1. What is the primary focus of development economics?

a) Maximizing corporate profits

b) Reducing poverty and inequality
c) Increasing military spending
d) Promoting stock market growth
Answer: b) Reducing poverty and inequality

2. Which of the following is considered a key factor in economic development?

a) Natural resources
b) Technological progress
c) Political stability
d) All of the above
Answer: d) All of the above

3. What is the "institutional framework" in an economy?

a) The total GDP of a nation
b) The system of rules and norms governing economic behavior
c) The physical infrastructure of a country
d) A collection of schools and universities
Answer: b) The system of rules and norms governing economic behavior

4. What is the Human Development Index (HDI) designed to measure?

a) Income inequality
b) National wealth
c) Overall well-being through health, education, and income
d) Inflation rates
Answer: c) Overall well-being through health, education, and income

5. Which economist is most closely associated with the "capabilities approach" to development?
a) Milton Friedman
b) Adam Smith
c) Amartya Sen
d) Karl Marx
Answer: c) Amartya Sen

6. Why do institutions matter for economic development?

a) They reduce inflation directly.
b) They shape incentives and enforce rules that affect growth.
c) They provide subsidies for industries.
d) They guarantee free markets.
Answer: b) They shape incentives and enforce rules that affect growth.

7. What is the "dual economy" concept in development economics?

a) Economies with two forms of currency
b) Coexistence of modern and traditional sectors in one economy
c) A country that imports and exports the same products
d) A combination of private and public enterprises
Answer: b) Coexistence of modern and traditional sectors in one economy

8. What does the Solow Growth Model primarily emphasize?

a) The role of institutions in growth
b) Technological progress and capital accumulation
c) Trade liberalization as a growth driver
d) Redistribution of wealth
Answer: b) Technological progress and capital accumulation

9. Which of the following is an example of an "inclusive institution"?

a) Extractive colonial systems
b) Democratic governance with property rights
c) Monopolies controlling markets
d) Dictatorial regimes
Answer: b) Democratic governance with property rights

10. Which theory explains the persistent underdevelopment due to unequal exchange in
international trade?
a) Neoclassical Growth Theory
b) Dependency Theory
c) Keynesian Economics
d) Rational Choice Theory
Answer: b) Dependency Theory

11. What is the “poverty trap”?

a) A situation where poor countries become wealthy over time
b) The cycle of low income leading to low savings and low investment
c) Excessive taxation in underdeveloped nations
d) Rising inequality in developed economies
Answer: b) The cycle of low income leading to low savings and low investment

12. What does "structural transformation" in development refer to?

a) Shifting from agriculture to manufacturing and services
b) Reducing government intervention in the economy
c) Increasing inflation to boost growth
d) Changing political leaders frequently
Answer: a) Shifting from agriculture to manufacturing and services

13. What is the primary goal of microfinance institutions?

a) To maximize profits
b) To provide financial services to the poor
c) To encourage stock trading
d) To regulate foreign exchange
Answer: b) To provide financial services to the poor

14. What does "economic convergence" imply?

a) All nations will eventually adopt the same political systems
b) Poor economies will grow faster and catch up with richer ones
c) Every economy will experience the same inflation rate
d) Trade barriers will increase
Answer: b) Poor economies will grow faster and catch up with richer ones

15. Which metric best captures inequality in a country?

a) GDP per capita
b) Gini coefficient
c) Consumer Price Index
d) Foreign Direct Investment
Answer: b) Gini coefficient\
1. What is the main difference between economic growth and economic development?
a) Economic growth focuses on GDP, while economic development includes improvements in living
standards.
b) Economic development is faster than economic growth.
c) Economic growth requires political stability, while economic development does not.
d) Economic development only focuses on industrialization.
Answer: a) Economic growth focuses on GDP, while economic development includes improvements in
living standards.

