WTO and Developing Economies MCQs

Which development theory emphasizes the role of state intervention and protectionist policies in economic development?

A) Modernization theory

B) Structural adjustment theory

C) Dependency theory

D) Import substitution theory

“Debt crisis” refers to:

A) A sudden increase in national savings

B) Excessive borrowing leading to repayment difficulties

C) A decline in foreign direct investment (FDI)

D) A rise in government spending

The concept of “brain drain” refers to:

A) A loss of intellectual property rights

B) Migration of skilled professionals from developing to developed countries

C) Decrease in government investment in education

D) A decline in agricultural productivity

“Informal economy” refers to:

A) Economic activities that are regulated by the government

B) Production and trade of illegal goods and services

C) Activities that are not officially recognized or taxed

D) Export-oriented industries

Which development theory criticizes the linear progression of development stages proposed by modernization theory?

A) Dependency theory

B) Neoclassical growth theory

C) Rostow’s stages of growth

D) Structural adjustment theory

The concept of “structural transformation” refers to:

A) Changes in government policies

B) Shifts in the composition of an economy from agriculture to industry and services

C) Increase in international trade barriers

D) A decline in population growth

The “Harris-Todaro model” is associated with the analysis of:

A) Rural-urban migration

B) Trade deficits and surpluses

C) Monetary policy

D) Industrial policies

Which development theory emphasizes the role of education and human capital in economic growth?

A) Structural adjustment theory

B) Dependency theory

C) Human capital theory

D) Modernization theory

“Inclusive growth” refers to:

A) Economic growth that benefits only the elite

B) Economic growth that benefits all segments of society

C) Economic growth that focuses on urban areas

D) Economic growth driven by foreign investment

The “Gini coefficient” is used to measure:

A) Income inequality

B) Government spending

C) Trade balances

D) Unemployment rates