1.

Which of the following is an example of how economic growth may not lead to economic
development?
a. A country experiences a 20% increase in exports due to increased demand from
foreign markets.
b. A country invests in new infrastructure to improve transportation and
communication networks.
c. A country deregulates its financial sector, leading to increased foreign investment
and economic growth.
d. A country relies heavily on extractive industries, resulting in environmental
degradation and displacement of indigenous communities.
2. Which of the following is a characteristic of developing countries' industrial sector?
a. High levels of labor productivity
b. Large multinational corporations
c. Modern technologies and equipment
d. Concentration in labor-intensive and low-skilled industries
3. Which of the following economic growth models emphasizes the importance of
investment in physical and human capital?
a. Harrod-Domar Model
b. Solow-Swan Model
c. Endogenous Growth Model
d. Rostow's Stages of Growth Model
4. Which of the following is a key feature of the Rostow's Stages of Growth Model?
a. The model emphasizes the role of institutions and political stability in promoting
economic growth.
b. The model proposes that countries pass through a series of stages on their way to
economic development.
c. The model suggests that economic growth is largely determined by technological
progress.
d. The model emphasizes the importance of savings and investment in promoting
economic growth.
5. Which of the following is an example of an institutional factor that affects economic
development?
a. The level of human capital, such as education and skills of the workforce
b. The level of investment in research and development
c. The level of property rights protection and contract enforcement
d. The level of domestic and foreign market demand for goods and services
6. Which of the following is a consequence of high income inequality in a society?
a. Higher overall economic growth rates
b. Higher levels of human development and well-being
c. Higher levels of social cohesion and trust
d. Higher levels of poverty and social exclusion
7. Which of the following is a potential consequence of high levels of poverty and income
inequality in a society?
a. Higher levels of political stability and social cohesion
b. Increased economic competitiveness and productivity
c. Lower levels of social mobility and intergenerational poverty
d. Higher levels of foreign direct investment and international trade
8. Which of the following is an effect of rapid population growth on economic
development?
a) An increase in per capita income and productivity
b) An increase in the availability of natural resources
c) A decrease in the size of the labor force
d) An increase in demand for basic necessities such as food and housing
9. Which of the following is a potential challenge associated with investing in human
capital for economic development?
a) An increase in income inequality and poverty
b) A decrease in the demand for goods and services
c) A decrease in the level of foreign direct investment
d) A long-term time lag between investing in education and seeing economic
benefits
10. Which of the following is a potential consequence of rural-urban migration according to
the Todaro model?
a) An increase in the availability of public goods and services in urban areas
b) A decrease in the size of the rural labor force
c) A decrease in urban unemployment and underemployment
d) An increase in urban informal employment and poverty
11. Which of the following is a potential solution to the problem of low agricultural
productivity and economic growth?
a) A decrease in public expenditures on agricultural research and development
b) An increase in the level of urbanization and industrialization
c) An increase in private sector investment and market-oriented reforms
d) A decrease in the availability of natural resources in rural areas
12. Which of the following is a potential consequence of import substitution policies on
economic development in developing countries?
a) A decrease in the level of industrialization and technological progress
b) An increase in the level of foreign direct investment and access to new markets
c) An increase in the level of social cohesion and community development
d) A decrease in the availability of public goods and services
13. Which of the following is a potential consequence of debt accumulation for economic
development in developing countries?
a) An increase in the level of foreign direct investment and access to new markets
b) A decrease in the level of social welfare and public goods provision
c) A decrease in the level of economic growth and technological progress
d) An increase in the level of domestic savings and investment
14. Which of the following is a potential benefit of export promotion policies for economic
development in developing countries?
a) An increase in the level of import dependency and trade deficits
b) A decrease in the level of private sector investment and market-oriented
reforms
c) An increase in the level of technological progress and innovation
d) A decrease in the level of political stability and social welfare provision