Question 1

Define and describe economic nationalism and provide examples of theorists who explored this viewpoint.

Accepted Answer

An early reaction to the classical liber

Question 2

If budgets and expenses are stable over time but income from exports is unpredictable, developing governments can face unexpected surpluses or deficits. This is known as purchasing power parity.

Accepted Answer

A) True 
 B)False

Question 3

Hans Singer and Raul Prebisch observed that __________________.

Accepted Answer

A)  developing countries usually exported agricultural and mineral commodities while importing manufactured goods 
B)  developing countries usually exported manufacturing goods and exploited other developing countries for agricultural and mineral commodities 
C)  developing countries exported finished manufactured goods to developed countries 
D)  industrialization in developing countries could achieve large profits in its early stages 
E)  developing countries should reinvest profits from industrialization in technology adaptation and innovation to make economic development self-sustaining 
A)  developing countries usually exported agricultural and mineral commodities while importing manufactured goods 
B)  developing countries usually exported manufacturing goods and exploited other developing countries for agricultural and mineral commodities 
C)  developing countries exported finished manufactured goods to developed countries 
D)  industrialization in developing countries could achieve large profits in its early stages 
E)  developing countries should reinvest profits from industrialization in technology adaptation and innovation to make economic development self-sustaining

Question 4

The "Washington Consensus" outlined what developing countries needed to do in order to succeed in terms of growth and development. This included:

Accepted Answer

A)  balance government budgets and keep inflation as low as possible 
B)  privatize all state enterprises, assets, and public services 
C)  deregulate all aspects of the economy such as contracting, labour, finance, and banking 
D)  liberalize international trade 
E)  All of the above 
A)  balance government budgets and keep inflation as low as possible 
B)  privatize all state enterprises, assets, and public services 
C)  deregulate all aspects of the economy such as contracting, labour, finance, and banking 
D)  liberalize international trade 
E)  All of the above

Question 5

The theory of surplus labour implied that industrialization could achieve large profits in its early stages, which could later be reinvested in technology adaptation or endogenous innovations, making economic development a self-sustaining project.

Accepted Answer

A) True 
 B)False

Question 6

New institutional economics (NIE) reshaped contemporary understandings of economic development by ______________.

Accepted Answer

A)  solidifying neo-liberal economic theory as the dominant theory in development economics 
B)  solidifying Keynesian economic theory as the dominant theory in development economics 
C)  underlining the relationship between political and economic institutions and developmental outcomes 
D)  being the most accepted economic policies in the Global South 
E)  None of the above 
A)  solidifying neo-liberal economic theory as the dominant theory in development economics 
B)  solidifying Keynesian economic theory as the dominant theory in development economics 
C)  underlining the relationship between political and economic institutions and developmental outcomes 
D)  being the most accepted economic policies in the Global South 
E)  None of the above

Question 7

Why did Talcott Parsons argue that non-Western societies could only industrialize if they adopted Western cultural and social norms?

Accepted Answer

Talcott Parsons was borrowing from biolo

Question 8

Define and describe Arthur Lewis's theory of surplus labour.

Accepted Answer

Arthur Lewis argued out that industriali

Question 9

Define and describe Alexander Gerschenkron's theory of economic development.

Accepted Answer

In some areas of the world, British indu

Question 10

Define and describe Douglass C. North's concept of "path dependence."

Accepted Answer

Douglass C. North is often viewed as a f

Question 11

Path dependence is part of neo-liberal theory and posits that, once created, institutions become resistant to change and locked-in a set of incentives for human behaviour.

Accepted Answer

A) True 
 B)False

Question 12

Define and describe income volatility and how it alters economic growth and development.

Accepted Answer

That combination of income elasticity (a

Question 13

Franz List, a German political economist writing in the 1840s, called for trade protectionism to help develop domestic industry and scientific knowledge in order to catch-up and compete with other "more advanced" European nations.

Accepted Answer

A) True 
 B)False

Question 14

Alexander Gerschenkron is credited with developing the first theory of economic development, which advocated using imported technology and private business to accelerate industrialization.

Accepted Answer

A) True 
 B)False

Question 15

Sometimes developing countries that export simple commodities but are trying to industrialize need to import growing and costlier manufactured goods and technologies, which rise in value faster than commodities. This is known as ___________________.

Accepted Answer

A)  declining terms of trade 
B)  income volatility 
C)  income elasticity of demand 
D)  purchasing power parity 
E)  stop-and-go patterns 
A)  declining terms of trade 
B)  income volatility 
C)  income elasticity of demand 
D)  purchasing power parity 
E)  stop-and-go patterns

Question 16

The premise of import substitution industrialization (ISI) was __________________.

