WTO and Developing Economies MCQs
Which economic theory emphasizes the role of savings and investment in fostering economic growth?
A) Dependency theory
B) Harrod-Domar model
C) Lewis model
D) Neoclassical growth theory
The concept of “unbalanced growth” is associated with which development theorist?
A) Rostow
B) Prebisch
C) Rosenstein-Rodan
D) Myrdal
According to Rostow’s stages of economic growth, which stage involves the development of manufacturing and industrialization?
A) Traditional society
B) Pre-conditions for take-off
C) Take-off
D) Drive to maturity
The term “Import Substitution Industrialization (ISI)” refers to:
A) Export-oriented industrialization
B) Fostering economic growth through foreign aid
C) Replacing imported goods with domestically produced goods
D) Promoting foreign direct investment (FDI)
Which development theory emphasizes the unequal relationship between developed and developing countries?
A) Dependency theory
B) Modernization theory
C) Neoclassical growth theory
D) Structural adjustment theory
The “Washington Consensus” refers to:
A) A set of neoliberal policies promoted by international financial institutions
B) An agreement on climate change mitigation strategies
C) A treaty on international trade and tariffs
D) A framework for debt forgiveness for developing countries
The “Asian Tigers” refers to:
A) A group of endangered species in Asia
B) Fast-growing economies in East Asia, including South Korea and Taiwan
C) A regional trade bloc in Southeast Asia
D) An alliance of Asian nations against colonialism
Which economic theory emphasizes the role of foreign direct investment (FDI) and multinational corporations (MNCs) in economic development?
A) Lewis model
B) Export-led growth theory
C) Neoclassical growth theory
D) Dependency theory
The “Dual Economy” concept refers to:
A) An economy with two currency systems
B) A division between urban industrial and rural agricultural sectors
C) A model of economic growth with dual government control
D) A type of economic system in socialist countries
The concept of “Human Development Index (HDI)” includes indicators of:
A) Economic growth and inflation rates
B) Income inequality and poverty rates
C) Education, health, and standard of living
D) Foreign exchange reserves and trade balances
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
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
