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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) Dependency on foreign aid
C) Investment in education and healthcare
D) Rapid population growth
  • 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) World Bank
C) International Monetary Fund (IMF)
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 promotes economic growth
C) It reduces the need for social welfare programs
D) It can create social unrest and limit opportunities for the poor
  • 6. What is the role of foreign direct investment (FDI) in development economics?
A) Encouraging reliance on government subsidies
B) Promoting self-sufficiency
C) Bringing in capital, technology, and expertise to a country
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 increases government revenue for social programs
D) It stimulates economic growth
  • 8. 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 providing a stable source of income and improving living standards
D) By discouraging local entrepreneurship
  • 9. What is a key component of human development index (HDI) calculations?
A) Number of patents filed
B) Stock market performance
C) Life expectancy
D) Military spending
  • 10. What role does technological innovation play in economic development?
A) It can increase productivity, create new industries, and improve living standards
B) It promotes economic stagnation
C) It restricts access to knowledge and information
D) It leads to overreliance on outdated technologies
  • 11. What is a common challenge faced by developing economies?
A) Low inflation
B) Trade surplus
C) Corruption
D) Stable currency exchange rates
  • 12. Why is good governance important for economic development?
A) It limits foreign investment opportunities
B) It encourages corruption and inefficiency
C) It promotes transparency, accountability, and effective public services
D) It hinders political stability
  • 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 through foreign aid dependency
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) Technology
C) Tourism
D) Agriculture
  • 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) Total population
B) Unemployment rate
C) Income inequality
D) GDP per capita
  • 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) Tariff reduction
B) Import substitution
C) Export-oriented
D) Free trade agreements
  • 19. How does political stability impact economic development in a country?
A) It creates an environment conducive to long-term investments and growth
B) It leads to social unrest and economic collapse
C) It decreases government accountability
D) It encourages inflation and currency devaluation
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