MCQ: For Rosentein Rodan a major indivisibility is in ?

1. Supply
2. infrastructure
3. agriculture
4. services

MCQ: One criticism of Rostow’s theory of economic growth is that ?

1. much available data contradicts his thesis about the takeoff stage
2. there is no explanation of why growth occurs after takeoff
3. his hypothesis of the stages of growth is difficult to test empirically
4. All of the above are correct

MCQ: According to the supply side of the vicious circle theory of development a country is poor because ?

1. technology levels do not allow for self sufficiency
2. it was previously too poor to save and invest
3. underemployment is too widespread
4. resource allocation is poor

MCQ: The Vicious circle theory states that ?

1. growing government assistance create addiction to welfare programs
2. low income levels create pressure for money creation
3. low income levels create pressure for cheap imports
4. low per capita incomes creates low savings that keep incomes low

MCQ: Surplus labor theories assume that ?

1. LDCs are overpopulated
2. labor contributes nothing to output in LDCs
3. the marginal products of labor is closed to zero in LDCs
4. urban unemployment is high in LDCs

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 ?

1. neoclassicism
2. Marxism
3. Rostow’s model
4. classical appraoch