1.Inequality is inevitable because of:

b. concept of incentives

d. taxes are too much.

c. regulation and restraint

a. leisure is preferred to work.

2.Development involves

a. elimination of poverty.

b. getting rich

c. having jobs for all.

d. A and C

e. A and B.

3.GDP per capita indicates

a. there are only few seller, but revenues are great!

b. there are many sellers and consumers, each has the ability to buy all the products/services they want .

c. there are many sellers in the market and hence there are lots of revenues in the economy

d. the amount of goods and services that can be consumed by every individual.

4.Human development index is an overall indicator of:

a. health of a nation and its individuals

b. overall status of the economy's performance and its income.

c. development of a country and welfare of its individuals.

d. all of the above are correct.

5.The welfare/satisfaction in life of an individual in an economy is an example of:

a. visual model of how the economy is measured.

b. ordinal data.

c. non-parametric data.

d. parametric data.

6.Equality is the goal of communism, it never worked in communist countries and they have adopted an economic system in which it is mixed with capitalism because there's

a. minimum wage in communism

b. maximum benefit/profit from capitalism

c. bad labor conditions and benefits are not provided.

d. no incentive to work harder in communist states

7.Rich natural resources are nothing when it comes to development if the country lacks*

a. people to use it.

b. political stability.

c. technology.

d. high Human Development Index.

8.Development economics focuses on:

a. economic, social, and institutional mechanisms to improve standards of living and welfare.

b. welfare alone coupled with objective political directions towards greater equality with all walks of life.

c. GDP over GNP per capita.

d. equality and employment (the two most important indicators of an individual's welfare)

e. None of the above.

9.Weather is related to economic growth and development, because

a. it affects labor efficiency

b. it affects labor and soil quality

c. countries produce a variety of commodities (such as fruits) when it is in temperate countries

d. it is related to technological advancement

10.Choosing personal appointments over work would be chosen to promote which of these determinants of quality of life?*

a. Job Security

b. Family life

c. Community life

d. Material Well-being

e. Health

11.Colonial past of countries have an effect on its current economic development because of the colonizer's influence on:*

a. institutions

b. culture

c. resource allocation

d. monetary system

e. A&B

f. B&C

12.GDP growth can be counterproductive to economic development because of:

a. the damage to the environment

b. income inequality

c. products produced are causing health concerns

d. family life is compromised.

e. None

f. ALL

g. B&C

13.Women has a central role in the development process because

a. they have roles that instinctively cannot be performed by men.

b. they are more productive and knowledgeable.

c. they are more compassionate.

d. they have better education and perform better as a parent.

14.Usually, if you want a high standard of living, you must

a. decide what job to have

b. settle for a low quality of life.

c. pursue a business (be and entrepreneur)

d. invest on stocks

e. All

15.If you will have stroke early in life it will make your DALY (disability adjusted life years) will

a. be lower

b. be higher

c. remain the same

d. be indeterminate

e. be indifferent

16.Which of these are non-parametric data?

a. Hunger.

b..Wage.

c. Bank interest.

d. Knowledge.

e. A and D

f. A and C

g. All

17.The _______________ states that economic growth depends on the quantity and quality of resources and technology

a. Chenery Model

b. Mundell-Fleming Model

c. Harrod-Domar Model

d. Solow Growth Model

e. Linear Stages Model

18.One reason why developing countries lag behind developed nations is because they do not invest in

a. infrastructure esp. on communication

b. agriculture (food production)

c. commerce (banking and finance)

d. research and development

19.Dual economy exists in countries like Brazil and even in the Philippines because

a. rich people living in tall buildings are living side by side with poor people in slums.

b. the businesses keeps capital/investments flowing while the households provides the labor needed

c. there are only consumers and producers in the market with minimal government intervention.

d. the tax system is able to equalize the gap between the rich and the poor.

20.Development economics does not consider fiscal (taxation) schemes.

a.True

b.False

c.Sometimes

d.Depends on the situation

21.Incoming migrants are for development.

a.True

b.False

22.Wealthy citizens of nations, as seen in the material discussed in class, tends to be unhappy.

a.True

b.False

23.Marx's theory points out that everything in society and individuals stems from having a good political foundation

a.True

b.False

24.Mercantilism was a dominant economic theory practiced in Europe from the 16th to the 18th centuries. The theory promoted augmenting state power by lowering exposure to rival national powers, thus promoting economic nationalism.

a.True

b.False

25.The Capability Approach is defined by its choice of focus upon the moral significance of individuals' capability of achieving the kind of lives they have reason to value, asking people what is truly important to them, therefore, it is "non-participatory" in nature.

a.True

b.False.