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Economist Douglass North's definition of institutions:


A) is the rules of the game in a society.
B) is the humanly devised constraints that shape human interactions.
C) includes laws enforced by the government as well as cultural norms.
D) All of these statements are true.

E) A) and B)
F) B) and C)

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Policies which promote good governance of a society are:


A) based on favoritism.
B) not important to pursue in developing countries.
C) central to economic growth.
D) uncommon in nations with high growth rates.

E) A) and B)
F) All of the above

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In terms of capabilities, education can be seen as:


A) contributing to better family planning.
B) a factor that reduces income inequality in countries.
C) a feature of more democratic regimes.
D) something that requires a lot of funding, but produces very little return.

E) A) and C)
F) B) and D)

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The U.S. gives foreign aid primarily through:


A) the World Bank.
B) UNICEF.
C) USAID.
D) the Peace Corps.

E) B) and C)
F) C) and D)

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A country with high economic growth:


A) will definitely experience high economic development.
B) will never experience high economic development.
C) not necessarily will experience high economic development.
D) may not experience economic development without attention paid to policy actions.

E) A) and B)
F) None of the above

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Private donations of aid are:


A) a dwindling portion of aid given to foreign countries.
B) larger than the entire budget for official foreign aid provided by the U.S.
C) a significant portion of aid, nearly half as much as the budget for official foreign aid provided by the U.S.
D) not generally counted in aid statistics that are reported by various aid agencies.

E) B) and D)
F) B) and C)

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According to the Gallup World Values Survey, 40 percent of those living in the poorest quartile of countries would like to:


A) get more education.
B) receive more aid.
C) trade freely.
D) emigrate.

E) B) and D)
F) B) and C)

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The World Trade Organization is designed to do the following except:


A) monitor trade agreements.
B) promote free trade internationally.
C) enforce trade agreements between nations.
D) ensure that trade doesnÒ€ℒt adversely affect the environment.

E) A) and B)
F) A) and C)

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An example of a poverty trap is:


A) the malnourished not having enough energy to develop their economy.
B) the uneducated not knowing how to further develop their economy.
C) those who do not have basic immunizations not being healthy enough to develop their economy.
D) All of these are examples of poverty traps.

E) A) and B)
F) B) and C)

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Most development economists agree that the most basic and important task of any government is to:


A) create a stable political system.
B) provide national health care system.
C) maintain a stable currency.
D) ensure basic education for all citizens.

E) A) and B)
F) A) and C)

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In general but not always, economic growth:


A) causes economic development, but development does not cause growth.
B) does not cause economic development, but development causes growth.
C) does not cause economic development, and development does not cause growth.
D) causes economic development, and development causes growth.

E) C) and D)
F) None of the above

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Governments choose to pursue industrial policy to:


A) raise tax revenue.
B) spur economic growth.
C) create publicly owned companies.
D) regulate the growth of certain industries.

E) B) and D)
F) None of the above

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By opening up to foreign markets, two things that countries generally experience are:


A) gaining access to a wide array of new products and saving money through access to cheaper goods.
B) gaining access to a wide array of new products and increase in negative trade outcomes with that nation.
C) saving money through access to cheaper goods and finding new customers who generally pay less for their products.
D) increase in negative trade outcomes with that nation and finding customers who generally pay less for their products.

E) A) and B)
F) A) and C)

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The study of health care provision in Delhi, India by Hammer and Das found:


A) doctors often worked at or beyond their knowledge frontier.
B) doctors in public clinics were often more creative in diagnoses and care than doctors in private facilities.
C) unless doctors were intrinsically motivated, no incentive exists for them to provide high quality care.
D) the implementation of national healthcare provisions had strong associations with quality of care.

E) A) and C)
F) B) and C)

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It's impossible to sustain economic growth or development in the absence of:


A) a rule of law.
B) improvements in education.
C) membership to world organizations, like the United Nations.
D) income equality.

E) None of the above
F) A) and D)

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Foreign aid is given through which organization?


A) IBRD
B) UNDP
C) IDA
D) Foreign aid is given through all these organizations.

E) None of the above
F) B) and D)

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What level of daily income is the World Bank's measure of extreme poverty?


A) $1.00
B) $1.90
C) $2.25
D) $3.00

E) B) and C)
F) All of the above

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Which of the following has been found to be most effective in improving the quality of education?


A) Training women in the community to offer supplemental lessons
B) Distributing textbooks
C) Providing parents with information about the quality of the children's schools
D) Forcing students to study longer at home

E) None of the above
F) A) and D)

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Economic growth is_____________ improved health conditions in a nation.


A) always needed for
B) not necessarily needed for
C) always more important than
D) negatively related to

E) A) and D)
F) A) and C)

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In terms of economic growth, educated workers are generally:


A) more productive.
B) less productive.
C) less healthy.
D) happier.

E) A) and B)
F) A) and C)

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