Deck 9: Development and Underdevelopment

Question 1

Which nation initiated the slave trade near the mouth of the Congo River around 1500?

A) England
B) France
C) Portugal
D) Spain

Answer 1

C

Question 2

When significant numbers of young people in India give up on their traditional beliefs and practices and embrace Western values, which development theorists would conclude that the country is moving in the right direction?

A) modernization theorists
B) pro-capitalist theorists
C) neodevelopment theorists
D) boot-strap theorists

Answer 2

A

Question 3

According to the text, which of the following outcomes has resulted by the application of dependency theory to explain underdevelopment in the Third World?

A) It has been found that underdevelopment has contributed to more dependency.
B) Underdevelopment has not been confirmed.
C) It has been found that underdevelopment has contributed to less dependency.
D) Underdevelopment has been largely confirmed.

Answer 3

D

Question 4

When asked to provide a possible explanation for the underdevelopment in most African countries, Tashia asserts that it is a result of their historical colonization. Which development theory supports this notion?

A) colonization theory
B) stage theory
C) dependency theory
D) modernization theory

Question 5

A factory in Country X purchases raw materials from Country Y to make its product. Profits will be reinvested in the factory, increasing production and profits in Country X. Country Y will never make enough profits from the sale of materials to build its own factory. What theory could be used to explain the relationship that has developed between countries X and Y?

A) capitalist theory
B) modernization theory
C) dependency theory
D) underdevelopment theory

Question 6

Hojohn has a sophisticated plan to build his own business. He has laid out timelines and budgets and has sourced suppliers and possible locations for his factory. While he is still in university, he is already demonstrating his ambition and desire to achieve success. According to the text, what title would be given to Hojohn?

A) company president
B) business professional
C) student executive
D) entrepreneur

Question 7

According to the text, what has the term development come to mean in the period after World War II?

A) It means economic growth, industrialization, and modernization in the poor parts of the world.
B) It means protectionist policies that resist competitive forces from outside the country.
C) It means consolidation of land for indigenous farming and local food-based economies.
D) It means the application of Keynesian policies to providing government regulation of the economy.

Question 8

After watching a commercial that requested viewers to sponsor a child in Africa, Joshua asserts that the child poverty problem would be solved if the people in Africa would utilize birth control, rather than expecting other countries to pay for raising their families. Which theory of development does Joshua ascribe to?

A) stages of development theory
B) modernization theory
C) dependency theory
D) independency theory

Question 9

Which development theorist would describe development as a traditional society "taking off" after it came into contact with a developed society?

A) Milton Friedman
B) W.W. Rostow
C) David McClelland
D) Maynard Keynes

Question 10

According to modernization theorists, why are Third World countries economically disadvantaged?

A) Restrictions on economic development exist.
B) They have not yet adopted Western values.
C) Liberalism has thwarted economic development.
D) There is not enough local governance.

Question 11

What term is given to "the pursuit of competitive enterprises for profit"?

A) economics
B) socialism
C) corporatism
D) capitalism

Question 12

In a class discussion, Adrienne argues that the lack of development in some countries is not due to people who lack a work ethic, but rather it is the result of the power nations exploiting the people and the land in these societies. What theory of development provides the basis for Adrienne's argument?

A) modernization theory
B) stage theory
C) dependency theory
D) stratification theory

Question 13

Julianne argues that the solutions to economic problems in a country can be found in the private market. Her assertion reflects the position of which economist?

A) John Maynard Keynes
B) David Ricardo
C) John Stewart Mill
D) Milton Friedman

Question 14

Modernization theory suggests that in the 1500s societies of the global south were undeveloped. Which of the following can be said about this belief?

A) Much of the global south was developed but not nearly so much as the north.
B) Many superior societies existed in the south but they had all disappeared by the 1500s.
C) Areas from China, the Middle East, Africa, and South America were underdeveloped.
D) The notion is a socially constructed fiction perpetrated in the developed world.

Question 15

According to W.W. Rostow, an early development theorist, how do societies progress?

A) through fixed stages of development
B) through a process known as colonization
C) by population growth and expansion
D) by an evolution of national identity

Question 16

A professor presented the following argument: "The reason it took Brazil so long to develop was that the citizens did not have the drive and 'need for achievement' necessary to develop business and industry." Which theoretical approach is this professor drawing arguments from?

A) capitalist theory
B) modernization theory
C) dependency theory
D) underdevelopment theory

Question 17

In contrast to the progress seen in Singapore, Hong Kong, South Korea, and Taiwan, which area of the world has been deteriorating for a generation, with over 40 percent of its people living on less than a dollar a day?

