This quiz works best with JavaScript enabled. Home > Finance > Economics > Development Economics > Development Economics – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Development Economics Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When comparing GNI across countries we adjust it by using A) Particular Purchasing Parity. B) Purchasing Potential Parity. C) Powerful Purchasing Parity. D) Purchasing Power Parity. Show Answer Correct Answer: D) Purchasing Power Parity. 2. Which funding agency supports Oxfam's Mekong Inclusion Project? A) United Nations Development Programme (UNDP). B) Swedish International Development Cooperation Agency (SIDA). C) Australian Department of Foreign Affairs and Trade. D) World Bank. Show Answer Correct Answer: C) Australian Department of Foreign Affairs and Trade. 3. According to the linear-stages approach, how can poor countries compensate for their low level of new capital formation? A) By increasing foreign aid and FDI. B) By increasing their capital-output ratio, k. C) By decreasing their capital-output ratio, k. D) By decreasing their export/import ratio. Show Answer Correct Answer: A) By increasing foreign aid and FDI. 4. What is the principle reason for market failure of the market for animal power? A) Dearth of capital. B) Time bound use of animal power. C) Low availability of healthy animals. D) All the above. Show Answer Correct Answer: B) Time bound use of animal power. 5. All investment should be in all sectors A) Domar. B) Balanced. C) Unbalanced. D) Harrod. Show Answer Correct Answer: B) Balanced. 6. Which field has Oxfam achieved achievements in Vietnam? A) Environmental conservation. B) Infrastructure development. C) Gender equality and women's empowerment. D) Healthcare and disease prevention. Show Answer Correct Answer: C) Gender equality and women's empowerment. 7. Out of 200 million children in the school going age group, how many are attending schools? A) Half. B) One-fourth. C) One-fifth. D) Two-thirds. Show Answer Correct Answer: D) Two-thirds. 8. When studying the reasons for which small firms don't grow bigger, it is important to focus on a representative sample of small firms in order to ensure external validity. A) False. B) True. Show Answer Correct Answer: A) False. 9. How many randomization cells are there in De Mel et al. (2013)? A) 3. B) 4. C) 2. D) 5. Show Answer Correct Answer: D) 5. 10. Sons are supposed to be the households' economic asset in ..... societies. A) Primogeniture. B) Patrilocal. C) Patrilineal. D) Patricide. E) Matrilineal. Show Answer Correct Answer: C) Patrilineal. 11. In which province did Oxfam provide non-emergency aid to 550 poor households? A) An Giang. B) Ninh Thuan. C) Ha Tinh. D) Lao Cai. Show Answer Correct Answer: C) Ha Tinh. 12. Which urban land model uses two CBDs? A) Latin American. B) Concentric. C) Multiple Nuclei. D) Sector. Show Answer Correct Answer: C) Multiple Nuclei. 13. If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is A) Regressive. B) Progressive. C) Excise taxes. D) Value-added taxes (VAT). Show Answer Correct Answer: B) Progressive. 14. Summarise in a few words the two hypotheses that explain why small businesses in developing countries remain largely informal. Also elaborate on which of the two theories seems to be at work in the context of one of the papers we saw together, and why. A) Following the exit view, small businesses exit the formal sector because they rationally compare costs and benefits of being informal and the benefits outweigh the costs. Following the exclusion view businesses exit the formal sector because of the burdensome costs of regulation. B) De Mel et al. (2013) points towards exit view; the exclusion view can't be right for this case because small businesses offered with 'only' information about registration process with tax authority + reimbursement of direct registration fees (T1) did not register significantly more than the control group. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 15. Harrod Domar growth theory consider ..... as a key factor in economic growth process? A) Growth. B) Capital Accumulation. C) Consumption. D) Labour. Show Answer Correct Answer: B) Capital Accumulation. 16. The basic of Schumpeter theory of Development A) Investment. B) Saving. C) Innovation. D) Trade cycle. Show Answer Correct Answer: C) Innovation. 17. Adam Smith advocated I laissez-faire. II the invisible hand. III free-trade policy. IV competitive markets. A) I & II. B) ONLY I. C) I, II &III. D) I, II, III AND IV. Show Answer Correct Answer: D) I, II, III AND IV. 18. Which of the following economist had not proposed Balanced Growth Theory? A) Singer. B) Nurkse. C) Lewis. D) Rodan. Show Answer Correct Answer: A) Singer. 19. Human Development Index is used to measure Human Development in any country. Which of the following is not a dimension used? A) Lead a long and healthy life. B) Knowledge. C) Happiness. D) Decent standard of living. Show Answer Correct Answer: C) Happiness. 20. For calculating Body Mass Index (BMI), weight of the person is divided by the: A) Square root of the height. B) Square of the weight. C) Square root of the height. D) Square of the height. Show Answer Correct Answer: D) Square of the height. 21. According to World Bank (2015), climate change will likely have the strongest ..... impacts on the world's poorest nations and regions. A) None. B) Positive. C) Negative. D) None of above. Show Answer Correct Answer: C) Negative. 22. What is India's rank in HDR 2020 A) 131. B) 151. C) 10. D) 59. Show Answer Correct Answer: A) 131. 23. Marshallian inefficiency is based on: A) Efficiency of fixed-rent contracts. B) Inefficiency of share-cropping. C) Appropriate provision of incentives. D) None of the above. Show Answer Correct Answer: C) Appropriate provision of incentives. 24. According to Lewis' Theory of Development, at constant urban wage: A) The supply curve of rural labor to the modern sector is considered to be perfectly elastic. B) The supply curve of rural labor to the modern sector is considered to be perfectly inelastic. C) The demand curve of rural labor to the modern sector is considered to be perfectly elastic. D) The demand curve of rural labor to the modern sector is considered to be perfectly inelastic. Show Answer Correct Answer: A) The supply curve of rural labor to the modern sector is considered to be perfectly elastic. 25. According to Lewis' Theory of Development: A) Rural wages would have to be at most 30% higher than average urban income to induce workers to migrate back to their home areas. B) Urban wages would have to be at least 30% higher than average rural income to induce workers to migrate from their home areas. C) Rural wages would have to be at least 30% higher than average urban income to induce workers to migrate from their home areas. D) Urban wages would have to be equal to the average rural income to induce workers to migrate from their home areas. Show Answer Correct Answer: B) Urban wages would have to be at least 30% higher than average rural income to induce workers to migrate from their home areas. 26. The effect of floods on children's schooling outcomes is A) Significant. B) Insignificant. Show Answer Correct Answer: A) Significant. 27. If the share of savings s is 6% and the capital-output ratio k is 4/1, according to the linear-stages approach, what will be the GNP growth? A) +1%. B) +2.5%. C) +1.5%. D) +2%. Show Answer Correct Answer: C) +1.5%. 28. When was PRADAN (Professional Assistance for Development Action) created? A) 1978. B) 1983. C) 1995. D) 1990. Show Answer Correct Answer: B) 1983. 29. Which organization works with farmers in India to promote sustainable agricultural practices? A) Grameen-Danone Food Company. B) Sulabh International Social Service Organization. C) M.S. Swaminathan Research Foundation (MSSRF). D) SKS Microfinance. Show Answer Correct Answer: C) M.S. Swaminathan Research Foundation (MSSRF). 30. Development of an individual refers to A) Mental development. B) Physical development. C) Spiritual development. D) Overall development. Show Answer Correct Answer: D) Overall development. 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