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Theories of Economic Development

Theories of Economic Development



The essential difference between capitalism and socialism is that ?
0

A. capitalism exploits the worker and socialism exploits the property owner
B. capitalism relies on the market to make economic decisions and socialism uses central planning
C. capitalism grows through rent seeking and socialism grows through government direction
D. capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

What is Baran’s explanation for underdevelopment in Asia, Africa, and Latin America ?
0

A. monopolistic business from abroad
B. reactionary ruling coalitions
C. weak domestic middle class
D. All of the above

OECD stands for ?
0

A. Organization for Economic Cooperation and Development and Development
B. Oil Exporting Countries Development
C. Organization for Environmental cooperative Department
D. Open Economies Caucus on Development

For Rosentein Rodan a major indivisibility is in ?
0

A. Supply
B. infrastructure
C. agriculture
D. services

The Vicious circle theory indicates that ?
0

A. a country is poor because it has lower productivity but high savings
B. as countries grow richer they save less
C. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides
D. market size is large in LDCs

Feudalism was undercut by?
0

I- the migration of serfs to the town
II- factory competition with handicraft and manorial production
III- expanded transport trade, discovery and new international markets
IV- the rise of the business corporation

A. I and II only
B. II and III only
C. I, II and III only
D. IV only

Adam Smith advocated ?
0

I- laissez faire
II- the invisible hand
III- free trade policy
IV- competitive markets

A. I and II only
B. II and III only
C. I , II and III only
D. I , II , III and IV

A theory ?
0

I- is a systematic explanation of relationships between economic variables
II- explains causal relationships among variables
III- provides a basis for policy
IV- provides an explanation of all factors influencing economic growth.

A. I only
B. I and II only
C. I , II and III only
D. IV only

The Harrod Domar growth model suggests that growth is ?
0

A. directly related to savings and inversely related to the capital/output ratio
B. directly related to the capital/output ratio and inversely related to savings
C. indirectly related to savings and the capital/output ratio
D. directly related to savings and the capital/output ratio

Baran’s Neo-Marxist thesis has been criticized for ignoring the probability that power is frequently ?
0

A. based on an alliance between landowners and peasants
B. based on an alliance between peasants and the foreign bourgeoisie
C. transferred from one elite to another when revolution occurs
D. derived from domestic opponents of nationalism



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