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| 1 | |
All of the following represent obstacles to LDC development except _______. |
| | A) | resource scarcity |
| | B) | low levels of investment |
| | C) | low population |
| | D) | poor infrastructure |
| | E) | poor human capital |
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| 2 | |
Less developed countries (LDCs) are those with ________. |
| | A) | high per capita output |
| | B) | low per capita output |
| | C) | high income per head |
| | D) | high taxation |
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| 3 | |
A buffer stock aims to stabilize a commodity market by buying when the price is ____, and selling when the price is _____. |
| | A) | low, high |
| | B) | low, low |
| | C) | high, high |
| | D) | high, low |
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| 4 | |
___________________stresses production and income growth through exports rather than the displacement of imports. |
| | A) | import led growth |
| | B) | export-led growth |
| | C) | reduced government spending |
| | D) | consumption-led growth |
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| 5 | |
Debt rescheduling is a new agreement with old creditors to pay them more per period for a longer payback period. |
| | A) | True |
| | B) | False |
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| 6 | |
Which of the following is not an obstacle to LDC development: |
| | A) | population growth |
| | B) | capital scarcity |
| | C) | poor infrastructure |
| | D) | climate |
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| 7 | |
Primary product commodity prices have not declined as a result of __________. |
| | A) | technical advances |
| | B) | better irrigation |
| | C) | improved packaging |
| | D) | increased use of fertilizers |
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| 8 | |
Equilibrium prices for primary products are ________ because both the supply and the demand are ____________. |
| | A) | stable, price-elastic |
| | B) | volatile, price-inelastic |
| | C) | stable, price-inelastic |
| | D) | volatile, price-elastic |
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| 9 | |
One problem with the strategy of supply restriction to force ____ the price is that there is an incentive for individual producers to ________ on the collective agreement. |
| | A) | up, cheat |
| | B) | up, co-operate |
| | C) | down, cheat |
| | D) | down, co-operate |
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| 10 | |
LDCs often have a comparative advantage in the production of ___________. |
| | A) | primary products |
| | B) | intermediate products |
| | C) | manufactured products |
| | D) | financial services |
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| 11 | |
LDCs are reluctant to pursue development through the export of primary products because of _______________ and ________________. |
| | A) | the upward trend in commodity prices, the stability of primary products real prices. |
| | B) | the upward trend in commodity prices, the volatility of primary products real prices. |
| | C) | the downward trend in commodity prices, the stability of primary products real prices. |
| | D) | the downward trend in commodity prices, the volatility of primary products real prices. |
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| 12 | |
Import substitution is the replacement of _____________ by domestic production under the protection of ___________________. |
| | A) | exports, subsidies |
| | B) | exports, patents |
| | C) | imports, high tariffs or import quotas |
| | D) | imports, subsidies |
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| 13 | |
If a country has a burden of debt it cannot sustain it can _______________. |
| | A) | reschedule debt |
| | B) | get a loan from an international organization |
| | C) | default on the loan |
| | D) | any of the above |
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| 14 | |
Structural adjustment is the pursuit of ________ to __________. |
| | A) | demand management, increase consumption |
| | B) | inflation control, stabilise prices |
| | C) | labour market policies, reduce wage costs |
| | D) | supply-side policies, increase potential output |
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| 15 | |
Buffer stocks increase price volatility in an unstable market. |
| | A) | True |
| | B) | False |
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| 16 | |
If an LDC chooses structural adjustment as a strategy for development, it will nationalize its principle industries. |
| | A) | True |
| | B) | False |
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| 17 | |
Less developed countries (LDCs) are those with ______________. |
| | A) | high per capita output |
| | B) | low per capita output |
| | C) | high income per head |
| | D) | high taxation |
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| 18 | |
A buffer stock aims to stabilize a commodity market by buying when the price is _____, and selling when the price is _____. |
| | A) | low, high |
| | B) | low, low |
| | C) | high, high |
| | D) | high, low |
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| 19 | |
______________ stresses production and income growth through exports rather than the displacement of imports. |
| | A) | import led growth |
| | B) | export-led growth |
| | C) | supply-side growth |
| | D) | consumption-led growth |
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| 20 | |
Debt rescheduling is a new agreement with old creditors to pay them more per period for a longer payback period. |
| | A) | True |
| | B) | False |
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