991. Which of the following was not a classical economist ?
A. Adam Smith
B. Thomas R. Malthus
C. John Stuart Mill
D. John Maynard Keynes

992. The Lawis model explains how growth gets started in a less developed economy ?
A. with an average product of labor in agriculture that is negative
B. with a downward-sloping supply curve of labor
C. with a marginal productivity of labor zero or negligible in industry
D. with a traditional agricultural sector and an industrial capitalist sector

993. The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ?
A. benefits if each acts in his/her own interest
B. will increase their profits in a free market
C. should act to maximize economic growth
D. should act to promote the public interest

994. Criticisms of Rostow’s stages of development include ?
A. the difficulty of testing the stages scientifically
B. conditions for takeoff are contradicted by historical evidence
C. characteristics of one stage are not unique to that stage
D. All of the above are correct

995. The pattern of economic growth describes the phenomenon of countries moving up in technological development by following the patterns of countries ahead of them in the development process ?
A. flying geese
B. import substitution
C. export orientation
D. commodity expansion

996. One criticism of Rostow’s theory of economic growth is that ?
A. much available data contradicts his thesis about the takeoff stage
B. there is no explanation of why growth occurs after takeoff
C. his hypothesis of the stages of growth is difficult to test empirically
D. All of the above are correct

997. The Vicious circle theory states that ?
A. growing government assistance create addiction to welfare programs
B. low income levels create pressure for money creation
C. low income levels create pressure for cheap imports
D. low per capita incomes creates low savings that keep incomes low

998. To be considered a good candidate for export cartel, a commodity should ?
A. be a manufactured good
B. be a primary product
C. have a low price elasticity of supply
D. have a high price elasticity of demand

999. Because supply and demand conditions for primary products are very price inelastic their prices ?
A. have been steadily rising in recent decades
B. have been more stable than the prices of manufactured goods
C. fluctuate about as much as the prices of manufactured goods
D. tend to be very unstable from year to year

1000. Export-led growth strategies tend to emphasize ?
A. resource allocation based on the principle of absolute advantage
B. resource allocation based on the principle of comparative advantage
C. trade protection for import-competing firms
D. trade protection for exporting-competing firms

 

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