Economics MCQs

Page No. 186

Developing countries, if compared with other countries, have ?


aa lower rate of illiteracy


b a greater degree of equality in the income distribution


ca lower infant mortality rate


da smaller percentage of the labor force in urban areas



When economists talk about developing countries experiencing flight of capital they mean?


amoney lent to the country being immediately invested abroad


bPeople investing their money in urban business rather than agriculture


c money moving around financial institutions rather than being invested in production


dpeople investing money abroad rather than in their own country



Debt-re-scheduling is ?


aan 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


cregular payments of interest and repayments of capital


da program of austerity measures agreed with the IMF to make repayment possible



Most of the Third World/Fourth World debt was incurred in ?


a The colonial period


bThe early 1950s


c most debt was incurred during the oil shocks of the 1970s


d the early 1960s



When economists say that developing countries have a dualistic economy the 2 parts referred to are ?


amodern sector and traditional sector


btown and country


cmen and women


drich people and poor people



The main reason why land reform increase agricultural output is that is ?


aencourages mechanization


ballows the farmers to set the prices for their agricultural products


cenables 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



Low agricultural productivity in developing countries is mainly caused by ?


a shortages of inputs including land


ban over-investment in farm equipment


cmigration from rural areas to urban areas


da lack of effective demand for food products



Experiences over the last three decades has suggested that in order for economic development to occur, it is necessary for an economy to ?


astress agricultural development over industrial development


bpromote industrial development over agriculture


cuse a balanced strategy that promotes both agricultural and industrial development


d stress the importation of agricultural products and the export of manufactured goods



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 ?


athe vicious circle of poverty hypothesis


bthe dependency theory


cneo-colonialism


d the under-consumptionist hypothesis



A policy of developing local industries that can compete with imports is referred to as ?


aexport promotion


b industrial promotion


c import substitution


dunbalanced growth



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