Question

1. An example of a poverty trap is:

a. the malnourished not having enough energy to develop their economy.

b. the uneducated leaving the home country for more opportunities.

c. those not having basic immunizations dying more from rare diseases.

d. All of these are examples of poverty traps.

2. Thanks to randomized controlled trials, policymakers and program managers can:

a. more confidently channel resources to approaches that work.

b. more confidently channel resources to approaches that are cost effective.

c. have at least some evidence that the programs chosen are better than others.

d. All of these statements are true.

3. Successful export-led growth policy entails:

a. choosing the "right" industries to invest in.

b. blocking the "right" industries from importing to domestic markets.

c. choosing the "right" incentives to encourage exports.

d. choosing the "right" disincentives to reduce imports.

4. When governments choose to favor some industries over others, they undertake:

a. industrial espionage.

b. corporate growth policy.

c. corporate pricing policy.

d. industrial policy.

5. In general, educating workers:

a. does not make them more productive.

b. increases overall economic growth.

c. contributes little to other capabilities.

d. forces them to leave their native country.

Answer 1

As we know that, poverty trap a situation in which an increase in someone's income is offset by a consequent loss of state benefits, leaving them no better off. It causes poverty to persist for long time.

1). The correct option is (d).

All of these are examples of poverty traps.

2). The correct option is (d).

All of these statements are true.

The policy makers will channelize the resources to such approaches that are cost effective, choose programs that are better than others. This is possible only due to Randomized control trails.

3). The correct option is (c).

Choosing the right incentives to encourage exports.

The main thrust of export led growth policy revolves around the concept, to provide a large incentives to the export industries. The main motive is to improvise the exports.

4). The correct option is (a).

Indistrial espionage.

As we know under the industrial espionage, Governmnt favours some industries only.

5). The correct option is (b).

Increases overall economic growth.

By providing education to the workers will increase the overall economic growth.

Hope you got the answer.

Kindly comment for further explanation.

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