Question 1

Realizing the problems with import substitution, some Asian countries have instead:

Accepted Answer

A)   supported export-led growth.
B)   become isolationist, like North Korea.
C)   practiced contractionary monetary policy.
D)   worked to maintain a fixed exchange rate.E) A) and C)
F) All of the above

Question 2

A problem associated with import substitution as an industrial policy is:

Accepted Answer

A)   it removes the incentive for industries to be efficient.
B)   industries are often chosen for political, not economic, reasons.
C)   it often stays in place long after it was expected to lapse.
D)   All of these are problems associated with import substitution policy.E) A) and B)
F) None of the above

Question 3

Tariffs are:

Accepted Answer

A)   taxes on exports.
B)   subsidies for imports.
C)   taxes on imports.
D)   subsidies for exports.E) A) and D)
F) A) and B)

Question 4

An example of an industrial policy would be all except:

Accepted Answer

A)   subsidies.
B)   trade barriers.
C)   tax breaks.
D)   interest rate restrictions.E) A) and B)
F) B) and C)

Question 5

One of the challenges for development economists working in health care is to figure out a way to:

Accepted Answer

A)   force doctors to practice good medicine.
B)   give incentives to families to make better health care choices.
C)   decrease the frequency of preventative medicine, such as immunizing children.
D)   All of these statements are true.E) B) and D)
F) B) and C)

Question 6

A country that has had success with export-led growth policy is:

Accepted Answer

A)   North Korea.
B)   South Korea.
C)   Russia.
D)   Liberia.E) C) and D)
F) A) and D)

Question 7

The Nobel Prize-winning economist from Harvard who developed the capabilities approach is:

Accepted Answer

A)   Amartya Sen.
B)   Milton Friedman.
C)   John Kenneth Galbraith.
D)   Gary Becker.E) A) and D)
F) B) and D)

Question 8

China is a clear example of a country that has:

Accepted Answer

A)   achieved economic growth without a democratic regime.
B)   achieved economic growth only after a democratic regime was in place.
C)   failed to achieve economic growth without a democratic regime.
D)   failed to achieve economic growth, despite having a democratic regime.E) A) and B)
F) A) and C)

Question 9

If a government pursues the industrial policy of import substitution, it is:

Accepted Answer

A)   protecting domestic industries until they are efficient enough to compete in the world market.
B)   giving consumers incentive to substitute imported goods for those domestically produced.
C)   encouraging domestic industries to ship imports to other countries.
D)   mandating that imports can only be sold if the domestic economy does not produce that particular good.E) All of the above
F) C) and D)

Question 10

The idea behind the traditional industrial policy of import substitution is:

Accepted Answer

A)   to protect infant industries until they can become price competitive in the world market.
B)   give certain industries a chance to enter a market and gain efficiencies that companies elsewhere in the world have already gained in that industry.
C)   build up home industries to compete with others in the world.
D)   All of these statements are true.E) A) and B)
F) A) and C)

Question 11

The main conclusion drawn from the criticisms around foreign aid is:

Accepted Answer

A)   trade should be encouraged instead of aid.
B)   aid should no longer exist, as it is an inefficient use of dollars.
C)   more accountable means of distribution and program evaluation are needed.
D)   immigration policies should be loosened and aid should be halted.E) A) and B)
F) A) and C)

Question 12

The evidence to support economist de Soto's claim that a strong titling system would lead countries to increase their economic development is:

Accepted Answer

A)   strong and undisputed.
B)   mixed and implies that such systems may be important with other factors present.
C)   absent, and his claims are unfounded.
D)   not important as in economics some theories don't require empirical evidence to be supported.E) B) and D)
F) C) and D)

Question 13

If average incomes of a nation don't rise over time:

Accepted Answer

A)   improvements in health are impossible.
B)   improvements in health are still possible.
C)   improvements in health are still very likely.
D)   it will have no impact on the nation's ability to improve health.E) B) and C)
F) C) and D)

Question 14

The term institutions is commonly used to refer to:

Accepted Answer

A)   government bodies.
B)   development agencies.
C)   international groups.
D)   All of these statements are true.E) None of the above
F) B) and C)

Question 15

Something that would not be considered a tool in pursuit of industrial policy would be:

Accepted Answer

A)   incentives for foreign portfolio investment.
B)   investment in research.
C)   incentives for foreign direct investment.
D)   All of these are examples of industrial policies.E) A) and C)
F) B) and C)

Question 16

Two of the main focuses on development economics focuses on how countries can promote:

Accepted Answer

A)   health and education.
B)   sound monetary policy and education.
C)   health and fiscal policy.
D)   sound monetary and fiscal policy.E) None of the above
F) A) and C)

Question 17

Randomized controlled trials:

Accepted Answer

A)   choose people randomly to measure the impact of a particular intervention, saving the cost of evaluating all participants.
B)   randomly assign people into control and treatment groups in order to focus on the impact of a particular intervention.
C)   control how much of a treatment is given to each participant in order to measure the ideal quantity.
D)   are not a useful tool in assessing how specific interventions may influence economic development.E) B) and C)
F) A) and C)

Question 18

In the last few decades, tariffs in developing countries have:

Accepted Answer

A)   fallen by more than 20 percent.
B)   risen by more than 20 percent.
C)   fallen to 20 percent of their GDP.
D)   risen to 20 percent of their GDP.E) All of the above
F) C) and D)

Question 19

An example of how economic growth might not lead to economic development is:

Accepted Answer

A)   the rate of literacy increased among all groups when a nation's economy grew.
B)   people had greater social mobility due to the growth experienced in the nation.
C)   the average income in a nation increased with greater GDP growth.
D)   when a nation's economy grew, the rate of malnutrition among children was relatively constant.E) All of the above
F) B) and C)

Question 20

Japan, Singapore, and Taiwan have all:

Accepted Answer

A)   had success with import substitution policy.
B)   imitated South Korea's export-led growth policy and failed.
C)   imitated South Korea's import substitution policy and failed.
D)   had success with export-led growth policy.E) None of the above
F) A) and C)

Exam 19: Development Economics

A problem associated with import substitution as an industrial policy is:

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The main conclusion drawn from the criticisms around foreign aid is:

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An example of an industrial policy would be all except:

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One of the challenges for development economists working in health care is to figure out a way to:

Correct AnswerverifiedShow Answer

Randomized controlled trials:

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An example of how economic growth might not lead to economic development is:

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China is a clear example of a country that has:

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Realizing the problems with import substitution, some Asian countries have instead:

Correct AnswerverifiedShow Answer

If average incomes of a nation don't rise over time:

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The idea behind the traditional industrial policy of import substitution is:

Correct AnswerverifiedShow Answer

If a government pursues the industrial policy of import substitution, it is:

Correct AnswerverifiedShow Answer

Two of the main focuses on development economics focuses on how countries can promote:

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Something that would not be considered a tool in pursuit of industrial policy would be:

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In the last few decades, tariffs in developing countries have:

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The term institutions is commonly used to refer to:

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Japan, Singapore, and Taiwan have all:

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The Nobel Prize-winning economist from Harvard who developed the capabilities approach is:

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A country that has had success with export-led growth policy is:

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Tariffs are:

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The evidence to support economist de Soto's claim that a strong titling system would lead countries to increase their economic development is:

Correct AnswerverifiedShow Answer

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