Deck 1: Economics, Institutions, and Development: a Global Perspective  

Question 1

In what way is development economics greater in scope than traditional economics?

Answer 1

Development economics must encompass the study of institutional, political, and social as well as economic mechanisms for modernizing an economy while eliminating absolute poverty and transforming states of mind as well as physical conditions. More details found in the chapter.

Question 2

Which of the following is not an important objective of development?

A)increases in per capita income
B)the expansion of available choices
C)increases in individual and national self-esteem
D) all of the above are important objectives of development

Answer 2

D

Question 3

Development economics is the study of the

A)alleviation of absolute poverty.
B)transformation of institutions.
C)allocation of resources in developing countries.
D) all of the above.

Answer 3

D

Question 4

Do you think it is in the material interests of high-income countries to help low-income countries improve their economic performance? Why or why not?

Question 5

How is happiness related to development?

Question 6

What are the most important characteristics that have shaped Brazil's economic and social progress during the last three decades?

Question 7

A subsistence economy is

A)a very low income economy.
B)an economy in which people make what they consume.
C)an economy in which people receive food for pay.
D) all of the above.

Question 8

Countries tend to be classified as more or less developed based on

A)the literacy rate.
B)the poverty rate.
C)the level of income per capita.
D) the types of goods they produce.

Question 9

It has been said that "underdevelopment is a state of mind." Comment.

Question 10

Development economics must have a scope wider than traditional economics because

A)values and attitudes play little role in the pace of development.
B)people in developing societies do less utility-maximizing.
C)transformation of social institutions is necessary for development.
D) all of the above.

Question 11

What are the Millennium Development Goals (MDGs) and how did they come about? What do you consider to be the most important of these and why?

Question 12

Make a case that development economics might be merely a combination of all the other subfields?of economics, only applied to low-income countries.

Question 13

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.

Question 14

Why are women often referred to as playing a central role in economic development?

Question 15

Provide a definition of development economics. Justify your choice carefully.

Question 16

Which of the following demonstrates international interdependence?

A)the oil shocks
B)the debt crisis
C)global warming
D) all of the above.

Question 17

What do you think are the most serious obstacles to further progress in the developing world?

Question 18

In defining development to include more than just the growth of per capita income, there is an implicit assumption that the growth of per capita income alone is not sufficient to guarantee the reduction of poverty and the growth of self-esteem. Is it possible that there could be growth of ?per capita income without the achievement of these other objectives?

Question 19

The Millennium Development Goals include

A)eliminating the proportion of people living on less than $1 per day.
B)universal primary education.
C)increasing exports by one half.
D) all of the above.

Question 20

In reviewing discussions of life in developing countries, what is it about lifestyles in the low-income countries compared with lifestyles in the high-income countries that most strikes you? Why?

Question 21

It is not possible for a country to experience

A)economic development without economic growth.
B)economic growth without economic development.
C)economic growth and economic development simultaneously.
D) both (a) and (b) are correct.

Question 22

The core values of development include

A)increasing income per person.
B)reducing the inequality of income.
C)the ability to meet basic needs.
D) all of the above.