Chapter 3 Self-grading Quizzes

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. What is the base, ongoing debate among scholars within development economics? The history of ideas approach ___________.

Those who believe economic development should follow the trajectory of Britain versus those who believe it should follow the United States. correct incorrect

Those who believe economic development is a result of market forces versus those who envision an important role for the state as catalyst. correct incorrect

Those who believe economic development happens in stages versus those who believe it happens all at once. correct incorrect

Those who believe economic development differs based on the historical context of an individual society versus those who believe the same model can be exported anywhere. correct incorrect

Those who believe economic development should be based on input from local businesses versus those who believe large, international corporations should have more input. correct incorrect

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. Development Economics ___________.

explains the influence of economics and change from a single one-view perspective correct incorrect

deals with the military decisions that has shaped the contemporary idea of progress correct incorrect

is a Keynesian perspective only correct incorrect

is NOT a monolithic worldview of the role of economics on the development of countries correct incorrect

is a monolithic worldview of the role of economics on the development of countries correct incorrect

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. The Industrial Revolution of the eighteenth and early nineteenth centuries was characterized by ___________.

a rapid growth of urban populations correct incorrect

an increase of agricultural traditional practices in rural territories correct incorrect

the birth of feudalism correct incorrect

all of the above correct incorrect

none of the above correct incorrect

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. Encouraged by the Industrial Revolution, Adam Smith argued ___________.

that market rules led to a society in which employers or owners of land and capital accrued most of the benefits while workers benefitted least correct incorrect

that market rules led to a society where workers benefitted over landowners and employers correct incorrect

that a society of free individuals using their abilities to pursue their self-interest would be LESS productive and peaceful correct incorrect

that a society of free individuals using their abilities to pursue their self-interest would be MORE productive and peaceful correct incorrect

that countries should specialize in the production of goods they were comparatively better at correct incorrect

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. The intellectual foundation of today's capitalist economy can be found ___________.

in the roots of Scholastic philosophy correct incorrect

in the technological revolution prompted by the personal computer correct incorrect

the collapse of ancient African Empires correct incorrect

none of the above correct incorrect

all of the above correct incorrect

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. According to Karl Marx ___________.

colonialism was not a desirable political stance correct incorrect

exploitative relations between classes were exported to other countries through international trade and investment flows correct incorrect

economies should be free from interference from the state and follow the invisible hand of the market via supply and demand correct incorrect

all of the above correct incorrect

none of the above correct incorrect

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. Economic nationalism and protectionism emerged ___________.

as a fear response towards British imperialism and military and economic growth correct incorrect

to protect proletarian labor rights in colonial states correct incorrect

as a result of domestic production growth correct incorrect

because of the independence of the United States of America correct incorrect

as a way for East Asia to "catch up" to British levels of industrialization in the nineteenth century correct incorrect

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. Twentieth-century economic development ___________.

promoted the freedom of individuals to use their personal abilities to pursue their individual self-interest correct incorrect

reflected on the fascination and fear produced by the growth in wealth, industry, and military superiority of the United Kingdom correct incorrect

planted the seeds of what was later known as political economy correct incorrect

was defined on the role of the state in accelerating economic growth correct incorrect

exemplified the theory posited by Karl Marx correct incorrect

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. Alexander Gerschenkron's idea of economic development and change was guided by__________.

the production of industrial goods correct incorrect

the production of consumer goods correct incorrect

the provision of physical infrastructure correct incorrect

both A and C correct incorrect

both A and B correct incorrect

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. The Great Depression ___________.

did not have any influence on the development of economic development ideas, theories, and concepts correct incorrect

was confined to the American economy and social order correct incorrect

helped discredit the economic ideas of John Maynard Keynes correct incorrect

influenced early ideas on economic development correct incorrect

none of the above correct incorrect

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. John Maynard Keynes argued that___________.

the Great Depression had expanded to Europe and its colonial empires correct incorrect

countries should only manufacture goods at a small scale correct incorrect

the role of the state in economic development was insignificant correct incorrect

private investors' decisions did not always help a society achieve its full economic potential correct incorrect

supply and demand always automatically balanced in market economies correct incorrect

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. Walt W. Rostow believed that ___________.

