Theories of Economic Development Mcqs

MCQ: Criticisms of Rostow’s stages of development include ?

1. the difficulty of testing the stages scientifically
2. conditions for takeoff are contradicted by historical evidence
3. characteristics of one stage are not unique to that stage
4. All of the above are correct

MCQ: The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ?

1. benefits if each acts in his/her own interest
2. will increase their profits in a free market
3. should act to maximize economic growth
4. should act to promote the public interest

MCQ: The Lawis model explains how growth gets started in a less developed economy ?

1. with an average product of labor in agriculture that is negative
2. with a downward-sloping supply curve of labor
3. with a marginal productivity of labor zero or negligible in industry
4. with a traditional agricultural sector and an industrial capitalist sector

MCQ: A major dependency theorist Andre Gunder Frank Suggests that the following economic activities have contributed to underdevelopment:
I- Workers migrating from villages to foreign-dominated urban complexes
II- Forming an unskilled labor force to work in factories and mines and on plantations
III- Replacing indigenous enterprises with technologically more advanced global subsidiary companies
IV- Closing the economy to trade with and investment from, developed countries

1. I and II only
2. II and III only
3. I, II and III only
4. I , II III and IV

MCQ: The synchronized application of capital to a wide range of different industries is called __________ by its advocates?

1. balanced growth
2. capitalization
3. elasticity of capital
4. indivisibilities

MCQ: Rostow’s economics stages are ?

1. The preconditions for takeoff, the takeoff, the drive to maturity and the age of creative destruction
2. The traditional society the preconditions for takeoff, the takeoff, the drive to maturity and the age of high mass consumption
3. the preconditions for consumption the replication the drive to maturity and the age of high mass consumption
4. the learning curve the age of high mass consumption post takeoff, and the drive to maturity

MCQ: Karl Marx’s historical materialism views were shaped by all of the following EXCEPT ?

1. The French Revolution
2. The rise of industrial and capitalist production
3. Political and labor revolts
4. a growing spiritual rationalism

MCQ: Which of the following was not a classical economist ?

1. Adam Smith
2. Thomas R. Malthus
3. John Stuart Mill
4. John Maynard Keynes

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

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