PRELIMS

MULTIPLE CHOICE

Choose the leter of the best answer.

1. Which does not characterize a tradi�onal society?

A. hierarchical, hereditary, status-oriented social structure held down the mobility of society.
B. There is a low ceiling per capita output.
C. The center of gravity of poli�cal power was localis�c, region-bound and primarily based on land
ownership.
D. High propor�on of resources are also devoted in the manufacturing sec�on.

2. The following statements are true of the HarrodDomar model except:

A. In developing countries low rates of economic growth and development are linked to low saving
B. To boost economic growth rates, it is necessary to increase savings either domes�cally or from
abroad.
C. Higher savings create a virtuous circle of self-sustaining economic growth.
D. None of the above

3. This concept describes economic growth as the result of three factors—labor, capital, and technology.

A. Neoclassical growth theory

B. Rostow's Stages of Growth
C. Lewis' Structural Economic Growth and Development
D. The HarrodDomar model

4. It refers to the basic literacy and numeracy.

A. Levels of inward investment

B. Levels of savings/capital
C. Educa�on
D. All of the above

5. This involves low rates of infla�on and exchange rate stability.

A. Poli�cal Stability
B. Economic Stability
C. Macroeconomic Stability
D. Stage of Maturity

6. It pertains to higher levels of capital and benefits of atrac�ng mul�na�onal companies into their
economy
A. Levels of inward investment
B. Levels of savings/capital
C. Levels of infrastructure
D. Foreign Aid

7. The investment in roads, railways and seaports

A. Levels of inward investment

B. Levels of savings/capital
C. Levels of infrastructure
D. Gravity effect

8. It atempts to explore some of the economic challenges peculiar to some of the poorest countries in
the world.

A. Applied Economics
B. Development Economics
C. Managerial Economics
D. None of the above

9. It was ranked as the most important factors for encouraging firms to invest in developing economies.

A. Cultural Iden�ty
C. Macroeconomic Stability
B. Economic Stability
D. Poli�cal Stability

10. The theory that trade is most profitable and efficient with near neighbors. If a neighbor does well,
there tends to be spillover effects, such as increased trade and increased investment.

A. Foreign Aid
B. Gravity effect
C. Law and Order
D. Levels of Infrastructure

11. It refers to the increase of the Real Na�onal Income of the economic and socio-economic structure of
any country over a long period of �me.

A. Economic Growth
B. Economic Development
C. Economic Stability
D. Economic Wealth
12. It pertains to the rise in the value of all the products produced in the economy and indicates the
yearly increase in the country's GDP or GNP, in percentage terms.

A. Economic Growth
B. Economic Sustainability
C. Economic Development
D. Both A and B

13. In 2012, this country was ranked the happiest place in the world by the WHR.
A. Norway
B. Iceland
C. Greenland
D. Finland

14. It marks the transi�on of the society from a backward one to one that is on the verge of freeing itself
from the elements that retard growth.

A. Take-off stage
B. Drive to Maturity
C. The Age of High Mass Consump�on
D. Pre-condi�ons for takeoff

15. It is a period when a society effec�vely applies the range of available modern technology to the bulk
of its resources; and growth becomes the normal mode of existence.

A. The Age of High Mass Consump�on

B. Pre-condi�ons for takeoff
C. Take- off stage
D. Drive to Maturity

16. The stage at which durable consumer goods like radios, TV sets, automobiles, refrigerators, etc., life
in the suburbs, college educa�on for one-third to one half the popula�on came within reach.

A. Take-off stage
B. Drive to Maturity
C. The Age of High Mass Consump�on

17. A trend represen�ng a shi� from the old agricultural economics to a novel non-agricultural economy,
which creates a modernized society.

A. Globaliza�on
B. Specializa�on
C. Urbaniza�on Specializa�on
D. None of the Above
18. This concept encompasses various components of poli�cal freedom, freedom of expression, poli�cal
par�cipa�on and equality of opportunity.

