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6. What type of aid has to be paid back?

  • Bilateral aid
  • Loan aid
  • Tied aid
  • Multilateral aid

7. What is an example of an inward looking development strategy?

  • Import substitution
  • Encouraging investment
  • Trade liberalisation
  • Abolising minimum wage

8. What is a disadvantage of fair trade schemes?

  • Encourages dependency
  • More money to producers
  • Better infrastructure
  • Distortion of markets

9. What is an example of an outward looking strategy?

  • Microfinance
  • Subsidies
  • Trade liberalisation
  • Regulation

10. What is it called when a country is dependent on the export of one commodity?

  • Primary product dependency
  • Export reliance
  • Export led growth
  • Savings gap

11. What is it called when government seeks to further its own interest rather than that of the people?

  • Bureaucracy
  • Corruption
  • Ministerial responsibility
  • Clientelism

12. What does the Lewis model depict?

  • Tourism development
  • Industrialisation
  • Agricultural development
  • Investment

13. Why is the savings gap a limit on growth and development?

  • It creates inequality
  • It prevents the appreciation of a currency
  • It prevents investment in capital
  • It causes unemployment

14. What country has developed on the basis of primary product dependency?

  • Chile
  • USA
  • China
  • India

15. What can overfocus on one sector of the economy cause in terms of development?

  • Economies of scale
  • Sectoral imbalance
  • Economic growth
  • Crowding out