Economics 10

Module I

MODULE TEST

TEST I. Identification. Identify the terms or persons implied by the following statements. Write your answers on the blanks provided for.

1. The three classifications of countries ____________

2. ____________

3. ____________

4. Process of political and economic changes necessary to achieve growth ____________

5. Objective of development ____________

6. If the number of workers are reduced, there won't be any effect on output levels [related to agricultural production] ____________

7. Exports of poor countries ____________

8. The number of births per thousand ____________

9. The number of deaths per thousand ____________

10. Statements explaining the detailed sequence of development starting with a given situation ____________

11. Statement of the relationship between an economic variable and economic development ____________

12. Policy formulated by Adam Smith ____________

13. Source of wealth according to Physio racy ____________

14. Forms of acceptable wealth according to the Mercantilists____________

15. ____________

16. Development theory formulated by Karl Marx ____________

17. Development theory formulated by J.M. Keynes ____________

18. Model stating that technology is the key factor to development ____________

19. Model stating that the interrelationship between the rural and urban areas in development is very important ___________

20. GNP divided by the population ____________

TEST II. Underline the term or phrase that best explains the following statements:

1. [Social, economic] indicators give a better picture of the standards of living.

2. A high GNP [necessarily, not necessarily] implies a better life.

3. Adam Smith favors a [limited, extensive] role of government in development.

4. Development comes [before, after] economic growth.

5. The unemployment rate is determined by dividing the number of unemployed workers by [population, labor force, number of students].

6. The income of this country is used to classify countries [United States, Japan, Saudi Arabia].

7. Growth is the [result, process] of development.

8.Production performance of a country is indicated by [GNP, output levels, exports].

9. Economic development is a [temporary, permanent, continuous] process of changes.

10. These are moneylenders in the rural areas which charge very high interest rates [rural banks, commercial banks, usurers].

TEST III.Essay

1. What is the best theory of economic development? Explain your answers.

2. Why is income per capita and GNP measures alone not enough to make a conclusion whether a country has developed or not?