A. Sustenance
B. Freedom from Servitude
C. Self - Esteem
D. All of the above

19. The proponent of the Capability Approach

A. AmartyaSen
B. Todaro and Smith
C. Prof Goulet
D. HarrodDomar

20. Real achievements are called

A. Func�oning
B. Capability
C. Adap�ve Preferences
D. None of the above

21. It is the leading country in the Globaliza�on Index Field of Social Globaliza�on 2023.

A. Norway
B. Monaco
C. Italy
D. Luxembourg

22. It ranks lowest in the 2021 Human Development Index Ranking.

A. Sudan
B. Niger
C. Sierra Leone
D. Burkina Faso

23. The country that has the highest life expectancy in 2022.

A. Italy
B. Japan
C. Hong Kong
D. Finland
24. For the past years, this country has the longest mean year of schooling.

A. Australia
B. Denmark
C. Switzerland
D. Germany

25. The United Na�ons ranked this country on top of HDI 2022lindex

A. Sweden
B. Norway
C. Switzerland
D. Monaco

26. It is the leading country in the Globaliza�on Index Field of poli�cal Globaliza�on 2023

A. Norway
B. Monaco
C. Germany
D. Luxembourg

27. This country has consistently led its way on top in the economic Globaliza�on index.

A. USA
B. United Kingdom
C. Canada
D. Singapore

28. An increase in this factor enables a virtuous circle of increased investment, higher growth, and
therefore, higher savings.

A. Levels of inward investment

B. Levels of savings/capital
C. Levels of infrastructure
D. Foreign Aid

29. The increase in the level of produc�on in an economy along enrichment of living standards and the
advancement of technology.

A. Economic Growth
B. Economic Development
C. Economic Stability
D. Economic Affluence

30. It is the increase in the real output of the country in a par�cular span of �me.

A. Economic Affluence
B. Economic Growth
C. Economic Stability
D. Economic Development

31. It is the branch of social sciences concerned with the study of human popula�ons, their structure
and change and their rela�onship with the natural environment and with social and economic change.

B. Environmental Science
A. Ecology
C. Demography
D. Anthropology

32. The measurement of the number of people in an area.

A. Popula�on Distribu�on
B. Popula�on Pyramid
C. Popula�on Structure
D. Popula�on Density

33. It is usually shown as the number of people per square kilometer.

A. Popula�on Distribu�on
B. Popula�on Pyramid
C. Popula�on Structure
D. Popula�on Density

34. It shows the number of males and females within different age groups in the popula�on.

A. Popula�on Distribu�on
B. Popula�on Growth rate
C. Popula�on Structure
D. Popula�on Density

35. It refers to the accelerated economic growth that may result from a decline in a country's birth and
death rates and the subsequent change in the age structure of the popula�on.

A. Carrying Capacity
B. Net migra�on rate
C. Net Migra�on
D. Demographic Dividend

36. The difference between the number of immigrants and the number of emigrants throughout the
year.

A. Net Migra�on rate

C. Demographic Transi�on
B. Popula�on Growth rate
D. Popula�on momentum

37. The number of people added to (or subtracted from) a popula�on in a year due to natural increase
and net migra�on, expressed as a percentage of the popula�on at the beginning of the �me period

A. Net Migra�on rate

B. Popula�on Growth rate
C. Demographic Transi�on
D. Carrying capacity

38. The tendency for changes in popula�on growth rates to lag behind changes in birth rates or fer�lity
levels.

A. Demographic Dividend
B. Popula�on Momentum
C. Demographic Transi�on
D. All of the above

39. It implies that people are able to have a sa�sfying and safe sex life, including the freedom to decide
if, when and how o�en to reproduce.

A. Global Gag Rule

B. Family Planning
C. Reproduc�ve Health
D. Contracep�ves

40. A rapid and drama�c increase in the size of a popula�on

A. Popula�on Momentum
B. Popula�on Projec�on
C. Popula�on Explosion
D. Popula�on Density

41. Preven�ve checks exercise their influence on the growth of popula�on by bringing down the birth
rate. Preven�ve checks are those checks which are applied by man.

