Economic Development Strategies Quiz

Economic development typically aims to reduce, not increase, income inequality.

Industrialization aims to diversify the economy by introducing new sectors and reducing dependency on a single industry.

In a command economy, the government centrally plans and controls economic activities.

Sustainable development emphasizes balanced growth that does not compromise environmental or social well-being.

In a market economy, resources are owned and controlled by individuals and private businesses rather than the state.

Export-led growth emphasizes boosting the economy through increasing exports.

Preserving environmental resources ensures long-term viability and well-being.

Amartya Sen introduced the Human Development Index to measure overall societal well-being.

Government spending is a key fiscal policy tool used to influence economic activity.

The Tragedy of the Commons refers to the depletion of shared resources due to individual self-interest.

Foreign direct investment involves foreign companies investing directly in domestic industries to spur economic growth.

In a mixed economy, both government and private sector involvement in economic activities is present.

While important, unemployment rate is not directly included in the Human Development Index.

Population density, while influential in other contexts, is not a direct determinant of economic development.

Stagnation is not a phase typically recognized within the business cycle, which usually consists of expansion, peak, recession, and recovery.

Income inequality arises from uneven distribution of resources rather than equal distribution.