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Economist Douglass North suggested that in development economics, government bodies, development agencies, and international groups should be referred to as:


A) organizations.
B) institutions.
C) agencies.
D) groups.

E) A) and C)
F) A) and D)

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The idea behind clustering is that:


A) each part of a network generally operates better in isolation, and if governments reduce regulation, firms should realize large gains in productivity.
B) too many firms in the same network cuts down on profits, so if governments can subsidize the most profitable businesses, they should realize large gains in productivity.
C) each part of a network is far less productive operating in isolation, so if governments can push each element of the network together, they should realize large gains in productivity.
D) many parts of a network don't have the technical expertise required to realize large gains in technology, so the government should provide technical resources to help these networks develop.

E) A) and B)
F) B) and C)

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Which of the following would be referred to as an institution in development economics?


A) Cultural norms
B) The World Bank
C) The FBI
D) None of these are institutions.

E) None of the above
F) B) and D)

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Private donations of aid:


A) have decreased over time.
B) are larger than the entire budget for official foreign aid provided by the United States.
C) represent less than half of total foreign aid.
D) are generally not counted in the aid statistics reported by various aid agencies.

E) A) and B)
F) B) and C)

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Randomized controlled trials:


A) ideally only measure the impact of a particular program in a controlled setting.
B) randomly assign people into different groups in order to focus on the impact of a particular intervention.
C) measure the impact of a particular program but cannot measure its comparable cost effectiveness.
D) are not a useful tool in assessing how specific interventions may influence economic development.

E) B) and D)
F) B) and C)

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What is the relationship between economic growth and economic development?


A) Economic growth always promotes economic development.
B) There is a negative relationship between economic growth and economic development.
C) While there is a rough correlation between economic growth and economic development, the relationship does not always hold.
D) There is no relationship between economic growth and economic

E) All of the above
F) C) and D)

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According to the capabilities approach, democracy is:


A) required for economic growth and essential in sustaining basic freedoms.
B) not required for economic growth, but it is essential in sustaining basic freedoms.
C) not required for economic growth and thus not a consideration when we discuss improving lives.
D) required for economic growth and should only be considered when creating capabilities that directly contribute to growth.

E) B) and D)
F) A) and D)

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The table shown provides economic development data for a country from 1990-2020. The table shown provides economic development data for a country from 1990-2020.   Which decade experienced the largest gain in economic development? A)  1980 - 1989 B)  1990 - 1999 C)  2000 - 2009 D)  2010 - 2019 Which decade experienced the largest gain in economic development?


A) 1980 - 1989
B) 1990 - 1999
C) 2000 - 2009
D) 2010 - 2019

E) C) and D)
F) A) and B)

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What is the global network that provides knowledge and resources to developing countries?


A) The Peace Corps
B) The International Resource Fund
C) The United Nations Development Program
D) The World Trade Organization

E) A) and B)
F) A) and C)

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An example of a capability would be the ability to:


A) receive appropriate healthcare as required for a healthy life.
B) acquire adequate food and shelter.
C) travel freely.
D) All of these are true.

E) All of the above
F) C) and D)

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During the Cold War era, the United States:


A) gave foreign aid to many countries regardless of their politics.
B) gave foreign aid to countries in need, while Russia demanded reparations from many of the same countries.
C) gave foreign aid in an effort to prevent the spread of communism, while Russia gave foreign aid in an effort to align countries with the Communist bloc.
D) did not engage in any foreign aid because of the cost of building munitions.

E) B) and D)
F) B) and C)

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The table shown provides economic development data for a country from 1990-2020. The table shown provides economic development data for a country from 1990-2020.   Which decade experienced the highest rate of economic growth? A)  1980 -1989 B)  1990 - 1999 C)  2000 - 2009 D)  2010 - 2019 Which decade experienced the highest rate of economic growth?


A) 1980 -1989
B) 1990 - 1999
C) 2000 - 2009
D) 2010 - 2019

E) A) and B)
F) B) and D)

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One important consequence of migration is:


A) increased output in receiving countries.
B) remittances received by sending countries.
C) population growth in both countries.
D) demographic shifting in both countries.

E) B) and C)
F) None of the above

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Education is key for all of the following except:


A) economic development.
B) economic growth.
C) increasing the capabilities of a society.
D) interest rate policy.

E) B) and C)
F) None of the above

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The table shown provides economic development data for a set of countries. The table shown provides economic development data for a set of countries.   Which country has the fastest economic growth? A)  Ghana B)  Italy C)  Brazil D)  Germany Which country has the fastest economic growth?


A) Ghana
B) Italy
C) Brazil
D) Germany

E) A) and B)
F) A) and C)

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Export-led growth policy involves:


A) favoring industries that export goods over those that only produce domestically consumed goods.
B) investing heavily in industry through tax breaks and export subsidies, with the aim of selling goods around the world.
C) encouraging private investment in industries that currently export goods, rather than those expanding domestically.
D) discouraging imports with high tariffs.

E) A) and C)
F) None of the above

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Which organization monitors and enforces trade agreements and promotes free trade?


A) The World Bank
B) UNICEF
C) The World Trade Organization
D) The National Alliance Trade Organization

E) All of the above
F) A) and B)

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National health care programs are not as effective as they could be because:


A) high uptake causes overcrowding of existing healthcare clinics.
B) public health care clinics often run out of important drugs.
C) younger populations prefer not to use public health care systems.
D) many clinic doctors do not have sufficient knowledge to properly diagnose patients.

E) A) and C)
F) C) and D)

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The _______ gives loans to medium-income, creditworthy countries and the _______ gives aid to poorer countries.


A) International Development Association; United Nations Development Program
B) International Development Association; International Bank for Reconstruction and Development
C) International Bank for Reconstruction and Development; International Development Association
D) United Nations Development Program; International Bank for Reconstruction and Development

E) A) and B)
F) A) and C)

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In general, educating workers:


A) makes them more productive.
B) does not affect overall economic growth.
C) contributes little to other capabilities.
D) All of these are true.

E) A) and B)
F) None of the above

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