growth in developing countries?

  1. High levels of government regulation

  2. Limited access to education

  3. Strong property rights

  4. Widespread poverty


Correct Option: C
Explanation:

Strong property rights encourage investment and entrepreneurship, which can lead to economic growth.

What is the term used to describe the process of a country becoming more integrated with the global economy?

  1. Economic isolation

  2. Globalization

  3. Protectionism

  4. Autarky


Correct Option: B
Explanation:

Globalization refers to the increasing interconnectedness and interdependence of countries through trade, investment, and technology.

Which of the following is a common challenge faced by developing countries in their efforts to achieve sustainable economic growth?

  1. Abundant natural resources

  2. High levels of foreign aid

  3. Environmental degradation

  4. Skilled labor force


Correct Option: C
Explanation:

Environmental degradation, such as deforestation and pollution, can hinder economic growth by reducing productivity and increasing health costs.

What is the term used to describe the process of a country's economy becoming more diverse, with a wider range of industries and sectors?

  1. Economic diversification

  2. Industrialization

  3. Urbanization

  4. Globalization


Correct Option: A
Explanation:

Economic diversification involves reducing dependence on a single industry or sector and expanding into new areas of economic activity.

Which of the following is a key factor contributing to economic growth in developing countries?

  1. High levels of government regulation

  2. Limited access to education

  3. Strong property rights

  4. Widespread poverty


Correct Option: C
Explanation:

Strong property rights encourage investment and entrepreneurship, which can lead to economic growth.

What is the term used to describe the process of a country becoming more integrated with the global economy?

  1. Economic isolation

  2. Globalization

  3. Protectionism

  4. Autarky


Correct Option: B
Explanation:

Globalization refers to the increasing interconnectedness and interdependence of countries through trade, investment, and technology.

Which of the following is a common challenge faced by developing countries in their efforts to achieve sustainable economic growth?

  1. Abundant natural resources

  2. High levels of foreign aid

  3. Environmental degradation

  4. Skilled labor force


Correct Option: C
Explanation:

Environmental degradation, such as deforestation and pollution, can hinder economic growth by reducing productivity and increasing health costs.

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