ECON247 (Policy and Sectors in Development) - Final Exam – Potential Questions
Module 1

Q. Growth is a _____________ condition to development.
a. sufficient
b. necessary
c. a and b
d. none of the above
Key: b
Q. What are the poor least likely to spend their household budget on?
a. radios and televisions
b. festivals
c. education
d. calorie intake
Key: c
Q. Which of the following is not true about migration?
a. most migration episodes for the poor and the extreme poor are permanent
b. migration is an expensive endeavor financially and psychologically
c. migration over long distances can pull the poor out of poverty
d. non-entrepreneurial work is usually found through migration
Key: a
Q. Which of the following is not a reason why informal borrowing may be common in the poor?
a. the poor exist in a strong network of social ties and kinship
b. formal banks and institutions may not be available to the poor
c. community lenders exist without oversight on interest rates charged
d. collaterals or banking history might be required for obtaining loans
Key: c
Module 2
Q. Traditionally, the agriculture sector has been assumed to play a ______ role for the rest of the economy.
a. passive
b. supportive
c. a and b
d. none of the above
Key: c
Q. If a country has a large rural population on a very limited amount of arable land, the key to success is to:
a. improve labor productivity
b. raise yields through improved plant varieties
c. use technology is needed to complement labor
d. produce more output due to the shear amount of machinery used
Key: b
Q. The minimum desirable consumption level of a village farmer is decided by:
a. culture
b. conspicuous spending
c. economic position
d. all of the above
Key: d
Q. For self-insurance, a farmer will choose a ______ variance technique with _______ returns. 
a. lower; low
b. lower; high
c. higher; high
d. higher; low
Key: a
Q. Sharecropping is common when there are ____ land inequalities and landlords are mostly _____.
a. high; involved
b. high; absent
c. low, involved
d. low; absent
Key: b
Q. What is most characteristic of diversified farming? 
a. It is the most advanced stage of agricultural transformation 
b. It is the most prevalent type of farming in advanced industrial nations
c. It replaces all staple crops for cash crops
d. It allows provision of food for family with some marketable surplus

