They show the potential-resource wealth has tended to make countries better off.

 
 ALEXEEV AND CONRAD
It is based on the notion that knowledge and ideas are the key factor of prosperity and economic growth. 
 KNOWLEDGE KEY GROWTH
This model economy must save a certain proportions of its national income, if only to replace worn-out or
impaired capital goods (buildings, equipment, and materials) for the economic growth.
 HARROD-DOMAR MODEL
It is a cause of conflict in developing countries which in particular experience during the transition period
from underdeveloped to modern societies in the course economic development. 
 RELATIVE DEPREVATION
This is a political system that turns out to be more conflict-ridden than democratic counterparts and they
lower the quality of life. 
 AUTHORITARIAN
He argued that there is a positive correlation between military expenditures and economic growth over the
period 1950-65.
 BENOIT
This has been conceived as a multi-dimensional process involving economic as well as social and
environmental changes.
 DEVELOPMENT
He argued for a positive effect of economic globalization based on free trade, and demonstrated that the
free trade helped to enhance the human well-being. 
 GOLANSKY
This is the vital and necessary condition for development, but it is not a sufficient condition as it cannot
guarantee development. 
 GROWTH
This implies opening domestic markets to foreign competition in exchange for market access in other
countries.
 OUTWARD ORIENTED INDUSTRIALIZATION

They also pointed out another market failure. There can be too much diversification after the point where
the nation discovers its most advantageous products to specialize in.
 HAUSMANN AND RODRIK
They are the one who completed the argument with their thesis that the commodity terms of trade for
developing countries inexorably declined, and would continue to decline, over time. 
 PREBISCH AND SINGER
This is the key notion of the Soviet planning model, along with a strong tendency to dismiss notions of
economic efficiency.
 MOBILIZATION
He emphasized the sharp increase in capital accumulation as one of the key structural elements of
development. 
 ROSTOW
He argued that “the more backward a country’s economy the greater was the part played by special
institutional factors designed to increase the supply of capital to the nascent industries”. 
 GERSHENKRON

They conclude that two households may achieve the same income and living standards
today, but one may enjoy greater well-being because its greater asset stock implies higher
expected living standards in the future.
 CARTER AND BARRETT

This ERREers to the inefficiencies of non-market institutions.

 NON-MARKET FAILURE

Economists agreed that this type of growth is necessary for fully successful development. 
 ECONOMIC GROWTH

Due to this, it strengthens the political power of the rich and hence their economic
bargaining power. 
 HIGH INEQUALITY

This is clearly more than just growth theory. In the latter we deal with balanced growth
paths; expanding economies where the structure of the economy is unchanged.
DEVELOPMENT ECONOMICS

Paul Adam refers to this as a counter-counter-revolution in development economics. He has suggested that
these ideas lost their force in the early 60's due to the inadequate modeling of the period.
TRUE
Nurkse argued that the "era of export-led growth" was over, and that trade could not act as an engine of
growth for developing countries. This was primarily due to the fact that the demand for the tropical
products of the developing countries was income inelastic.
TRUE
One interesting line of inquiry, that this analysis suggests, is to study the relative importance of market
versus market failure in developed versus underdeveloped economies.
FALSE
Rosenstein and Roldan completed the argument with their thesis that the commodity terms of trade for
developing countries inexorably declined, and would continue to decline, over time.
FALSE

The philosopher John Rawls proposed a thought experiment to help clarify why this is so. Suppose that
before you were born into this world, you had a chance to select the overall level of inequality among the
earth's people but not your own identity.
TRUE
emphasized the sharp increase in capital accumulation as one of the key structural elements of
development.
Rostow emphasized the sharp increase in capital accumulation as one of the key structural elements of
development.
In the Rosenstein-Rodan version, Balanced Growth, the problem was what we would now call a
coordination problem. Entrepreneurs failed to invest because, in isolation, there was no assurance that
others would simultaneously invest.
The Harrod-Domar model, where growth is the ratio of the savings rate to the marginal capital-output
ratio. If the latter were 3, then to achieve a respectable growth rate of output of say, 5%, would require an
investment rate of 15%.
The Administrative and Quantitative controls are thus the best way to achieve results. It is hard not to see
the connection between the structuralist view and the standard ideology of planning. (Note: Answers for
this item should be arranged alphabetically ONLY)

The United Nations Development Programme developed a Human Development Index which
reported in its annual flagship publication known as the
__________________________precisely to capture the multidimensional nature of well‐being.
HUMAN DEVELOPMENT REPORT
Stiglitz makes an especially apt of defense of development economics likening it to mainstream
economics as pathology is to _____________________.
 MEDICINE

Endogenous growth theory and modern models of poverty traps emphasize the central role of
______________________formation in giving rise to multiple equilibria. 
 HUMAN CAPITAL FORMATION

Young introduced the analytics of __________________based on increasing returns.

