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Characteristics and Institutions of Developing Countries – MCQs
24 questions. Click to practice.
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1.
What characteristic sets a dual economy apart from other types of economies?
It consists of both industrial and manufacturing divisions.
It features a traditional farming sector alongside a contemporary industrial sector.
It involves government ownership of production resources.
It has an industrial sector focused mainly on manufacturing and building.
It is defined by a service sector and a technology sector.
2.
What defines a dual economy in a country?
A nation possessing twice the amount of capital and labor
A country that has both a developed industrial sector and a traditional agricultural sector
A country focusing more on labor-intensive goods rather than capital-intensive goods
A nation with a mix of foreign and domestic capital ownership
3.
What is the ratio between the population density of developing nations and the total population of developed nations?
Ten times
Twice as much
At most equal
Twenty times
Not applicable
4.
In low-income nations, how much surplus does the typical farming household generate?
Sufficient to support only a small non-farming population
No surplus at all
Enough to provide for five additional families
Adequate to feed twenty-five other families
5.
If the real income of Developing Island rises from $120,000 in 2005 to $160,000 in 2006, and its population grows from 1,000 to 1,100 during that time, approximately how much did the real income per person increase?
$145
$40,000
$25
$100
6.
Identify the country from the list below that is classified as a middle-income nation rather than a high-income one.
Germany
United Kingdom
Canada
Mexico
None of the above
7.
Which statements correctly describe clientelism?
Only statements I and II are correct
Only statements II and III are accurate
Statements I, II, and III are all true
Only statement IV is correct
None of the above
8.
Which of the following statements is NOT true about the informal sector?
It does not rely on mechanical equipment.
It can include businesses with fewer than 10 employees.
Its production process depends heavily on capital investment.
It often involves family members as workers.
9.
In Lewis’s dual-sector model, under what condition does the dual economy experience growth?
When the modern sector's proportion of total output rises compared to the traditional sector
When the agricultural sector adopts advanced machinery
When the agricultural sector employs labor efficiently
When the modern manufacturing sector relies heavily on labor
10.
Which statement accurately describes the agricultural sector in low-income countries?
Fewer than 10% of workers are employed in farming.
Typically, farming families generate just enough surplus to support a small non-farming population.
Approximately one-third of the workforce is engaged in food production.
The agricultural workforce accounts for around 30% of total employment.
11.
What term describes a family structure consisting of multiple nuclear families, including parents and their children?
paired family
formal family
extended family
two-level family tree
12.
When does real GNP per capita experience an increase?
When government initiatives shift resources from capital goods to consumer goods.
When trade barriers like tariffs and quotas stop currency from flowing abroad.
When the growth rate of real GNP surpasses the population growth rate.
When consumption spending grows faster than savings.
13.
Which of the following characteristics is NOT typically associated with low-income economies?
Inadequate infrastructure
Shorter average life spans
Limited savings rates
Per capita GNP exceeding $900
High levels of industrialization
14.
How does industrialization relate to economic development?
Leads directly to development
Has a positive correlation with development
Is negatively associated with development
Prevents development
Has no impact on development
15.
How is gross domestic product (GDP) defined?
The total income generated from foreign exchange transactions
The total revenue produced by industrial sectors
The earnings made within the geographical limits of a country
The value of goods obtained from the country's inhabitants
16.
Under what condition does the real GNP per capita increase?
When government initiatives shift resources from capital goods to consumer goods.
When trade restrictions like tariffs and quotas stop international trade and keep currency within each nation.
When the growth rate of real GNP exceeds the population growth rate.
When consumption spending grows faster than savings.
17.
What does the export commodity concentration ratio of a country represent?
The average yearly investment allocated to producing export goods
The share of the main export product within the total exports
The proportion of the top four export commodities relative to the entire merchandise exports
The total annual funds invested in the production of export commodities
18.
Which of the following is not essential for economic development?
A moderate climate
Availability of natural resources
Sufficient capital investment
Technological progress
Skilled labor force
19.
Which of the following groups are considered part of the informal sector?
Groups I and II exclusively
Only groups III and IV
Exclusively group IV
All groups I, II, III, and IV
None of the above
20.
What does the term 'economic rent' refer to?
Gains earned through productive efforts utilizing public resources and actions
Payments made exceeding the minimum amount required to bring resources into the market
Compensation given to unskilled laborers
Profits that exclude earnings from monopolistic practices
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