Key: d
Module 3
Q. Industrialization is a _____________ condition to development.
a. sufficient
b. necessary
c. a and b
d. none of the above
Key: b
Q. As a country develops, the average size of its industrial plants tends to _______ and markets tend to _______.
a. increase; expand
b. increase; contract
c. decrease; expand
d. decrease; contract
Key: a
Q. SMEs are _______ drivers of exports and are ______ players in Pakistani Context.
a. short-term; significant
b. short-term; insignificant 
c. medium-term; significant
d. medium-term; insignificant
Key: c 
Module 4
Q. Check all that apply.
Which of the following is measured by GNP or GDP?
a. Physical environment
b. Social environment
c. Goods and services sold in the market
d. Public expenditure
Key: a, c
Q. What is the historical belief about the relationship between GDP and environmental degradation?
a. Higher GDP always leads to more environmental degradation
b. Lower GDP always leads to more environmental degradation
c. There is no relationship between GDP and environmental degradation
d. Environmental degradation decreases after a certain GDP threshold is reached
Key: d
Q. During which phase of the Environmental Kuznets Curve does environmental degradation continue to increase?
a. Pre-industrial economies
b. Industrial economies
c. Post-industrial economies
d. There is no phase where environmental degradation continues to increase
Key: b
Q. What is the turning point of the Environmental Kuznets Curve?
a. When per capita income is at its lowest point
b. When per capita income is at its highest point
c. When the manufacturing sector is established
d. When the pollution reaches a certain threshold
Key: b
Q. Which of the following is true about environmental destruction and fertility rates? 
a. Environmental destruction and high fertility have a positive relationship
b. Environmental destruction and high fertility are a direct outgrowth of poverty
c. All of the above
d. None of the above
Key: c
Q. Check all that apply.
Which of the following is true about common property resources?
a. The gain of a herdsman adding another animal to his herd communized
b. The gain of a herdsman adding another animal to his herd comes solely to him
c. The loss of overloading the pasture comes solely to the herdsman 
d. The loss of overloading the pasture exceeds the share of the gain to the herdsman
e. A self-seeking herdsman would add another animal to his herd
Key: b, e
Q. When measuring sustainable net national income (NNI), what does D_n denote? 
a. Depreciation of manufactured capital assets
b. Depreciation of net expenditure required to restore environmental capital 
c. Depreciation of environmental capital
d. Depreciation of net expenditure required to avert environmental destruction
Key: c
Module 5
Q. What does the capital account show?
a. The type of products being traded
b. The receipts of foreign private and public lending and investment
c. The repayment of principle and interest on former loans and investment
d. The value of a country's import payments versus export receipts
Key: b
Q. Developing countries have a portfolio concentrated in products with a ___ earning capacity in the international market. These countries are generally ___ dependent on trade than developed countries. 
a. high; more
b. high; less
c. low; more
d. low; less
Key: c
Q. Primary products have a relatively ___ income elasticity of demand. The percentage increase in quantity demanded of primary products by importers will rise by ___ than the percentage increase in their GNIs.
a. high; more
b. high; less
c. low; more
d. low; less
Key: d
Q. What is import substitution?
a. Setting up a manufacturing industry to become more import-oriented
b. Importing capital goods and equipment for domestic production
c. Producing in the domestic market the goods previously imported
d. All of the above
Key: c
Q. What happens when a currency is overvalued?
a. Imports become cheaper
b. Exports become more expensive
c. Imports become expensive
d. Exports become cheaper
Key: b
Q. What do outward-looking development policies encourage?
a. Free trade and free movement of capital, workers, and enterprises
b. Import substitution and domestic production
c. Nationalization of industries and state-controlled economies
d. Greater self-reliance and indigenous learning-by-doing in manufacturing
Key: a
Q. What is the second stage of import substitution?
a. Domestic production of more sophisticated manufactured items
b. Domestic production of simple consumer goods previously imported
c. Elimination of all imports
d. All of the above
Key: a
Q. Under what conditions will a country specialize in the export of products it can produce at the lowest relative cost?
a. Monopolistic conditions
b. Oligopolistic conditions 
c. Competitive conditions
d. None of the above
Key: c
Q. Which of the following does the neoclassical factor endowment model assume?
a. There are significant inherent differences in relative labor productivity among countries
b. There are no inherent differences in relative labor productivity among countries
c. Inherent differences in relative labor productivity are the basis of trade among countries
d. None of the above
Key: b 
Q. What does the factor endowment theory encourage developing countries to focus on?
a. Capital-intensive primary-product exports
b. High-tech manufactured exports
c. Labor and land-intensive primary-product exports
d. Service sector exports
Key: c
Q. What does the vent-for-surplus theory of international trade suggest?
a. Trade occurs because of differences in surplus of factor endowments among countries
b. Trade occurs because of economies of scale in production when labor is in surplus
c. Trade occurs because countries need to export surplus goods they cannot consume domestically
d. Trade occurs because of government policies that promote exports to prevent a surplus in imports
Key: c
Multi-module
Q. Has globalization increased poverty across countries? 
a. Yes, because it has led to the concentration of wealth in a few countries and individuals 
b. Yes, because it has led to the exploitation of workers in low-income countries
c. No, because it has led to increased economic opportunities for all
d. All of the above
Key: d
Q. Which of the following trade policies is most likely to promote sustainable development?
a. Implementing tariffs on imported sustainable goods
b. Promoting free trade agreements with developed countries 
c. Encouraging the exports of sustainable products
d. Imposing export restrictions on natural resources
Key: c
Q. Which of the following policies is most likely to reduce poverty in rural areas while also promoting environmental sustainability?
a. Providing subsidies for large-scale commercial agriculture
b. Implementing land reforms to provide small-scale farmers with secure land rights
c. Encouraging foreign direct investment in extractive industries
d. Privatizing water resources to increase efficiency
Key: b
Q. Are export promotion policies environmentally destructive? 
a. Yes, because they increase resource consumption and pollution 
b. Yes, because they contribute to climate change
c. No, because they can lead to the development of green technologies
d. All of the above
Key: d

On the above pattern, please generate as many more question that you can, but must be relevant to the course. All key answers should not be same( like every other key should not be d) Do you understand?