2. Which of the following is a key indicator of economic development?

a) High levels of inflation
b) Increase in GDP per capita
c) Rising levels of inequality
d) Decrease in foreign investments
Answer: b) Increase in GDP per capita

3. What is sustainable development?

a) Development that meets present needs without compromising future generations' ability to meet
theirs
b) Rapid industrialization without environmental considerations
c) Economic growth through exploitation of natural resources
d) A focus solely on increasing GDP growth
Answer: a) Development that meets present needs without compromising

1. What is a common characteristic of developing economies?

a) High levels of industrialization
b) High population growth rates
c) Low levels of illiteracy
d) Large-scale capital exports
Answer: b) High population growth rates

2. Which sector often dominates the economies of developing countries?

a) Agriculture
b) Technology
c) Services
d) Finance
Answer: a) Agriculture

3. What does the term "dualism" in developing economies refer to?

a) The coexistence of modern and traditional sectors
b) Dependence on two types of currency
c) Strong trade ties between two nations
d) The division of government into two branches
Answer: a) The coexistence of modern and traditional sectors

4. Which of the following is a common issue in many developing economies?

a) High levels of savings
b) Widespread income inequality
c) Surplus of skilled labor
d) Low birth rates
Answer: b) Widespread income inequality

5. What is a shared challenge in many developing countries?

a) Overproduction of manufactured goods
b) Underdeveloped infrastructure
c) Excessive foreign exchange reserves
d) Declining population
Answer: b) Underdeveloped infrastructure

6. What is a key feature of "structural heterogeneity" in developing economies?

a) Uniform productivity across sectors
b) A mix of high-productivity and low-productivity sectors
c) Heavy reliance on exports
d) Consistent technological advancements
Answer: b) A mix of high-productivity and low-productivity sectors

7. Which of the following is a diverse characteristic among developing countries?

a) Differences in natural resource endowments
b) Similar levels of poverty
c) Comparable dependency on agriculture
d) Uniform political systems
Answer: a) Differences in natural resource endowments

8. What is one way developing countries can overcome their "middle-income trap"?
a) Relying solely on natural resources
b) Transitioning to high-value-added industries
c) Increasing reliance on foreign aid
d) Expanding low-wage manufacturing
Answer: b) Transitioning to high-value-added industries

9. Which characteristic is often found in countries with low economic development?

a) High levels of technology adoption
b) High dependency ratios (working-age population to non-working-age population)
c) Significant foreign investment inflows
d) Strong institutions
Answer: b) High dependency ratios

10. Which of the following contributes to income inequality in developing nations?

a) Equal access to education
b) Concentration of wealth in elite groups
c) Well-developed financial markets
d) Efficient public health systems
Answer: b) Concentration of wealth in elite groups

11. What is one advantage some developing economies have over others?
a) Abundance of cheap labor
b) Strong environmental protections
c) High levels of innovation
d) Strong pension systems
Answer: a) Abundance of cheap labor

12. What is a significant problem related to informal sectors in developing countries?

a) High taxation rates
b) Lack of job opportunities
c) Limited government regulation and taxation
d) Strong worker protections
Answer: c) Limited government regulation and taxation

13. Why do many developing nations have high debt levels?

a) Excessive spending on public goods
b) Over-reliance on foreign loans
c) Low birth rates
d) Surplus trade balances
Answer: b) Over-reliance on foreign loans

14. What is the "brain drain" phenomenon in developing countries?

a) Loss of intellectual property due to weak patents
b) Emigration of skilled workers to developed countries
c) Poor educational outcomes due to low investment
d) Overcrowding in urban areas
Answer: b) Emigration of skilled workers to developed countries

15. What distinguishes "Least Developed Countries" (LDCs) from other developing economies?
a) High levels of industrialization
b) Extremely low levels of income, human capital, and infrastructure
c) Low population growth rates
d) Significant technological exports
Answer: b) Extremely low levels of income, human capital, and infrastructure

1. What marked the beginning of modern economic growth globally?

a) The Industrial Revolution
b) World War II
c) The Digital Age
d) The Great Depression
Answer: a) The Industrial Revolution

2. Which region was the first to experience sustained economic growth during the
18th and 19th centuries?
a) Sub-Saharan Africa
b) Western Europe
c) East Asia
d) South America
Answer: b) Western Europe

3. What is one key factor that differentiates contemporary development from historical growth?
a) Greater reliance on industrialization
b) Importance of technology and human capital
c) Exclusive focus on agriculture
d) Isolation from global markets
Answer: b) Importance of technology and human capital

