I need 200 words in Economic Development in my 35 multiple choice questions

Instructions

Complete attached assignment file 

Total of 35 multiple choice questions

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Attachment 1:

Economic Development (ECON 550)

  1. What is development process and what make development economics different from traditional economics (definition & brief description, 2-3 sentences) A good definition of the meaning of development is the 

a. elimination of absolute poverty.

b. improvement in the quality of life.

c. fulfillment of the potential of individuals.

d. all of the above.

2. “Develop further an open, rule-based, predictable, nondiscriminatory trading and financial system” is: 

a) One of the basic functioning in Amartya Sen’s “Capability” approach.

b) One of main core value of development

c) Millennium Development Goal & Target

d) One of characteristics of social system in context of globalization

  3. What factor best correlates with income level, social relationships, personal and democratic freedoms, religious beliefs, and health: 

a) GNI

b) Self-Esteem

c) Well-being index

d) Happiness

4. Which of these two per capita indicators: GNI or PPP better characterize the difference between poor and rich countries_______ and what is their correlation for low income countries (use the respective table to make comparison): 

a) 0.42 (exchange rate/PPP)

b) 0.58

c) 0.99

d) 0.00

5. What is New in the New HDI? 

a) A holistic measure of living levels according three dimensions: Health, Life Expectancy and Education

b) Aggregating the three “dimension indices” to capture how well rounded a country’s performance is

c) More attention to quality of growth

d) Include “Gender Inequality Index (GNI)

6. According to Nobel laureate Douglass North “the rules of the game” in economic life (in comparative development) are determined by: 

a) well functioning markets

b) effective civil society

c) income and human development

d) economic institutions

7. The central role of savings and capital formation is at the core of: 

a) W.Rostow and Harrod-Domar model

b) A.Lewis structural change theory

c) The neocolonial dependence model

d) False-Paradigm model

8. If national capital-output ratio is 4% and the savings ratio is 35%, then the country’s growth rate (according Harrod-Domar model) is: 

a) 1.4%

b) 11.42%

c) 8.75%

d) 4.35%

 9. In the Romer endogenous growth model growth rate per capita is:  

In what case output per capita is growing (Appendix 3.3):

a. positive capital externality (β >0) 

b. constant return to scale (β =0)

c. output growth rate is bigger then the population growth rate (g- n>0)

d. α = 0

 
10. In the Figure above (The Big Push) which wage line is compatible with the efficient industrialization? 

a) W1; b) W2; c) W3; d) none of them

11. How do we call the characteristic of the O-ring production function when workers with high skills will work together and workers with low skills will work together: 

a) Inelastic labor supply

b) Risk neutral business environment

c) Competitive labor markets

d) Positive assortative matching

12. In HRV Growth Diagnostic Framework the profitability of an investment in which cost and benefits are accounted for from the perspective of society as a whole is identified as: 

a) Growth diagnostic tree

b) Economic development strategy

c) Social returns

d) Macro-risk associated with market failure

13. How it is called the measure of degree of inequality between top 20% and bottom 40% of population?
a) Kuznets ratio 

b) Size distribution of income

c) Functional distribution of income

d) Lorenz curve

 
14. Transferring some income from a richer person to a poor person with resulting more equal distribution of new income is define as a Gini coefficient principle of : 

a) Anonymity

b) Pigou Dalton

c) Scale independence

d) Population independence

15. The average amount by which the income of a poor person falls below the poverty line is defined: 

a) Total poverty gap (TPG)

b) Average poverty gap (APG)

c) Average income shortfall (AIS)

d) Normalized income shortfall

 
16. What is a measure of inequality in which the sample standard deviation is divided by the sample mean: 

a) Factor share distribution of income

b) “Lorenz criterion” of inceome distribution

c) The Ahluwalia-Chenery Welfare Index (ACWI)

d) The coefficient of variation (CV)

The 2002 World Development Report provides the following information for Colombia and Thailand: 

Per Capita 

GDP ($)

Per Capita

GDP

(PPP $) Population

below National

Poverty Line

(%) Population

below

$1 Day PPP

(%) Poverty

Gap at

$1 Day

PPP (%)

Gini 

Index

Colombia 2080 5890 17.7 11.0 3.2 57.1

Thailand 2010 6330 13.1 <2 <0.5 41.4

17. The table above shows that Colombia and Thailand are roughly at the same level of economic development as measured by the level per capita national income. Their performance in terms of poverty indicators is quite different. What are the main tools of measuring poverty and inequality: 

a) Headcount index, poverty gap, and Gini coefficient

b) Normalized income shortfall, average income shortfall, normalized poverty gap

c) Total poverty gap, average poverty gap, coefficient of variation

d) Forster-Greer-Thorbecke (FTG) index, squared poverty gap index, Lorenz curve

18. In the FTG index  

 what should be the value of α to measure the severity of poverty: 

a) α=0; b) α=2; c) α=1; d) α=3

 19. The Human Poverty Index (HPI):

a. is a method used to measure changes in absolute poverty.

b. shows the value judgement implications of using the change in income per capita as a measure of the change in development.

c. measures poverty in terms of life deprivation, basic education and overall economic provisioning

d. is a method used to measure the growth rate of GDP.