economic development as done in Western industrialized countries could hardly be replicated in the developing world correct incorrect

economic development as done in Western industrialized countries could only be replicated in the developing world by the use of military interventions correct incorrect

economic development as done in Western industrialized countries could be replicated in the developing world following specific stages correct incorrect

national economic protectionism was the best form of economic development correct incorrect

Economic development in developing countries was a continuation of Western colonialism correct incorrect

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. Émile Durkheim and Max Weber theorized societies as value systems in which ___________.

individuals followed a common set of beliefs, practices, and norms correct incorrect

differences between societies and individuals' behaviours were highlighted correct incorrect

today's idea of the Global South was based on correct incorrect

countries became more diversified and less reliant on imports to cover necessities correct incorrect

both B and C correct incorrect

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. Samual Huntington argued that fragile states with limited legitimacy are produced by ___________.

protracted conflicts between and within countries correct incorrect

the small scale of manufactured goods in non-industrialized states correct incorrect

rapid economic growth and the undermining of traditional forms of power correct incorrect

economic underdevelopment and lack of foreign aid from Western states correct incorrect

local dissatisfaction with development agencies correct incorrect

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. Paul Rosenstein-Rodan's theory of the "big push" ___________.

was a poor idea correct incorrect

discouraged the creation of heavy industries such as steel plants correct incorrect

accelerated the growth of state institutions correct incorrect

argued for concentrating development efforts in specific industrialization projects correct incorrect

believed that economic development projects would NOT have ripple effects in the rest of the economy correct incorrect

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. Ragnar Nurske argued for ___________.

consuming superfluous and luxury goods to increase economic development correct incorrect

manufactured goods only at a small scale correct incorrect

Adam Smith's idea of invisible hand of the market correct incorrect

increased taxation of commodity exporters and the wealthy correct incorrect

none of the above correct incorrect

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. Paul Rosenstein-Rodan believed that ___________.

large infrastructure investments were essential for developing countries correct incorrect

financing private-led industrial projects led to fragile states correct incorrect

boosting the demand for luxury items would lead to economic development correct incorrect

taxing imports and the wealthy would diversify the economy correct incorrect

Hirschman's ideas of "linkages" should be disqualified correct incorrect

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. Hans Singer and Raul Prebisch warn that if developing countries continue with their economic patterns they will face___________.

industrialization with large profits in its early stages correct incorrect

clashes between social classes correct incorrect

improvements in their demand on knowledge or technology correct incorrect

declining national income correct incorrect

importing agricultural goods correct incorrect

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. According to the theory of import substitution industrialization (ISI), the protection of "infant industries" would ___________.

trigger income elasticity of demand correct incorrect

reduce innovation ventures correct incorrect

the sophistication of coffee preparations correct incorrect

increase developing countries competition in the global economy correct incorrect

be protected form foreign competition correct incorrect

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. The metaphor of the "flying geese" refers to ___________.

Japanese expansionist idea of a co-prosperity in Asian countries by the use of military intervention correct incorrect

a geopolitical economic development strategy in Asia led by Japan correct incorrect

South Korean industrial development strategy correct incorrect

all of the above correct incorrect

none of the above correct incorrect

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. Neoliberalism's radical posture about the importance of freeing markets from state intervention was quickly contested by ___________.

the economic transformation of East Europe correct incorrect

the role of institutions and the state in economic development success cases correct incorrect

the inclusion of Latin American countries in ISI correct incorrect

Brexit correct incorrect

the new institutional economics correct incorrect

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. New institutional economics has been influenced by___________.

the economic transformation of East Asia correct incorrect

the economic transformation in the United States after 9/11 correct incorrect

import substitution industrialization (ISI) correct incorrect

all of the above correct incorrect

none of the above correct incorrect

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. Institutions encouraged stable, predictable patterns of human interaction. When they worked well, institutions _______________. When they worked well, institutions reduced uncertainty about others' behaviour but ___________.

showed that investors know more correct incorrect

created unnecessary bureaucracy correct incorrect

reduced uncertainty about others' behaviour correct incorrect

depended on Marxist ideas correct incorrect

None of the above correct incorrect

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. Notions of early development economics and modernization theory have not produced a Westernized convergence of the developing world with the industrialized North because ___________.

the Global North has not intervened enough in the economies of the Global South correct incorrect

the Global South's experience with good and bad policy means they are less ready to take Western advice for economic success correct incorrect

the failure of the "flying geese" metaphor correct incorrect

the economic transformation of the Global South is complete correct incorrect

None of the above correct incorrect

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. Self-governing institutions managing common resources prove that ___________.

the state is superfluous to secure economic development correct incorrect

Latin American countries should follow new institutional economics models correct incorrect

war is inevitable correct incorrect

Westernization is inevitable correct incorrect

social trust within a group should be considered under certain conditions to be successful without state intervention correct incorrect

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. Institutionalism opposes government interventionism into private economic relations.

