Section+Five+Questions+(Development+Economics)

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__﻿SECTION FIVE QUESTIONS (DEVELOPMENT ECONOMICS)__
1. How could industrialized countries best assist less developed countries to achieve higher levels of real income?

2. What are the determinants of economic growth?

3. Do the activities of multinational companies help or hinder the progress of economic development? Justify your answer.

4. Some economists have begun to refer to some countries as Newly Industrialized Countries (nics). Explain and discuss the strategies that a Less Developed Country (ldc) might adopt if it wishes to become a nic.

5. A multinational enterprise decides to make a large investment in Gondomar, a less developed country. Examine the possible economic costs and benefits of this decision for the economy of Gondomar.

6. Some countries, such as India, have tended to use inward orientated development strategies, while others, such as South Korea, have used outward orientated strategies. Describe the main features of each type of strategy, and discuss and evaluate their ad­vantages and disadvantages.

7. What government policies can encourage rapid and sustainable economic development? Is development possible without government intervention?

8. As an economist, how would you tackle the task of comparing the welfare of a citizen of a country like India with that of a citizen of a country like the United States? What would be the main problems involved?

9. What are the economic costs and benefits which a less developed country can expect when it receives aid from a more developed country? Explain whether aid or trade would be more effective.

10. Explain how and why economists are attempting to find ways of measuring economic ‘development’ as distinct from ‘growth’.

11. (a) What are the different forms that international aid might take? (10) (b) Discuss the view that giving aid simply creates the need for further aid. (15)

12. (a) What are the main forms of ‘aid’ provided for Less Developed Countries? (10) (b) What is more effective in promoting development, aid or trade?

13. (a)What is ‘foreign direct investment’ (fdi) and what role does it play in the economic development of less developed countries? (12) (b) Compare the effectiveness of fdi with other sources of investment. (13)

<span style="font-family: 'Times New Roman',Times,serif;">14. (a) What factors explain the growth in importance of multinational corporations over recent decades? Illustrate your answer where possible by making reference to your own or other countries. (12) <span style="font-family: 'Times New Roman',Times,serif;">(b) Do multinational corporations work in favor of, or against the interests of Less Developed Countries? (13)

<span style="font-family: 'Times New Roman',Times,serif;">15. A country decides to change from an inward oriented development strategy to an outward oriented development strategy. <span style="font-family: 'Times New Roman',Times,serif;">(a) What changes in economic policy would be made? (12) <span style="font-family: 'Times New Roman',Times,serif;">(b) Discuss the likely consequences of this change in policy. (13)

<span style="font-family: 'Times New Roman',Times,serif;">16. (a)Discuss the main problems involved in measuring he national income of a country. (12) <span style="font-family: 'Times New Roman',Times,serif;">(b) Why do many economists prefer to use composite indexes, such as the Human Development Index, as well as national income figures, to indicate living standards? (13)

<span style="font-family: 'Times New Roman',Times,serif;">17. Is economic growth compatible with the protection of the environment? Discuss with reference to sustainable development.

<span style="font-family: 'Times New Roman',Times,serif;">18. (a) Under what circumstances might a country achieve economic growth without economic development? (12) <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate the effectiveness of outward-orientated strategies in achieving growth and development. (13)

<span style="font-family: 'Times New Roman',Times,serif;">19. (a) Why have multinational corporations grown so rapidly in recent decades?(10)

<span style="font-family: 'Times New Roman',Times,serif;">(b) Do multi-national corporations help or hinder the less developed countries?(15)

<span style="font-family: 'Times New Roman',Times,serif;">20. (a) What are the arguments in favor of unrestricted flows of financial capital between countries? (15) <span style="font-family: 'Times New Roman',Times,serif;">(b) How might unrestricted capital flows be damaging to less developed countries? (10)

<span style="font-family: 'Times New Roman',Times,serif;">21. “According to the World Bank, an extra 10 billion dollars in aid could lift 25 million people a year out of poverty - so long as it went to poor countries that manage their economies well. The same sum spent across the current distribution of aid recipients would lift only 7 million out of poverty.”

<span style="font-family: 'Times New Roman',Times,serif;">(a) What are the economic arguments in favor of using aid as part of a development policy for less developed countries? (12)

<span style="font-family: 'Times New Roman',Times,serif;">(b) How far would you agree with the World Bank view that aid has failed as a development policy because of the poor economic management policies that less developed countries have adopted? (13)

<span style="font-family: 'Times New Roman',Times,serif;">22. (a) Using examples, explain the difference between economic growth and economic development. (10) <span style="font-family: 'Times New Roman',Times,serif;">(b) Is economic growth always a desirable policy objective for a government? (15)

<span style="font-family: 'Times New Roman',Times,serif;">23. To what extent has the international trading system contributed to economic growth and development in less developed countries?

<span style="font-family: 'Times New Roman',Times,serif;">24. (a) Describe the main barriers to economic development that countries may experience. <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate the view that countries with a more equal distribution of income and wealth are more likely to experience higher levels of development.

