Which of the following statements is true?
(a) larger countries (in terms of size) tend to be more open (in terms of larger share of exports in GDP) than smaller countries and developing countries tend to be less open than developed economies.
(b) larger countries (in terms of size) tend to be less open (in terms of lower share of exports in GDP) than smaller countries and developing countries tend to be less open than developed economies.
(c) larger countries (in terms of size) tend to be more open (in terms of larger share of exports in GDP) than smaller countries and developing countries tend to be more open than developed economies.
(d) larger countries (in terms of size) tend to be less open (in terms of lower share of exports in GDP) than smaller countries and developing countries tend to be more open than developed economies.
Question 2 - Patterns of development or structural change analysis stress internal change in a developing country's economic, industrial, and institutional structure. What are some of the most important changes?
What will be an ideal response?
Question 3 - Why might developing countries hesitate to accept the conclusion that countries should specialize according to their comparative advantage? What dynamic gains might offset their objections?
What will be an ideal response?
Question 4 - Where pollution is prevalent, we might expect that
a. externalities are being effectively internalized
b. marginal social costs are greater than marginal private costs
c. marginal costs are greater than marginal benefits
d. marginal private costs are greater than marginal social costs
e. externalities are not important
Question 5 - The opening of export markets for primary products can provide employment for previously underutilized land and labor. The term for this is
(a) vent for surplus.
(b) comparative advantage.
(c) Prebisch-Singer thesis.
(d) barter trade.
Question 6 - Does it follow from the false-paradigm model that World Bank economists are intentionally trying to keep developing countries from realizing genuine development? Why or why not?
What will be an ideal response?
Question 7 - According to UN projections, what proportion of the world's urban population will reside in the urban areas of developing countries by 2025?
(a) two fifths.
(b) one half.
(c) two thirds.
(d) four fifths.
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