A. Both statements are true.

B. First statement is true, Second statement is false.
C. First statement is false, Second statement is true.
D. Both statements are false.

42. China, the most populous country in the world, has experienced economic development at an
unprecedented rate, and India has also made substan�al progress. Meanwhile, countries in sub-Saharan
Africa have stagnated, and the gap in living standards con�nues to widen.

A Both statements are true.

B. First statement is true, Second statement is false.
C. First statement is false, Second statement is true.
D. Both statements are false.

43. Economic development can be measured through an increase in the GDP, per capita income, etc. F
However, economic growth can be measured through Improvement in the life expectancy rate, infant
mortality rate, literacy rate, and poverty rates.

A. Both statements are true.

B. First statement is true, Second statement is false.
C. First statement is false, Second statement is true.
D. Both statements are false

44. This component of core values argues that the advantage of economic growth is not that wealth
increases happiness, but that it increases the range of human choice.

A. sustenance
B. self-esteem
C. freedom from servitude
D. All of the above

45. Which does not belong to the four key elements that AmartyaSen sees as crucial for evalua�ng the
well-being of a person?

A. Reflec�ng complexity
C. Adap�ve preferences
B. Achievements and effec�ve freedom
D. None of the above

46. Which con�nent tops the Human Development Index and economic, social and poli�cal Globaliza�on
Indices?

A. North America
C. Europe
B. Asia
D. Australia

47. The following are indicators of economic development except.

A. purchasing power parity

B. share of agriculture in economy
C. literacy rate
D. nominal GDP

48. There are many barriers to educa�on around the world, including a lack of money for uniforms and
books, a bias against girls' educa�on, or child labor. But educa�on is o�en referred to as the great
equalizer, because it can open the door to jobs and other resources and skills that a family needs to not
just survive, but thrive.

A. Both statements are true.

B. First statement is true, Second statement is false.
C. First statement is false, Second statement is true.
D. Both statements are false.

49. Migra�on is influenced by economic growth and development and by technological change and
possibly also by conflict and social disrup�on. It is driven by push factors that atract people to urban
areas and pull factors that drive people away from the countryside.

A. Both statements are true.

B. First statement is true, Second statement is false.
C. First statement is false, Second statement is true.
D. Both statements are false.

50. It is the economic doctrine which states that profits will be retained by the capitalist entrepreneur, at
the expense of workers.

A. Keynesian
B. Malthusian
C. Marxist
D. Machiavellian

Il. True or False

T. 51. For communi�es constantly facing climate extremes or prolonged conflict, the repeated shocks can
send a family reeling into extreme poverty and prevent them from ever recovering.

T. 52. Poverty causes hunger but hunger is also a cause and maintainer of poverty.
F. 53. The HDI was introduced in 1990 as part of the World Happiness Report (WHR) to provide a means
of measuring economic development in three broad areas - per capita income, health and educa�on.

T. 54. Educa�on is o�en referred to as the great equalizer, because it can open the door to jobs and
other resources and skills that a family needs to not just survive, but thrive.

T. 55. Ineffec�ve governments also contribute to several of the other causes of extreme poverty
men�oned above, as they are unable to provide necessary infrastructure or healthcare, or ensure the
safety and security of their ci�zens in the event of conflict.

F. 56. Stability means a predictable poli�cal environment, which in turn atracts investment, both
internally and from outside.

T. 57. 0kalow (2020) states that poverty is not just about money, but also includes issues of access to
services such as health care and educa�on, marginaliza�on and exclusion.

T. 58. Services and industries generate and increase higher value-added jobs, and this leads to more
employment opportuni�es.

T. 59. For a popula�on to escape poverty, all groups must be involved in the decision-making process —
especially when it comes to having a say in the things that determine your place in society.