 GROWTH
The nutritional _______________________literature underscores that ill health is a cause as
well as a consequence of being and becoming poor.
 POVERTY TRAP
Rapid ___________________ is a recent phenomenon confined to the past three hundred years
for less than one‐quarter of the world’s population.
 ECONOMIC GROWTH

_______________ points out that development economics’ rich history has produced much of
lasting importance to economics. 
 BARDHAN

The ________________________economics launched by Stiglitz, Akerlof and others largely

from within development economics has permeated the whole of the discipline.
 WAVE OF INFORMATION
________________________emerged as a distinct field of analytical, empirical and institutional
research only in the past half century with a rapid progress in the past generation.
 DEVELOPMENT ECONOMICS
Development economics research ultimately describes and explores the _____________ reasons
why some countries, communities and people are rich and others are poor.
 CASUAL
______________________ ultimately describes and explores the causal reasons why some
countries, communities and people are rich and others are poor. 
 DEVELOPMENT ECONOMICS
_________________ is a recent phenomenon confined to the past three hundred years for less
than one‐quarter of the world’s population.
 RAPID ECONOMIC GROWTH

The two core themes around development economics which this volume is organized are
understanding patterns of _________________ and an integrative perspective that
bridges micro‐economic, macro-economic and the oft‐ignored middle‐level scales of analysis.
 HUMAN WELL BEING
_____________________ is arguably the original and most fundamental field within the
discipline of economics with its focus on understanding how resource allocation, human
behavior, institutional arrangements, and private-public policy jointly influence the evolution of
the human condition. 
 DEVLOPMENT ECONOMICS RESEARCH
By the 1980s, development was very much out of favor as a _____________ within economics.
SUBDISCIPLINE

Development economists have dared to stray from the well‐worn grooves of mainstream economics,
without rejecting the tools of _________________.
 RATIONAL CHOICE THEORY
Throughout the latter 1980s and early 1990s, many concurred with Lalʹs assessment that development
economics constitutes little more than a futile quest for queer exceptions to the rules of
________________, and that the fundamental fallacy of such pursuits was belied by the catastrophic
failure of state‐planned economies.
 MAINSTREAM ECONOMICS
__________(1993) points out that development economics’ rich history has produced much of lasting
importance to economics more broadly: efficiency wage theory, dynamic externalities, multiple
equilibria, principal‐agent modeling, adverse selection, rent‐seeking, political economy,and nonlinear
pricing.
 BARDHAN

It would be difficult to find a more extravagant estimate of what scientists can give to mankind
than the underlying outlook of Saint-Simon's Lettres d'un habitant de _______. 
 

Torrens, in his Essay on the __________________, alludes to the possibility of changes in the relative
valuation of money and goods. 
 

Malthus is the author of the Essay on the Principle of _________. 

 

Bentham and in his famous _________ attacks Smith’s position. His last chapter is devoted to the
vindication of projectors, those who put into practice innovations in technique and the importance
of this process could hardly be more strongly emphasized.
 

It is possible to argue that some at least of the pressure on resources which has caused the world
inflation has been due to __________ expenditure. 
 

According to aphorism, the true and lawful goal of the sciences is this, that human life be endowed
with new _____________________. 
 

For to the authors of inventions they awarded divine honors while to those who did good service in
the state (founders of empires, saviors of country, quellers of tyrannies , and the like) they decreed
no higher honors than _______ wherein the latter last not beyond a few ages but the former through
all time.  
 

In a world in which growth has become an almost sacred word and in which league tables are
compiled showing what percentage of GNP in each country is devoted to investment, it would be
difficult to argue the importance of accumulation for ___________ is in any danger of being
neglected.
 

John Stuart Mill, who stands to the end of the classical period as Adam Smith, stood to the
beginning. In his paper On the Influence of ____________, published in his Essays on some Unsettled
Questions of Political Economy, he provided an analysis which showed how, from time to time, a
holding back of expenditure might produce the appearance of a general glut.  
 

Edwin Cannan on his ___________ dwells at some length upon the neglect of knowledge in the
classical system and elsewhere.