4. Which of the following is NOT a characteristic of historical growth patterns?

a) Gradual industrialization
b) Limited role of international trade
c) High levels of global integration
d) Slow technological progress
Answer: c) High levels of global integration

5. What role did colonialism play in the development of many countries?

a) It accelerated industrialization in colonies.
b) It often created extractive institutions that hindered long-term development.
c) It promoted equal income distribution.
d) It reduced trade dependency.
Answer: b) It often created extractive institutions that hindered long-term development.
6. What is the "Great Divergence"?
a) The shift of economic power from the West to the East
b) The growing income gap between industrialized and non-industrialized nations after the 19th
century
c) The collapse of global trade after World War II
d) The rise of communism during the Cold War
Answer: b) The growing income gap between industrialized and non-industrialized nations after the
19th century

7. Which contemporary development strategy has been most effective for East Asian
economies?
a) Isolation from global markets
b) Export-led industrialization
c) Exclusive reliance on agriculture
d) Dependence on foreign aid
Answer: b) Export-led industrialization

8. What was one consequence of the Green Revolution in developing countries?

a) Decrease in agricultural productivity
b) Increased food production and reduction of famine
c) Decline in technological advancements
d) Rapid deindustrialization
Answer: b) Increased food production and reduction of famine

9. What is a defining feature of contemporary economic development?

a) Reliance on fossil fuels only
b) Focus on sustainability and environmental concerns
c) Limited role of technology
d) Dependence on colonial systems
Answer: b) Focus on sustainability and environmental concerns

10. What distinguishes "late industrializers" like South Korea from early
industrializers like Britain?
a) Early industrializers had no access to technology.
b) Late industrializers relied on state-led industrial policies and globalization.
c) Early industrializers focused only on agriculture.
d) Late industrializers ignored global trade.
Answer: b) Late industrializers relied on state-led industrial policies and globalization.

1. According to Todaro, which of the following is a fundamental difference between

historical growth and contemporary development
a) Historical growth emphasized agriculture, while contemporary development focuses on technology
and services.
b) Contemporary development has slower economic growth rates than historical growth.
c) Historical growth relied on international trade, while contemporary development is isolated.
d) There is no difference between the two.
Answer: a) Historical growth emphasized agriculture, while contemporary development focuses on
technology and services.

2. What is one reason why industrialization was slower in many developing countries
compared to Western Europe?
a) Lack of natural resources
b) Colonial extraction and the creation of weak institutions
c) Abundance of skilled labor
d) Excessive technological advancements
Answer: b) Colonial extraction and the creation of weak institutions

3. What was a significant factor in the rapid economic growth of newly

industrialized economies (NIEs) like South Korea and Taiwan?
a) Heavy reliance on natural resources
b) State-led policies that prioritized education, technology, and exports
c) Focus on agricultural production
d) Avoidance of global markets
Answer: b) State-led policies that prioritized education, technology, and exports

4. According to Todaro, which of the following is an essential driver of contemporary

development?
a) Geographic isolation
b) International trade and globalization
c) Complete reliance on foreign aid
d) Elimination of technological innovations
Answer: b) International trade and globalization

5. What does Todaro identify as a critical challenge for contemporary development?

a) The inability to industrialize
b) Balancing economic growth with environmental sustainability
c) Complete reliance on agricultural economies
d) Decline in global population growth
Answer: b) Balancing economic growth with environmental sustainability
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1. What is the central idea of Rostow's "Stages of Economic Growth" theory?

a) All economies will grow in isolation.
b) Development occurs in a series of linear stages.
c) Developing countries must avoid industrialization.
d) Growth happens randomly without patterns.
Answer: b) Development occurs in a series of linear stages.

2. According to Harrod-Domar's growth model, economic growth depends primarily on:

a) Savings and investment
b) Population growth
c) Natural resource endowment
d) Government expenditure
Answer: a) Savings and investment

3. What is a central idea of the Dependency Theory?

a) Developing countries grow faster than developed countries.
b) Developing countries remain underdeveloped due to exploitation by developed nations.
c) Development is solely determined by domestic policies.
d) Underdevelopment is a result of low population growth.
Answer: b) Developing countries remain underdeveloped due to exploitation by developed nations.

