MEcon Master of Economics Development Economics 1

Question 1

What does the Human Development Index (HDI) measure?

Accepted Answer

A composite of health, education, and income

Answer

The HDI combines life expectancy, mean years of schooling, and gross national income per capita into a single composite measure of human development.

Question 2

Which concept describes poor countries growing faster than rich ones after controlling for structural differences, leading to income convergence?

Accepted Answer

Conditional convergence

Answer

Conditional convergence occurs when poorer economies grow faster than richer ones once structural characteristics such as savings rates and technology are controlled for.

Question 3

Paul Rosenstein-Rodan's 'big push' theory argues that economic development requires:

Accepted Answer

Coordinated large-scale investment to overcome poverty traps

Answer

The big push theory contends that coordinated, large-scale investment is necessary to overcome coordination failures and achieve the critical mass needed for self-sustaining growth.

Question 4

The 'resource curse' in development economics refers to the paradox that:

Accepted Answer

Resource-rich countries often experience slower economic growth

Answer

The resource curse describes how countries abundant in natural resources often achieve slower long-run growth due to institutional decay, Dutch disease, and commodity price volatility.

Question 5

Amartya Sen's 'capability approach' defines development as:

Accepted Answer

Expanding people's real freedoms and capabilities to live fulfilling lives

Answer

Sen's capability approach argues that development should be assessed by the expansion of substantive freedoms people enjoy, not merely income or utility.

MEcon Master of Economics Practice Test

MEcon Master of Economics Practice Test

MEcon Master of Economics Development Economics 1