<span style="font-family: 'Times New Roman',Times,serif;">25. Evaluate the view that investment in human capital is the most effective way to promote economic development.

<span style="font-family: 'Times New Roman',Times,serif;">26. (a) Explain how economists might measures the extent to which living standards vary between countries. <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate the ways in which More Developed Countries might help Less Developed Countries to raise living standards.

<span style="font-family: 'Times New Roman',Times,serif;">27. (a) Explain the different forms of aid that may be available to a developing nation. <span style="font-family: 'Times New Roman',Times,serif;">(b) To what extent is aid effective in terms of addressing the problems faced by LDCs?

<span style="font-family: 'Times New Roman',Times,serif;">28. (a) Using examples, describe various sources of funds available to developing countries through trade and aid (10 marks) <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate trade and aid as a means of achieving economic growth and development (15 marks)

<span style="font-family: 'Times New Roman',Times,serif;">29. (a) Explain the main characteristics of a market economy (10 marks) <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate the proposition that economic development is best achieved through the market system (15 marks)

<span style="font-family: 'Times New Roman',Times,serif;">30. (a) Explain two significant barriers to economic growth in LDC’s <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate strategies that may be used to overcome the two barriers identified in (a) (15 marks)

<span style="font-family: 'Times New Roman',Times,serif;">31. (a) Explain how an increase in the quantity and quality of a nation’s factors of production can promote economic development (10 marks) <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate the impact of globalization on the economic development of developing countries (15 marks)

<span style="font-family: 'Times New Roman',Times,serif;">32. (a) explain why a firm may benefit from becoming a multinational corporation (10 points) <span style="font-family: 'Times New Roman',Times,serif;">(b) evaluate the effectiveness of FDI as a means of achieving economic growth and economic development in a less developed country (15 points)

<span style="font-family: 'Times New Roman',Times,serif;">33. (a) Explain the various types of aid which a developing country might achieve (10 marks) <span style="font-family: 'Times New Roman',Times,serif;">(b) ‘Aid is an effective means of promoting the development of poorer countries.’ Evaluate this statement. (15 points)

<span style="font-family: 'Times New Roman',Times,serif;">34. (a) Explain three institutional factors that may contribute to potential economic growth in developing countries (10 marks)

<span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate the view that economic growth will lead to economic development (15 marks)

<span style="font-family: 'Times New Roman',Times,serif;">35. (a) Explain how economic development might be measured (10 marks) <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate the view that the most effective way that a government could improve the welfare of its citizens is through the pursuit of faster economic growth. (15 marks)

<span style="font-family: 'Times New Roman',Times,serif;">36. (a) Explain three barriers to economic development for developing countries (10 marks) <span style="font-family: 'Times New Roman',Times,serif;">(b) Evaluate the view that trade is more effective than aid in achieving economic development (15 marks)

__<span style="font-family: 'Times New Roman',Times,serif;">Short Essays __
<span style="font-family: 'Times New Roman',Times,serif;">37. In 1980 Country A (a hypothetical economy) had a Gross National Product of $100 billion, and by 1988 its Gross National Product was $150 billion. What factors must be considered in comparing welfare in 1980 with that in 1988.

<span style="font-family: 'Times New Roman',Times,serif;">38. Outline the operations of the International Monetary Fund in the world economy.

<span style="font-family: 'Times New Roman',Times,serif;">39. Why is the concept of income elasticity of demand useful to economists studying the economic development of countries?

<span style="font-family: 'Times New Roman',Times,serif;">40. How might an economy be affected by an increase in the average age of a population?

<span style="font-family: 'Times New Roman',Times,serif;">41. Gondomar and Bayona are two neighboring countries. Gondomar has a higher rate of investment whereas Bayona spends a higher proportion of its national income on consumer goods. How might these differences affect their relative growth rates in the future?

<span style="font-family: 'Times New Roman',Times,serif;">42. Which indicators, other than National Income, might be used to measure welfare?

<span style="font-family: 'Times New Roman',Times,serif;">43. How might the ‘entrepreneur’ play a role in international development?

<span style="font-family: 'Times New Roman',Times,serif;">44. Briefly contrast the policies of export promotion and import substitution as growth strategies in developing countries.

<span style="font-family: 'Times New Roman',Times,serif;">45. Bayona is a less developed country with only one main export, rice. It imports virtually everything else. Explain how Bayona can be affected by changes in the terms of trade.

<span style="font-family: 'Times New Roman',Times,serif;">46. Using a production possibility curve, explain the difference between a country’s actual growth rate and its potential growth rate.

<span style="font-family: 'Times New Roman',Times,serif;">47. Explain how income elasticity of demand can affect the balance of payments of a developing country.

<span style="font-family: 'Times New Roman',Times,serif;">48. Why ‘growth’ is not exactly the same thing as ‘development’

<span style="font-family: 'Times New Roman',Times,serif;">49. As an economy develops, a movement is often observed from primary to secondary to tertiary industry. Suggest reasons why this happens.