T. 60. Dwindling access to produc�ve land o�en due to conflict, overpopula�on, or climate change and
overexploita�on of resources like fish or minerals puts increasing pressure on many tradi�onal
livelihoods.

F. 61. Fer�lity rates tend to increase when countries become more affluent, when women are more
empowered, when children stay in educa�on for long and when, crucially, people are able and choose to
use good, modern family planning

T. 62. The HDI is a broader and more encompassing indicator of development than GDP.

F. 63. According to UN (2019), more than half of the people added to the world's popula�on over the
rest of the century will be in La�n America and the Caribbean.

T. 64. Urban sprawl is when the popula�on of a city becomes dispersed over an increasingly large
geographical area.

T. 65. Many of the world's poorest popula�ons rely on farming or hun�ng and gathering to eat and earn
a living.

F. 66. The HDI was introduced in 1990 as part of the World Happiness Report (WHR) to provide a means
of measuring economic development in three broad areas - per capita income, health and educa�on.
F. 67. The World Health Organiza�on (WHO) states that there is no interrela�onship between popula�on
and quality of life.

T. 68. According to UN, climate change, poverty and popula�on pressures themselves will lead to a highly
mobile global popula�on, with Asia likely to be the largest source of emigrants.

T. 69. Demographic momentum means that the impact of changes in fer�lity is immediately reflected in
popula�on.

F. 70. According to Malthus, by nature human food increases in a quick geometrical ra�o while
popula�on in a slow arithme�cal ra�o. Checked
MIDTERMS
Mul�ple Choice

1. It occurs when one country can produce a good or service at a lower opportunity cost than another.

A. Absolute Advantage
B. Compara�ve Advantage
C. Free Trade
D. Modern or Firm-Based Trade Theories

2. To impose restric�ons on imports

A. Mercan�lism
B. Modern or Firm-Based
C. Trade Theories
D. Factor Propor�ons Theory

3. This theory focused on MNCs and their efforts to gain a compe��ve advantage against other global
firms in their industry.

A. Global Strategic Rivalry Theory

B. Factor Propor�ons Theory
C. Country Similarity Theory
D. Compara�ve Advantage

4. It focused on the ability of a country to produce a good more efficiently than another na�on.

A. Absolute Advantage
B. Compara�ve Advantage
C. Free Trade
D. Country Similarity Theory

5. This theory proposed that consumers in countries that are in the same or similar stage of
development would have similar preferences.

A. Global Strategic Rivalry Theory

B. Factor Propor�ons Theory
C. Country Similarity Theory
D. None of the above

6. It stated that a product life cycle has three dis�nct stages: new product, maturing product, and
standardized product.
A. Leon�ef Paradox
B. Product Life Cycle Theory
C. Factor Propor�ons Theory
D. Global Strategic Rivalry Theory

7. It posits that the cost of any factor or resource was a func�on of supply and demand.

A. Leon�ef Paradox
B. Product Life Cycle Theory
C. Factor Propor�ons Theory
D. Country Similarity Theory

8. This theory stated that a country's wealth was determined by the amount of its gold and silver
holdings.

B. Modern or Firm-Based Trade Theories

A. Mercan�lism
D. Leon�ef Paradox
C. Protec�onism

9. They incorporate other product and service factors, including brand and customer loyalty, technology,
and quality, into the understanding of trade flows.

A. Mercan�lism
B. Modern or Firm-Based Trade Theories
C. Protec�onism
D. Product Life Cycle Theory

10. According to this theory, the United States should have been impor�ng labor-intensive goods, but
instead it was actually expor�ng them.

A. Leon�ef Paradox
B. Product Life Cycle Theory
C. Factor Propor�ons Theory
D. Modern or Firm-Based Trade Theories

11. It states that corpora�ons may seek to op�mize and include research and development, the
ownership of intellectual property rights, economies of scale, unique business processes or methods as
well as extensive experience in the industry, and the control of resources or favorable access to raw
materials.

