Download Chapter 5 - Amazon Web Services

Problemset
Title
Introductory
Text
Self-Assessment Quiz
Question 1
Structural change refers to when
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Answer
Graded
As
Feedback
all sectors change structurally positively towards Incorrect
overall economic growth.
Question 2
sectors of the economy change in the way they
structure their methods of production.
Incorrect
sectors in the economy expand while others
shrink.
Correct
None of the above.
Incorrect
The most significant structural change is from
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Answer
Graded
As
Feedback
a low-productivity to a high-productivity service Incorrect
economy.
Question 3
a low-productivity to a high-productivity
manufacturing economy.
Incorrect
a low-productivity to a high-productivity
agricultural economy.
Incorrect
a low-productivity agricultural economy to a
high-productivity industrial economy.
Correct
Shifts from high-tech industry to the service sector usually take place
during the ________ stages of development, while the shift from an
agricultural to an industrial economy is the most structural change at
Type:
Multiple Choice _________ stages of development.
Hint:
Feedback for
all
incorrect
answers:
Answer
Graded As
earlier; later
Incorrect
later; earlier
Correct
earlier; middle
Incorrect
middle; earlier
Incorrect
Feedback
Question 4
The following quote from our textbook best describes what is
happening in _____________ based on the ____________________
model: “[h]undreds of millions of peasants have left the countryside to
Type:
Multiple Choice find jobs in the modern manufacturing sector”.
Hint:
Feedback for
all
incorrect
answers:
Answer
Graded As
China; Stiglitz
Incorrect
South Korea; Stiglitz
Incorrect
China; Lewis
Correct
India; Lewis
Incorrect
Feedback
Question 5
One of the main differences between the two concave production
functions in the traditional and modern sectors is that the marginal
product of labor in the agricultural (traditional) sector
Type:
Multiple Choice Hint:
Feedback for
all
incorrect
answers:
Question 6
Answer
Graded
As
is always decreasing.
Incorrect
becomes negative after a level LA*.
Incorrect
is zero after a level LA*.
Correct
is always increasing at a decreasing rate after a
level LA*.
Incorrect
Feedback
When the marginal product of labor in the traditional sector is positive,
the modern sector needs to pay a wage w*
Type:
Hint:
Multiple Choice
Feedback for
all
incorrect
answers:
Question 7
Type:
Multiple Choice
Answer
Graded
As
higher than the wage in agriculture to attract
workers.
Correct
lower than the wage in agriculture to attract
workers.
Incorrect
equal to the wage in agriculture to attract
workers.
Incorrect
regardless of the wage in agriculture.
Incorrect
Feedback
The following are limitations that developing countries face that do not
allow a perfect application of the Lewis model given its assumptions:
Hint:
Feedback for
all
incorrect
answers:
Answer
Graded
As
scarcity of labor, income not being reinvested
Incorrect
into the domestic economy, inefficient
management that limits profits in the modern
sector, and rural-urban migration that does not
translate into the absorption of the rural migrants
efficiently.
scarcity of capital, income being reinvested into Correct
the domestic economy, inefficient management
that limits profits in the modern sector, and ruralurban migration that does not translate into the
absorption of the rural migrants efficiently.
scarcity of labor, income being reinvested into
Incorrect
the domestic economy, inefficient management
that limits profits in the modern sector, and ruralurban migration that does not translate into the
absorption of the rural migrants efficiently.
scarcity of capital, income not being reinvested
into the domestic economy, efficient
management that allows for great profits in the
Incorrect
Feedback
modern sector, and rural-urban migration that
does not translate into the absorption of the rural
migrants efficiently.
Question 8
In practice, migration from the traditional sector to the urban sector,
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Question 9
Answer
Graded
As
translates into greater average annual growth
rate of GDP per capita.
Incorrect
does not translate into greater average annual
growth rate of GDP per capita.
Incorrect
affects the measure of countries’ urbanization.
Incorrect
b. and c. are correct.
Correct
Feedback
Lower quality of institutions in a country may cause
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Answer
Graded
As
capital inflow that strengthens the modern
sector.
Incorrect
capital flight that does not allow Lewis’
reinvestment of profits in the domestic modern
sector.
Correct
capital flight that allows Lewis’ reinvestment of Incorrect
profits abroad.
capital inflow that allows reinvestment of profits Incorrect
in both the domestic and the foreign economies.
Question 10
The Harris-Todaro model analyzes
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Feedback
Question 11
Type:
Multiple Choice
Answer
Graded
As
workers’ migration decisions based on a
comparison of the city’s benefits versus the
country-side advantages.
