1.

World bank provides development funds to developing countries in the form of interest-
bearing loans, grants, and technical assistance – True
2. A characteristic of a developing world includes larger rural populations but less rural-to-
urban migration. – False
3. A characteristic of a developing world includes having an adverse geography. – True
4. The reliance of developing countries on developed-country economic policies to stimulate
their own economic growth. – Dependence
5. The excess supply of labor over and above the quantity demanded at the going free-market
wage rate. – Surplus Labor
6. This model emphasized the beneficial role of free markets, open economies, and the
privatization of inefficient public enterprises – Neoclassical, Free Market Counterrevolution
7. This model viewed the process of development as a series of successive stages of economic
growth. – linear-stages-of-growth model
8. A theory of development in which surplus labor from the traditional agricultural sector is
transferred to the modern industrial sector. – Lewis two-sector model
9. A model that attributes the existence and continuance of underdevelopment primarily to the
historical evolution of a highly unequal international capitalist system of rich country–poor
country relationships – Neocolonial Dependence Model
10. This approach recognizes many imperfections in developing-country product and factor
markets and that governments do have a key role to play in facilitating the operation of
markets through “nonselective” interventions. – Market Friendly Approach
1. A situation in the international affairs in which developed countries have greater power than
the less developed countries. – b. Dominance
2. An economic situation characterized by persistent low levels of living in conjunction with
absolute poverty and other economic and non-economic factors. - b. Underdevelopment
3. The replacement of the Millennium Development Goals. - a. Sustenable Development Goals
(SDGs)
4. Refers to the existence and persistence of substantial and even increasing divergences
between rich and poor nations and rich and poor people on various levels. - c. Dual
Development
5. Hypothesize the "Neo-Classical Growth Model" - a. Robert Solow
6. It attributes the existence and continuance of underdevelopment primarily to the historical
evolution of a highly unequal international capitalist system of rich country–poor country
relationships. - d. Neo-Colonial Dependence Model
7. The expected numberof remianing years of life spent in good health from a particular age. -
d. Healthy life expectancy
8. Measured by real per capita gross domestic product adjusted for the differing purchasing
power parity. - b. Decent standard of living
9. Refers to the organizational and institutional structure of a society, including its values,
attitudes, power structure, and traditions. - a. Social System
10. A situation of being unable to meet the minimum levels of income, food, clothing, health
care, shelter, and other essentials. - c. Absolute Poverty
11. Refers to the process of improving the quality of all human lives and capabilities by raising
people’s levels living, self-esteem, and freedom. - b. Development
12. Pioneered the "Neo-Classical Counterrevolution" - b. Anne Krueger
13. An economic condition where life sustaining basic needs are in critically short supply or
absent. - b. Absolute Underdevelopment
14. The process of improving the quality of all human lives and capabilities by raising people’s
levels of living, self-esteem, and freedom. - d. Development
15. International organization which adopted Millennium Development Goals (MDG's) which
has the strongest statement in ending global poverty. - d. World Bank
16. Economic development approach which highlights under development in terms of
international and domestic power relationship & institutional and structural rigidities
resulting from the proliferation of dual economies. - c. International Dependence Models
17. The total economic value of domestic and foreign output by residents of a country. - b. Total
nominal Gross Domestic product
18. The following statements holds true about Development Economics, except: - d. One of it's
essential components is a larger government role and some degree of coordinated economic
decision making directed toward transforming the economy.
19. Market analysis is to Free Market Approach as Market Failure is to: - a. Market Friendly
Approach
20. An approch in economics which assumes economic “rationality” and a purely materialistic,
individualistic, self-interested orientation toward economic decision making. - a. Traditional
Economics
21. Classical economic theory which contends that failure to develop was not due to exploitive
external and internal forces but rather the result of too much government intervention and
regulation of the economy. - d. Neoclassical Counterrevolution
22. Which of the following economic variables are being used under the Traditional Economic
measures? - d. Real per capita GNI
23. A situation of being unable to meet the minimum levels of income, food, clothing, health
care, shelter, and other essentials. - a. Absolute poverty
24. The basic goods and services, such as food, clothing, and shelter, that are necessary to
sustain an average human being at the bare minimum level of living. - d. Sustenance
25. Economic development approach which highlights under development in terms of
international and domestic power relationship & institutional and structural rigidities
resulting from the proliferation of dual economies. - c. International Dependence Models
26. The study of how economies are transformed from stagnation to growth and from
lowincome to high-income status, and overcome problems of absolute poverty. - c.
Development Economics
27. Which of the following stages of development of Rostow emphasizes the generation of
sufficient investment to accelerate economic growth? - c. Take-off Phase
28. Which of the following stages of development of Rostow emphasizes the generation of
sufficient investment to accelerate economic growth? - c. Take-off Phase
29. An international-dependence approach which attributes underdevelopment to faulty and in
appropriate advice provided by international “expert” advisers from developed-country. - c.
False-Paradigm Model
30. The organizational and institutional structure of a society, including its values, attitudes,
power structure, and traditions. - b. Social system
31. The theory that self-interest guides all individual behavior and that governments are
inefficient and corrupt because people use government to pursue their own agendas. - b.
New Political Economy Approach
32. It measures the relative position of nations and regions peacefulness. - b. Global Peace index
33. Posited the "Stages of Economic Growth" - d. Walt Rostow
34. Refers to the total domestic and foreign output claimed by residents of a country. - b. Gross
National Income (GNI)
35. Doings and beings that people can achieve if they so choose, such as being well-nourished,
getting married, being educated, and travelling. - b. Capabilities
36. Eight goals that all 191 UN member states have agreed to try to achieve by the year 2015. - b.
Millennium Development Goals (MDGs)
37. The following aspect constitutes the necessary but not the sufficient conditions for
development, except: - d. Increasing the degree of migration
38. Refers to a sense of worth and self-respect. - b. Self-esteem
39. Also known as the ability to meet basic needs. - c. Sustenance
40. An economy in which production is mainly for personal consumption and the standard of
living yields little more than basic necessities of life—food, shelter, and clothing. - d.
Subsistence Economy
41. It focuses on the sequential process through which the economic, industrial, and
institutional structure of an underdeveloped economy is transformed over time to permit
conversion from old to new as the engine of economic growth. - b. Patterns of Development
Analysis
42. Which of the following statements connotes the traditional concept of development? - c.
Development means achieving sustained rates of growth of income per capita to enable a
nation to expand its output at a rate faster than the growth rate of its population.
43. Classical economic theory which emphasizes external and internal institutional and political
constraints on economic development. - c. International Dependence Models
44. Refers to what people do or can do with the commodities of given characteristics that they
come to possess or control. - c. Functionings
45. Economic actor that chooses actions so as to maximize an objective. - d. All of the foregoing
choices
46. The composite measure reflecting inequality in achievement between women and men. - a.
Gender Inequality Index
47. A situation in which a society has at its disposal a variety of alternatives to satisfy it's wants. -
c. Freedom
48. Also known as to be able to choose. - a. Freedom
49. Group or classification of countries which are characterized by low levels of living and other
development deficits. - a. Developing Countries
50. Concerned primarily with the efficient, least-cost allocation of scarce productive resources
and with the optimal growth of these resources over time so as to produce an ever-expanding
range of goods and services. - a. Traditional economics