<span style="font-family: 'Times New Roman',Times,serif;">50. Why might a less developed country find it difficult to increase investment as a percentage of GDP?

<span style="font-family: 'Times New Roman',Times,serif;">51. The government of a Less Developed Country introduces a national lottery in order to collect revenue. What are the advantages and disadvantages of doing this?

<span style="font-family: 'Times New Roman',Times,serif;">52. Why is the debt problem of Less Developed Countries also a problem for More Developed Countries?

<span style="font-family: 'Times New Roman',Times,serif;">53. Why are vegetables from Africa on sale in European shops, while many Africans are under-nourished?

<span style="font-family: 'Times New Roman',Times,serif;">54. Use a production possibility curve to explain the opportunity costs faced by a country choosing whether to consume or invest

<span style="font-family: 'Times New Roman',Times,serif;">55. A country with an ‘inward oriented’ development strategy changes to an ‘outward oriented’ strategy. Outline the differences which will be noticed by its citizens.

<span style="font-family: 'Times New Roman',Times,serif;">56. Explain what is meant by the phrase ‘sustainable development’ and discuss ways in which governments can encourage it to take place.

<span style="font-family: 'Times New Roman',Times,serif;">57. Outline the possible advantages of a country specialising in manufactured goods instead of primary products.

<span style="font-family: 'Times New Roman',Times,serif;">58. A Less Developed Country exports tea and imports most of its consumer durables. Explain why the terms of trade are likely to move against this country and discuss the consequences.

<span style="font-family: 'Times New Roman',Times,serif;">59. Explain why primary school education for girls is considered by many economists to be particularly worthwhile investment in Less Developed Countries?

<span style="font-family: 'Times New Roman',Times,serif;">60. What do you understand by the term ‘sustainable development’? Give an example of development, which you believe is not sustainable, and explain why.

<span style="font-family: 'Times New Roman',Times,serif;">61. The government of a Less Developed Country decides to reduce the extent of income and wealth inequality. What methods could the government use to achieve its goal?

<span style="font-family: 'Times New Roman',Times,serif;">62. Distinguish between the forms of aid which a developing country might receive.

<span style="font-family: 'Times New Roman',Times,serif;">63. As countries reach an advanced stage of development, the tertiary sector tends to expand relatively faster than the primary and secondary sectors. Why is this the case?

<span style="font-family: 'Times New Roman',Times,serif;">64. Poor people in less developed countries often derive little benefit from economic growth. Why might this be so?

<span style="font-family: 'Times New Roman',Times,serif;">65. What is human capital? Explain its importance in economic development.

<span style="font-family: 'Times New Roman',Times,serif;">66. In what ways might a more equal distribution of income contribute to economic development?

<span style="font-family: 'Times New Roman',Times,serif;">67. Why might a less developed country find difficulty in maintaining stable export revenues?

<span style="font-family: 'Times New Roman',Times,serif;">68. Explain two reasons why international indebtedness is a problem for less developed countries.

<span style="font-family: 'Times New Roman',Times,serif;">69. Explain two ways in which multinational corporations might hinder the development of less developed countries.

<span style="font-family: 'Times New Roman',Times,serif;">70. Use a production possibility curve to explain the distinction between economic growth and economic development

<span style="font-family: 'Times New Roman',Times,serif;">71. Use the Harrod-Domar model to explain the barriers to growth that may be faced by developing countries.

<span style="font-family: 'Times New Roman',Times,serif;">72. Use production possibility curve diagrams to explain the differences between actual output and potential output and between economic growth and economic development.

<span style="font-family: 'Times New Roman',Times,serif;">73. Explain how overdependence on primary products may act as a barrier to economic development.

74. Explain why economic growth is likely to generate external costs, which are a threat to sustainable development.

<span style="font-family: 'Times New Roman',Times,serif;">75. Explain the difference between outward-oriented and inward-oriented growth strategies.

<span style="font-family: 'Times New Roman',Times,serif;">76. Explain two ways in which the international indebtedness of developing countries might hinder their growth and development.

<span style="font-family: 'Times New Roman',Times,serif;">77. Explain which is likely to be higher in a Less Developed Country, Gross National Product or Gross Domestic Produst?

78. Distinguish between an outward oriented growth strategy and an ininward oriented growth strategy.

<span style="font-family: 'Times New Roman',Times,serif;">79. Explain the role of Fair Trade organizations and micro credit schemes in promoting economic development.

<span style="font-family: 'Times New Roman',Times,serif;">80. ‘Indebtedness, non-convertible currencies and capital flight are all significant barriers to economic development’. Explain two of these three factors.

<span style="font-family: 'Times New Roman',Times,serif;">81. Explain how the burning of fossil fuels (e.g. coal) by industries could create a market failure and a threat to sustainable development.

<span style="font-family: 'Times New Roman',Times,serif;">82. Using the Harrod-Domar growth model, explain how a country can increase its rate of economic growth.