ECO347 NOUN TMA Past Questions & Answers


1. Question: In the laissez-faire economic system the economy is free from government intervention and the market mechanism is guided by the
Answer: Invisible hand

2. Question: The Harrod Domar model is an early model of economic growth used to explain an economys growth rate in terms of level of
Answer: Savings and productivity of capital

3. Question: To solve the problem of having to sum up values of goods and services with diffferent weights and dimensions in growth calculation you either use an indexing system or
Answer: Sum up based on market prices

4. Question: The developing countries are diverse in all of the following ways except
Answer: High dependence on agriculture

5.Question: In his book, Das Capital published in 1867 Marx predicted the fall of capitalism and movement of society toward
Answer: Communism

6. Question: The less developed countries are characterized by all of the following except
Answer: Excessive dependence on importation of raw materials

7. Question: The transformation of traditional agricultural society to a modern industrial economy through the radical and conscious transformation of existing institutions social attitudes and motivations is called
Answer: Structural change

7. Question: Adam Smiths book An Enquiry into the Nature and Causes of the Wealth of Nations published in 1776 focused on
Answer: Economic development

8. Question: Economic growth occurs whenever people take resources and efficiently rearrange them in ways that make them more
Answer: Productive overtime

9. Question: In measuring economic growth the most common method used is the
Answer: Gross Domestic Product

10. Question: Poverty is a global phenomenon but experienced mostly in Africa South Asia and
Answer: Latin American countries