Economics Theory 3332 Final Exam

The African agrarian system is characterized by

shifting cultivation

The system of land tenure in which tenant farmers pay a fixed share of their crop to landowners is called

sharecropping

In a world of perfect certainty, sharecropping would be less efficient than a farm owner working his own farm because

sharecroppers receive only half of their marginal product

A program through which new ideas, methods, and advice are offered to farmers to increase farm yields is known as

agricultural extension

Sharecropping can be best understood as

a compromise between peasant and landlord preferences

It is important to place particular stress on the role of women in rural development programs because

Women have received less training in the past, women perform a large majority of the work in the rural sector, women tend to allocate more resources to their children’s health and education

Which of the following is an important factor in the success of agrarian land reform policies?

farmer training programs

The primary goal of an agricultural extension service is to

increase the yield per hectare

Crops produced entirely for the market are known as

Cash crops

Education of girls is a crucial development investment because

It leads to improved child health, it leads to reduced fertility and women do most of the work in agriculture

It is important to place particular stress on the role of primary education in the development strategy because of

LDC’s comparative advantage from basic skills education, the law of diminishing returns, and the development emphasis on poverty alleviation

An individual’s demand for education is most affected by

direct and indirect costs of schooling

An argument supporting promotion of the urban informal sector is

the formal sector is incapable of providing enough employment

The informal sector exhibits

free entry, labor intensive methods, and small, competitive firms

According to the O-ring theory, what happens when there is a failure in one component or task of a complex production process?

It significantly reduces the overall output or productivity of the process.

The hidden momentum of population growth is caused by

population age structure.

Which of the following will cause the largest reduction in the birthrate?

an increase in the opportunity cost of a woman’s time

Which of the following groups is(are) more likely to be poor?

minorities, indigenous people, and women

The number of live births per 1000 people in the population per year is the

crude birth rate

Evidence suggests that population growth has negative effects on

economic growth, poverty reduction, environment and

education

The proportion of the total population aged 0–15 and over 65, is known as the

dependency burden.

The O-ring theory places emphasis on

skill complementarities.

According to Hausmann, Rodrik and Velasco, what is critical for Brazil to successfully increase domestic savings?

Creating a financially viable state that avoids over-borrowing, over-taxing, and underinvesting

Positive assortative matching refers to:

Employing high-quality workers for high-complexity tasks

Which of the following scenarios would lead to a shift in the Lorenz curve toward equality in a dual economy?

Traditional sector enrichment

Developing countries who have adopted capital intensive technologies tend to have

relatively higher Gini coefficients.

Assuming that the Gini coefficient for Egypt is 0.403 and the Gini coefficient for Australia is 0.404, it is possible to conclude that both Egypt and Australia have

none of the above.