(9.) Economics Hl. Development Economics, Definitions.

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IB Economics HL. Definitions QUIZ. Section 5. Development economics.

Questions and Answers

1.

The inward-oriented strategy that states that a developing country should produce goods domestically rather than import them is known as ...

Correct Answer
import substitution
2.

The Human Development Index (HDI) is a composite index for measuring economic development. It brings together three variables, thus not one of the following. Which one?
- A.
  
  Long, healthy life
- B.
  
  Decent standard of living
- C.
  
  Steady economic growth
- D.
  
  Improved education
Correct Answer
C. Steady economic growth
3.

The HDI adjusted for gender inequality is known as the ...
- A.
  
  GDI
- B.
  
  WDI
- C.
  
  GEM
Correct Answer
A. GDI

Explanation
GDI = Gender-related development index

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4.

There is another "gender index". This is an index which measures the extent to which women is able to activiely participate in political and economic life. This index is known as ...
- A.
  
  GEM
- B.
  
  HPI
- C.
  
  OECD
Correct Answer
A. GEM

Explanation
GEM - Gender empowerment measure

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5.

"Method for measuring economic development, which uses data about household income gathered in national surveys and presents them graphically" Write down what is being defined!

Correct Answer
Lorenz curve
6.

The ratio of the area between the line of equality and the Lorenz curve, to the total area under the line of equality is called the ...
- A.
  
  Gino index
- B.
  
  Gini index
- C.
  
  Qini index
- D.
  
  Queuing index
Correct Answer
B. Gini index
7.

"Index for measuring economic development, which measures the proportion of people who are deprived of the opportunity to reach a basic level in the areas; a long and healthy life, education, the ability to meet basic needs" What index is this?
- A.
  
  HDI - Human development index
- B.
  
  GDP index
- C.
  
  HPI - Human poverty index
- D.
  
  HPM - Human poverty measure
Correct Answer
C. HPI - Human poverty index
8.

"An increase in the real output of an economy over time" Write down what is being defined

Correct Answer
Economic growth
9.

A basic definition of economic development could be "an improvement in welfare"
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
However, be aware of the fact that the concept of development is multidimensional. It is about a lot of things; reducing poverty, improving education, health care, maintain law and order etc.

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10.

One growth model states that the rate of growth of GDP (economic growth) is determined by the national savings ratio and the ratio of capital to output in the economy. Which growth model is this?
- A.
  
  Lewis dual sector model
- B.
  
  San Diego consensus model
- C.
  
  Harrod-Domar growth model
- D.
  
  Export promotion model
Correct Answer
C. Harrod-Domar growth model
11.

The San Diego consensus model explains the growth of a country in terms of a labor transition between two sectors (usually primary --> manufacturing).
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
There is no model called "San Diego consensus model". The model described above is the Lewis Dual Sector Model.

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12.

Organizations which, through a market-based approach, intends to help producers in LDCs/developing countries make better trading conditions are known as [...] organizations

Correct Answer
fair trade
fairtrade
13.

The provision of small loans to individuals with no access to traditional sources are known as ...
- A.
  
  Small-credit loans
- B.
  
  Development loans
- C.
  
  Micro-credit loans
- D.
  
  Grant loans
Correct Answer
C. Micro-credit loans
14.

Micro-finance is believed to have much potential, but the positive effects of it has not been clearly demonstrated yet
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Micro-credit schemes have been extremely successful.

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15.

Any assistance given to a country that would not have been provided through normal market forces is known as ...

Correct Answer
aid
foreign aid
16.

Foreign aid that must be spent in the country providing the aid (the donor country) is known as ...
- A.
  
  Commodity aid
- B.
  
  Tied aid
- C.
  
  Project aid
- D.
  
  Project grant
Correct Answer
B. Tied aid
17.

Aid given for a specific project in a country is known as "commodity aid"
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
It is known as "project aid". Commodity aid is grant given by countries to increase productivity in developing economies (e.g. it provides funds to purchase commodities including raw materials)

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18.

Aid given by rich countries to international aid agencies (such as the World Bank Group's International Bank for Reconstruction and Development) is known as [...] aid.

Correct Answer
multilateral

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Mar 20, 2022

Quiz Edited by
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Apr 05, 2011

Quiz Created by
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(9.) Economics Hl. Development Economics, Definitions.

The inward-oriented strategy that states that a developing country should produce goods domestically rather than import them is known as ...

The Human Development Index (HDI) is a composite index for measuring economic development. It brings together three variables, thus not one of the following. Which one?

The HDI adjusted for gender inequality is known as the ...

There is another "gender index". This is an index which measures the extent to which women is able to activiely participate in political and economic life. This index is known as ...

"Method for measuring economic development, which uses data about household income gathered in national surveys and presents them graphically" Write down what is being defined!

The ratio of the area between the line of equality and the Lorenz curve, to the total area under the line of equality is called the ...

"Index for measuring economic development, which measures the proportion of people who are deprived of the opportunity to reach a basic level in the areas; a long and healthy life, education, the ability to meet basic needs" What index is this?

"An increase in the real output of an economy over time" Write down what is being defined

A basic definition of economic development could be "an improvement in welfare"

One growth model states that the rate of growth of GDP (economic growth) is determined by the national savings ratio and the ratio of capital to output in the economy. Which growth model is this?

The San Diego consensus model explains the growth of a country in terms of a labor transition between two sectors (usually primary --> manufacturing).

Organizations which, through a market-based approach, intends to help producers in LDCs/developing countries make better trading conditions are known as [...] organizations

The provision of small loans to individuals with no access to traditional sources are known as ...

Micro-finance is believed to have much potential, but the positive effects of it has not been clearly demonstrated yet

Any assistance given to a country that would not have been provided through normal market forces is known as ...

Foreign aid that must be spent in the country providing the aid (the donor country) is known as ...

Aid given for a specific project in a country is known as "commodity aid"

Aid given by rich countries to international aid agencies (such as the World Bank Group's International Bank for Reconstruction and Development) is known as [...] aid.