A. Global Strategic Rivalry Theory

B. Factor Propor�ons Theory
C. Country Similarity Theory
D. Product Life Cycle Theory

12. This theory stated that a na�on's compe��veness in an industry depends on the capacity of the
industry to innovate and upgrade.

A. Porter's Na�onal Compe��ve Advantage Theory

B. Factor Propor�ons Theory
C. Product Life Cycle Theory
D. Modern or Firm-Based Trade Theories

13. It is the only global interna�onal organiza�on dealing with the rules of trade between na�ons. It
serves as watchdog and enforcer of interna�onal trade agreements.

A. United Na�ons Development Program

B. The World Trade Organiza�on
C. North Atlan�c Treaty Organiza�on
D. Department of Trade and Industry

14. A group of countries within a geographical region that protect themselves from imports from non-
members in other geographical regions, and who look to trade more freely with each other.

A. Regional Trading Bloc

C. Bilateral Trea�es
B. Custom Union
D. None of the above

15. Services and capital are free to move within member countries, expanding scale economies and
compara�ve advantages. However, each na�onal market has its own regula�ons such as product
standards.
A. Regional Trading Bloc
C. Economic Integra�on
B. Bilateral Trea�es
D. Common Market

16. An arrangement among na�ons that typically Includes the reduc�on of elimina�on of trade barriers
and the coordina�on of monetary and fiscal policies.

A. Regional Trading Bloc

C. Economic Integra�on
B. Bilateral Trea�es
D. Market Equilibrium

17. It may arise when government fixes price below the market rate.
A. Shortage
C. Equilibrium
B. Surplus
D. Economic Integra�on

18. When government fixes prices above the natural market rate, as supply will exceed demand.

A. Shortage
B. Surplus
C. Equilibrium
D. None of the above

19. It deals with the en�re economy in terms of a limited set of macroeconomic variables deemed most
cri�cal to the determina�on of levels and growth rates of na�onal output: savings, investment, capital
stocks, exports, imports, foreign assistance, and so on.

A. Input-Output Model
B. Aggregate Growth Model
C. Cost-Benefit Analysis
D. Compara�ve Advantage

20. The ac�vi�es of the major industrial sectors of the economy are interrelated by means of a set of
simultaneous algebraic equa�ons expressing the specific produc�on processes or technologies of each
industry.

A. Input-Output Model
B. Aggregate Growth Model
C. Cost-Benefit Analysis
D. Absolute Advantage

21. A key greenhouse gas that drives global climate change, con�nues to rise every month.

A. Oxygen
B. Nitrogen
C. Helium
Đ. Carbon Dioxide

22. These are characterized by poor sanita�on, overcrowded and crude habita�on, inadequate water
supply, hazardous loca�on and insecurity of tenure.

A. Global Ci�es
B. City Centers
C. Tenements
D. Slums
23. They study the economics of natural resources from both sides - their extrac�on and use, and the
waste products returned to the environment.

A. Managerial Economics
B. Macroeconomics
C. Microeconomics
D. Environmental Economics

24. They are present when the ac�vi�es of an economic agent like a firm have external consequences for
other agents other than by affec�ng prices, and these external effects are not compensated for.

A. Equilibrium
B. Externali�es
C. Public Goods
D. All of the above

25. They research the economics of environmental issues such as renewable energy use, construc�on of
new hydroelectric power plants or transna�onal pipelines, and pollu�on control measures.

A. Development Economists
B. Public Sector Economists
C. Environmental Economists
D. Academic Economists

26. It is the exchange of goods and services between countries.

A. Balance of Trade
B. Net Exports
C. Surplus
D. Interna�onal Trade

27. A deliberate and conscious atempt by the state to formulate decisions on how the factors of
produc�on shall be allocated among different uses or industries, thereby determining how much of total
goods and services shall be produced in one or more ensuing periods.

