1. True or False. If you think the statement is correct, choose True, otherwise choose False. 1. An increase in productivity means the ability to produce more from the same level of resources. True False 2. Ideals and attitudes play an important role in the development process. * False True 3. As a country develops, the percentage share of agricultural production increases. False True 4. Development means a structural shift from agriculture to industry. * False True 5. Developing countries can easily catch up with the developed countries. * False True 6. The resources to satisfy man's needs are unlimited. * True False7. The problem of scarcity affects only the less developed and developing countries. True False 8. We can simply say that productivity is the process of increasing output or production by using the same level of input. True )False 9. Any individual can set up a business of his own to provide consumers with goods and services of their choice for as long as he has the sufficient capital, proper motives, and entrepreneurial skills. False True 10. Japan's development can be traced to its emphasis on the sciences and technology. True FalseIl. Multiple Choice. Choose the letter of the correct answer. 1. Economic development means * a increases in output or production ( b. changes in the production and distribution of the factors of production () c. changes in the economic structure O d. what, how, and for whom to produce 2. Development demands * a. hard work O b. motivation c. innovation O) d. all of the above 3. The basic task of development is to * a. increase input and output ) b. decrease agricultural share to pave way for industries ) c. overcome scarcity O d. provide growth and sustenance for a country's economy 4. In a market economy, the basic economic problems are solved by * a. The price mechanism O b. A planning committee () . The elected representative of the people d. The ancestors5. A common alternative economic index of development has been the use of rates of growth to consider the ability of a nation to expand its output at a rate faster than the growth rate of population. a. Gross National Income ) b. Income per capita ()c. Human Development Index O d. Capital Output Ratio 6. This approach tended to emphasize external and internal institutional and political constraints on economic development. a. Linear-stages ) b. Structural change c. International dependence () d. Neoclassical counterrevolution 7. It emphasized on the beneficial role of free markets, open economies, and the privatization of inefficient public enterprises. O a. Structural change ) b. Linear-stages () . International dependence d. Neoclassical counterrevolution 8. Every economy must save a certain proportion of its national income, if only * to replace impaired capital goods (buildings, equipment, and materials). a. Harrod-Domar growth model ) b. Rostow's stages of growth ) c. Lewis theory ) d. Chenery's patterns of development9. It focuses on the mechanism by which underdeveloped economies transform * from the subsistence agricultural structure to a more industrialized economy. a. Linear-stages O b. Structural change O c. International dependence O d. Neoclassical counterrevolution 10. The main point of this theory is that minimal government is the best government. O a. Free-market analysis O b. Public-choice theory O c. Market-friendly approach O d. False-paradigm model