MULTIPLE CHOICE

1) Which of the following is a direct implication of the view that childbearing is an economic decision?

a. People will not have additional children unless they can earn a profit from doing so.

b. Social factors have no effect on childbearing decisions.

c. Compulsory education will increase fertility by raising each child's prospective earnings.

d. Fertility should fall with improved opportunities for women to work in jobs outside the home.

2) Which of the following is not true about human capitals' role in economic development?*

a. Provides labor for industry sector

b. Provides a market for non-agricultural commodities

c. Source of industrial human resource

d. None of the above

3) Which of the following does not correlates to global poverty?*

a. population growth

b. technology

c. gender inequality

d. low defense budget

4) Economic Arguments for Child labor include:

a. Household poverty can be relieved by child labor

b. Philippines used child labor to develop

c. No schooling is available

d. Children can mix work and education in a progressive setting

e. All of the above

5) What is one of the reasons why economic development has failed to stabilize population growth in LDCs?*

a. Exploding population has negated any positive effect of economic development.

b. Population decline due to reduced birth rate is negated by the large numbers of immigrants.

c. Additional resources allow families to support several children.

d. Economic supply has increased quality of life but not population control.

6) If Lorenz curves cross, we say there is less inequality in the case where*

a. the poorer get a larger percentage of income

b. the poorer get a smaller percentage of income

c. the richer are less rich

d. we cannot say

7) Whereas the headcount measure tells us the number of poor and the poverty gap measure tells us about the average depth of poverty among the poor, the Foster-Greer-Thorbecke measure tells us about the number, the average depth of poverty and*

a) average income

b) inequality in the population

c) inequality among the poor

d) variance of average income

8) Malthus argued that the poor would always remain poor because*

a. population growth tends to outrun growth of food production

b. they do not save enough

c. there are not enough resources to educate them

d. all of the above

9) Children have costs and benefits to parents, and - (refer to the demand for children equation)

a. the impact on family income is always negative, so children can be viewed as consumer goods.

b. there is a trade-off to parents between quantity and quality of children

c. the income elasticity of demand for children is strongly negative.

d. none of the above

10) The Malthusian theory of population growth, as formulated by Malthus, proved*

a. 1entirely correct for human behavior

b. overly pessimistic about future productivity increases

c. that food output will decline with population growth

d. none of the above

11) The Lorenz curve*

a. allows us to rank all countries by the degree of inequality.

b. allows us to rank all countries by the degree of poverty.

c. is a measure of the wealth of a country.

d. is an incomplete measure of inequality.

12.) The Gini coefficient provides a measure of:*

a. the level of poverty

b. the level of relative inequality

c. disguised unemployment

d. the rate of growth

13) All are negative consequences of population growth except:*

a. Poverty and inequality

b. Low level of education

c. Poor health care system

d. None of the above

14) The Gini Coefficient is calculated by finding which of the following?*

a. The percentage of the population living on less than $1 a day

b. The area between a Lorenz curve and the line of absolute equality

c. The difference between the richest and poorest of the population

d. The proportion of the population with more than a primary education

e. The percentage of the population living on more than $1 a day

15) When Lorenz curves*

a. are more curved the greater is the degree of income inequality.

b. are less curved the greater is the degree of income inequality.

c. are used in calculating Gini coefficients.

d. First and third choice are correct

16) The closer the Lorenz Curve to the line of absolute equality,*

a. the lower is the degree of income inequality

b. the higher is the degree of income equality

c. the higher is the degree of income inequality

d. the lower is the degree of income equality

17) Which of the following describes why income inequality is bad for economic development?*

a. Income inequality may threaten political stability, because people are dissatisfied with their economic situation and place blame on political authorities.

b. Income inequality reduces the pool of people with resources, such as education, to improve productivity.

c. Income inequality may increase distrust and deter commitment among people in the marketplace, making contracts enforcement difficult.

d. First and second choice only

18) In general, countries that have higher average number of years of education per person have*

a. higher education Gini coefficients.

b. less equal distributions of education.

c. lower education Gini coefficients.

d. First and second choice only

e. none of the above

19) Closing the educational gender gap is widely considered to be economically desirable because*

a. the rate of return on women's education is higher than that on men's in most LDCs.

b. increasing women's education increases their productivity.

c. it would help lessen poverty, since women are less likely to be impoverished than are men.

d. First and second choice only

20) Comparing the costs and benefits, both private and social, of education leads economists to the conclusion that*

a. the socially optimal strategy would be to focus on secondary education.

b. the socially optimal strategy would be to focus on primary education.

c. the privately optimal strategy would be to focus on private education.

d. the privately optimal strategy would be to focus on secondary education.

e. None of the above

21) Which of the following statements is incorrect?*

a. Improvement in female education and labor force participation helps break the vicious circle of poverty.

b. Female education helps reduce the fertility rate and child mortality rate.

c. The rate of return on female education is higher than the rate of return on male education.

d. Female education helps reduce participation of women in labor market activities.

22) The supply of public school places is determined by*

a. individuals' demand for education.

b. direct and indirect costs of schooling.

c. political processes, often unrelated to economic criteria.

d. all of the above

23) Developing countries have not benefited as much as expected from their higher education programs because of*

a. lack of program focus on the needs of the country.

b. increasing returns to scale in each individual's education.

c. graduates get jobs in the private sector.

d. all of the above.

24) It is important to place particular stress on the role of primary education in the development strategy because of*

a. LDC's comparative advantage from basic skills education.

b. the law of diminishing returns.

c. development emphasis on poverty alleviation.

d. all of the above.

25) An individual's demand for education is most affected by*

a. direct and indirect costs of schooling.

b. development priorities of the country.

c. the desire to escape agricultural work.

d. all of the above.