A. Economic Planning
B. Environmental Planning
C. Produc�on Planning
D. Strategic Planning

28. A writen document containing government policy decisions on how resources shall be allocated
among various uses so as to atain a targeted rate of economic growth or other goals over a certain
period of �me.
A. Bilateral Treaty
B. Custom Union
C. Economic Union
D. Economic Plan

29. An economic plan that sets targets to cover all the major sectors of the na�onal economy.

A. Con�ngency plan
C. Par�al plan
B. Comprehensive plan
D. Strategic plan

30. A plan that covers only a component of the na�onal economy (eg, agriculture, Industry, tourism).

A. Con�ngency plan
B. Comprehensive plan
C. Par�al plan
D. Strategic plan

31. a phenomenon that results from the existence of market imperfec�ons (e.g monopoly power, lack of
factor mobility, significant externali�es, lack of knowledge) that weaken the func�oning of a market
economy; commodity and factor markets are o�en badly organized.

A. Globaliza�on
C. Market Failure
B. Urbaniza�on
D. Scarcity of Resources

32. The following are the benefits from government interven�on except:

A. It limits monopoly power.

C. It reduces inequality and poverty.
B. It is influenced by powerful pressure groups.
D. None of the above.

33. It refers to the produc�ve investments embodied in human persons, including skills, abili�es, ideals,
health, and loca�ons, o�en resul�ng from expenditures on educa�on, on-the-job training programs, and
medical care.

A. Competencies
B. Capabili�es
C. Human Capital
D. None of the above

34. It presents the poten�ally most advanced form of integra�on with a common government and where
the sovereignty of a member country is significantly reduced.

A. Poli�cal Union
B. Custom union
C. Economic Union
D. Bilateral Treaty

35. The world popula�on has grown significantly, and our economies have become more industrialized
over the past few hundred years, and as a result many more people have moved into ci�es. This process
is known as urbaniza�on.

A. Both statements are true

B. First statement is true, Second statement is false
C. First statement is false, Second statement is true
D. Both statements are false

36. The World Health Organiza�on (WHO) defines health as the absence of illnesses. Several economists
believe that health affects economic growth directly through labor produc�vity and the economic
burden of illnesses.

A. Both statements are true

B. First statement is true, Second statement is false
C. First statement is false, Second statement is true
D. Both statements are false

37. Educa�on enriches people's understanding of themselves and word. It improves the quality of their
lives and leads to broad social benefits to individuals and society.

A. Both statements are true

B. First statement is true, Second statement is false
C. First statement is false, Second statement is true
D. Both statements are false

38. Econometric studies provide very strong and consistent evidence that more educated workers are
more produc�ve and that they earn higher salaries. Developing countries have a long history of
providing free or highly-subsidized educa�on to the poor.

A. Both statements are true

B. First statement is true, Second statement is false
C. First statement is false, Second statement is true
D. Both statements are false
39. Pandemics are large-scale outbreaks of infec�ous disease that can greatly increase morbidity and
mortality over a wide geographic area and cause significant economic, social, and poli�cal disrup�on.
Evidence suggests that the likelihood of pandemics has increased over the past century because of
increased global travel and integra�on, urbaniza�on, changes in land use, and greater exploita�on of the
natural environment.

A. Both statements are true

B. First statement is true, Second statement is false
C. First statement is false, Second statement is true
D. Both statements are false

40. It is associated to the restric�ons faced by poor households to accumulate human capital.

A. Nega�ve Externali�es
B. Uncertainty or lack of informa�on
C. Market failure
D. Poverty trap

41. Free trade is supposed to strengthen barriers such as tariffs, value added taxes, subsidies, and other
barriers between na�ons. Hence, the general advantage about globaliza�on is that it has made the rich
richer while making the non-rich poorer.

A. Both statements are true

B. First statement is true, Second statement is false
C. First statement is false, Second statement is true
D. Both statements are false

42. It occurs when firms can influence price by restric�ng quan�ty, a power most common under
Increasing returns to scale.

