 |
1 | |
All of the following represent obstacles to LDC development except
resource scarcity |
|
| | A) | low levels of investment |
| | B) | low population |
| | C) | poor infrastructure |
| | D) | poor human capital |
|
2 | |
LCDs often have a comparative advantage in the production of ___________ |
|
| | A) | primary products |
| | B) | intermediate products |
| | C) | manufactured products |
| | D) | financial services |
|
3 | |
LDCs are reluctant to pursue development through the export of primary products because of _______________ and ________________ |
|
| | A) | the upward trend in commodity prices, the stability of primary products real prices |
| | B) | the upward trend in commodity prices, the volatility of primary products real prices |
| | C) | the downward trend in commodity prices, the stability of primary products real prices |
| | D) | the downward trend in commodity prices, the volatility of primary products real prices |
|
4 | |
Import substitution is the replacement of _____________ by domestic production under the protection of ____________________ |
|
| | A) | exports, subsidies |
| | B) | exports, patents |
| | C) | imports, high tariffs or import quotas |
| | D) | imports, subsidies |
|
5 | |
If a country has a burden of debt it cannot sustain it can _______________ |
|
| | A) | reschedule debt |
| | B) | get a loan from an international organisation |
| | C) | default on the loan |
| | D) | any of the above |
|
6 | |
Structural adjustment is the pursuit of ____________ to _______________ |
|
| | A) | demand management, increase consumption |
| | B) | inflation control, stabilise prices |
| | C) | labour market policies, reduce wage costs |
| | D) | supply-side policies, increase potential output |
|
7 | |
Buffer stocks increase price volatility in an unstable market |
|
| | A) | TRUE |
| | B) | FALSE |
|
8 | |
If an LDC chooses structural adjustment as a strategy for development, it will nationalise its principle industries |
|
| | A) | TRUE |
| | B) | FALSE |
2002 A McGraw-Hill Online Learning Centre