15 MCQ on Political economy of development with answers
15 MCQ on Political economy of development with answers
1. Which of the following best describes the concept of "political economy of development"?
A) The study of how political institutions impact economic development
B) The analysis of economic policies in developed countries
C) The study of international relations in developing countries
D) The examination of historical economic theories
Answer: A) The study of how political institutions impact economic development
2. Which economic theory emphasizes the role of government intervention in promoting development?
A) Neoliberalism
B) Marxism
C) Mercantilism
D) Dependency theory
Answer: B) Marxism
3. Which of the following factors is often cited as a barrier to development according to dependency theory?
A) Lack of natural resources
B) Overpopulation
C) Exploitative relationships with developed countries
D) High levels of education
Answer: C) Exploitative relationships with developed countries
4. What is a key feature of neoliberal economic policies?
A) State ownership of major industries
B) Protectionism through tariffs and trade barriers
C) Deregulation and privatization
D) Centralized economic planning
Answer: C) Deregulation and privatization
5. Which approach to development emphasizes the importance of cultural factors and local context?
A) Modernization theory
B) Dependency theory
C) Post-development theory
D) Institutional theory
Answer: C) Post-development theory
6. According to modernization theory, what is the primary driver of development?
A) Cultural factors
B) International aid
C) Technological innovation
D) Government intervention
Answer: C) Technological innovation
7. Which organization provides loans and technical assistance primarily to middle-income and low-income countries for development projects?
A) International Monetary Fund (IMF)
B) World Bank
C) World Trade Organization (WTO)
D) United Nations (UN)
Answer: B) World Bank
8. Which of the following best describes the "Washington Consensus"?
A) A set of policies advocating for free-market reforms and structural adjustment
B) A treaty promoting international trade liberalization
C) An agreement on climate change mitigation strategies
D) A convention on human rights and democracy
Answer: A) A set of policies advocating for free-market reforms and structural adjustment
9. Which region experienced rapid economic growth and development in the latter half of the 20th century, often referred to as the "Asian Tiger" economies?
A) Latin America
B) Sub-Saharan Africa
C) East Asia
D) Middle East
Answer: C) East Asia
10. Which term describes a situation where economic growth does not lead to significant improvements in living standards for the majority of the population?
A) Stagflation
B) Hyperinflation
C) Poverty trap
D) Gini coefficient
Answer: C) Poverty trap
11. Which of the following is a measure used to assess income inequality within a society?
A) GDP per capita
B) Human Development Index (HDI)
C) Gini coefficient
D) Poverty headcount ratio
Answer: C) Gini coefficient
12. Which development strategy emphasizes the importance of building human capital through investments in education and healthcare?
A) Import substitution industrialization (ISI)
B) Export-oriented industrialization (EOI)
C) Human development approach
D) Structural adjustment programs (SAPs)
Answer: C) Human development approach
13. Which concept suggests that economic development can lead to environmental degradation if not managed sustainably?
A) Tragedy of the commons
B) Environmental Kuznets curve
C) Sustainable development
D) Ecological footprint
Answer: C) Sustainable development
14. What role do multinational corporations (MNCs) often play in the political economy of development?
A) Advocating for protectionist policies
B) Investing in infrastructure projects
C) Promoting technology transfer and job creation
D) Exploiting natural resources and labor in developing countries
Answer: D) Exploiting natural resources and labor in developing countries
15. Which term refers to the transfer of money from individuals in developed countries to family members or communities in their countries of origin?
A) Remittances
B) Foreign direct investment (FDI)
C) Official development assistance (ODA)
D) Bilateral aid
Answer: A) Remittances
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