ECONOMIC DEVELOPMENT
In a command economy, how are significant
REVIEWER
I. MULTIPLE CHOICE
1. Which of the following is a forest’s economic
value?
a. Provide wood
b. Decreasing flooding
c. Regulate the water cycle
d. Prevent soil corrosion
2. Deforestation happens in developing
countries because
a. They don’t need a lot of oxygen due to
low population
b. They build a lot of houses
c. They have endless trees to give
d. They use the trees as a source of
income
3. Which of the following contributes the most
to forest pollution?
a. Littering
b. Animal waste
c. Leaf removing
d. Acid rain
4. What constitutes the core of any society’s
economy?
a. Gardening, raising livestock, and
hunting
b. Production, exchange and money
c. Production, distribution and
exchange
d. None of the above is CORRECT
5. All of the following are examples of
traditional economies, with the exception of:
a. Large scale business of
manufacturing
b. The barter system
c. Subsistence agriculture
d. Hunting and gathering
6. What would people in a traditional society
be most likely to do?
a. Establishing a mercantile system of
trade
b. Working in an industrialized city
c. Serving in government assemblies
d. Having the same occupation as their
parents
7.
economic choice made?
a. All facts of economic activity are
under the jurisdiction of government
officials
b. Most decisions are made by agricultural
commodities wholesalers
c. Manufacturers of industrial goods
control the resources
d. Supply and demand are determined by
consumers of foodstuffs
8. How do command economies and free
market economies vary from one another?
a. Prices set by consumers
b. A variety of economic incentives
encourage business growth
c. Resources are allocated by
government decisions
d. There is a high rate of unemployment
9. What are the limitations of mixed economy?
a. High taxation and less incentive to work
hard
b. All profit goes to the government
c. Restrictions on personal freedoms
d. Uneven distribution of resources
10. What is the common economic issue facing
all countries?
a. The problem of meeting everyone’s
needs
b. Not enough population
c. Too much population
d. Not enough resources
11. When deciding “what to produce”, what is
said to be limited?
a. Population
b. Power
c. Resources
d. Water
12. Which of the following situations doesn’t
promote profit in a free enterprise system?
a. A business enterprise begins to lower its
costs.
b. A producer uses the firm’s resources
more efficiently
c. The cost of raw materials has
increased
d. Ambitious salespeople have increased
the sales volume without reducing
prices.
13. A centrally planned economy promotes
_____.
a. Private property, profit, and competition
 b. Government ownership, no competition, 21. Approaches to development that emphasize
and no profit the environment often want to focus
c. Government ownership, competition, attention on which of the following?
and no profit a. Sustainability
d. Government ownership, profit, and b. Accountability
no competition c. Transparency
14. An economic system that has government d. Autonomy
restrictions on the actions of individuals and 22. Which of the following would typically be
businesses is called considered “human capital”?
a. Traditional economy a. Gender and race
b. Command economy b. Health and education
c. Mixed economy c. Prime ministers and presidents
d. Market economy d. Religious world views and trust
15. The items that consumers buy are called 23. What is the most typically used measure of
____ a country’s level of development?
a. Private property a. Technological innovation
b. Factors of production b. Mobility
c. Manufacturing goods c. Income
d. Consumer goods d. Gender equity
16. Which of the following characteristics are 24. Scarcity of capital, unemployment and
most likely found in developing countries? technological backwardness are generally
a. High population growth rates found in _____ economies.
b. Large number of people living in poverty a. Underdeveloped
c. Very traditional methods of agricultural b. Developed
production c. Partly developed
d. None of the above d. None of the above
17. Which of the following could not be 25. Which of the following is not indicator of an
considered a major economic system? economically developed nation?
