WTO and Developing Economies MCQs

The concept of “structural unemployment” refers to:

A) Temporary unemployment due to seasonal factors

B) Unemployment caused by a mismatch between job skills and available jobs

C) Unemployment caused by government policies

D) Long-term unemployment due to economic recession

The “Solow growth model” focuses on the role of:

A) Foreign direct investment (FDI)

B) Labor force participation rate

C) Technological progress and capital accumulation

D) Consumption and savings rates

Which development theory emphasizes the role of international trade and export-led growth in economic development?

A) Modernization theory

B) Dependency theory

C) Export-oriented growth theory

D) Human capital theory

“Foreign Direct Investment (FDI)” refers to:

A) Investment in government bonds

B) Investment by foreign individuals in domestic stocks

C) Investment by foreign companies in domestic assets and production facilities

D) Investment by domestic companies in foreign markets

The concept of “poverty trap” refers to:

A) A cycle of poverty where individuals cannot escape due to lack of resources or opportunities

B) A government policy to alleviate poverty through cash transfers

C) Economic growth that benefits only the wealthy

D) International trade barriers that restrict access to global markets

The “Lewis turning point” refers to:

A) A sudden increase in industrial production

B) A shift from rural agriculture to urban industrialization

C) A decline in government spending

D) A decrease in foreign direct investment (FDI)

“Developmental state” refers to:

A) A government focused on economic development through industrial policies

B) A state with limited economic resources

C) A government that promotes foreign direct investment (FDI)

D) A state with high levels of corruption

The concept of “inclusive institutions” refers to:

A) Government institutions that promote inclusive growth

B) Institutions that provide financial assistance to the poor

C) Social organizations that promote income equality

D) Institutions that create opportunities for all members of society

The “Sen’s capability approach” emphasizes:

A) Economic growth as the primary goal of development

B) Providing basic needs such as food, education, and healthcare

C) Technological progress and industrialization

D) Export-oriented growth strategies

“Microfinance” refers to:

A) Small-scale financial services for low-income individuals and entrepreneurs

B) Investment in large-scale industrial projects

C) Financing for multinational corporations

D) International trade agreements