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Economic Development Final Exam
(Multiple Choice) A+ SCORE 2025- 2026
The level of income per capita
Countries tend to be classified as more or less developed based on
All of the above
Development economics is the study of
Transformation of social institutions is necessary for development
Development economics must have a scope wider than traditional economics becase
Life expectancy at birth
One of the components of the human development index (HDI) is
Purchasing power parity income levels
Which measure uses a common set of international prices for all goods and services produced?
2 billion
About how many people lack access to basic sanitation?
None of the above
Conditions of today's developed countries at the start of their industrialization differ from conditions in the developing world in that
All of the above are not used by the World Bank
Which of the following is not an indicator that is used by World Bank in the measuring of the level of economic development?
Infant mortality rate
(indicators are: avg. life expectancy, avg. years of schooling (adults and children), and the real GDP per capita)
Which of the following is not an indicator that is used to compute the HDI?
Per capita income
Developing countries are starting to converge with developed countries in the long run in what respect?
Surplus labor in the rural sector
Which of the following is an assumption of the Lewis two-sector model?
All of the above
In contrast to the earlier neoclassical models of economic growth, in endogenous growth models, there is more emphasis on
The factors that determine the size of the Solow Residual
The new growth theory attempts to explain
Pecuniary externalities.
The big-push theory argues that coordination failures may arise because of
Skill complementarities
The O-ring theory places emphasis on
None of the above
The absolute poverty line
The level of relative inequality
The Gini coefficient provides a measure of
Suggests that inequality will worsen and then improve as a country grows
Kuznets' inverted-U hypothesis
All of the above
Higher income countries tend to have lower levels of absolute poverty because
All of the above
Which of the following groups are more likely to be poor?
Size
Distribution of income according to percentiles, such as the highest 40% or lowest 20% is known as the _____ distribution of income.
Relatively higher Gini coefficients
Developing countries who have adopted capital-intensive technologies tend to have
None of the above
Assuming that the Gini coefficient for Egypt is 0.403 and Australia's is 0.404, it is possible to conclude that they both have
Percentage of a country's total consumption necessary to bring everyone in the country below the poverty line up to the line
Dependency burden
The proportion of the total population aged 0-15 and over 65, is known as the
Ignores the role of technological progress
The Malthusian population trap model has been criticized on the grounds that it
The formal sector is incapable of providing enough employment
An argument supporting promotion of the urban informal sector is
Well educated
Rural-urban migration differ from the rest of the rural population in that they are more likely to be
Decrease rural-urban migration
Other things constant, the elimination of factor price distortions in developing countries would most likely
All of the above
The informal sector exhibits
