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MODULE 7

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following is not typically an element in the structural change that accompanies development?

a)

Increase in the share of agriculture in GDP (gross domestic product)

b)

Increase in manufacturing as a share of GDP

c)

. Increase in urbanization

d)

All of the above changes accompany development

2.

Economic growth measures the

a)

Growth of productivity

b)

Increase in nominal income

c)

Increase in output

d)

None of the above

3.

According to W.W.Rostow, which of the following does NOT belong to the "precondition for take off"

a)

Increased agricultural productivity

b)

Political stability

c)

Development of social overhead capital

d)

Growth of the durable consumer goods industry

4.

According to Malthus, the fixed factor of production is

a)

Labor

b)

Capital

c)

Land

d)

. Entrepreneurship

5.

When does the concept of choice become irrelevant in the statement below?

a)

We were dealing with a very simple, one-person economy

b)

Poverty were eliminated

c)

. Scarcity was eliminated

d)

Capital was eliminated

6.

Which of the following is not an example of financial repression?

a)

Forced sales of government debt to the banking system

b)

Interest rate controls on loan and deposit rates

c)

Very high rates of monetary growth

d)

Creation of a large public sector

7.

What do you call the certain amount of goods and services is necessary for a minimum standard of living?

a)

Basic needs

b)

Absolute poverty

c)

An international standard of living

d)

The concept of development

8.

What is the prime factor leading to the process of migration of people from rural to urban centers?

a)

. Structural transformation

b)

Demographic Transition

c)

. Process of Urbanization

d)

Transitional Stage

9.

What is stage is the agricultural economy with the main purpose of subsistence farming and little product is traded?

a)

Traditional Stage

b)

Transitional Stage

c)

Take off

d)

Drive to maturity

10.

Which of the following statements is not true about import restriction?

a)

Import restrictions attract resources to protected industry

b)

Import restrictions involve a dead weight loss,

c)

Import restrictions raise prices for buyers to a product,

d)

Import restriction shift welfare from producers to consumers