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Development economics
Contributed by: Stokes
  • 1. Development economics is a branch of economics that focuses on improving the economic, social, and political well-being of people in developing countries. It examines the issues of poverty, inequality, and sustainable development, and seeks to understand and address the root causes of underdevelopment. Development economics considers various factors such as government policies, institutions, technology, education, and international trade to design effective strategies for promoting economic growth and reducing poverty. By studying the unique challenges faced by developing countries, development economics aims to create policies and interventions that can help create a more just and prosperous world for all.

    Which of the following factors can contribute to economic development?
A) Dependency on foreign aid
B) Rapid population growth
C) Investment in education and healthcare
D) Increased military spending
  • 2. What does the term 'brain drain' refer to in the context of development economics?
A) The emigration of highly skilled individuals from developing countries
B) A strategy for technological advancement
C) Government investment in education programs
D) Increased foreign aid
  • 3. Which institution provides financial and technical assistance to developing countries for development projects?
A) United Nations
B) European Union (EU)
C) International Monetary Fund (IMF)
D) World Bank
  • 4. What is the effect of inflation on a country's economy in the context of development economics?
A) Boosts consumer spending
B) Reduces the purchasing power of the currency
C) Encourages foreign investment
D) Increases the value of exports
  • 5. Why is income inequality considered a barrier to development?
A) It promotes economic growth
B) It can create social unrest and limit opportunities for the poor
C) It encourages entrepreneurship and innovation
D) It reduces the need for social welfare programs
  • 6. What is the role of foreign direct investment (FDI) in development economics?
A) Encouraging reliance on government subsidies
B) Bringing in capital, technology, and expertise to a country
C) Increasing inflation rates
D) Promoting self-sufficiency
  • 7. How does a trade surplus impact a country's economy in the context of development?
A) It can lead to currency appreciation and reduced export competitiveness
B) It increases government revenue for social programs
C) It boosts domestic spending and investment
D) It stimulates economic growth
  • 8. How can remittances from migrants contribute to economic development in their home countries?
A) By increasing unemployment rates
B) By discouraging local entrepreneurship
C) By creating dependency on foreign aid
D) By providing a stable source of income and improving living standards
  • 9. What is a key component of human development index (HDI) calculations?
A) Number of patents filed
B) Military spending
C) Life expectancy
D) Stock market performance
  • 10. What role does technological innovation play in economic development?
A) It restricts access to knowledge and information
B) It leads to overreliance on outdated technologies
C) It can increase productivity, create new industries, and improve living standards
D) It promotes economic stagnation
  • 11. What is a common challenge faced by developing economies?
A) Low inflation
B) Stable currency exchange rates
C) Corruption
D) Trade surplus
  • 12. Why is good governance important for economic development?
A) It encourages corruption and inefficiency
B) It limits foreign investment opportunities
C) It hinders political stability
D) It promotes transparency, accountability, and effective public services
  • 13. What is the concept of 'inclusive growth' in the context of development economics?
A) Economic growth through foreign aid dependency
B) Economic growth that benefits only the wealthy
C) Economic growth that benefits all segments of society, including the poor
D) Economic growth with high inflation rates
  • 14. Which economic sector often drives growth in developing economies?
A) Finance
B) Agriculture
C) Technology
D) Tourism
  • 15. Which monetary organization provides financial assistance to developing countries?
A) Organisation for Economic Co-operation and Development (OECD)
B) European Central Bank (ECB)
C) World Trade Organization (WTO)
D) International Monetary Fund (IMF)
  • 16. Which factor is considered an indicator of economic development?
A) Income inequality
B) GDP per capita
C) Unemployment rate
D) Total population
  • 17. What is the role of foreign debt in the development of a country?
A) Excessive debt can constrain economic growth and lead to financial instability
B) Debt reduces government spending
C) Debt promotes export competitiveness
D) Debt encourages investment in infrastructure
  • 18. Which trade strategy is aimed at protecting domestic industries in developing countries?
A) Export-oriented
B) Tariff reduction
C) Import substitution
D) Free trade agreements
  • 19. How does political stability impact economic development in a country?
A) It decreases government accountability
B) It creates an environment conducive to long-term investments and growth
C) It encourages inflation and currency devaluation
D) It leads to social unrest and economic collapse
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