Republic of the Philippines

CAMARINES NORTE STATE COLLEGE

F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600, Philippines

COLLEGE OF BUSINESS AND PUBLIC ADMINISTRATION

ECON ELEC 6 – ECONOMIC DEVELOPMENT
2nd Semester, AY 2020 -2021
_Prelim_ Examination

Name: Score:
Course, Year Level & Block Section: Date:

True or False.
Instruction: This exam is good for 60 points only. 3 Points for every item 1 point for T and F answer and 2
points for the justification. Write T is the statement is true and F if the statement is false. If the statement is
TRUE say something about it in a sentence or two. If the statement is FALSE be able to underline the
word/s that makes it incorrect and justify your answer. Unable to follow with the instructions given will
invalidate the test result.
__________ 1. Traditional society. This is an agricultural economy of mainly subsistence farming, little
which is traded.
__________ 2. Rostow’s stages of economic growth model is one of the major historical models of
economic growth.
__________ 3. The O Ring Theory of economic development is a model of economic development put
forward by Michael Kremer, which proposes that tasks of production must be executed proficiently together
in order for any of them to be of high value.
__________ 4. The theory of two model emphasize the underdeveloped countries require large amounts
of investment to embark on the path of economic development.
__________ 5. Big Push Theory assumes economies of scale and oligopolistic market structure and
explain when industrialization would happen.
__________ 6. Coordination failure implies that fiscal policy can mitigate the effects of recessions or even
avoid them entirely by moving the economy to the higher output equilibrium.
__________ 7. Coordination failure is a concept that can explain recessions through the failure of firms and
other price setters to coordinate.
__________ 8. Endogenous growth theory holds that economic growth is primarily the result of
endogenous not external factor.
__________ 9. Neoclassical: efficient production and proper price system.
__________ 10. Dependence Theory: Importance of the world economy and decisions of developed word
affecting developing economies.
__________ 11. Two-Sector Model: Transfer of resources from low to high productivity activities, linkages
between traditional and modern.
__________ 12. In Linear Stage: Crucial role of savings and investment.
__________ 13. In Neo-classical revolution the “Invisible Hand” often lifts those already well-off failure to
offer opportunities for upward mobility of the majority.
__________ 14. In Neo-classical Dependence. Model the elite server are rewarded by international interest
power groups tied by allegiance or funding to wealthy capitalist countries.

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 Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600, Philippines

COLLEGE OF BUSINESS AND PUBLIC ADMINISTRATION

ECON ELEC 6 – ECONOMIC DEVELOPMENT
2nd Semester, AY 2020 -2021
_Prelim_ Examination

__________ 15. In Lewis Theory of Development assumes labor transfer of employment proportional to
artificial accumulation.
__________ 16. In Linear Stage Theory the mechanisms of development does not always work.
__________ 17. Economic growth is an in the production of goods and services in an economy.
__________ 18. Economic development is the creation of wealth from which the community benefits are
realized. It’s more than of program, it is an investment in growing your economy and enhancing the
prosperity and quality of life of the people. Economic development means different things to different
people.
__________ 19. Economic growth and development are the same and not interrelated.
__________ 20. Bonus of 4 points if you incurred a perfect score.

Prepared by:

ANGELES M. ASAY JR.I, PhD

Assistant Professor III

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