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B) It leads to overreliance on outdated technologies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