Incorrect
workers’ migration decisions based on a
comparison of lifetime-expected income in the
rural versus urban areas.
Correct
employers’ hiring decisions between workers
from urban versus rural areas.
Incorrect
workers’ migration decisions based on a
comparison of the cost-of-living in the urban
versus rural areas.
Incorrect
Feedback
According to Harris-Todaro, if wages in urban areas are higher than
rural income, there will be
Hint:
Feedback for
all
incorrect
answers:
Answer
Graded
As
no migration to the urban areas due to the
distance they are from the rural areas.
Incorrect
Feedback
excess migration to the urban areas that will lead Incorrect
to full urban employment.
excess migration to the urban areas that will lead Incorrect
only to urban under employment.
excess migration to the urban areas that will lead Correct
to urban unemployment.
Question 12
Urbanization observed world-wide in the last decades reflects:
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Answer
Graded As Feedback
healthy economic development.
Incorrect
shortage of migration.
Incorrect
excess migration.
Correct
the unavoidable growth of manufacturing.
Question 13
Type:
Multiple Choice
Incorrect
Balanced growth results in ______________, whereas balanced growth
relates to ________________.
Hint:
Feedback for
all
incorrect
answers:
Answer
Graded
As
Feedback
equilibrium over time in all sectors; surplus in
all sectors over time.
Incorrect
disequilibrium over time in all sectors; surplus in Incorrect
all sectors over time.
equilibrium over time in all sectors; shortage in
all sectors over time.
Incorrect
disequilibrium over time in all sectors; surplus in Correct
some sectors and shortage in other sectors of the
economy over time.
Question 14
Type:
Multiple Choice
Question 15
Type:
Multiple Choice
Theories that state that development is successful when sectors expand
simultaneously on a very large scale are called:
Hint:
Feedback for
all
incorrect
answers:
Answer
Graded As
Sectoral Symmetry Theories.
Incorrect
Government Push Theories.
Incorrect
Big Push Theories.
Correct
Simultaneous Growth Theories.
Incorrect
Feedback
When each sector in the economy makes independent decisions but one
sector’s decision depends on another sector’s decision, there may be
Hint:
Feedback for
all
incorrect
answers:
Answer
Graded As
Feedback
Question 16
economies of scale.
Incorrect
diminishing returns to scale.
Incorrect
coordination problems.
Correct
better horizontal integration.
Incorrect
Import substitution strategies focus on
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Question 17
Type:
Multiple Choice
Answer
Graded
As
finding new strategies to increase industrial
imports as percentage of GDP.
Incorrect
substituting industrial exports for imports in a
country.
Incorrect
developing the country’s domestic industry to
substitute industrial imports with domestic
production.
Correct
None of the above.
Incorrect
In the 1960s, the following areas experienced success with export
promotion strategies:
Hint:
Feedback for
all
incorrect
answers:
Answer
Graded
As
Japan, United States, Taiwan, and South Korea. Incorrect
Question 18
Feedback
Japan, United States, South Korea, and Hong
Kong.
Incorrect
Japan, Taiwan, South Korea, and Hong Kong.
Correct
Japan, Taiwan, Brazil, and Hong Kong.
Incorrect
The Prebisch-Singer hypothesis states that
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
Feedback
answers:
Question 19
Answer
Graded
As
countries that specialize in exports of
manufacturing experience decreasing terms of
trade.
Incorrect
countries that specialize in exports of primary
commodities experience decreasing terms of
trade.
Correct
countries that specialize in imports of primary
commodities experience decreasing terms of
trade.
Incorrect
countries that specialize in imports of
manufacturing commodities experience
decreasing terms of trade.
Incorrect
Feedback
The Prebisch-Singer hypothesis has been
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Answer
Graded
As
always proven empirically true throughout time
for all developing countries.
Incorrect
Feedback
proven wrong as prices of primary commodities Incorrect
have been increasing over the years.
partially proven right as terms of trade are more Correct
volatile for countries that specialize in the export
of a particular natural resource.
never proven true throughout history.
Question 20
Incorrect
The effectiveness of foreign aid
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Answer
Graded
As
has not been questioned among development
economists due to its clearly positive role in the
Incorrect
Feedback
path of prosperity of the developing country.
has been determined to only harm the incentives Incorrect
to grow and become independent in the
developing country.
has been defended by William Easterly as a
means for the developing country to rise out of
poverty.
Incorrect
has been defended by Jeffrey Sachs as a means Correct
for the developing country to rise out of poverty.