Category: Theories of Economic Development

A. based on an alliance between landowners and peasants
B. based on an alliance between peasants and the foreign bourgeoisie
C. transferred from one elite to another when revolution occurs
D. derived from domestic opponents of nationalism

I- is a systematic explanation of relationships between economic variables
II- explains causal relationships among variables
III- provides a basis for policy
IV- provides an explanation of all factors influencing economic growth.

A. I only
B. I and II only
C. I , II and III only
D. IV only

A. LDCs are overpopulated
B. labor contributes nothing to output in LDCs
C. the marginal products of labor is closed to zero in LDCs
D. urban unemployment is high in LDCs

A. a country is poor because it has lower productivity but high savings
B. as countries grow richer they save less
C. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides
D. market size is large in LDCs

A. capitalism exploits the worker and socialism exploits the property owner
B. capitalism relies on the market to make economic decisions and socialism uses central planning
C. capitalism grows through rent seeking and socialism grows through government direction
D. capitalism relies on consumer satisfaction to dictate choices and socialism relies on producer satisfaction

A. The French Revolution
B. The rise of industrial and capitalist production
C. Political and labor revolts
D. a growing spiritual rationalism

A. growing government assistance create addiction to welfare programs
B. low income levels create pressure for money creation
C. low income levels create pressure for cheap imports
D. low per capita incomes creates low savings that keep incomes low

I- Workers migrating from villages to foreign-dominated urban complexes
II- Forming an unskilled labor force to work in factories and mines and on plantations
III- Replacing indigenous enterprises with technologically more advanced global subsidiary companies
IV- Closing the economy to trade with and investment from, developed countries

A. I and II only
B. II and III only
C. I, II and III only
D. I , II III and IV

A. neoclassicism
B. Marxism
C. Rostow’s model
D. classical appraoch

A. technology levels do not allow for self sufficiency
B. it was previously too poor to save and invest
C. underemployment is too widespread
D. resource allocation is poor