4. What is the "Big Push Theory"?

a) Economic growth requires a small, incremental push in agriculture.
b) Large-scale investment in multiple sectors is necessary for growth.
c) Countries grow through small steps over a long time.
d) Focus on reducing foreign aid dependence.
Answer: b) Large-scale investment in multiple sectors is necessary for growth.

5. Who is associated with the concept of "Dualism" in economic development?

a) Arthur Lewis
b) Karl Marx
c) Amartya Sen
d) Walt Rostow
Answer: a

6. What does Amartya Sen’s "Capabilities Approach" emphasize?

a) Increasing GDP growth
b) Expanding people's freedoms, opportunities, and quality of life
c) Reducing international trade
d) Eliminating population growth
Answer: b) Expanding people's freedoms, opportunities, and quality of life

7. According to the Lewis Model, economic development is driven by:

a) Shifting surplus labor from agriculture to industry
b) Increasing agricultural output only
c) Reducing industrialization
d) Dependency on foreign aid
Answer: a) Shifting surplus labor from agriculture to industry

8. What does the Solow Growth Model emphasize as the key to long-term economic growth?
a) Technological progress
b) Unlimited labor supply
c) Dependence on foreign capital
d) Increasing government debt
Answer: a) Technological

10. What is a primary criticism of the Linear Stages of Growth model?

a) It assumes all countries have the same initial conditions.
b) It promotes rapid industrialization.
c) It ignores technological advancements.
d) It underemphasizes savings.
Answer: a) It assumes all countries have the same initial conditions.

11. Which theory suggests that economic development requires breaking free from
dependency on developed nations?
a) Modernization Theory
b) Dependency Theory
c) Harrod-Domar Growth Model
d) Solow Growth Model
Answer: b) Dependency Theory

14. The "Modernization Theory" emphasizes:

a) Cultural and institutional changes to achieve development
b) Complete rejection of industrialization
c) Reliance on colonial systems
d) Avoidance of global trade
Answer: a) Cultural and institutional changes to achieve development

15. According to Karl Marx, economic development is primarily driven by:

a) Class struggle and changes in the mode of production
b) Technological innovation alone
c) High levels of government spending
d) A focus on agricultural output
Answer: a) Class struggle and changes in the mode of production

1. What is the primary goal of economic development?

A) Increase in military power
B) Improvement in the standard of living
C) Expansion of population
D) Reduction of taxes
Answer: B) Improvement in the standard of living

2. Which theory emphasizes the role of capital accumulation in economic development?

A) Dependency Theory
B) Harrod-Domar Growth Model
C) Modernization Theory
D) Solow Growth Model
Answer: B) Harrod-Domar Growth Model

3. What does the term "sustainable development" mean?

A) Development with unlimited resource use
B) Development that meets present needs without compromising future generations
C) Economic growth through industrialization alone
D) Development focused on short-term gains
Answer: B) Development that meets present needs without compromising future generation

4. Which organization is primarily concerned with international economic development?

A) NATO
B) World Bank
C) IMF
D) WTO
Answer: B) World Bank

5. What is a key characteristic of a developing economy?

A) High per capita income
B) High unemployment rates
C) Advanced infrastructure
D) Low population growth
Answer: B) High unemployment rates

6. Which of the following is NOT a factor in economic development?

A) Human capital
B) Natural resources
C) Political stability
D) Military expenditure
Answer: D) Military expenditure

7. What is the "dual-sector model" by Arthur Lewis about?

A) The interaction between urban and rural sectors in development
B) The coexistence of capitalism and socialism
C) The trade-off between consumption and savings
D) The relationship between agriculture and service industries
Answer: A) The interaction between urban and rural sectors in development

8. Which concept suggests that poor countries are trapped in a cycle of poverty?
A) Dependency Theory
B) Vicious Circle of Poverty
C) Rostow's Stages of Growth
D) Neoliberal Theory
Answer: B) Vicious Circle of Poverty

9. Which stage in Rostow's "Stages of Economic Growth" model represents

sustained economic growth?
A) Traditional Society
B) Take-Off
C) Drive to Maturity
D) Age of High Mass Consumption
Answer: D) Age of High Mass Consumption

10. What is "import substitution industrialization"?

A) Focusing on agricultural exports
B) Replacing imported goods with domestically produced goods
C) Liberalizing trade policies
D) Encouraging foreign direct investment
Answer: B) Replacing imported goods with domestically produced goods

Economic theories

2. What is the main idea of Rostow's stages of economic growth?

a) Class struggle determines development.
b) Economic development occurs in five distinct stages.
c) Technological innovation leads to economic progress.
d) Dependency on developed nations slows growth.
Answer: b) Economic development occurs in five distinct stages.

