Study Development Economy In A Fun Way In This Quiz

143 Questions | Total Attempts: 30

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Study Development Economy In A Fun Way In This Quiz

Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Study development economy in a fun way in this quiz and get your results at the end of the quiz, ALL THE BEST!


Questions and Answers
  • 1. 
    T or F: When measuring income inequality, the source, location and occupation are considered
    • A. 

      True

    • B. 

      False

  • 2. 
    The Kuznet ratio measures the degree of inequality between high and low income groups, focusing on which two groups?
    • A. 

      Top 40% and Bottom 40%

    • B. 

      Top 40% and Bottom 20%

    • C. 

      Top 20% and Bottom 40%

    • D. 

      Top 20% and Bottom 40%

  • 3. 
    This image is an example of what?
    • A. 

      Lorenz Curve

    • B. 

      Gini Coefficient

    • C. 

      Todaro Model

    • D. 

      Harris-Todaro Equilibrium

  • 4. 
    T or F: The closer the Lorenz curve is to the diagonal, the more equal the income distribution
    • A. 

      True

    • B. 

      False

  • 5. 
    [Blank] means that when one curve lies above the other, the former is more equal than the later.
  • 6. 
    Refers to the total share of income received by each of the factors of production, rather than people
    • A. 

      Lorenz Criterion

    • B. 

      Gini coefficent

    • C. 

      Malthusian Population trap

    • D. 

      Functional Distribution

  • 7. 
    The measure of total income necessary to raise individuals above the poverty line
    • A. 

      Income Poverty

    • B. 

      Total Poverty Gap

    • C. 

      Average Poverty Gap

    • D. 

      Normalized Poverty Gap

  • 8. 
    T or F: The figure on the Left requires more money to raise people out of poverty
    • A. 

      True

    • B. 

      False

  • 9. 
    This equation represents what?
    • A. 

      Normalized Poverty Gap

    • B. 

      Total Poverty Gap

    • C. 

      Average Poverty Gap

    • D. 

      Income Poverty Gap

  • 10. 
    T or F: The Kuznets Inverted U-Hypothesis states that income distribution gets better during each stage of economic growth
    • A. 

      True

    • B. 

      False

  • 11. 
    T or F: At the end of the Kuznets Inverted U-Hypothesis, there are lower Gini coefficients
    • A. 

      True

    • B. 

      False

  • 12. 
    Select all the evidences on why reducing poverty does not lead to slower growth
    • A. 

      Reducing poverty creates better access to credit

    • B. 

      Reducing poverty can increase productivity

    • C. 

      Raising incomes of the poor and thus raises the demand for local necessities

    • D. 

      Reducing mass poverty creates an incentive to participate in development

    • E. 

      Promotes savings and invests

  • 13. 
    The model that proposes a relationship between population growth and economic development, wherein the population will meet a natural stable point where they are forced to live
    • A. 

      Total Income Growth Line

    • B. 

      Malthusian Population Trap

    • C. 

      Kuznets Inverted U-Hypothesis

    • D. 

      Lorenz Criterion

  • 14. 
    T or F: On the low points of the population growth line, there is negative population growth
    • A. 

      True

    • B. 

      False

  • 15. 
    T or F: As total income grows, individuals are less likely to save
    • A. 

      True

    • B. 

      False

  • 16. 
    Past point "S", what does the income per capita typically do? 
    • A. 

      Income per capita will not change

    • B. 

      Income per capita will continue to grow

    • C. 

      Income per capita will fall back

    • D. 

      More information is necessary

  • 17. 
    At point "T", what happens past this threshold?
    • A. 

      Income per capita will continue to grow

    • B. 

      Income per capita will remain stagant

    • C. 

      Population growth will expand

    • D. 

      Population growth and Income per capita will be uneffected

  • 18. 
    This graph demonstrates the elimination of which ignored progress?
    • A. 

      Technological progress

    • B. 

      Social progress

    • C. 

      Neither progress

    • D. 

      Both progresses

  • 19. 
    T or F: Technological progress increases productivity of resources, so income growth is higher than population growth
    • A. 

      True

    • B. 

      False

  • 20. 
    T or F: Income per capita, not household income levels, matter for fertility
    • A. 

      True

    • B. 

      False

  • 21. 
    T or F: Children are exempt from the utility maximization problem as they are human beings
    • A. 

      True

    • B. 

      False

  • 22. 
    T or F: The graph on the left shows the budget constraints when children are more expensive compared to the right
    • A. 

      True

    • B. 

      False

  • 23. 
    Which statements are applicable to this graphic
    • A. 

      Households will be indifferent about the combinations on the same curve

    • B. 

      Households will select the higher points on the same curve because it has higher utility

    • C. 

      Combinations on higher curves have a higher level of utility

    • D. 

      All the curves provide the same level of utility

  • 24. 
    T or F: Point E represents the equilibrium combination of goods and children
    • A. 

      True

    • B. 

      False

  • 25. 
    What change is represented in this graph?
    • A. 

      An increase in the price of children

    • B. 

      A decrease in the price of children

    • C. 

      An increase in the price of other goods

    • D. 

      A decrease in the price of other goods

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