Accepted Answer

A)  that by importing foreign technology, developing nations could grow their economies faster 
B)  that by using local technologies and materials, developing nations could avoid foreign debt 
C)  that by protecting infant industries they could grow shielded from foreign competition 
D)  that by removing tariffs on imported materials and manufactured goods, it would increase competition and encourage economic growth 
E)  that encouraging imports would accelerate industrialization in developing nations 
A)  that by importing foreign technology, developing nations could grow their economies faster 
B)  that by using local technologies and materials, developing nations could avoid foreign debt 
C)  that by protecting infant industries they could grow shielded from foreign competition 
D)  that by removing tariffs on imported materials and manufactured goods, it would increase competition and encourage economic growth 
E)  that encouraging imports would accelerate industrialization in developing nations

Question 17

The theory of comparative advantage suggested that market rules benefitted employers or owners of land and capital while work?ers benefitted least.

Accepted Answer

A) True 
 B)False

Question 18

Alexander Gerschenkron's theory of economic development did NOT include the _______________.

Accepted Answer

A)  production of capital 
B)  production of industrial goods 
C)  provision of physical infrastructure (such as railroads and electricity) 
D)  production of consumer goods improvements in agricultural output 
E)  collaboration of governments and private businesses to foment rapid industrialization 
A)  production of capital 
B)  production of industrial goods 
C)  provision of physical infrastructure (such as railroads and electricity) 
D)  production of consumer goods improvements in agricultural output 
E)  collaboration of governments and private businesses to foment rapid industrialization

Question 19

Much of the American, Canadian, and Western European political and military aid during the Cold War years, from the 1950s to the 1980s, was contradictory. Aid during these years simultaneously supported market-friendly and modernizing authoritarian governments, while often admonishing them to provide political rights and move toward democracy.

Accepted Answer

A) True 
 B)False

Exam 3: Theories of Development Economics

Define and describe economic nationalism and provide examples of theorists who explored this viewpoint.

If budgets and expenses are stable over time but income from exports is unpredictable, developing governments can face unexpected surpluses or deficits. This is known as purchasing power parity.

Hans Singer and Raul Prebisch observed that __________________.

The "Washington Consensus" outlined what developing countries needed to do in order to succeed in terms of growth and development. This included:

The theory of surplus labour implied that industrialization could achieve large profits in its early stages, which could later be reinvested in technology adaptation or endogenous innovations, making economic development a self-sustaining project.

New institutional economics (NIE) reshaped contemporary understandings of economic development by ______________.

Why did Talcott Parsons argue that non-Western societies could only industrialize if they adopted Western cultural and social norms?

Define and describe Arthur Lewis's theory of surplus labour.

Define and describe Alexander Gerschenkron's theory of economic development.

Define and describe Douglass C. North's concept of "path dependence."

Path dependence is part of neo-liberal theory and posits that, once created, institutions become resistant to change and locked-in a set of incentives for human behaviour.

Define and describe income volatility and how it alters economic growth and development.

Franz List, a German political economist writing in the 1840s, called for trade protectionism to help develop domestic industry and scientific knowledge in order to catch-up and compete with other "more advanced" European nations.

Alexander Gerschenkron is credited with developing the first theory of economic development, which advocated using imported technology and private business to accelerate industrialization.

Sometimes developing countries that export simple commodities but are trying to industrialize need to import growing and costlier manufactured goods and technologies, which rise in value faster than commodities. This is known as ___________________.

The premise of import substitution industrialization (ISI) was __________________.

The theory of comparative advantage suggested that market rules benefitted employers or owners of land and capital while work?ers benefitted least.

Alexander Gerschenkron's theory of economic development did NOT include the _______________.

What Is Development? From Economic Growth to the Sustainable Development Goals

Imperialism and the Colonial Experience

The Critical Political Economy of Development

Post-development and Alternatives to Development

Gender and Development: Theoretical Insights and International Commitments

Globalization and Development

State of the State: Does the State Have a Role in Development?

National Development Agencies and Bilateral Aid

The International Financial Institutions

The United Nations and Multilateral Actors in Development

Private Enterprise and Development

Civil Society and Development

China and the Emerging Economies

Debt and Development

Free Trade, Fair Trade, and South-South Trade

Democracy

Climate Change, Environment, and Development

Rural Development

Urban Development: Cities in the Global South

Development and Health

Conflict and Development

Refugees and International Development Policy and Practice

Indigenous Community Economic Resilience

Culture and Development

Measuring and Evaluating Poverty

Inequality and Social Policy

Planning and Appraising Development Projects

Humanitarian Assistance and Intervention

Ethics of Development, by Des Gasper

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