MEcon Master of Economics Development Economics 3

Question 1

Conditional Cash Transfer (CCT) programs like Mexico's Progresa/Oportunidades work by:

Accepted Answer

Giving cash to poor households contingent on behaviors like school attendance or health visits

Answer

Providing universal basic income to all citizens regardless of behavior

Answer

Subsidizing firms that hire workers from low-income households

Answer

Funding community infrastructure projects in underserved regions

Question 2

The Gini coefficient is used to measure:

Accepted Answer

The degree of income or wealth inequality within a population

Answer

GDP growth relative to population growth

Answer

The ratio of a country's imports to its exports

Answer

Government expenditure as a share of national income

Question 3

In W.W. Rostow's stages of economic growth, the 'take-off' stage is characterized by:

Accepted Answer

Rapid industrialization with sustained investment exceeding 10% of national income

Answer

Subsistence agriculture and minimal market exchange

Answer

Mass consumption, high incomes, and a dominant service sector

Answer

Stagnant productivity and declining agricultural output

Question 4

'Brain drain' in development economics describes:

Accepted Answer

Emigration of skilled and educated workers from developing to wealthier countries

Answer

Excessive public spending on tertiary education without returns

Answer

Declining quality of primary education in low-income nations

Answer

Reduction in corporate research and development expenditure

Question 5

IMF- and World Bank-prescribed structural adjustment programs (SAPs) typically required recipient countries to implement:

Accepted Answer

Fiscal austerity, currency devaluation, privatization, and market liberalization

Answer

Increased government spending and expanded trade protection

Answer

Nationalization of key industries and capital controls

Answer

Currency revaluation alongside expanded import subsidies

Question 6

The 'demographic dividend' in development economics refers to:

Accepted Answer

Accelerated economic growth driven by a declining youth dependency ratio as fertility falls

Answer

Government bonuses paid to households for having children

Answer

Immigration policy used to offset aging populations in rich countries

Answer

Tax revenue generated from taxing larger family sizes

Question 7

Gender inequality in education is linked to lower economic development primarily because:

Accepted Answer

Girls' education yields high returns through improved health, lower fertility, and better intergenerational outcomes

Answer

Educating girls reduces male labor force participation rates

Answer

Educated women disproportionately emigrate, creating severe brain drain

Answer

Gender parity in schooling creates wage inflation in the labor market