True correct incorrect

False correct incorrect

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. Karl Marx was well-known as the first world economic nationalist.

True correct incorrect

False correct incorrect

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. During its first years as an independent country, the United States adopted protectionist legislations.

True correct incorrect

False correct incorrect

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. According to economic development ideas, national economies should only be guided by state actions to attain sustained rates of growth.

True correct incorrect

False correct incorrect

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. Infrastructure investments are essential for developing countries because they could enable additional economic activities and facilitate getting more products to market.

True correct incorrect

False correct incorrect

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. The new institutional economics (NIE) has reshaped contemporary understandings of economic development.

True correct incorrect

False correct incorrect

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. Daron Acemoglu and James Robinson built on Dani Rodrik's argument to show that free markets and the notion of "the end of history" were crucial for the possibilities of future growth and development.

True correct incorrect

False correct incorrect

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. According to Elinor Ostrom, regular people can find creative solutions to their problems without state intervention to contrast public inefficiency.

True correct incorrect

False correct incorrect

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. After the end of World War II, Japan abandoned the economic practice and metaphor of the "flying geese formation." Japan's economic recovery totally abandoned Japanese imperialistic ideas and strategies.

True correct incorrect

False correct incorrect

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. There has been only one successful model to construct relationships between states and markets.

True correct incorrect

False correct incorrect

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. China's tremendous growth has eclipsed the dramatic transformation that took place in Asia beyond its borders.

True correct incorrect

False correct incorrect

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. New institutional economics (NIE) experts and theorists support the deregulation of all aspects of the economy such as contracting, labour, finance and banking.

True correct incorrect

False correct incorrect

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. Import tariffs to protect nascent industries in developing countries are essential for human growth and prosperity.

True correct incorrect

False correct incorrect

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. By the 1970s, state-led capitalism had failed partially or completely in the developing world, which led to growing levels of political violence in various regions in Latin America, the Middle East, and sub-Saharan Africa.

True correct incorrect

False correct incorrect

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. Profound distrust of international trade is a characteristic of Walt W. Rostow's Keynesian notions.

True correct incorrect

False correct incorrect

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. The concept of "linkages" emphasizes that a given industry can affect the development of other industries.

True correct incorrect

False correct incorrect

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. Classical political economy and development economics are both concerned with low productivity.

True correct incorrect

False correct incorrect

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. Max Weber believed that the maintenance of a social order and a common identity were compatible as long as social rules were respected by everyone and administered impartially by a state working for the common good.

True correct incorrect

False correct incorrect

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. During the Cold War, the West sought to promote its own model of economic development to strengthen its own economic and political links. Independence movements in the twentieth century did not have any influence on early tensions related to War World II.

True correct incorrect

False correct incorrect

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. Most economists and other policy-makers who worked on global development issues from the 1940s through the 1970s were influenced by Keynesian economics.

True correct incorrect

False correct incorrect

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. Germany has always been a protectionist country.

True correct incorrect

False correct incorrect

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. Economists such as Ragnar Nurske argued that taxation of commodity exporters to finance state-led industrial projects would diversify the economy of highly industrialized countries.

True correct incorrect

False correct incorrect

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. Arthur Lewis believes people should move from rural areas to urban areas to work in industry.

True correct incorrect

False correct incorrect

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. Income elasticity of demand refers to the belief that as gross domestic product (GDP) per capita grows, people allocate a growing share of their money to buying manufactured goods and services.

True correct incorrect

False correct incorrect

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. Japanese economic development strategy known as the "flying geese" depended on the leadership of the Japanese government and bureaucracy for its success.

True correct incorrect

False correct incorrect