126S

Theories of development can be categorized into three main groups: Modernization, Dependency, and Marxism. What is the central premise of dependency theory?

• Poverty in the developing world was created as a product of economic growth in the developed world.

• Poverty in the developing world is caused by the economic mismanagement of domestic elites.

• Poverty in the developing world is caused by a lack of technology and education.

• Poverty in the developing world is caused by the traditional characteristics of developing countries.

There has been much debate among scholars, politicians, and populations about whether globalization is good or bad. Some argue that globalization is a 'race-to-the-bottom.' What does this mean?

• Competition for global capital leads to lower income inequality.

• Competition for global capital improves the lives of those at the bottom of society.

• Competition for global capital leads to a convergence of national policies.

• Competition for global capital leads to improvements in labor laws and environmental regulation.

Dani Rodrik asks the question, "would you rather be rich in a poor country or poor in a rich country?" Of those two choices, which is better according to Rodrik?

Traditional economists tend to view economic decision-making as the product of                               .

• the distributional concerns of voters.

• a moral calculus about right and wrong.

• the irrational consumption habits of consumers.

• rational, self-interested, utility-maximizing behavior.

Richard Baldwin describe globalization as an 'unbundling' that involves the uneven reduction of three different costs at different points in time. The second unbundling occurred around 1990 and involved the reduction of which two costs?

• Cost of moving ideas and people

• Cost of moving goods and people

• Cost of moving goods and ideas

• Cost of moving services and people

The definition of development that we use in this course comes from a textbook by Michael Todaro and Stephen Smith. Their definition contains three core values. What are those values?

• Sustenance, liberty, and consciousness

• Sustenance, self-esteem, and freedom

• Self-esteem, knowledge, and freedom

• Self-reliance, entrepreneurialism, and freedom

In his TedTalk, international lawyer Peter Alfandary discussed what he called the 'myth of globalization.' Which of the following is one of his main arguments?

• Countries should protect local culture.

• Differences between countries are decreasing

• Differences between countries still matter.

• Globalization is beneficial to development.

Which of the following is NOT a cause or driver of globalization found in the literature?

• Technology

• Imperialism

• Gold Standard

• Religion

Joseph Stiglitz, in his book Globalization and Its Discontents (2003), argued that globalization is not inherently bad or good; the outcomes of globalization depends on how it is managed. Which of the following describes what he meant by proper management?

• Rapid liberalization is the key to globalization.

• Each country should embrace globalization on its own terms.

• Developing countries should listen to the advice of more developed countries.

• Each country should copy how more developed countries globalized.

In traditional economics, development is measured in terms of economic growth. One measure of economic growth often used is gross national income. How is this measure calculated?

• The total market value of all goods and services produced by a country's citizens domestically.

• The total dollar value of goods and services minus income earned abroad.

• The total market value of all goods and services produced both domestically and internationally.

• The total dollar value of goods and services produced plus the income received by a country's residents.