Question 1

Walt W. Rostow's stages of growth are seen as largely successful as all of the developing countries from the 1950s or 1960s have achieved the last stage: mass consumption society.

Accepted Answer

A) True 
 B)False

Question 2

The Industrial Revolution began in the eighteenth century in the United States.

Accepted Answer

A) True 
 B)False

Question 3

Why did Samuel Huntington argue that hopes for a linear movement of non-Western societies towards democracy was naïve?

Accepted Answer

The answer of Why did Samuel Huntington argue that hopes...

Question 4

Describe the concerns expressed by Karl Marx about political economy that took shape after the Industrial Revolution.

Accepted Answer

The answer of Describe the concerns expressed by Karl Marx...

Question 5

By the middle of the twentieth century, political theorists and Western governments expected to see development in poor countries in the form of political evolution from authoritarianism to democracy, especially as populations became more formally educated, urbanized, and able to defend their rights.

Accepted Answer

A) True 
 B)False

Question 6

Early models of economic development argued that Western governments had to help developing countries out of their traditional stage by:

Accepted Answer

A)  offering foreign aid 
B)  offering bank loans 
C)  increasing trade 
D)  encouraging foreign investment 
E)  All of the above

Question 7

Walt W. Rostow's transition stage of economic development posited that developing nations were switching to large-scale agriculture and industry, which created rapid urbanization and social change.

Accepted Answer

A) True 
 B)False

Question 8

Ronald Coase departed from the neoclassical tradition of economic thought by arguing that ______________.

Accepted Answer

A)  the existence of firms proved that market relationships were not truly frictionless 
B)  markets are characterized by transaction costs 
C)  firms were vehicles to reduce the frictions of transaction costs 
D)  All of the above 
E)  B & C

Question 9

What were the three main factors posited by Hans Singer and Raul Prebisch against focusing on international trade as a path for economic development?

Accepted Answer

The answer of What were the three main factors posited...

Question 10

Adam Smith argued that a society of free individuals should use their personal abilities to pursue their individual self-interest without interference from the state, and that societies should follow the invisible hand of the market via supply and demand.

Accepted Answer

A) True 
 B)False

Question 11

John Maynard Keynes, in trying to end the Great Depression of the 1930s, argued that ____________.

Accepted Answer

A)  supply and demand did not automatically balance in market economies 
B)  private investors could not be relied upon to make the right investment decisions to help a society achieve its full economic potential 
C)  communism was a better system than capitalism 
D)  national economies should be guided by state actions to attain sustained rates of growth 
E)  All of the above except C

Question 12

Arthur Lewis's theory of surplus labour was the idea that __________________.

Accepted Answer

A)  there were too many labourers in developing countries and people should be encouraged to start their own businesses 
B)  industry in developing countries relied too heavily on "people power" and they needed to automate and mechanise 
C)  there was a surplus of agricultural labour and this labour needed to move to urban areas to work in industry 
D)  there was not enough labour, and people had to move into more vocational settings 
E)  raising wages would decrease the amount of surplus labour in developing nations

Question 13

Define and describe Keynesian economics.

Accepted Answer

The answer of Define and describe Keynesian economics....

Question 14

David Ricardo made the case that countries should specialize in the production of goods they were comparatively better at, given available land, labour, and capital. This was known as the _________.

Accepted Answer

A)  theory of comparative advantage 
B)  theory of competitive advantage 
C)  theory of the invisible hand 
D)  capability theory 
E)  economic nationalism

Question 15

South Korea and Taiwan went from poverty and postwar devastation in the 1950s to very high levels of industrial development and per capita income in just 50 years through neo-liberal policies.

Accepted Answer

A) True 
 B)False

Question 16

Talcott Parsons elaborated on the work of Emile Durkheim and Max Weber to argue ________________. borrowed notions from ________________ to argue that Western societies were more evolved than the rest of the world.

Accepted Answer

A)  non-Western societies were more rational and individualistic than Western societies 
B)  non-Western societies could only become industrialized if their values and identities transformed to be similar to Western cultural and social norms 
C)  societies were value systems in which individuals followed a common set of beliefs, practices, and norms 
D)  rapid economic growth could lead to political instability 
E)  a collectivist social identity enhanced individual entrepreneurship, innovations, and technological and economic changes

Question 17

Under neoliberal philosophy, foreign investment required developing nations to adopt policy positions that included ______________________.

Accepted Answer

A)  privatizing many previously public services like education and health care 
B)  engaging in economic and trade deregulation 
C)  beginning financial liberalization 
D)  All of the above 
E)  None of the above

Question 18

Import substitution industrialization (ISI) did not work in the long term in Latin America because:

Accepted Answer

A)  Latin American countries were already so far behind economically they could not catch up 
B)  Latin American countries were already so far ahead economically that there was no need for the ISI strategies 
C)  It was impossible for Latin American countries to export locally made goods to other markets because they were generally of low quality due to the lack of competition in the home market. 
D)  A & C 
E)  None of the above

Question 19

Douglass C. North argued that institutions did not provide key functions and created uncertainty about the economic decisions of private actors.

Accepted Answer

A) True 
 B)False

Question 20

What was the Japanese "flying geese formation" for Asian economies? Was this successful?

Accepted Answer

The answer of What was the Japanese "flying geese formation"...

Exam 3: Theories of Development Economics

Walt W. Rostow's stages of growth are seen as largely successful as all of the developing countries from the 1950s or 1960s have achieved the last stage: mass consumption society.

The Industrial Revolution began in the eighteenth century in the United States.

Why did Samuel Huntington argue that hopes for a linear movement of non-Western societies towards democracy was naïve?

Describe the concerns expressed by Karl Marx about political economy that took shape after the Industrial Revolution.

Early models of economic development argued that Western governments had to help developing countries out of their traditional stage by:

Walt W. Rostow's transition stage of economic development posited that developing nations were switching to large-scale agriculture and industry, which created rapid urbanization and social change.

Ronald Coase departed from the neoclassical tradition of economic thought by arguing that ______________.

What were the three main factors posited by Hans Singer and Raul Prebisch against focusing on international trade as a path for economic development?

Adam Smith argued that a society of free individuals should use their personal abilities to pursue their individual self-interest without interference from the state, and that societies should follow the invisible hand of the market via supply and demand.

John Maynard Keynes, in trying to end the Great Depression of the 1930s, argued that ____________.

Arthur Lewis's theory of surplus labour was the idea that __________________.

Define and describe Keynesian economics.

David Ricardo made the case that countries should specialize in the production of goods they were comparatively better at, given available land, labour, and capital. This was known as the _________.

South Korea and Taiwan went from poverty and postwar devastation in the 1950s to very high levels of industrial development and per capita income in just 50 years through neo-liberal policies.

Talcott Parsons elaborated on the work of Emile Durkheim and Max Weber to argue . borrowed notions from to argue that Western societies were more evolved than the rest of the world.

Under neoliberal philosophy, foreign investment required developing nations to adopt policy positions that included ______________________.

Import substitution industrialization (ISI) did not work in the long term in Latin America because:

Douglass C. North argued that institutions did not provide key functions and created uncertainty about the economic decisions of private actors.

What was the Japanese "flying geese formation" for Asian economies? Was this successful?