FINAL 1 2020, questions and answers PDF

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ECON FINAL QUIZ 1In many developing countries, the early institutions of colonial rule were directly set up for the purposes of surplus _____________________.Answer 1The aspirations of an individual are generated and conditioned by the experiences of others in his/her _______________________.Answer ...

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ECON FINAL QUIZ 1 In many developing countries, the early institutions of colonial rule were directly set up for the purposes of surplus _____________________.

Answer 1

The aspirations of an individual are generated and conditioned by the experiences of others in his/her _______________________.

Answer 2

The distinction between evolution and parameter is a ________________one.

Answer 3

Extraction

Cognitive neighborhood

Semantic

____________________ and Ray argue that highly polarized societies may actually avoid conflict via deterrence wherein polarization must vary positively with it.

Answer 4

The model of economic growth pioneered by Robert _____________ had a fundamental impact on development economics.

Answer 5

_______________________and Hirschman argued that economic development could be thought of as a massive coordination failure, in which several investments do not occur simply because other complementary investments are similarly depressed in the same bootstrapped way.

Answer 6

_____________________ play a role in explaining how technological inefficiencies persist.

Answer 7

Esteban

Solow

Rosenstein-Rodan

Complementarities

An important problem with theories of _____________________is that they carry an un-clear burden of Answer 8 history. Multiple equilibrium

Societies that are far away from the economic frontier may see economic growth as too limited and too long-term instruments leading to a failure of _________________________.

Answer 9

There is a fundamental belief that the world economy is ultimately a great _____________.

Answer 10

International Aspirations

Leveler

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_____________________indeed find that wealthier households hold higher risk, higher expected return portfolios, which naturally leads to different growth rates and increasing inequality over time.

Answer 1

Supporting __________ development has also been a key priority of development assistance in the past several decades.

Answer 2

Binsw anger

Financial Sector

Capital accumulation results when some proportion of present income is saved and invested in order to augment future _________________and Answer 3 income. Output A significant body of evidence from _________________wherein he suggested that the rich prove far more successful at smoothing consumption than do the poor.

Answer 4 Alderman

Nations accumulate international _________________in any or all of the Answer 5 following three forms: (1) foreign hard currency (primarily U.S. dollars) Cash Reserves whenever they sell more abroad than they purchase; (2) gold mined domestically purchased; and (3) deposits with the IMF, which acts as a reserve bank for individual nations’ central banks.

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The importance of organizing activities and leadership received signal recognition in _________________piquant contrast between the Answer 1 consequences of the disappearance respectively of monarchs, Saint-Simon statesmen and the heads of business. _________________________ in the Constitutional Code provides for an Interior Communication Minister with inter aliaaqua-procreative or Answer 2 water supply-securing and Malaria-obviating functions. Bentham Schumpeter's sharp distinction between innovation and __________________with the reservation of the title of the entrepreneur for those concerned in the former type of activity would have seemed formalistic and out of touch with reality.

Answer 3

According to ______________________that joint stock companies without exclusive monopolistic privileges were only likely to be successful where all the operations were capable of being reduced to what is called a routine or of no variation.

Answer 4

Routine management

Adam Smith

The theory of the significance for economic growth of the existence of money was developed at times when ______________ made from the Answer 5 precious metals were the principal media of exchange. Coins The _____________ discoveries of the late forties brought a period of rising prices whose powerfully beneficial effects on the general temper Answer 6 of economic activity did not escape notice. Gold

Rae's New Principles of Political Economy is certainly by far the most distinguished exposition of the case for the public support of Answer 7 ________________. Infant industry Marshall's discussion of joint stock enterprise in his __________________ is to realize what a great distance had been traversed since the days of Adam Smith.

Answer 8

The nineteenth-century English classical economists followed Smith in regarding ______________ as the residue accruing to those who employed their capitals to set industry in motion.

Answer 9

Industry and Trade

Profits

In his Della Moneta,________________ demonstrates the necessity of Answer 10 money for any advanced community. Galiani

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Labor augmenting technological progress occurs when the quality or skills of the _______________ are upgraded for example, by the use of Answer 1 videotapes, televisions, and other electronic communications media for Labor force classroom instruction. Based on our module reading, the typical examples of the countries with bank-based financial systems are Japan and Germany, and of the countries Answer 2 with market-based financial systems are the United States and United Kingdom ____________. Capital augmenting technological progress results in the more productive use of existing capital goods, for example, the substitution of ______________for wooden plows in agricultural production.