4. The Harrod-Domar model emphasizes which factor as the driver of economic growth?
a) Savings and investment
b) Political stability
c) Labor productivity
d) Technological progress
Answer: a) Savings and investment

5. Which theory focuses on the relationship between core and peripheral countries?
a) Dependency theory
b) Modernization theory
c) Endogenous growth theory
d) Classical economics
Answer: a) Dependency theory

6. Which of the following is NOT a characteristic of underdeveloped economies

according to economic theories?
a) High unemployment
b) Low productivity
c) High levels of industrialization
d) Poor infrastructure
Answer: c) High levels of industrialization

7. According to Lewis' dual-sector model, economic development involves a shift from which
sector?
a) Industrial to agricultural
b) Agricultural to industrial
c) Service to agricultural
d) Industrial to service
Answer: b) Agricultural to industrial
8. In endogenous growth theory, what is considered an important determinant of long-
term growth?
a) External trade
b) Government intervention
c) Human capital and innovation
d) Natural resources
Answer: c) Human capital and innovation

Chapter 4 agriculture transformation and rural development

1. Which of the following is a major objective of land reform?

a) Increase industrial productivity
b) Equal distribution of land
c) Reduce agricultural exports
d) Decrease rural-urban migration
Answer: b) Equal distribution of land

2. What is the Green Revolution primarily associated with?

a) Urban development
b) Technological innovations in agriculture
c) Reducing deforestation
d) Increased global trade
Answer: b) Technological innovations in agriculture

3. Which term describes the process of shifting from subsistence farming to commercial
farming?
a) Urbanization
b) Agricultural diversification
c) Agricultural commercialization
d) Mechanization
Answer: c) Agricultural commercialization

4. Land tenure systems primarily deal with:

a) Ownership and usage rights of land
b) Soil quality improvements
c) Crop diversification
d) Irrigation techniques
Answer: a) Ownership and usage rights of land

5. What is a major drawback of unequal land distribution in rural areas?

a) Increased agricultural exports
b) High rural unemployment
c) Decrease in urban migration
d) Improved food security
Answer: b) High rural unemployment

6. In rural development, what does the term "infrastructure" include?

a) Cultural heritage sites
b) Roads, irrigation, and electricity
c) Only educational facilities
d) Social media networks
Answer: b) Roads, irrigation, and electricity

7. What is the primary focus of rural development programs?

a) Enhancing urban lifestyles
b) Improving the standard of living in rural areas
c) Reducing agricultural production
d) Promoting international trade
Answer: b) Improving the standard of living in rural areas

8. Which of the following is a key element of integrated rural development?

a) Focus on urban-centric policies
b) Ignoring small-scale industries
c) Combining agricultural and non-agricultural development
d) Restricting rural credit
Answer: c) Combining agricultural and non-agricultural development

9. Land reform programs typically include:

a) Nationalization of industries
b) Redistribution of land to the landless
c) Increasing taxes on farmers
d) Promoting urban migration
Answer: b) Redistribution of land to the landless

10. The term "agrarian reform" includes:

a) Only crop improvement
b) Land reforms and agricultural productivity enhancements
c) Exclusive focus on water management
d) Urban development strategies
Answer: b) Land reforms and agricultural productivity enhancements

11. What is the primary goal of food security initiatives in rural areas?
a) Increase food exports
b) Ensure access to sufficient and nutritious food
c) Promote cash crop farming
d) Reduce food imports
Answer: b) Ensure access to sufficient and nutritious food

12. Which factor often hinders rural development in developing countries?

a) Overuse of technology
b) Lack of political will and poor governance
c) Surplus agricultural labor
d) Excessive government spending
Answer: b) Lack of political will and poor governance

