Economics 10

Module II

MODULE TEST

TEST I. True or False. Write on the spaces before each number, the letter T if the answer is true and the letter F if the answer is false.

_____ 1. Industrialization should be pursued first to develop the rural areas.

_____ 2. A very high employment standard will bring benefits to the country because only the intelligent ones will be hired.

_____ 3. A land reform program is a must in development.

_____ 4. The usurers are very powerful both in the rural and urban areas.

_____ 5. Taxation is a very reliable source of fund for development in Third World Countries.

_____ 6. The technology of rich countries is always the best for poor countries.

_____ 7. When we borrow technology from rich countries, we should modify it to suit our conditions.

_____ 8. Religious beliefs can slow down the development of a country.

_____ 9. The growth rate in the population of Third World Countries is higher than that of the rich countries.

_____10. Banks are very careful in lending to agriculture because of the risks involved.

TEST II. Multiple Choice. Encircle the letter representing the best answer.

1. When a country achieves economic growth, there is no assurance that this growth will keep on going because:

a. some concerns like the environment and human values are neglected

b. the country incurred a big foreign debt

c. the leaders learn to be corrupt

d. the people lose their religious beliefs

2. Agriculture and the rural area are vital elements to development because:

a. this is where the majority of the people live

b. this area provides the food of the country

c. this area is poor

d. this area occupies a big part of the country

3. More opportunities to education can be realized if:

a. there are more schools in the country

b. the government provides more subsidies to education

c. there are more teachers

d. there are more scholarships

4. A big population is an asset to growth because:

a. they are the market for goods and services produced

b. they make labor cheap

c. they can defend the country

d. we do not have to hire foreign workers

5. The use of machines than labor in poor countries should be:

a. selective

b. adopted by all factories

c. discouraged

d. supported through cheap energy prices

6. Trade relationships between the rich and poor countries has not been favorable to the poor countries because the rich countries:

a. can produce all their needs

b. impose strict regulations on goods from poor countries entering their countries

c. only buy goods from rich countries

d. do not need products from poor countries

7. To fully realize the gains from a land reform program, there should be:

a. a development support system for the farmers like training and credit facilities

b. more lands distributed to the farmers

c. more cooperatives

d. willingness from the rich to give up some of their land

8. Urbanization and rural development should complement each other because:

a. this will minimize migration

b. this will create a balance between the urban and rural area

c. the cities need workers from the provinces

d. this will attract foreign investments

9. Industries and the education sector should coordinate to:

a. identify the skills required by industries in the future

b. minimize the spread of too many courses

c. minimize unemployment in the rural areas

d. save on costs of education

10. Students studying abroad are not necessarily helpful to the development of their countries because:

a. they learn techniques of rich countries

b. they do not know how to adapt what they learned to local conditions

c. they stay abroad to work

d. they ask for very high salaries

TEST III.Identification. Identify the following terms implied by the following statements. Write your answers on the blanks provided.

1. Process of people moving from the rural areas to the cities ____________

2. Process of developing the cities in a country ____________

3. Labor intensive industries that do not require big loans and factories ____________

4. Education system that is taken according to different stages and specific years like high school ____________

5. The number of students that may be accepted on a scholarship basis ____________

6. A program to improve the distribution of land between the rich and the poor ____________

7. Government workers sent to the provinces to teach farmers modern farm techniques____________

8. Type of farming where the farmers can only produce for their own needs and there is no extra to sell ____________

9. An organization of farmers in the rural areas established to combine their resources to facilitate farm activities ____________

10. Facilities like roads, bridges, dams and communication systems provided by the government____________

TEST IV. Enumeration.Write youranswers on the blanks provided.

1.- 2. Two sources of taxation ________________________

3.- 4. Two systems of education ____________ ____________

5.- 6. Two parties involved in a land reform program ____________ ____________

7.- 8. Traditional role of agriculture and the rural areas ____________ ____________

9. Modern role of agriculture ____________

10. Level of education which should get the least support from the government ____________

TEST V.The following are variables and conditions involved in the development process. Write on the blanks provided whether the given variables or conditions should increase or decrease to finally realize economic growth.

1. vocational courses ____________

2. interest rate of agricultural loans____________

3. farmers' cooperatives ____________

4. government subsidy on college education ____________

5. tax collections ____________

6. extension workers ____________

7. usurers ____________

8. rural banks ____________

9. job opportunities ____________

10. farm to market roads ____________

11. infrastructures ___________

12. population growth rate ____________

13. fertility rates ____________

14. diversification of crops ____________

15. labor problems ____________

16. brain drain ____________

17. investments ____________

18. power of political families ____________

19. self-sufficiency in food ____________

20. income differences in urban and rural areas____________

21. level of wages ____________

22. purchases of luxuries ____________

23. inequalities in income distribution ____________

24. income per capita ____________

25. research on local materials ____________

26. government services ____________

27. importation of machines ____________

28. unemployment level _____________

29. economic opportunities ____________

30. overseas workers ____________

TEST VI.Underline the best answer as to how the following can best support development.

1. Labor disputes with management should be settled [by a strike, amicable means, through a lawsuit].

2. The sending of contract workers to other countries should be [temporary, permanent].

3. The development of the rural areas should be [faster, slower] than the urban centers to minimize migration.

4. Agriculture has a [minor, major, no] role in development

5. Urban jobs [solve, can not solve] the problems in the rural areas.

6. Government projects provide [jobs, income] for the rural workers.

7. The farmers should [depend on, support, go against] the government to fully realize the gains from a land reform program.

8. Infrastructures improve the [selling, use, availability] of resources in the different areas of the country.

9. If the rural area is a mere provider of food and cheap labor, this role is [passive, active].

10. A high school diploma [should not be, should be] required for a supervisory job.

11. A big population is responsible for [all economic problems, worsening the existing problems, maintaining the problems] in an economy.

12. [Non-formal, formal] education should be pursued more in a poor country.

13. The land reform program involves[reallocation, redistribution, confiscation] of land from the rich to the poor.

14. The most important factor of production for development is [labor, money, machines, land].

15. Lending to farmers is very risky because [they are poor, of natural calamities, they are irresponsible].

16. More [commercial banks, rural banks, savings banks] should be opened in the provinces to support development there.

17.Farmers have remained poor because land is concentrated with [the government, few families].

18. Unemployment causes crime rates to [ increase, decrease] in the cities.

19. Rural-urban migration results in [shortage, surplus] of workers in the farms.

20. Cooperatives can help [ increase, decrease ] the prices of farm inputs.

TEST VII. Trace what happens to the following to explain how a land reform program eventually increases the need for industries.

1.possibility of land ownership by farmers

2. income of farmers

3. capability to buy goods and services

4. demand for goods and services by farmers

5. where and who will produce these goods desired by farmers