Answer 3 Steel

A _____________ financial system relies largely on banks in mobilizing savings and financing corporate investment, while a market-based financial system relies on securities markets and equity financing.

Answer 4 Bank-based

Greenwald and Stiglitz (1986) similarly emphasize that the consequences of minor inefficiencies by one firm or household can create significant aggregate distortions in the broader economy, given distortions in the Answer 5 underlying economy due to incomplete ____________________ and Markets imperfect information. Question 5 Not yet answered Marked out of 5.00

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Kranton (1996) emphasizes the costs of market participation are not independent of the incidence of personalized, reciprocal exchange instead of Answer 1 ___________________exchange. Market-based Economists believe that the most important role of the financial sector in facilitating growth is to reduce information, ________________ and transaction costs.

Answer 2

A financial system facilitates transactions in the economy, both by physically providing the ___________ to make and receive payments and by reducing transaction and information costs.

Answer 3

Enforcement

Mechanisms

Justin Lin, the chief economist of the __________, has recently argued that low-income countries should make small, local banks the mainstay of their Answer 4 financial systems. World Bank

Johnston and Mellor helped make the case for massive investments in improving agricultural technologies by explaining the perhaps unique role of _________________________ can play in stimulating economic development.

Answer 5 Agriculture

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The theory of the ________________is certainly concerned with the ups and downs of output either in the aggregate or at least over Answer 1 substantial parts of the field. Trade Cycle Technological changes in shipping and the growth of urban centers led to a rapid increase in ________________.

Answer 2 International Trade

The Guyanese historian Walter Rodney describes mercantilism as the period of the worldwide development of European commerce, which began in the ______________ Century with the voyages of Answer 3 Portuguese and Spanish explorers to Africa, Asia, and the New 15th World. Scholars debate over why mercantilism dominated economic ideology for __________years.

Answer 4 250

Mercantilism developed at a time of transition of the European economy where isolated ____________ estates were being replaced Answer 5 by centralized nation-states as the focus of power. Feudal __________________ benefited from the high tariffs and payments Answer 6 Governments from the merchants through mercantilist policies.

European trade exported bullion to pay for goods from ______________thus reducing the money supply and putting downward pressure on prices and economic activity.

Answer 7 Asia

___________________ benefited greatly from the enforced monopolies, bans on foreign competition, and poverty of the workers Answer 8 due to mercantilist policies. Merchants J.B. Say recognized the possibility of _________________ in which he begins by recalling the view frequently expressed by business Answer 9 men that their difficulty rests not in the production but in the Hoarding disposal of their wares. Mercantilism is a form of ___________________by which its goal is to enrich and empower the nation and state to the maximum degree by acquiring and retaining as much economic activity as possible within the nation's borders.

Answer 10 Economic Nationalism

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The _________________ as producing stylized facts of structural change in development. We observe the shift in sector shares, the demographic transition; changes in the nature of trade, and other changes that occur as the economy becomes richer.

Answer 1 Chenery approach

__________________ has stressed that: “the central problem in the Answer 2 Arthur Lew is theory of economic development is to understand the process by which a community which was previously saving... 4 or 5 per cent of its national income or less converts itself into an economy where voluntary savings is running at about 12 to 15 per cent of national

income or more. The implication for LDC’s was that they would have to follow a different path as well. A modern application of this view is in ________________ of Korea. There are, of course, advantages as well as disadvantages in a later start. The late industrializers can import technology rather than invent it themselves. The _________________now recognize that non-market interactions are at least as important as market interactions in determining the level and distribution of well-being in a society.

Answer 3 Amsden’s analysis

Answer 4 Development economists

As ____________________and Dani Rodrik show, this is a complex task—and one prone to market failure. It is not enough to tell a developing nation to specialize in “labor-intensive products,” Answer 5 because even if this were always true, there are a vast number of Ricardo Hausmann such products in the world economy of today, and underlying costs of production of specific products can differ greatly from country to country. Question 8 Not yet answered Marked out of 10.00

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Human evolution is the lengthy process of change by which people originated from ________________ ancestors.

Answer 1 Apelike

The process of _________________ involves a series of natural changes that cause species to arise, adapt to the environment, and become extinct.

