Question 1

Until the early 1700s, most people ___________.

Accepted Answer

Until the early 1700s, most people were engaged in subsistence farming, manufactured goods only at a small scale, and rarely engaged in international trade. This period is characterized by economies that were largely agrarian and localized, with limited global trade networks.

Question 2

International trade prior to the Industrial Revolution consisted mostly of trade in niche products like _____________.

Accepted Answer

Before the Industrial Revolution, international trade was largely focused on spices and precious metals and luxury goods, not on bulk agricultural products like fish.

Question 3

The Industrial Revolution accelerated the production of manufactured goods due to the development of _____________.

Accepted Answer

The steam engine was a key development of the Industrial Revolution that greatly accelerated the production of manufactured goods by providing an efficient and reliable source of power for factories and machinery.

Question 4

In the immediate aftermath of the Industrial Revolution, subsistence farmers were forced off their lands because _________________.

Accepted Answer

The consolidation of agricultural land into large mechanized farms made small-scale subsistence farming unsustainable, leading to the displacement of many subsistence farmers. This process, often referred to as enclosure or consolidation, significantly transformed agricultural practices by prioritizing efficiency and productivity over traditional methods.

Question 5

Who of the following was NOT considered leading thinkers on political economy following the Industrial Revolution?

Accepted Answer

John Maynard Keynes was not considered a leading thinker on political economy following the Industrial Revolution. His main contributions, including Keynesian economics, came significantly later, primarily in response to the Great Depression in the 20th century, whereas the others made their contributions closer to the Industrial Revolution era.

Question 6

David Ricardo made the case that countries should specialize in the production of goods they were comparatively better at, given available land, labour, and capital. This was known as the _________.

Accepted Answer

David Ricardo is best known for his theory of comparative advantage, which argues that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. This specialization can lead to increased efficiency and mutual benefits from trade.

Question 7

Early theorists like Adam Smith and David Ricardo laid the foundation for today's capitalist economy based on:

Accepted Answer

The answer of Early theorists like Adam Smith and David...

Question 8

Alexander Gerschenkron's theory of economic development did NOT include the _______________.

Accepted Answer

Gerschenkron's theory of economic development emphasized the role of the state in promoting heavy industry, infrastructure, and the collaboration between government and private sector for industrialization, but did not specifically focus on the production of consumer goods or improvements in agricultural output as a primary component.

Question 9

John Maynard Keynes, in trying to end the Great Depression of the 1930s, argued that ____________.

Accepted Answer

Keynes argued that in times of economic downturn, supply and demand might not automatically balance due to insufficient demand, private investors might not always make decisions beneficial for society's full economic potential, and that state intervention was necessary to guide the economy towards growth. He did not advocate for communism over capitalism, making all statements except C correct in the context of his economic theories.

Question 10

Walt W. Rostow, an American economist, proposed a five-stage model for economic development. This model did not include____________.

Accepted Answer

Rostow's model includes the stages: traditional society, preconditions for take-off, take-off, drive to maturity, and age of high mass consumption. "Transitory" is not one of the stages he described.

Question 11

Walt W. Rostow's transition stage of economic development argued that:

Accepted Answer

Rostow's transition stage, also known as the "take-off" stage, involves the development of internal and external markets, allowing for the sale of agricultural surpluses and the import of new goods with foreign technology.

Question 12

Walt W. Rostow's take-off stage included which of the following characteristics:

Accepted Answer

Walt W. Rostow's take-off stage of economic growth involves a period where a society begins to invest significantly in industrialization, leading to rapid urbanization, social changes, and improvements in infrastructure and education. This stage is characterized by a shift towards more organized and large-scale production in both agriculture and industry, making all the listed options correct characteristics of the take-off stage.

Question 13

Theories of development after World War II became known collectively as modernization theories. These theories initially did not include variants from _______________.

Accepted Answer

Modernization theories, which emerged after World War II, were interdisciplinary but initially did not incorporate perspectives from psychology. They primarily focused on aspects related to sociology, economics, and political science, aiming to understand and prescribe processes of development and modernization for countries around the world.

Question 14

Early models of economic development argued that Western governments had to help developing countries out of their traditional stage by:

Accepted Answer

Early models of economic development, such as Rostow's stages of economic growth, suggested that developing countries needed assistance to progress from their traditional stage to higher stages of development. This assistance could come in various forms, including foreign aid to support development projects, bank loans to finance growth, increasing trade to integrate into the global economy, and encouraging foreign investment to bring in capital, technology, and expertise.

Question 15

Neoliberalism believed that solutions to economic development were ______________.

Accepted Answer

Neoliberalism advocates for free markets, financial deregulation, and the globalization of markets as key strategies for economic development, emphasizing minimal state intervention in the economy.

Question 16

As a practice, neoliberalism was challenged in the 1980s and 1990s by the success of ______________.

Accepted Answer

East Asian countries like Japan, South Korea, and Taiwan achieved remarkable economic success through policies that involved significant government intervention in the economy, contrasting with the free-market principles of neoliberalism.

Question 17

Talcott Parsons elaborated on the work of Emile Durkheim and Max Weber to argue ________________. borrowed notions from ________________ to argue that Western societies were more evolved than the rest of the world.

Accepted Answer

Parsons argued that non-Western societies needed to adopt Western cultural and social norms to become industrialized, reflecting a belief in the superiority of Western values.

Question 18

Modernization theorists such as Talcott Parsons believed certain non-Western countries needed Western guidance in developing from "traditional" societies because ___________.

Accepted Answer

Modernization theorists like Talcott Parsons argued that non-Western countries were often collectivist and emotional ("non-rational"), which they believed hindered their development into modern societies. They thought these societies required Western guidance to transition from their "traditional" state.

Question 19

During the traditional stage of development, Western countries offered developing nations foreign aid and bank loans to _____________.

Accepted Answer

The answer of During the traditional stage of development, Western...

Question 20

Paul Rosenstein-Rodan argued for "big push" projects in development. This meant that:

Accepted Answer

Paul Rosenstein-Rodan's "big push" model posited that large-scale investments in infrastructure and industry could create a ripple effect, stimulating economic growth across various sectors. This approach emphasized the importance of significant, coordinated efforts rather than piecemeal or small-scale interventions.

Quiz 3: Theories of Development Economics