Economics MCQs

Page No. 186

Developing countries, if compared with other countries, have ?


aa lower rate of illiteracy

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b a greater degree of equality in the income distribution

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ca lower infant mortality rate

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da smaller percentage of the labor force in urban areas

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


amoney lent to the country being immediately invested abroad

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bPeople investing their money in urban business rather than agriculture

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

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dpeople investing money abroad rather than in their own country

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Debt-re-scheduling is ?


aan agreement with the World Bank to turn some of a debt into other forms

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b a change in debt repayment due to inability to pay

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cregular payments of interest and repayments of capital

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

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


a The colonial period

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bThe early 1950s

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

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d the early 1960s

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


amodern sector and traditional sector

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btown and country

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cmen and women

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drich people and poor people

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


aencourages mechanization

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ballows the farmers to set the prices for their agricultural products

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cenables farmers to escape the problem of diminishing return

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d makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers

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Low agricultural productivity in developing countries is mainly caused by ?


a shortages of inputs including land

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ban over-investment in farm equipment

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cmigration from rural areas to urban areas

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da lack of effective demand for food products

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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

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bpromote industrial development over agriculture

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cuse a balanced strategy that promotes both agricultural and industrial development

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

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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

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bthe dependency theory

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cneo-colonialism

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d the under-consumptionist hypothesis

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


aexport promotion

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b industrial promotion

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c import substitution

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dunbalanced growth

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