Economics - Balance of Payments, Aid and Foreign Investment
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This is the MCQs of Economic
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Question 1 of 19
1. Question
Dani Rodrik points out that
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Question 2 of 19
2. Question
Which of the following statement is NOT true about OECD aid?
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Question 3 of 19
3. Question
Japan’s programs
I- are understaffed politically muddled and administratively complex
II- are biased toward Asia
III- go primarily to leas developed countries in Africa
IV- focus on loans and the grant element of aid is lowCorrect
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Question 4 of 19
4. Question
Aid or official development assistance (ODA) includes
I- developments grants
II- loans with at least 25 percent grant element
III- military assistance
IV- technical cooperationCorrect
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Question 5 of 19
5. Question
I = S + F
The equation above states that a country can increase its new capital formation (or investment) through isCorrect
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Question 6 of 19
6. Question
MNCs can help the developing country to
I- Finance a savings gap or balance of payments deficit
II- Obtain foreign technology by adapting existing processes
III- Generate appropriate technology by adapting existing processes
IV- Employ domestic labor, especially in skilled jobsCorrect
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Question 7 of 19
7. Question
An annual summary of country’s international economic and financial transactions is
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Question 8 of 19
8. Question
Hollis Chenery and Alan Strout identity three development stages in which growth proceeds at the highest rate permitted by the most limiting factors These factors are
I- the skill limit
II- the savings gap
III- the fiscal gap
IV- the foreign exchange gapCorrect
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Question 9 of 19
9. Question
Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the developing country because they
I- increasing the LDC’s technological dependence on foreign sources resulting in less technological innovation by local workers
II- Hamper local entrepreneurship and investment in infant industries
III- increase unemployment rates from unsuitable technology
IV- Restrict subsidiary exports when they undercut the market of the parent companyCorrect
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Question 10 of 19
10. Question
Barro and Lee find that ceteris paribus, IMF lending has
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Question 11 of 19
11. Question
Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by
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Question 12 of 19
12. Question
The IMF is an agency charged with providing
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Question 13 of 19
13. Question
The U.S real food aid, as well as food reserves dropped from the 1960s to the 1980s partly because
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Question 14 of 19
14. Question
In a portfolio investment
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Question 15 of 19
15. Question
For Harvard’s Dani Rodrik Globalization involves
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Question 16 of 19
16. Question
Columbia’s Jagdish Bhagwati criticizes United States administrations inability to distinguish between benefits of free trade
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Question 17 of 19
17. Question
U.S total official development assistance to developing countries is
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Question 18 of 19
18. Question
The balance on current account
I- equals the absolute value of the balance on capital account
II- is financed by savings
III- is net grants minus remittances
IV- includes goods services and unilateral transfersCorrect
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Question 19 of 19
19. Question
Bilateral aid
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