A) Latin America
B) China
C) sub-Saharan Africa
D) Pakistan

Question 18

Which event after the 1500s resulted in dire consequences for the ongoing development of West Africa?

A) the Industrial Revolution
B) the end of the dark ages
C) the Scientific Revolution
D) the transatlantic slave trade

Question 19

According to the text, why is development an important issue for many Canadians?

A) because it is about morality
B) because we are compassionate
C) because it is profitable
D) because we are charitable

Question 20

Which type of theorists blame Third World societies for their own lack of development?

A) stratification theorists
B) underdevelopment theorists
C) dependency theorists
D) modernization theorists

Question 21

Why was estate agriculture in the global south a bigger impediment to development than small family farms were?

A) Workers on estates were mostly slaves and resisted democratic governance.
B) Estates were rural enterprises, which required little by way of municipal infrastructure.
C) Because of inexpensive manual labour, estates remained profitable without changing.
D) Worker uprisings were a drain on resources of the state, leaving little for development.

Question 22

What name is given to an economic system that relies on protected markets and trade monopolies within the market?

A) free trade
B) closed borders
C) capitalist
D) merchantilist

Question 23

Which of the following economists could be identified as a person opposed to Keynesian economic ideals?

A) Ben Bernanke
B) Jared Diamond
C) Karl Marx
D) Milton Friedman

Question 24

Rather than pay Renato a high money wage, his employer gives Renato land to till for his own use. However, without a good wage, Renato does not have money to spend on manufactured goods, which then reduces the success of local small industry. This arrangement would encourage which of the following economic situations in Renato's homeland?

A) underdevelopment
B) development
C) capitalism
D) dependency

Question 25

Chantelle argues that development in the global south is being hindered by the unequal exchange between the developed countries and the countries seeking to develop. Which of the following theoretical approaches provides a basis for her position?

A) stunted-economy theory
B) globalization theory
C) dependency theory
D) modernization theory

Question 26

What kind of analysis is the following: "Plundering of the global south was facilitated by the elite class of the metropolitan areas colluding with the elites of south"?

A) Marxist
B) neoliberal
C) Keynesian
D) modernization

Question 27

According to Paul Bairoch, which countries were the largest industrial powers in 1830?

A) countries of the global west
B) countries of the global south
C) countries of the global east
D) countries of the global north

Question 28

Which of the following organizations would support the neoliberal perspective on development?

A) the IMF and the World Bank
B) disaster relief organizations
C) micro-credit organizations
D) fair-trade organizations

Question 29

Prior to the Industrial Revolution, manufacturing consisted largely of rural and labour-intensive activities. Consequently, what was the global manufacturing situation of that time?

A) The majority of manufacturing existed in the global north.
B) Eastern European countries accounted for most manufacturing.
C) Western European countries accounted for most manufacturing.
D) The majority of manufacturing existed in the global south.

Question 30

When a manufacturer ceased operations in Canada, 350 factory employees lost their jobs and the town was severely and negatively impacted by the loss of its biggest employer. The company then established production facilities in India where the workers are paid less and there are fewer workplace regulations. Which of the following terms best describes this corporation's action?

A) corporate downsizing
B) outsourcing
C) deindustrialization
D) business relocation

Question 31

According to Andre Gunder Frank, what effect did the development of capitalism have on the global south?

A) Capitalism aided in the modernization of the poorer countries.
B) The capitalist system generated underdevelopment.
C) Capitalist enterprises aided in the development of democracies.
D) Foreign investment helped build civil infrastructure.

Question 32

What mechanism of commerce and exchange existed between the metropolitan powers and the global south?

A) the exchanging of trade missions to work out their business ties
B) the exchanging of diplomats to establish trade agreements/treaties
C) the extraction of surplus from the global south with unfavourable terms of trade
D) the investment of capital into failing economies, which bolstered trade and aided the global south

Question 33

A worker lives on a large piece of land in a southern country where thousands of others are making a subsistence living. Sugar cane is being grown and the land is owned by a wealthy British family. All of the sugar is being exported to Europe. Where is this worker living?

A) a sugary
B) a plantation
C) an estate
D) a farm

Question 34

According to Jared Diamond, historically, which of the following factors can account for uneven development around the world?

A) underdeveloped nations coming into contact with colonizers having superior technology
B) developed nations having values consistent with production, competition, and profit
C) early domestication of plants and animals, geographic factors, resistance to disease
D) early evolution of writing, astronomical insights, and mathematical accounting

Question 35

You watch an economist being interviewed: she speaks passionately against government regulation of business and financial institutions, saying, "The markets will correct themselves." What type of economist would this person be?

