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A) It leads to overreliance on outdated technologies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