Theories of Economic Development Mcqs
MCQ: Adam Smith advocated ?
I- laissez faire
II- the invisible hand
III- free trade policy
IV- competitive markets
- I and II only
- II and III only
- I , II and III only
- I , II , III and IV
Releted Questions
Theories of Economic Development Mcqs
MCQ: One criticism of Rostow’s theory of economic growth is that ?
- much available data contradicts his thesis about the takeoff stage
- there is no explanation of why growth occurs after takeoff
- his hypothesis of the stages of growth is difficult to test empirically
- All of the above are correct
D
MCQ: According to the supply side of the vicious circle theory of development a country is poor because ?
- technology levels do not allow for self sufficiency
- it was previously too poor to save and invest
- underemployment is too widespread
- resource allocation is poor
B
MCQ: The Vicious circle theory states that ?
- growing government assistance create addiction to welfare programs
- low income levels create pressure for money creation
- low income levels create pressure for cheap imports
- low per capita incomes creates low savings that keep incomes low
D
MCQ: Surplus labor theories assume that ?
- LDCs are overpopulated
- labor contributes nothing to output in LDCs
- the marginal products of labor is closed to zero in LDCs
- urban unemployment is high in LDCs
C
MCQ: During the 1980s and 1990s a period of economic conservative governments in much of West and Japan, a leading approach among development economists was ?
- neoclassicism
- Marxism
- Rostow’s model
- classical appraoch
A