Quiz: The Role of Institutional Factors in Development

What is a contested and multidimensional concept that reflects improvements in living standards and quality of life?

• Globalization

• Development

• Capitalism

• Industrialization

Which of the following best defines 'institutional factors'?

• Economic growth and poverty reduction

• International treaties and trade agreements

• A set of principles, norms, rules, and decision-making procedures

• Environmental sustainability measures

Why is a well-functioning state considered necessary for development?

• It promotes artistic expression.

• It generates tourism revenue.

• It fosters sound markets and reduces uncertainty in transactions.

• It focuses solely on agricultural production.

Which international organization is primarily responsible for providing financial stability and advice to countries?

• United Nations (UN)

• International Monetary Fund (IMF)

• World Trade Organization (WTO)

• World Health Organization (WHO)

What is a necessary condition for development that involves protecting property rights and enforcing contracts?

• Stable weather patterns

• Efficient transportation networks

• A robust legal system

• Strong military presence

How do stable financial institutions contribute to development?

• By restricting foreign investment

• By ensuring effective entrepreneurship and market viability

• By controlling government spending

• By promoting international tourism

What potential downside can arise if institutions are weak or absent in the development process?

• Increased foreign investment

• Social injustice and increased inequality

• Enhanced community engagement

• Improved healthcare systems

Which argument suggests that institutions alone are not enough to ensure development?

• Institutions can be corrupt and ineffective.

• Institutions provide necessary stability.

• Institutions create job opportunities.

• Institutions promote education.

What might limit the effectiveness of institutions transplanted from other economies?

• Their connection to local governments

• Lack of local knowledge and context

• Their physical infrastructure

• Their historical significance

Which of the following is NOT considered an institutional factor in development?

• International financial institutions

• National legal systems

• Local cultural practices

• Trade partnerships between countries