After WWI, what was the difference between the British and the French in terms of currency values?
A) The French devalued the franc from prewar levels; the British did not.
B) The British devalued the pound from prewar levels; the French did not.
C) The French depreciated the franc from prewar levels; the British did not.
D) The British depreciated the pound from prewar levels; the French did not.
Question 2 - How can an increase in human capital lead to an increase in GDP? Why might it not lead to an increase in GDP?
What will be an ideal response?
Question 3 - Which of the following is a nontariff barrier policy tool?
(a) Sanitary regulations.
(b) Average duties.
(c) Phased liberalization.
(d) Ad valorem tax.
Question 4 - At least one economist has suggested that even large developing-country cities are economically too small. What argument would support this contention? How would you argue against it?
What will be an ideal response?
Question 5 - In the public choice (or new political economy) approach to development the emphasis is on
a. growth in the rural sector.
b. the self-interested behavior of public officials.
c. the dependence of LDCs on former colonial powers.
d. the inherent efficiency of developing country markets.
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