13. Cooperative farming refers to:

a) Individual farming with no collaboration
b) Group farming with shared resources and profits
c) Private ownership of large farms
d) State-owned agricultural enterprises
Answer: b) Group farming with shared resources and profits

14. The purpose of microfinance in rural development is to:

a) Provide small loans to urban industries
b) Offer credit and financial services to the rural poor
c) Increase taxes in rural areas
d) Develop large-scale agribusinesses
Answer: b) Offer credit and financial services to the rural poor

15. What is a common criticism of land reforms?

a) Encourages foreign investment
b) Reduces agricultural productivity
c) Poor implementation and lack of political support
d) Increases rural employment
Answer: c) Poor implementation and lack of political support

1. Agricultural transformation typically involves:

a) Sticking to traditional farming methods
b) Shifting from subsistence to commercial agriculture
c) Increasing dependence on imported food
d) Decreasing use of technology in farming
Answer: b) Shifting from subsistence to commercial agriculture

2. What is a primary objective of rural development programs?

a) Promote urban migration
b) Reduce rural poverty and improve livelihoods
c) Increase dependence on foreign aid
d) Limit agricultural activities
Answer: b) Reduce rural poverty and improve livelihoods

3. Which factor is crucial for agricultural transformation in rural areas?

a) Improved access to agricultural technology
b) Decrease in farm size
c) Reducing government support for farmers
d) Exclusive focus on industrial growth
Answer: a) Improved access to agricultural technology

4. Integrated rural development focuses on:

a) Isolated agricultural programs
b) Urban housing development
c) Combining agricultural and non-agricultural activities
d) Restricting rural economic activities
Answer: c) Combining agricultural and non-agricultural activities

5. Which practice can hinder agricultural transformation in rural areas?

a) Land tenure insecurity
b) Use of modern farming techniques
c) Access to rural financing
d) Investment in irrigation systems
Answer: a) Land tenure insecurity

Ch6 Poverty, inequality and development

1. Which of the following is a commonly used measure of income inequality?

a) Human Development Index (HDI)
b) Gini coefficient
c) Purchasing Power Parity (PPP)
d) Consumer Price Index (CPI)
Answer: b) Gini coefficient

2. Absolute poverty refers to:

a) A relative measure of poverty compared to others in society
b) The inability to meet basic needs like food, shelter, and clothing
c) Unequal distribution of income
d) A lack of access to luxury goods
Answer: b) The inability to meet basic needs like food, shelter, and clothing

3. The Human Development Index (HDI) includes which of the following dimensions?
a) Income inequality, inflation, and trade
b) Education, health, and income
c) Population growth, urbanization, and technology
d) Political stability, governance, and income
Answer: b) Education, health, and income

4. What is a significant cause of persistent poverty in many developing countries?

a) High rates of economic diversification
b) Unequal access to education and resources
c) Advanced infrastructure development
d) Strong governance and institutions
Answer: b) Unequal access to education and resources

5. Which theory emphasizes that inequality is necessary for economic growth?

a) Dependency theory
b) Kuznets hypothesis
c) Modernization theory
d) Cumulative causation theory
Answer: b) Kuznets hypothesis

6. Relative poverty is defined as:

a) Inability to meet basic needs for survival
b) Being poor compared to others in the same society
c) Having no income at all
d) Having wealth below the global average
Answer: b) Being poor compared to others in the same society

7. What is the Poverty Gap Index?

a) A measure of economic inequality
b) The percentage of the population living below the poverty line
c) The average income shortfall of the poor relative to the poverty line
d) A measure of poverty compared to global standards
Answer: c) The average income shortfall of the poor relative to the poverty line

8. Inequality of opportunity refers to:

a) Differences in income levels only
b) Unequal access to education, healthcare, and resources
c) Uneven distribution of taxes
d) Lack of job creation in urban areas
Answer: b) Unequal access to education, healthcare, and resources
9. What is a key characteristic of pro-poor growth?
a) Economic growth that increases income inequality
b) Growth that benefits the poor more than the wealthy
c) Development focusing only on industrial sectors
d) Prioritizing foreign investment over local development
Answer: b) Growth that benefits the poor more than the wealthy

