Chap 3 và 5

Which four classical ideological directions influenced development theory after World War II?

• Linear-stages, Structural change, International-dependence, Neoclassical counterrevolution

• Keynesianism, Monetarism, Marxism, Liberalism

• Mercantilism, Physiocracy, Socialism, Capitalism

• ISI, EOI, Protectionism, Globalization

Which growth stage model is associated with whom?

• Adam Smith

• Walt W. Rostow

• Arthur Lewis

• Joseph Schumpeter

What does the growth rate in the Harrod-Domar model depend on?

• Tax rate & government spending

• Savings rate (s) and capital-output ratio (c)

• Labor unions & wages

• International trade

Theo Harrod-Domar, what is the basic strategy for growth?

• Raising savings ratio

• Import substitution

• Cutting wages

• Increasing tariffs

What does the theory of structural transformation focus on?

• Transition from agriculture to modern industrial/services economy

• Expanding military

• Controlling inflation only

• Promoting autarky

Who developed the two-sector surplus labor model?

• W. Arthur Lewis

• Amartya Sen

• Paul Krugman

• Robert Solow

In the Lewis model, what is the effect of reinvesting profits?

• Decreases capital stock

• Increases capital, shifts output curve upward

• Eliminates labor demand

• Lowers productivity

What is the criticism of the Lewis model?

• Assumes increasing returns

• Assumes diminishing returns in modern industry while often increasing returns observed

• Ignores agriculture

• Ignores migration

What are the main approaches in the "international dependency revolution"?

• Neocolonial dependence, False-paradigm, Dualistic-development

• ISI, EOI, Protectionism

• Keynesian, Monetarist, Neoclassical

• Liberal, Mercantilist, Socialist

The dependency theory suggests that underdevelopment is due to what?

• Overpopulation

• Faulty advice by biased foreign experts

• Lack of natural resources

• Insufficient exports