Question 1

Economists estimate that decreasing barriers to migration by just 5 percent will:

Accepted Answer

A)   increase economic welfare of sending countries by trillions of dollars.
B)   decrease economic welfare of the countries that would lose their citizens to richer countries by trillions of dollars.
C)   decrease economic welfare of receiving countries by more than 5 percent.
D)   increase economic welfare by more than lifting restrictions on capital mobility in their entirety.E) None of the above
F) C) and D)

Question 2

Economist Jeffrey Sachs' big push theory involves:

Accepted Answer

A)   a concerted effort in many areas to break the poverty trap.
B)   giving a one-time large amount of aid upfront, ending the need for future aid.
C)   developed nations concertedly pushing developing nations into following certain beneficial policies.
D)   developed nations pushing away less developed nations as trading partners because in general less developed nations cannot offer any benefits to developed nations.E) None of the above
F) C) and D)

Question 3

In reality, overall growth and income for the poorest are:

Accepted Answer

A)   highly positively correlated, but not perfectly.
B)   uncorrelated.
C)   highly negatively correlated, but not perfectly.
D)   slightly positively correlated.E) B) and C)
F) B) and D)

Question 4

Remittances refers to:

Accepted Answer

A)   money paid to immigrants from hosting countries.
B)   money sent home from immigrants working abroad.
C)   the portion of money paid to immigrants that is not domestically taxed.
D)   the money immigrants get from the government once they immigrate to a nation.E) A) and B)
F) B) and C)

Question 5

When aid is in the form of free or remarkably reduced priced goods, it is known as:

Accepted Answer

A)   goods in-kind donations.
B)   freebies.
C)   direct donations.
D)   consumable donations.E) B) and C)
F) C) and D)

Question 6

About how many people out of 7 billion live on just $1.25 a day in the world?

Accepted Answer

A)   700 million
B)   500 million
C)   1.5 billion
D)   2 billionE) None of the above
F) A) and B)

Question 7

Democracy _______ essential to economic growth and according to the capabilities approach should _______________.

Accepted Answer

A)   is; also be seen as essential to sustaining basic freedoms
B)   is not; still be essential in sustaining basic freedoms
C)   is not; not be considered as improving lives if it doesn't directly contribute to growth
D)   is; not be considered to create capabilities without directly contributing to growthE) A) and D)
F) B) and C)

Question 8

Peruvian economist Hernando de Soto claims the ___________ in Latin America results in "dead capital."

Accepted Answer

A)   weak titling system
B)   strong titling system
C)   general lack of strong national defense
D)   generally weak currenciesE) B) and D)
F) None of the above

Question 9

When governments choose to favor some industries over others, they undertake:

Accepted Answer

A)   industrial espionage.
B)   corporate growth policy.
C)   corporate pricing policy.
D)   industrial policy.E) B) and C)
F) A) and B)

Question 10

Democracy is ______________ to economic growth.

Accepted Answer

A)   clearly linked and is essential
B)   clearly linked and is not essential
C)   not so clearly linked, yet seems to be essential
D)   not so clearly linked and does not seem to be essentialE) A) and B)
F) B) and C)

Question 11

In many countries, the system of titling is:

Accepted Answer

A)   weak, allowing more and faster investment.
B)   weak, slowing economic development.
C)   strong, slowing the amount of property transfer.
D)   strong, slowing economic growth.E) B) and C)
F) A) and D)

Question 12

Foreign aid got its start after World War II when:

Accepted Answer

A)   several European countries began offering aid to help one another recover.
B)   the U.S. gave $12 billion to help rebuild several European countries.
C)   the UK gave $12 billion to help rebuild several European countries.
D)   several European countries gave $12 billion in reparations.E) All of the above
F) A) and B)

Question 13

In 2005, developed countries began to offer "aid for trade" programs that:

Accepted Answer

A)   fund initiatives in developing countries that minimize trade barriers and provide infrastructure critical for trade.
B)   give developing countries funds to develop industries that create exports the developed nations want.
C)   give developing nations funds in exchange for free trade agreements.
D)   give developing nations funds in exchange for cheaper imports.E) B) and C)
F) C) and D)