10. What is a primary goal of development policies aimed at reducing poverty?

a) Increasing income disparity
b) Ensuring equal distribution of all wealth
c) Enhancing access to basic services and economic opportunities
d) Focusing exclusively on urban industrialization
Answer: c) Enhancing access to basic services and economic opportunities

1. What is the global measure used to define extreme poverty?

a) Earning less than $1.90 per day
b) Having no access to health services
c) Earning less than $5 per day
d) Living in rural areas without infrastructure
Answer: a) Earning less than $1.90 per day

2. What is one of the Sustainable Development Goals (SDGs) related to poverty?

a) Eradicate poverty in all its forms everywhere
b) Reduce global trade barriers
c) Promote urban migration
d) Increase GDP growth in developed countries
Answer: a) Eradicate poverty in all its forms everywhere

3. Lorenz Curve is used to measure:

a) Economic growth rates
b) Population density
c) Income inequality
d) Levels of unemployment
Answer: c) Income inequality

4. Which is a key strategy to reduce rural poverty?

a) Investing in urban infrastructure
b) Promoting agriculture and rural development
c) Increasing taxes on small farmers
d) Encouraging rural-to-urban migration
Answer: b) Promoting agriculture and rural development

5. What is the primary cause of intergenerational poverty?

a) High inflation rates
b) Lack of access to education and healthcare
c) Over-reliance on technology
d) Urban migration
Answer: b) Lack of access to education and healthcare

6. Which of the following is a component of the Multidimensional Poverty Index (MPI)?

a) Annual income
b) Access to healthcare, education, and basic services
c) National GDP
d) Global trade partnerships
Answer: b) Access to healthcare, education, and basic services
7. The "capabilities approach" to development was introduced by:
a) Amartya Sen
b) Jeffrey Sachs
c) Adam Smith
d) Paul Collier
Answer: a) Amartya Sen

8. Which region has the highest proportion of people living in extreme poverty?
a) South Asia
b) Sub-Saharan Africa
c) Latin America
d) Eastern Europe
Answer: b) Sub-Saharan Africa

9. A high Gini coefficient indicates:

a) Greater income equality
b) Low levels of poverty
c) Greater income inequality
d) High economic development
Answer: c) Greater income inequality

10. Which of the following best defines "inclusive growth"?

a) Economic growth focused solely on industrial sectors
b) Growth that benefits all segments of the population, especially the poor
c) Rapid urban development with no rural focus
d) Growth driven by foreign direct investment
Answer: b) Growth that benefits all segments of the population, especially the poor

Chapter 7 population growth and economic development

1. What is the relationship between population growth and economic development

according to the Malthusian theory?
a) Population growth leads to higher economic growth
b) Population growth outpaces food production, leading to poverty
c) Economic growth limits population growth
d) Population growth and economic development are unrelated
Answer: b) Population growth outpaces food production, leading to poverty

2. Which demographic transition stage is characterized by high birth and death rates?
a) Stage 1
b) Stage 2
c) Stage 3
d) Stage 4
Answer: a) Stage 1

3. What is the main argument of the “population optimist” perspective?

a) High population growth is a barrier to development
b) Population growth stimulates innovation and economic activity
c) Population growth should be controlled by strict policies
d) Rapid urbanization harms economic development
Answer: b) Population growth stimulates innovation and economic activity
4. Which term describes the average number of children born to a woman over her
lifetime?
a) Birth rate
b) Fertility rate
c) Mortality rate
d) Growth rate
Answer: b) Fertility rate

5. A “youth bulge” in population demographics refers to:

a) A high proportion of elderly in the population
b) A high proportion of young people in the population
c) A balanced population age structure
d) Low birth and death rates
Answer: b) A high proportion of young people in the population

6. Rapid population growth in developing countries is often linked to:

a) High literacy rates
b) Poor healthcare and lack of family planning
c) Decline in agricultural productivity
d) Economic stagnation in developed countries
Answer: b) Poor healthcare and lack of family planning

7. Which of the following is NOT a consequence of rapid population growth in developing

countries?
a) Pressure on natural resources
b) Increase in employment opportunities
c) Overcrowded urban areas
d) Higher demand for social services
Answer: b) Increase in employment opportunities

