Economic Development

Description: This quiz is designed to assess your knowledge of Economic Development. It covers various aspects of economic growth, theories, policies, and challenges.
Number of Questions: 15
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Tags: economic development economic growth development theories economic policies challenges to development
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Which theory emphasizes the importance of capital accumulation and technological progress in economic growth?

  1. Classical Economic Theory

  2. Marxian Economic Theory

  3. Keynesian Economic Theory

  4. Neoclassical Economic Theory


Correct Option: D
Explanation:

Neoclassical Economic Theory, also known as the Solow-Swan model, emphasizes the role of capital accumulation and technological progress in driving economic growth.

According to the Rostow's Stages of Economic Growth model, which stage is characterized by the shift from traditional agriculture to modern industry?

  1. Traditional Society

  2. Preconditions for Take-off

  3. Take-off

  4. Drive to Maturity


Correct Option: C
Explanation:

In Rostow's model, the "Take-off" stage is characterized by the rapid growth of modern industry and the shift away from traditional agriculture.

Which economic theory argues that economic growth is primarily driven by technological innovation and knowledge creation?

  1. Classical Economic Theory

  2. Marxian Economic Theory

  3. Keynesian Economic Theory

  4. Endogenous Growth Theory


Correct Option: D
Explanation:

Endogenous Growth Theory emphasizes the role of technological innovation and knowledge creation as the primary drivers of economic growth.

The concept of "trickle-down economics" is associated with which economic theory?

  1. Classical Economic Theory

  2. Marxian Economic Theory

  3. Keynesian Economic Theory

  4. Supply-Side Economics


Correct Option: D
Explanation:

Supply-Side Economics, also known as trickle-down economics, argues that economic growth can be stimulated by reducing taxes and regulations on businesses and individuals.

Which economic policy aims to reduce unemployment by increasing aggregate demand through government spending and monetary expansion?

  1. Fiscal Policy

  2. Monetary Policy

  3. Structural Policy

  4. Trade Policy


Correct Option: A
Explanation:

Fiscal Policy involves government spending and taxation to influence aggregate demand and economic activity.

The concept of "comparative advantage" in international trade theory suggests that countries should:

  1. Produce goods in which they have an absolute advantage

  2. Produce goods in which they have a comparative advantage

  3. Produce goods in which they have a cost advantage

  4. Produce goods in which they have a demand advantage


Correct Option: B
Explanation:

Comparative advantage theory suggests that countries should specialize in producing goods in which they have a lower opportunity cost.

Which economic policy aims to promote economic growth by attracting foreign investment and increasing exports?

  1. Import Substitution Industrialization

  2. Export-Oriented Industrialization

  3. Structural Adjustment Program

  4. Debt Restructuring


Correct Option: B
Explanation:

Export-Oriented Industrialization focuses on promoting economic growth through exports and attracting foreign investment.

The concept of "human capital" in economic development refers to:

  1. The skills and knowledge possessed by a workforce

  2. The physical infrastructure of a country

  3. The natural resources available in a country

  4. The financial capital available in a country


Correct Option: A
Explanation:

Human capital refers to the skills, knowledge, and abilities of a workforce that contribute to economic productivity.

Which economic theory emphasizes the importance of institutional factors, such as property rights and contract enforcement, in economic development?

  1. Classical Economic Theory

  2. Marxian Economic Theory

  3. Keynesian Economic Theory

  4. Institutional Economics


Correct Option: D
Explanation:

Institutional Economics emphasizes the role of institutions, such as property rights and contract enforcement, in shaping economic outcomes.

The concept of "sustainable development" refers to:

  1. Economic growth without environmental degradation

  2. Economic growth without social inequality

  3. Economic growth without political instability

  4. Economic growth without technological advancement


Correct Option: A
Explanation:

Sustainable development aims to achieve economic growth without compromising the environment or depleting natural resources.

Which economic policy aims to reduce poverty and inequality by providing direct financial assistance to individuals and families?

  1. Fiscal Policy

  2. Monetary Policy

  3. Social Welfare Policy

  4. Trade Policy


Correct Option: C
Explanation:

Social Welfare Policy involves government programs and initiatives to provide financial assistance and support to individuals and families in need.

The concept of "economic inequality" refers to:

  1. The gap between the rich and the poor

  2. The gap between urban and rural areas

  3. The gap between men and women

  4. The gap between different ethnic groups


Correct Option: A
Explanation:

Economic inequality refers to the uneven distribution of income, wealth, and resources among individuals or groups in a society.

Which economic policy aims to promote economic growth by reducing government spending and taxation?

  1. Fiscal Policy

  2. Monetary Policy

  3. Structural Policy

  4. Trade Policy


Correct Option: A
Explanation:

Fiscal Policy involves government spending and taxation to influence aggregate demand and economic activity.

The concept of "economic growth" refers to:

  1. Increase in real GDP

  2. Increase in population

  3. Increase in technological advancement

  4. Increase in environmental sustainability


Correct Option: A
Explanation:

Economic growth refers to the sustained increase in the value of goods and services produced in an economy over time.

Which economic theory emphasizes the role of class struggle and exploitation in economic development?

  1. Classical Economic Theory

  2. Marxian Economic Theory

  3. Keynesian Economic Theory

  4. Neoclassical Economic Theory


Correct Option: B
Explanation:

Marxian Economic Theory emphasizes the role of class struggle and exploitation in shaping economic development.

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