MCQs of Development Economics With Answers

MCQs of development economics with answers for economics studies test preparation.

MCQs of Development Economics With Answers

The World Bank Group assigns the world's economies to four income groups 

A. NIC, OPEC and G7
B. low, lower-middle, upper-middle, and high
C. Southeast Northeast and Southwest
D. Asia, America and Europe

The Paasche index uses _________ weights?

A. current-year
B. base-year
C. fisher-ideal index
D. Purchasing Power Parity (PPP)

According to the next basic needs include ?

A. food, clothing and housing
B. health, education and quality housing
C. adequate nutrition, primary education health sanitation water supply and housing
D. longevity and living standards

Longevity is proxy for ________ in the Human Development Index?

A. health and nutrition
B. living standard
C. infant mortality
D. Purchasing Power Parity

Lespeyres type indexes use weights from _____?

A. current period
B. base-period
C. forecasting
D. future year

All of the following are high income countries except ?

A. Singapore
B. U.K
C. Japan
D. South Africa

All of the following are high income countries except ?

A. the United Kingdom
B. Singapore
C. Japan
D. Hungary

All of the following are low income countries except ?

A. United Arab Emirates
B. Armenia
C. Sudan
D. Bangladesh

The formula for the Laspeyres price index is (o is the base year and n is the given year) ?

A. P = ∑Poqo/∑poqo
B. P = ∑Poqo/∑pnqn
C. P = ∑Pnqo/∑poqo
D. P = ∑Poqn/∑poqo

The three measure of welfare indicators above comprise the ?

A. Purchasing Power Parity
B. Physical Quality of Life Index
C. Human Development Index
D. The Laspeyres index

Which of the following is not one of the Newly Industrialized Countries (NICs) ?

A. Japan
B. South Korea
C. Taiwan
D. Singapore

Imitating labour standards from rich countries in LDCs may increase ?

A. equality
B. poverty
C. employment
D. human development

The formula to calculate Passche price index is (o is the base year and n is the given year) ?

A. P = ΣPnqn/Σpoqn
B. P = ΣPoqo/Σpnqn
C. P = ΣPnqo/Σpoqo
D. P = ΣPnqn/Σpoqo

If GDP for Barbados is $260 million in 2011 and its population is 260,000 GDP per capita is ?

A. 1000
B. 260
C. 0.001
D. 259740

Which of the following countries is not a low income country ?

A. Indonesia
B. India
C. Malaysia
D. Nigeria

Which of the following are not third-world regions ?

A. Latin America
B. Asia
C. Africa
D. Australia

Which country is not a transitional economy ?

B. Russia
C. Hungary
D. Mexico

Development economics focuses primarily on the poorest ______ of the worlds?

A. population
B. two thirds
C. one third
D. 28 percent
E. 5 percent

Of the World’s population what portion lives in developing countries ?

A. approximately 35%
B. approximately 80%
C. nearly 10 billion people
D. nearly 1 billion people

Which of the following could not be considered a major economic system ?

A. capitalism
B. physical quality of life index
C. socialism
D. communism
E. None of the above

Which of the following characteristics are most likely found in developing countries ?

A. high population growth rates
B. large number of people living in poverty
C. very traditional methods of agricultural production
D. All of the above

Which of the following countries are not newly industrialized countries (NICs) ?

A. Taiwan
B. North Korea
C. Singapore
D. Hong Kong

The poorest region of the World is ?

A. the Middle East
B. Sub Saharan Africa
C. Asia
D. Latin America

In which of the following countries would you expect material lifestyles to be most like those in the United States ?

A. Nigeria
B. Japan
C. India
D. Mali

Which of the following could be considered critical in development economics ?

A. How do the poorest 2/3 of the world live?
B. What are the major theories of economic
C. what factors affect labour skills in the third world
D. All of the above are correct

Government’s use of coordinated policies to achieve national economic objectives is ?

A. commanding heights
B. entrepreneurial programs
C. public physical policy
D. development planning

According to Oskar Lange’s model socialist enterprises should produce where ?

A. The monopoly profit maximization rule applies
B. Product price equals marginal cost
C. marginal revenue equals average cost
D. total revenue equals total cost

A medium-term plan can be a(n) ________ revised at the end of each year?

A. instrument variable
B. seasonal expenditure
C. rolling plan
D. perspective plan

Annual GNP growth of 6% poverty reduced by 1% point of the population Balance of payments deficit not in excess of $200 million For a planner, the above are ?

A. achieved only through socialism
B. target variables
C. bound by soft budget
D. recurrent expenditures

Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?

A. indicative plan
B. central bank policies
C. central planning
D. instrument variables

Worker-managed socialism helped contribute to ________ ‘s rapid economic growth from 1959 to 1979?

A. Yugoslavia
B. Chile
C. Vietnam
D. Japan

Branko Horvat’s historical review of the last two and one-half century indicates that in large part market or decentralized socialism ?

A. has failed
B. works well in Utopia
C. is widely used in sub Saharan Africa
D. is the only way to eradicate poverty?

A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ?

A. Keeping balanced budget, a price target
B. slow economic growth under colonial capitalism
C. minimizing public spending in the rural areas
D. western countries, nation-state ideology

The ratio of Industrial progress in the country is ?

A. 4.3%
B. 5.4%
C. 6.2%
D. 8.6%

Which of the following countries is not a low-income country ?

A. Ethiopia
B. Rwanda
C. Somalia
D. Singapore

Which of the following are low income countries income country ?

A. Canada
B. United States
C. Mexico
D. Australia

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