8. According to the demographic transition model, what typically happens during Stage 3?
a) Birth rates and death rates are both high
b) Birth rates decline, but population growth continues
c) Death rates rise due to epidemics
d) Birth rates exceed death rates significantly
Answer: b) Birth rates decline, but population growth continues

9. What is the dependency ratio?

a) The ratio of working-age population to non-working-age population
b) The percentage of elderly in the population
c) The number of employed people in urban areas
d) The birth rate relative to the death rate
Answer: a) The ratio of working-age population to non-working-age population

10. What is the main driver of population growth in most countries?

a) High death rates
b) Migration
c) High fertility rates
d) Declining infant mortality rates
Answer: c) High fertility rates

12. What is a key policy measure to reduce high population growth?

a) Promoting industrialization
b) Providing universal access to education and family planning
c) Reducing urban development
d) Increasing agricultural subsidies
Answer: b) Providing universal access to education and family planning

13. In which demographic transition stage does a country typically experience a

population explosion?
a) Stage 1
b) Stage 2
c) Stage 3
d) Stage 4
Answer: b) Stage 2

14. What is a potential economic benefit of a declining fertility rate in developing

countries?
a) Increased dependency ratio
b) Reduction in labor force
c) Creation of a demographic dividend
d) Increased population aging
Answer: c) Creation of a demographic dividend

15. Which of the following is a challenge associated with overpopulation?

a) Increased economic inequality
b) Surplus agricultural production
c) Decrease in urbanization
d) Reduced global trade
Answer: a) Increased economic inequality

1. According to the demographic transition model, which stage is characterized by

declining birth rates while death rates remain low, leading to a slowing population growth?
a) Stage 1: High Stationary
b) Stage 2: Early Expanding
c) Stage 3: Late Expanding
d) Stage 4: Low Stationary
Answer: c) Stage 3: Late Expanding

2. In Todaro's model of rural-urban migration, which of the following factors primarily

influences an individual's decision to migrate?
a) Actual urban wages
b) Rural land availability
c) Expected urban income
d) Government migration policies
Answer: c) Expected urban income

3. The "hidden momentum of population growth" refers to:

a) The immediate halt in population growth following a decline in birth rates
b) The continued population growth due to a young age structure, even after fertility declines
c) The rapid decrease in population size after reaching a peak
d) The stabilization of population growth rates in developed countries
Answer: b) The continued population growth due to a young age structure, even after fertility
declines

4. Which of the following best describes the concept of "demographic dividend"?

a) The economic burden of an aging population
b) The economic growth potential resulting from shifts in a population’s age structure
c) The increase in dependency ratios due to high fertility rates
d) The financial benefits of international migration
Answer: b) The economic growth potential resulting from shifts in a population’s age structure

5. In the context of economic development, the term "youth bulge" refers to:
a) An increase in the elderly population
b) A high proportion of young individuals in the population
c) A surge in youth unemployment
d) A decline in birth rates
Answer: b) A high proportion of young individuals in the population

6. Which of the following policies is most effective in harnessing the benefits of a

demographic dividend?
a) Restricting access to family planning services
b) Investing in education and health to improve human capital
c) Promoting early marriage to increase fertility rates
d) Limiting women's participation in the labor force
Answer: b) Investing in education and health to improve human capital

7. The "dependency ratio" is defined as the ratio of:

a) Working-age population to the non-working-age population
b) Non-working-age population to the working-age population
c) Urban population to rural population
d) Employed individuals to unemployed individuals
Answer: b) Non-working-age population to the working-age population

8. High fertility rates in developing countries are often associated with:

a) Increased investment in child education
b) Greater economic opportunities for women
c) Limited access to family planning and education
d) High levels of urbanization
Answer: c) Limited access to family planning and education

9. According to Todaro, which of the following is a potential consequence of rapid

urbanization without adequate economic opportunities?
a) Decreased informal sector employment
b) Reduction in urban poverty
c) Growth of urban informal sectors and increased unemployment
d) Improved living standards for all urban residents
Answer: c) Growth of urban informal sectors and increased unemployment

10. In Todaro's analysis, which factor is NOT considered a primary

determinant of fertility rates in developing countries?
a) Cultural and social norms
b) Economic costs and benefits of children
c) Availability of old-age security systems
d) Levels of industrialization
Answer: d) Levels of industrialization