A) neoliberal
B) Marxist
C) Keynesian
D) structural

Question 36

According to the text, what were the consequences for Africa of the Europeans' practice of slavery?

A) It helped thin out overpopulated districts of the continent.
B) It helped to rearrange traditional tribal boundaries more logically.
C) It created a condition that ensured centuries of underdevelopment.
D) It assisted in reducing the number of tribal conflicts on the continent.

Question 37

In Country X, the land-owning elite were powerful enough to influence the government. The subsequent removal of tariffs by the government, while benefitting the landowners, negatively impacted the local company Acme Manufacturing. As a result, Acme Manufacturing was no longer financially viable and had to shut down. Which term describes the policy that was enacted by the government?

A) capitalism
B) free trade
C) merchantilism
D) modernization

Question 38

According to the text, how many Africans and their descendants worked on plantations in the Caribbean and the United States by the early nineteenth century?

A) 700,000
B) 4 million
C) 8 million
D) 12 million

Question 39

Country O is an industrialized country counting on imports from Country P of raw material. Local elites in Country P owned the businesses that extracted the raw materials and ensured Country O of an ongoing supply of materials, creating different classes within Country P. Which other countries followed this model?

A) Brazil and Argentina
B) Honduras and Guatemala
C) India and China
D) Taiwan and Hong Kong

Question 40

What long-term effect did slavery have on the economies of the European countries and the United States?

A) Slavery formed the basis of the multiethnic modern world of the leading democracies.
B) Tensions existed in these countries between those who were for and against slavery.
C) Slavery enabled the accumulation of capital that later fuelled economic development.
D) Slavery slowed the growth of technology because manual labour was so inexpensive.

Question 41

Which one of the following conditions was part of structural adjustment programs (SAPs)?

A) Countries with emerging economies were ordered to strictly regulate their growth.
B) Developing countries were required to free up land for peasants to grow food.
C) The IMF would help developing countries if they privatized state-run businesses.
D) Needy countries had to limit assistance from aid organizations such as the Red Cross.

Question 42

A developing country in debt to the World Bank was offered financial assistance to alleviate the economic crisis if it would abide by certain conditions. The conditions were privatizing state-controlled services, importing goods from developed countries, and ending tariffs protecting local businesses. Which kind of economic theorizing supports this approach to development?

A) Marxist
B) neoliberal
C) postmodernist
D) Keynesian

Question 43

Which of the following would be an example of the costs associated with neoliberal expansion in the developing world?

A) rising costs for housing
B) massive environmental destruction
C) rising consumer expectations by the population
D) costs associated with infrastructure development

Question 44

Which of the following statements reflects Lester Brown's comments on China's development?

A) Chinese citizens are frustrated by the slow rate of change.
B) China is on the verge of a massive ecological meltdown.
C) China is now the world's number one manufacturing economy.
D) China is now the leading financial power in the world economy.

Question 45

According to the text's use of the concept, what is neoliberalism?

A) It means to have an abundance of goods and services.
B) It is a definition of capitalism operating without any government rules.
C) It is about the open attitudes of citizens to new ideas.
D) It is about openness, tolerance, and inclusiveness of all people as equals.

Question 46

Country X is a newly industrializing country in the era of globalization and transnational trade. Whose economic approach should government mirror in order to stimulate the economy and benefit the citizens?

A) Keynes
B) Marx
C) Friedman
D) IMF

Question 47

Although more people in India might have higher incomes as a consequence of neoliberalism, which aspects of living are not captured by economic indicators of well-being?

A) individual values about consumerism
B) how inflation affects buying power
C) regional differences in real-estate costs
D) issues such as security and air quality

Question 48

What was a consequence of Milton Friedman's market principles for the global south?

A) Because of these principles, markets in these economies saw unprecedented growth.
B) The gap between the rich and the poor in the developing world decreased significantly.
C) Major capital projects commenced, such as the building of dams for hydroelectric power.
D) Interest on loans made to these countries soared beyond their ability to pay.

Question 49

In the 1970s, which of the following were seen as challenges to the Keynesian model of economic development?

A) a lack of government services
B) high inflation and stagnant economies
C) an anticorporate business climate
D) low interest rates

Question 50

You see an economist being interviewed on television and he says, "Neoliberalism has had dramatic and calamitous effects upon developing countries ... especially in the wake of the global financial meltdown. The government needs to enforce strict regulations on the banks and financial institutions of the North, or the global economy will fail." What kind of economist is he?

A) capitalist
B) Marxist
C) Keynesian
D) postmodernist

Question 51

From a neoliberal perspective, which of the following would be considered a barrier to a free market?