20. The hidden momentum of population growth is explained by 

a. the demographic transition.

b the opportunity cost of a woman’s time.

c population age structure.

d. children’s contribution to income.

 
Figure 6.9 Microeconomic Theory of Fertility: An Illustration 

21. In the figure above movement form point f to point g is explained by:

a) An outward shift and downward rotation of the budget constraint line cd

b) Household ability to “purchase” alternative combinations of goods and children

c) Motivation of household to have fewer children while still improving their welfare

d) Combination of goods and children that maximize family satisfaction based on subjectivity determined preferences

22. The Malthusian population trap assumes that

a. contraception is unavailable.

b. population grows at a geometrical progression while food supplies – at arithmetic rate.

c. technological progress may be rapid.

d. All of the above.

23. The assumption that too rapid population growth yields negative economic consequences and is a real concern in developing countries is known as: 

      a) Malthusian population trap

      b) A radical neo-Marxist argument that population growth is deliberately contrived false issue

      c) The theory that population growth is in fact desirable

      d) The population-poverty cycle theory

24. In the equation derived from the standard Solow-type neoclassical growth model: y – l = α(k – 1) + t the assumption that the rate of per capita income growth (y – l) is directly proportional to the rate of growth of the capital-labor ratio plus the residual effect of technological change is based on the assumption: 

a) Unrestrained population growth is the principal cause of poverty

b) Population growth is a false issue

c) Constant return to scale

d) Increase in international migration is one of the major consequence of developing countries

25. Which of the following will cause the largest reduction in the birthrate?

a. an increase in the opportunity cost of a woman’s time

b. public healthcare improves

c. education becomes more available

d. the population becomes less religious

26. Which of the following is an example of general and specific policies that developing country governmentscan initiate to control their population growth? 

a) Deliberately manipulate economic incentives and disincentives for having children

b) Address gross inequalities in global resource use

c) Research into the technology of fertility control

d) Financial assistance for family-planning programs

27. Most successful examples of modern economic growth have occurred in a country with 

a. a temperate-zone climate.

b. a market economy.

c. exports of manufactured goods.

d. all of the above.

28. The dependency burden is

a. a measure of the degree to which the less developed countries are dependent on the rich industrial countries.

b. the average number of children that a woman gives birth to during her lifetime.

c. the percent of the population that is below 15 and above 65 years of age.

d. the number of babies born per 1000 persons.

29. In the public choice (or new political economy) approach to development the emphasis is on 

a. growth in the rural sector.

b. the self-interested behavior of public officials.

c. the dependence of LDCs on former colonial powers.

d. the inherent efficiency of developing country markets.

30. A situation in which government intervention in the economy worsens the economic outcome is termed 

a. government failure.

b. socialism.

c. neoclassical failure

d. dependency revolution.

31. The O-ring theory places emphasis on 

a. education of the labor force.

b. purchases of machinery and equipment by firms

c. skill complementarities. .

d. None of the above.

32. Poverty is better studied with size distribution measures than with those based on factor distribution because

a. labor income may be highly concentrated in well-paid modern sector workers.

b. some poor farmers may receive a sizable share of income in rent.

c. income from nonmarket activities, such as foraging, may be important.

d. All of the above.

33. The Ahluwalia-Chenery Welfare Index

a. is a method used to measure changes in absolute poverty.

b. shows the value judgement implications of using the change in income per capita as a measure of the change in development.

c. is a method used to measure changes in inequality.

d. is a method used to measure the growth rate of GDP.

34. The functional distribution of income refers to the distribution of income between

a. the factors of production (land, labor and capital).

b. rural individuals or households.

c. urban individuals or households.

d. individuals or households.

35. Which of the following is a direct implication of the view that childbearing is an economic decision? 

a. People will not have additional children unless they can earn a profit from doing so. 

b. Social factors have no effect on childbearing decisions.

c. Fertility should fall with improved opportunities for women to work in jobs outside the home.

d. Compulsory education will increase fertility because educated children have the potential to earn higher salaries.