Answer 2 Evolution

____________________________involves the creation of theories and methods that aid in the determination of policies and practices Answer 3 and can be implemented at either the domestic or international level. Development economics

Early humans first migrated out of ___________________ into Asia Answer 4 probably between 2 million and 1.8 million years ago. Africa

Arthur Lewis' famous economic development with unlimited supplies of labor emphasized ________________ while ignoring the Answer 5 Dualism role of economies of scale and circular causation. Myrdal's effective presentation of the idea of circular and cumulative causation or _______________________ evocation of linkages was Answer 6 stimulating and immensely influential in the 1950s and early 1960s. Hirschman Forward linkages are also defined by __________________ as involving an interaction between scale and market size where it involve the ability of an industry to reduce the costs of potential downstream users of its products and push them over the threshold of profitability.

Answer 7 Hirschman

Human evolution took place as new genetic variations in early ancestor populations’ favored new abilities to adapt to environmental change and so altered the ___________________and development Answer 8 Human w ay of life varies from place to place. Scientists classify each species with a unique two-part ____________________________wherein in this system that modern humans are classified as Homo sapiens.

Answer 9

The distinctive features of high development theory came out of its explanation of the nature of the positive feedback that can lead to _______________________growth or stagnation.

Answer 10

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Scientific Name

Self-reinforcing

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The function of the entrepreneur or risk-taker - as one who faces the uncertainties of production in anticipation of demand was early established Answer 1 as the fundamental distinction between contractual and _______ incomes. Residual New growth theorist’s Romer, Lucas, Aghion and How it linked the technological change to the production of __________________. The new growth theory emphasizes that economic growth results from increasing Answer 2 Know ledge returns to the use of knowledge rather than labor and capital. F. A. Walker's treatment of profit as the rent of a special kind ofability, while J. B. Clark’s conception of profit as a dynamic________.

Answer 3 Surplus

Cantillon divides the active members of society into two groups, those whose incomes are fixed by contractand those whose incomes are in the nature of a ______.

Answer 4

The Physiocratic literature is encumbered by a superstructure of what Comte would have called __________________, a natural law and the infallible method whereby societies may be happy and just.

Answer 5

Residue

Metaphysics

The ______________ embraced free trade and used its power as the financial center of the world to promote the same. The Guyanese historian Answer 6 Walter Rodney describes mercantilism as the period of the worldwide British Empire development of European commerce. The Big Push strategy is recommended recently by United Nations Development Program in __________________. The program suggests that for developing countries to break out of the poverty trap, a big push of Answer 7 basic investments between now and 2015 in public administration, human 2005 capital and key infrastructure is necessary. The mechanism for enhancing the nation’s wealth according to Smith therefore is through ________________and exchange.

Answer 8 Specialization

J.B. Say who in many ways is to be regarded as the popularized Smith, thought of two kinds of income. For him ______ was essentially the reward of the entrepreneur, who in his conception was the organizer and

Answer 9 Profit

leader and not necessarily the provider of capital. Karl Marx emphasized that the wealth of the capitalists comes from the exploitation of the ___________created by the workers.

Answer 10 Surplus Value

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The ________________________economics launched by Stiglitz, Akerlof and others largely from within development economics has permeated the whole of the discipline.

Answer 1

Endogenous growth theory and modern models of poverty traps emphasize the central role of ______________________formation in giving rise to multiple equilibria.

Answer 2

Rapid ___________________ is a recent phenomenon confined to the past three hundred years for less than one‐quarter of the world’s population.

Answer 3

________________________emerged as a distinct field of analytical, empirical and institutional research only in the past half century with a rapid progress in the past generation.

Answer 4

Choose...

Choose...

Choose...

Choose...

Stiglitz makes an especially apt of defense of development economics likening it to mainstream economics as pathology is to Answer 5 _____________________. Choose... _______________ points out that development economics’ rich

Answer 6 Choose...

history has produced much of lasting importance to economics. Choose...

The nutritional _______________________literature underscores that ill health is a cause as well as a consequence of being and Answer 7 becoming poor. Choose... The United Nations Development Programme developed a Human Development Index which reported in its annual flagship publication known as the Answer 8 __________________________precisely to capture the Choose... multidimensional nature of well‐being. Development economics research ultimately describes and explores the _____________ reasons why some countries, communities and people are rich and others are poor.

Answer 9 Choose...

Young introduced the analytics of __________________based on Answer 10 increasing returns. Choose...

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Neoclassical theory tells us that ______________should be equalized across production units or else the high marginal productivity user should purchase or rent the factor from a low productivity user at a Answer 1 mutually attractive price, thereby generating greater aggregate output Factor Productivity and welfare. Eswaran and Kotwal (1985) offer perhaps the most compact and elegant model to date explaining the observed heterogeneity of ______________________. In their view, different contracts reflect

Answer 2 Agrarian Contracts