A) a dollar an hour increase in the minimum wage
B) a company's inadequate marketing strategies for selling goods
C) a movement focused on the promotion of social values that do not support initiative and discipline
D) a lack of inventiveness on the part of business people

Question 52

Amy's grandparents experienced the Great Depression of the 1930s and share with her the challenges they endured at a time when the unemployment rate was 30 percent. Therefore, it is no surprise that they believe which approach to be the best for the economic development of a country?

A) private market solutions
B) neoliberal policies
C) trade deregulation
D) government intervention in the market

Question 53

What effect did structural adjustment programs (SAPs) have on developing countries?

A) They closed the economy to foreign investment.
B) They promoted the growth of a middle class.
C) They protected domestic business.
D) They ended tariffs that protected local industries.

Question 54

Janeen asserts that neoliberal policies have benefited Country X and its citizens, basing her argument on the economic success indicators of the country. Joseph posits that neoliberal policies have led to the deterioration of Country X, with citizens experiencing the detrimental effects of air pollution, water pollution, and increased crime and violence. What is the basis for Joseph's argument?

A) ecological indicators
B) inequality indicators
C) development indicators
D) quality-of-life indicators

Question 55

Which of the following is part of the neoliberal prescription of the Washington consensus?

A) austerity, privatization, and market liberalization
B) imposing controls over trade and currency exchanges
C) spending, nationalization, and market regulation
D) increasing government spending

Question 56

Policies associated with neoliberalism have succeeded in some places. Where in the world has some success been acknowledged in a limited sense?

A) Mexico, India, and China
B) Indonesia, Thailand, and Vietnam
C) Argentina, Bolivia, and Uruguay
D) Brazil, Paraguay, and Venezuela

Question 57

As world income increased by an average of 2.5 percent annually, what corresponding change accompanied this increase?

A) There are currently 100 million more poor people in the world.
B) The world's poverty levels remain unchanged.
C) Because of inflation, net gains in living standards are minimal.
D) The gap between the world's rich and poor has decreased.

Question 58

Which countries would neoliberals use as proof that their principles for development work?

A) Paraguay and Chile
B) Mexico and India
C) Brazil and Bolivia
D) Venezuela and Uruguay

Question 59

Which of the following is a reflection of the globalist Washington consensus?

A) a commitment to human rights
B) a commitment to income redistribution
C) a neoliberal prescription for every country
D) a subsidization of public enterprises

Question 60

Canada's healthcare program is one of the country's emblems of social policy. However, some economists would argue that such social policies are a hindrance to economic success. Why?

A) Social policies result in underdevelopment in other areas of the economy.
B) Social policies use funds that could be applied to industrial investment.
C) Social policies disrupt the market's natural equalization.
D) Social policies raise taxes.

Question 61

Tatiana lived in Mexico between 1950 and 1970. When telling her children about her experience growing up in Mexico, what would she be saying to them?

A) It was a time when there was very little poverty.
B) The rich were getting richer, and the poor were getting poorer.
C) The country was so poor that everyone was impoverished.
D) Neoliberal policies were responsible for decreasing the gap between the rich and the poor.

Question 62

Once it became politically impossible for the United States to provide military aid, training, and support for Guatemala and its pro-American regime, which country stepped in to help?

A) China
B) Israel
C) Russia
D) Germany

Question 63

The government of Country X is fighting a popular rebellion against the president's oppressive policies. The United States is sending military aid to the government because of its economic interests in Country X. According to the text, how could this situation influence development in the country?

A) Military aid accelerates it because peace is needed for economic development.
B) Military aid stifles it because war takes attention away from economic development.
C) Military aid has no effect on economic development.
D) Military aid offers only marginal assistance for economic development.

Question 64

Since 2000, a number of Central and South American countries have elected antineoliberalist governments. How has this sentiment been reflected in their economic development plans?

A) They nationalized their key resource industries.
B) Some have bolstered their armed forces to attack the drug cartels.
C) They solidified the position of large agribusiness to strengthen the export of crops.
D) Most of them moved quickly to deregulate the marketplace.

Question 65

What U.S. foreign policy between the 1950s and the 1970s had a big impact on the development of Third World nations?

A) The United States supported dictatorships and opposed democratically elected governments.
B) The United States led the world in foreign aid with few return obligations from recipient nations.
C) The United States had little or no involvement in the politics and economics of poor nations.
D) The United States fought to remove dictatorships and support democratically elected governments.

Question 66

Which of the following strategies was employed by the United States in relation to Latin America from the 1950s to 1970s?

A) a series of foreign aid programs
B) a series of military coups d'etat
C) neoliberal economic policies
D) Keynesian economic policies

Question 67

What is the ratio of the world's poorest 5 percent compared to the world's richest 5 percent?

