#1
Which factor is considered a primary driver of historical economic development?
Natural resources
ExplanationNatural resources have historically fueled economic development due to their exploitation and utilization.
#2
Which economic concept refers to the total value of goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
ExplanationGDP measures a country's economic output, encompassing all goods and services produced within its borders.
#3
Which economic concept is associated with the idea that, over time, the prices of goods and services tend to rise, leading to a decrease in the purchasing power of money?
Inflation
ExplanationInflation describes the general increase in prices over time, diminishing the purchasing power of currency.
#4
Which economic concept refers to the situation where a market fails to efficiently allocate resources?
Market failure
ExplanationMarket failure occurs when the free market fails to allocate resources efficiently, leading to suboptimal outcomes.
#5
Which economic concept describes the situation where one person's gain is equivalent to another person's loss?
Zero-sum game
ExplanationA zero-sum game is one in which any gains by one participant are offset by equal losses to others, resulting in no net change in wealth.
#6
During which historical period did the Industrial Revolution significantly impact economic development?
18th-19th century
ExplanationThe Industrial Revolution transformed economies during the 18th and 19th centuries through mechanization and mass production.
#7
Which economic theory emphasizes the role of government intervention in managing economic development?
Keynesian economics
ExplanationKeynesian economics advocates for government intervention, particularly through fiscal policy, to stabilize economies and promote growth.
#8
What is the main idea behind the 'Lewis Dual Sector Model' in economic development?
Shift from agriculture to industrialization
ExplanationThe Lewis Dual Sector Model describes the transition of surplus labor from agriculture to industrial sectors, driving economic growth.
#9
Which historical period is associated with the 'Mercantilist' economic theory?
Age of Exploration
ExplanationMercantilism, focusing on accumulation of wealth through trade and colonization, was prominent during the Age of Exploration.
#10
What is the 'Tragedy of the Commons' in the context of economic development?
Over-exploitation of shared resources
ExplanationThe Tragedy of the Commons refers to the depletion of resources when individuals act in their self-interest, neglecting the common good.
#11
In the context of economic development, what is the Harrod-Domar model used to analyze?
Employment and investment
ExplanationThe Harrod-Domar model assesses the relationship between the rate of growth, capital formation, and employment.
#12
Which factor is often associated with the concept of 'Human Development Index (HDI)'?
Health and education indicators
ExplanationThe HDI incorporates health, education, and income indicators to measure a country's overall development.
#13
According to the 'Dependency Theory,' what is the impact of the global economic system on less developed countries?
Perpetuation of underdevelopment
ExplanationDependency Theory posits that less developed countries are perpetually exploited and kept underdeveloped by the global economic system.
#14
In the context of economic development, what does the 'Solow Growth Model' focus on?
Technological progress and capital accumulation
ExplanationThe Solow Growth Model analyzes long-term economic growth, emphasizing the roles of technology advancement and capital accumulation.
#15
In the context of globalization, what is 'Outsourcing'?
The relocation of business processes to external providers
ExplanationOutsourcing involves contracting tasks or processes to external entities, often in different countries, to reduce costs or improve efficiency.