A. Market failure
B. Market power
C. Market equilibrium
D. All of the above

43. They are par�cularly prone to failure due to their intrinsic connec�on to Informa�on genera�on and
transmital.

A. Economic Plans
B. Economic Unions
C. Capital Markets
D. All of the above
44. Which is an example of government failure?

A. Distor�on of the price mechanism

B. Imperfect knowledge
C. Inefficient market
D. All of the above

45. Global Strategic Rivalry Theory

A. Heckscher Ohlin
C. Steffan Linder
B. Michael Porter
D. Raymon Vernon
E. Krugman and Lancaster

46. Country Similarity Theory

A. Heckscher Ohlin
C. Steffan Linder
B. Michael Porter
D. Raymon Vernon
E. Krugman and Lancaster

47. Factor Propor�ons Theory

A. Heckscher Ohlin
C. Steffan Linder
B. Michael Porter
D. Raymon Vernon
E. Krugman and Lancaster

48. Product Life Cycle Theory

A. Heckscher Ohlin
C. Steffan Linder
B. Michael Porter
D. Raymon Vernon
E. Krugman and Lancaster

49. Na�onal Compe��ve Advantage Theory

A. Heckscher Ohlin
C. Steffan Linder
B. Michael Porter
D. Raymon Vernon
E. Krugman and Lancaster

50. The following are examples of demerit goods except:

A. tobacco
C. Both A and B
B. alcohol
D. None of the above

TRUE OR FALSE

T 51. Health and educa�on are fundamental to the broader no�on of expanded human capabili�es that
lie at the heart of the meaning of development.

F 52. The general goal of free trade agreements is to develop diseconomies of scale and compara�ve
advantages

F 53. Environmental goods, such as clean air and clean water, are commonly viewed as worthless and not
subject to economic considera�on.

T 54. Educa�on and health are the basic objec�ves of development as health is central to well-being and
educa�on is essen�al for sa�sfying and rewarding life.

F 55. Most environmental problems are externality problems like traffic conges�on, dumping of toxic
wastes, and emission of greenhouse gases, pes�cides in food chains, acid rain, commercial losses and
ozone deple�on, which contributes to economic growth and development.

T 56. Nominal GDP is the adjusted GDP to rule out infla�on.

F 57. One of the cruelest barriers to educa�on is gender because in many countries around the world,
boys are more likely to be excluded from educa�on than girls

T 58. Extreme weather paterns are on the rise and can send vulnerable communi�es tumbling into
poverty.

F 59. There is no correla�on between a lack of formal educa�on and girls marrying young.

F 60. Services and capital are restricted to move within member countries, expanding scale economies
and compara�ve advantages

F 61. Planning in not an essen�al means of guiding and accelera�ng economic growth in almost a�
developing countries.

F 62. As the level of economic integra�on increases, the complexity decreases.

F 63. Sta�s�cal discrepancy or GDP Deflator adjusts the value of nominal GDP and thus takes out the rate
of infla�on.

F 64. Carbon dioxide, a key greenhouse gas that drives global climate change, con�nues to decline every
month.

F 65. Se�ng a minimum wage is likely to create an excess of supply of labor in markets where the market
clearing equilibrium is greater than the minimum.

T 66. Environmental economists study the economies of natural resources from both sides - their
extrac�on and use, and the waste products returned to the environment.

F 67. Externali�es are nonexistent when the ac�vi�es of an economic agent like a firm have external
consequences for other agents other than by affec�ng prices, and these external effects are not
compensated for.

F 68. Global warming leads to rising sea levels, vola�le weather paterns and could cause significant
economic growth.

F 69. Compe��on between countries is supposed to drive price increase.

T 70. The Fourth Na�onal Climate Assessment, published in 2018, warned that if we do not curb
greenhouse gas emissions and start to adapt, climate change could seriously disrupt the economy.