# Study Development Economy In A Fun Way In This Quiz

143 Questions | Total Attempts: 30  Settings  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!

• 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.

• 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.

• 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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