When the S-shaped function cuts the 45-degree line of equality from above, the equilibrium achieved is stable.*

1 point

TRUE

FALSE

Underdevelopment can be fully explained by coordination failure and problem diagnostics failure.*

1 point

TRUE

FALSE

Regardless of the process of development that a nation follows, complementarity of inputs is required*

1 point

TRUE

FALSE

In some poor countries, underdevelopment tends to perpetuate itself over time despite the onslaught of modern technology.*

1 point

TRUE

FALSE

Urbanization, when centralized, leads to migration to and congestion of centers of development*

1 point

TRUE

FALSE

Underdevelopment is a point of equilibrium just as development is.*

1 point

TRUE

FALSE

In the process of development, pecuniary externalities can be totally avoided.*

1 point

TRUE

FALSE

Technological externalities from advanced countries help in increasing the productivity of firms in developing countries.*

1 point

TRUE

FALSE

Improving hard and soft infrastructure increase investments and trade of a nation.*

1 point

TRUE

FALSE

The development of a nation is necessarily the function of governments but not necessarily of the individuals or the private sector.*

1 point

TRUE

FALSE