Question 14

Impact investing involves investing money in:

Accepted Answer

A)   entire industries to have an overall impact.
B)   those economies with the largest finance gap.
C)   firms to generate both financial and social returns.
D)   None of these statements is true.E) B) and D)
F) B) and C)

Question 15

Good governance is:

Accepted Answer

A)   important to economic growth, but not to economic development.
B)   important to both economic growth and development.
C)   important to economic development, but not to economic growth.
D)   not important to either economic growth or development.E) B) and C)
F) All of the above

Question 16

The traditional industrial policy of import substitution:

Accepted Answer

A)   has been successful for those countries that managed to pick the "right" industries.
B)   has been successful for the great majority of countries.
C)   is generally unsuccessful in the real world.
D)   is used by most countries with some degree of success.E) C) and D)
F) B) and C)

Question 17

In general, each additional year of schooling is worth about:

Accepted Answer

A)   10 percent more in overall earnings over the course of a lifetime.
B)   5 percent more in overall earnings over the course of a lifetime.
C)   25 percent more in overall earnings over the course of a lifetime.
D)   50 percent more in overall earnings over the course of a lifetime.E) All of the above
F) C) and D)

Question 18

Doctors in private health care clinics provide better care than those in public clinics because:

Accepted Answer

A)   they are better trained.
B)   they have more incentive to practice good medicine.
C)   their fixed salary is generally higher than the fixed salaries of public clinic doctors.
D)   their facilities are generally much more updated than public facilities.E) A) and B)
F) B) and D)

Question 19

Impact investing is targeted toward:

Accepted Answer

A)   social businesses.
B)   entrepreneurial ventures.
C)   those who live on less than $1 a day.
D)   those in the agricultural sector.E) A) and B)
F) A) and C)

Question 20

The capabilities approach considers:

Accepted Answer

A)   how much total output changes over time in a society.
B)   what people can be and how much people can do over time in a society.
C)   how much human capital improves over time in a society.
D)   how much human capital one society has relative to another.E) B) and C)
F) C) and D)

Exam 19: Development Economics

Peruvian economist Hernando de Soto claims the ___________ in Latin America results in "dead capital."

Correct AnswerverifiedShow Answer

When aid is in the form of free or remarkably reduced priced goods, it is known as:

Correct AnswerverifiedShow Answer

Impact investing is targeted toward:

Correct AnswerverifiedShow Answer

In 2005, developed countries began to offer "aid for trade" programs that:

Correct AnswerverifiedShow Answer

The capabilities approach considers:

Correct AnswerverifiedShow Answer

Democracy is ______________ to economic growth.

Correct AnswerverifiedShow Answer

Impact investing involves investing money in:

Correct AnswerverifiedShow Answer

When governments choose to favor some industries over others, they undertake:

Correct AnswerverifiedShow Answer

Democracy _______ essential to economic growth and according to the capabilities approach should _______________.

Correct AnswerverifiedShow Answer

Doctors in private health care clinics provide better care than those in public clinics because:

Correct AnswerverifiedShow Answer

Good governance is:

Correct AnswerverifiedShow Answer

Remittances refers to:

Correct AnswerverifiedShow Answer

Economists estimate that decreasing barriers to migration by just 5 percent will:

Correct AnswerverifiedShow Answer

In many countries, the system of titling is:

Correct AnswerverifiedShow Answer

The traditional industrial policy of import substitution:

Correct AnswerverifiedShow Answer

Economist Jeffrey Sachs' big push theory involves:

Correct AnswerverifiedShow Answer

About how many people out of 7 billion live on just $1.25 a day in the world?

Correct AnswerverifiedShow Answer

In general, each additional year of schooling is worth about:

Correct AnswerverifiedShow Answer

In reality, overall growth and income for the poorest are:

Correct AnswerverifiedShow Answer

Foreign aid got its start after World War II when:

Correct AnswerverifiedShow Answer

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Democracy _ essential to economic growth and according to the capabilities approach should _________.

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