Development and Economic Progress Quiz

What is a poverty trap?

• A situation where a country has low levels of government spending

• A situation where a country has high levels of foreign investment

• A situation where a country experiences rapid economic growth

• A situation where a country is caught in a cycle of barriers to growth and development

What is the main impact of rising economic inequality on economic progress?

• Increased levels of saving and investment

• Pro-poor growth and development

• Capital flight and currency devaluation

• Decreased levels of government spending

What is the definition of infrastructure?

• The amount of foreign investment in a country

• The total amount of money in a country's economy

• The essential facilities and services necessary for economic activity

• The level of education and health care in a country

What is appropriate technology?

• Technology that requires a large amount of capital investment

• Highly advanced technology used in developed countries

• Technology that is appropriate for use with existing factor endowments

• Technology that is only suitable for urban areas

How does lack of access to education hinder economic progress?

• It leads to a decrease in government revenue

• It reduces the quality of human resources

• It increases the level of informal employment

• It causes a decrease in foreign investment

What is the informal sector of the economy?

• The part of an economy that is administered by the government

• The part of an economy that is neither taxed nor administered by the government

• The part of an economy that is included in a country's gross national income

• The part of an economy that is heavily taxed by the government

What is capital flight?

• The movement of large sums of money into a country

• The movement of large sums of money out of a country

• The movement of large sums of money between countries

• The movement of large sums of money within a country

How does indebtedness hinder economic progress?

• It causes a decrease in government spending

• It slows down economic growth and development

• It leads to an increase in government revenue

• It encourages foreign investment

What is the impact of being a landlocked country on economic progress?

• It leads to higher levels of trade and faster growth rates

• It reduces the cost of imports and exports

• It increases the level of informal employment

• It causes slower growth rates and limited trade

What is the main impact of a weak institutional framework on economic progress?

• It leads to a decrease in government revenue

• It reduces the level of informal employment

• It limits investment and economic growth

• It encourages foreign investment