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Development Economics
Successful foreign aid programs will
Which of the following is NOT an MDG?
Development Economics
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IB Development Economics
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Answers
1
Which of the following is NOT an MDG?
To develop global partnerships for develoment
To achieve universal education to (at least) primary level
To ensure environmental sustainability
To increase child mortality rates
2
Successful foreign aid programs will
Cause an appreciation in the recipient country's XR
Shift the donor country's PPC to the right
Cause a depreciation in the recipient country's XR
Shift the recipient country's PPC to the right
3
Lack of property rights is a contributing factor to poverty in some LDCs
Yes it is
Nobody really knows
Is it?
No it isn't
4
For some countries many migrant workers remit large amounts of money from abroad, which means
HDI exceeds GDP
GDP exceeds GNI
HDI exceeds GNI
GNI exceeds GDP
5
FDI helps to improve the infrastructure of a country
True
False
It depends
Not necessarily
6
Humanitarian aid does not include
Assistance for infrastructure development programs
Emergency relief assistance
Food aid
Medical aid
7
Single indicators of economic development do not include:
Real GDP per capita
Real GNI per capita
Human Development Index
GDP per capita at PPP exchange rats
8
Limitations of interventionist development policies do not include
Excessive regulation and bureaucracy
Poor planning
Income inequalities
Corruption
9
Important sources of economic growth and development do not include:
Increases in the amount of physical capital
Development and use of technology
Institutional changes
High population growth
10
Market-oriented development policies are unlikely to cause
Economic growth
The development of a dual economy
Market failures
Equal income distribution
11
FDI can only be undertaken by MNCs
Correct
Incorrect
12
Economic growth always leads to economic development.
True
False
13
Which of the following is not an HDI indicator?
Education
Living Standards
Poverty
Healthcare
14
GNI includes net property incomes earned abroad by nationals of the country.
false
true
troo
BOO!
15
Import substitution involves importing from LEDCs instead of MEDCs
So true
False, false, false, false
16
Which of the following is not a market -based policy to encourage development?
Cuts in business taxes to encourage incentives to invest
Progressive tax systems to create incentives to work
Labour market reforms
Anti-monopoly regulation
17
The presence of MNCs brings about disadvantages for the host country such as...
Environmenal degredation
The exploitation of low cost opportunities
The loss of economic sovreignty
A regulatory framework that encourages profit repatriation
18
An increase in inflation leads to an increase in servicing foreign debt
False
True
It depends
19
Which of the following strategies is most likely to be used to protect infant industries?
Diversification
Import substitution
Export promotion
Bilateral trade agreements
20
Which of the following is least likely to be a reason for FDI
Increased shareholder value
Higher levels of profit
Economic development
Increased sales revenue