A) 80 to 1
B) 100 to 1
C) 130 to 1
D) 165 to 1

Question 68

If the world's population were to shrink to 100 people, which of the following proportional statements would reflect the social condition of those 100 people?

A) Thirty people could afford to own an automobile.
B) Thirty-three people would have access to clean, safe drinking water.
C) Fifty people would be literate.
D) Sixty people would receive 75 percent of the world's income.

Question 69

Samir always struggled to make enough money for his family to live on and was aware of wealth differences, especially when he compared himself to Evelyn, the owner of the factory where he worked. However, in the 1970s, he became aware that the gap between himself and Evelyn was growing. In addition to transnational corporations and technological advancements, what factor added to the widening income gap?

A) the introduction of neoliberal policies
B) the introduction of development policies
C) the introduction of poverty measures
D) the introduction of social policies

Question 70

Minimal state involvement with the economy and development is a core neoliberal belief. What does the text conclude about the countries where rapid development has occurred in the global south?

A) Growth occurred in countries that were willing to cooperate with the World Bank.
B) Countries with specific government plans and restrictions had the most growth.
C) Countries that tried to use a balance of neoliberal and Keynesian policies did best.
D) The most economically deregulated countries had the most rapid development.

Question 71

What was the domino theory?

A) If one country falls under communist influence, its neighbours would soon follow.
B) If one country defaults on its loan to the World Bank, then others will default, too.
C) If one underdeveloped economy succeeds with neoliberalism, others will follow.
D) If one underdeveloped economy succeeds with Keynesian economics, other will, too.

Question 72

The "Asian Tigers" (South Korea, Taiwan, Hong Kong, and Singapore) have experienced rapid growth and industrialization in recent decades. Which of the following explains their successful development?

A) They followed neoliberal policies.
B) They established large export-processing zones.
C) They had strict, state-led, economic regulation of capitalism.
D) They were not all that different from Western industrialized countries.

Question 73

How have countries such as Argentina, Ecuador, Venezuela, Bolivia, and Brazil worked on their economic development goals?

A) by following neoliberalist policies and planning
B) by creating free markets with little or no regulation
C) by assisting landless peasants and the rural poor
D) by relying heavily on the World Bank and the IMF

Question 74

The International Comparison Project undertook an extensive analysis of price levels in most Asian countries. Which of the following reflects the conclusion of this work?

A) Inflation has crippled the ability of the poor to purchase basic necessities, including food.
B) Price levels in Asia were lower than anticipated.
C) Price levels in Asia were higher than anticipated.
D) High inflation corresponded with wage increases and so purchasing power was unchanged.

Question 75

Structural adjustment programs (SAPs), sponsored by the World Bank and the International Monetary Fund, were introduced to assist with economic growth in the global south. What kind of successes have these programs had?

A) Growth rates in the south were higher in the decade prior to SAPs.
B) Governing structures in the developing world have strengthened.
C) Since their inception, there has been dramatic growth in countries with SAPs.
D) Civil society has improved tremendously in states with SAPs.

Question 76

In which time spans did inequality between the rich and the poor decrease, and which policies had an impact on these changes?

A) in the 1990s-2000s; Keynesian policies
B) in the 1970s-1980s; neoliberal policies
C) in the 1930s-1960s; Keynesian policies
D) in the 1930s-1960s; neoliberal policies

Question 77

After the introduction of neoliberal policies in the 1970s, what happened to Third World countries and their levels of social inequality?

A) Inequality substantially decreased.
B) Inequality stayed the same.
C) Inequality increased only slightly.
D) Inequality substantially increased.

Question 78

A major research study involving 38 percent of the world's population in developing countries concluded that prices in these countries were much higher than expected. What are the implications of these higher costs in those areas?

A) These economies are growing.
B) Neoliberal policies are working.
C) Wages are matching prices.
D) Inequality is increasing.

Question 79

What consequence did the countries in the global south experience as a result of international lending agencies imposing SAPs?

A) an economic growth increase of approximately 2.5 percent per year between 1980 and 1998.
B) an economic growth increase of approximately 5 percent per year between 1980 and 1998.
C) no economic growth between 1980 and 1998.
D) negative economic growth between 1980 and 1998.

Question 80

Sara needs to work to ensure that her children have a good life and receive a good education at a private school. However, she cannot find work in her country that will meet her economic needs and she must travel to a more developed country and send money home. This situation is an indication that a government policy has failed to deliver its economic promise. Which policy is it?

A) globalization
B) modernization
C) neoliberalism
D) communism