Question 1

In the growth process,two-sector models recognize the prime importance of:&#10;A) time and money.&#10;B) labor and capital.&#10;C) imports and exports.&#10;D) complements and substitutes.

Accepted Answer

Two-sector models in the growth process emphasize on the importance of labor and capital. These models typically assume that the economic growth is driven by increases in the amount of labor and capital inputs that are available for production. As such, the growth process is often described as being driven by the accumulation of factors of production rather than by technological progress or other exogenous factors.

Question 2

Among countries categorized as low income by the World Bank in 2008,agriculture accounts for:&#10;A) 10% of GDP&#10;B) 25% of GDP&#10;C) 50% of GDP&#10;D) 65% of GDP

Accepted Answer

In 2008, agriculture typically accounted for about 25% of GDP in low-income countries, as these economies heavily relied on agriculture for economic activity and employment.

Question 3

Disguised unemployment refers to:&#10;A) the underground economy.&#10;B) unemployment that fluctuates in the rural countryside.&#10;C) earning two incomes annually, but reporting only one.&#10;D) people who claim to be looking for a job, but have no intention of working.

Accepted Answer

Disguised unemployment is a situation where people appear to be employed, but their work is not contributing to productivity. In rural areas, there may be more workers than available jobs, leading to disguised unemployment where people are working but not producing anything meaningful, thus fluctuating.

Question 4

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Agricultural output per worker,nonagricultural output per worker

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 5

The neoclassical model argues that there must be a balance between:&#10;A) imports and exports.&#10;B) industry and agriculture.&#10;C) tariffs and quotas.&#10;D) the pace of modernization and respect for tradition.

Accepted Answer

The answer of The neoclassical model argues that there must...

Question 6

The argument that the proportion of income spent on food declines as income rises is known as:&#10;A) Say's Law.&#10;B) the Malthusian trap.&#10;C) Engel's law.&#10;D) health consciousness.

Accepted Answer

Engel's law states that as income rises, the proportion of income spent on food decreases, while the proportion spent on other goods and services increases. This is because as people become wealthier, they tend to spend more on discretionary items like vacations, luxury goods, and entertainment, and less on basic necessities like food. Say's Law is a macroeconomic principle that states supply creates its own demand; the Malthusian trap is a theory about population growth and resource scarcity; and health consciousness refers to the trend of consumers preferring healthier and more environmentally friendly products.

Question 7

All of the following are key characteristics of the agricultural production function EXCEPT:&#10;A) seasonality.&#10;B) geographic dispersion.&#10;C) sources of technical change.&#10;D) diminishing returns to labor.

Accepted Answer

Diminishing returns to labor is not a key characteristic of the agricultural production function.

Question 8

According to the Food and Agricultural Organization (FAO)of the United Nations,high food prices in 2008 pushed how many additional people into hunger?&#10;A) 20 million&#10;B) 40 million&#10;C) 57 million&#10;D) 1 billion

Accepted Answer

The answer of According to the Food and Agricultural Organization...

Question 9

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Food and Agricultural Organization (FAO),food price shock

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 10

Among the poor households of developing countries,household food expenditures amount to:&#10;A) 25% of income.&#10;B) 30-50% of income.&#10;C) 50-70% of income.&#10;D) 90% of income.

Accepted Answer

Among the poor households of developing countries, household food expenditures can amount to 50-70% of income. This high percentage can create significant challenges for families to afford other essential expenses such as healthcare, education, and housing.

Question 11

The nutritional linkage from agriculture to economic growth is based on evidence gathered by which Nobel-winning economic historian?&#10;A) Robert Fogel&#10;B) Robert Heilbroner&#10;C) Joseph Schumpeter&#10;D) Leon Walras

Accepted Answer

The answer of The nutritional linkage from agriculture to economic...

Question 12

The Fei-Ranis model can be used to explore the implications of:&#10;A) population growth and a rise in agricultural productivity.&#10;B) enclosure movements and the rise of urban laborers.&#10;C) becoming a resource exporting country.&#10;D) using barter as the primary method of exchanging goods.

Accepted Answer

The answer of The Fei-Ranis model can be used to...

Question 13

Between 2006 and 2008,the world experienced its worst food crisis since the:&#10;A) swine flu epidemic.&#10;B) 1930s.&#10;C) 1970s.&#10;D) fall of the Soviet Union.

Accepted Answer

The answer of Between 2006 and 2008,the world experienced its...

Question 14

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Structural transformation,Engel's Law

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 15

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Diminishing returns,labor surplus

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 16

___________ is the systematic changes in sector proportions as economies grow.&#10;A) Structural transformation&#10;B) Technical innovation&#10;C) Developmental devolution&#10;D) Unit-elastic supply

Accepted Answer

The answer of ___________ is the systematic changes in sector...

Question 17

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Agricultural productivity,technical change

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 18

The neoclassical two-sector model was developed and formalized by:&#10;A) Alfred Marshall.&#10;B) John Stuart Mill.&#10;C) Dale Jorgenson.&#10;D) John Maynard Keynes.

Accepted Answer

The answer of The neoclassical two-sector model was developed and...

Question 19

These two basic assumptions of David Ricardo have played an important role in two-sector models:&#10;A) rents and taxation.&#10;B) buyers and sellers.&#10;C) diminishing returns and labor surplus.&#10;D) constant returns to scale and economic efficiency.

Accepted Answer

The answer of These two basic assumptions of David Ricardo...

Question 20

Stability linkage operates primarily at the:&#10;A) microeconomic level.&#10;B) daily exchange rate.&#10;C) macroeconomic level.&#10;D) poorest areas in a society.

Accepted Answer

The answer of Stability linkage operates primarily at the:&#10;A) microeconomic...

Question 21

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Labor surplus model,neoclassical model

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 22

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Subsistence level,institutionally fixed wage

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 23

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Subsistence-oriented farmers,market-oriented farmers

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 24

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Intersectoral linkages,indirect linkages

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Question 25

IDs and Paired-Concept Questions&#10;These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.&#10;Marginal product of labor,average product

Accepted Answer

The answer of IDs and Paired-Concept Questions&#10;These terms can be...

Deck 16: Agriculture and Development