a. Capitalism a. High level of literacy
b. Communism b. Low death rate
c. Socialism c. High per capita income
d. Physical quality of index d. A high proportion of labor in the
18. It is an increase in a country’s per capita primary sector
output
a. Entrepreneurship
b. Hospital needs II. TRUE OR FALSE
c. School enrollment
d. Craving for food
19. Which among the following is a guiding 1. Economic growth is necessary and
force for the capitalist economy? sufficient to eradicate most of absolute
a. Social service poverty. (FALSE)
b. Private property 2. The main characteristics of an
c. Competition underdeveloped economy is that it has a
d. Profit motive state of deprivation among large proportions
20. The term economic growth is explained by of the population. (TRUE)
_____ 3. Income is the most typically used measure
a. Structural changes in the economy of a country’s level of development (TRUE)
b. Increase in the per capita production 4. A certain amount of goods and services is
c. Increase in the per capita income necessary for a minimum standard of living.
d. All of the above This is called the concept of development.
(FALSE)
5. Sustainability is principally a national issue
and is not international or global one.
(FALSE)
6. For any two countries, the one with the
bigger per capita GDP will have a more
equitable distribution of income. (FALSE)
7. Most of the underdeveloped economies
suffer from high population pressure which
do not let the rate of growth go up from a
lower level. (TRUE)
8. The rate of growth of an economy mainly
depends upon the rate of technological
improvements. (TRUE)
9. Average income and per capita income both
are the same concepts. (TRUE)
10. Life expectancy is age at the time of death.
(FALSE)
III. MODIFIED TRUE OR FALSE
1. Bartering is the process of exchanging
things without the use of money which is
commonly found in a command economy.
(traditional)
2. Command economy is also called as
communism. (TRUE)
3. Democracy emphasizes individual rights
under the mixed economy. (market)
4. Hong Kong is considered an example of a
free market society (TRUE)
5. In a market economy, decisions about the
economy are made by both the government
and the general public. (mixed)
IV. IDENTIFICATION
1. Increased employment and better
infrastructures boost the local economy and
elevate the level of living for its citizens.
(Improved quality of life)
2. Economic development by maintaining the
natural resources for present and future use
is known as ______. (sustainable
development)
3. What is the one factor on which our life
depends? (sustainable growth)
4. What is regarded as one of the most crucial
characteristics when we compare nations
according to their level of development?
(Income)
5. The standard of living is just one aspect of
____ which deals with the quality of life.
(Economic development)
6. It is only concerned with the people’s level
of life (GDP- Goods and Services).
(Economic growth)
7. Better wages/salaries, perks, and career
prospects are all a result of this economic
progress. (Job creation)
8. Economic diversification is a key component
of economic development since it lessens a
region’s dependence on a single industry.
(Industry diversification)
9. Successful economic development
frequently happens when locally produced
commodities are more widely used in the
local economy. (Recognition of local
products)
10. Economic development penetrates
additional cash that helps fund, maintain,
and upgrade local infrastructure including
roads, parks, libraries, and emergency
medical services. (Income Tax Revenue)
V. MATCHING TYPE
1. The application of better technology means
the same amount of labor will be more
productive, and economic growth will
advance at a lower cost. (Improvement in
Technology)
2. Without fundamental literacy and numeracy
skills, it is challenging for an economy to
transition from manual labor to new, high-
tech service industries. (Educational
Standards)
3. A positive feedback cycle of increased
investment, higher growth, and large
savings is made possible by increasing
savings. (Level of savings/capital)
4. It was listed as one of the most crucial
elements for entering a business to invest in
emerging markets. The risk of making
investments in developing nations rises with
the first sign of instability, both personally
and economically. (Political Stability)
5. Low inflation rates and stable currency rates
are required for this. Economic uncertainty
 and a reduction in growth can result from a
swift devaluation. (Macroeconomic
Stability)
6. The revenues gained from oil have enabled
the Gulf States to develop rapidly gaining
high levels of real GDP. (Natural
resources)
7. Taxes are required by the government to
pay for public infrastructure and services.
(Tax rates)
8. It refers of the creation and use of concepts
and technologies that enhance products
and services or increase the effectiveness
of their production. (Innovation)
9. It is a system that the government uses to
plan and distribute readily available
services, resources, and goods throughout
the nation. (Economic System)
10. They possess the courage to take chances
that society would normally be reluctant to
take. (Entrepreneurs)