Lesson 4.3.3

4.3.3 Strategies influencing growth and development Quiz: Pearson Edexcel Economics, Unit 4

20 questions

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Lesson 4.3.3, Strategies influencing growth and development: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 4: Theme 4: A global perspective, written with Revision Ninja.

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The 20 questions

  1. Which of these is a market-orientated strategy for promoting economic growth?

    • Privatisation
    • Managed exchange rates
    • Buffer stock schemes
    • Protectionism
  2. What is the primary objective of trade liberalisation in a developing economy?

    • Increasing import tariffs
    • Fixing exchange rates
    • Removing trade barriers
    • Subsidising domestic monopolies
  3. Which market-orientated strategy aims to attract capital from foreign multinational companies?

    • Managed exchange rates
    • Promoting FDI
    • Protectionism
    • Nationalisation
  4. What do microfinance schemes provide to low-income individuals excluded from traditional banking?

    • Price guarantees
    • Small loans
    • Government subsidies
    • Import licences
  5. Which strategy is an interventionist policy used to promote economic development?

    • Deregulation
    • Trade liberalisation
    • Human capital development
    • Privatisation
  6. What is the main purpose of a buffer stock scheme?

    • Increasing wage rates
    • Privatising primary industries
    • Maximising export tariffs
    • Stabilising commodity prices
  7. Which interventionist strategy protects domestic infant industries from foreign competition using tariffs and quotas?

    • Trade liberalisation
    • Privatisation
    • Protectionism
    • Deregulation
  8. According to the Lewis model, economic development occurs through the transfer of labour between which two sectors?

    • Services to agriculture
    • Agriculture to manufacturing
    • Manufacturing to mining
    • Public to private
  9. What key assumption about the agricultural sector is made in the Lewis structural model?

    • High wage rates
    • Excess labour supply
    • Rapid automation
    • Zero population growth
  10. How does developing a tourism sector primarily contribute to growth in a developing nation?

    • Earning foreign currency
    • Eliminating import tariffs
    • Reducing human capital
    • Lowering tax revenues
  11. Which mechanism guarantees primary producers in developing countries a baseline price under Fairtrade?

    • Subsidised quota system
    • Maximum price ceiling
    • Guaranteed minimum price
    • Variable export tariff
  12. Which problem is most commonly associated with long-term foreign financial aid?

    • Dependency culture
    • Rapid deflation
    • Currency appreciation
    • Export growth
  13. What does debt relief involve for a developing nation?

    • Cancelling debt obligations
    • Increasing tariff rates
    • Raising interest rates
    • Restricting foreign investment
  14. Which international institution primarily provides long-term loans for infrastructure and development projects?

    • World Trade Organisation
    • Bank of England
    • World Bank
    • International Monetary Fund
  15. What is the primary role of the International Monetary Fund?

    • Short-term crisis loans
    • Long-term infrastructure funding
    • Setting national taxes
    • Trade tariff enforcement
  16. What primary role do non-governmental organisations play in economic development?

    • Printing national currency
    • Delivering grassroots aid
    • Setting foreign tariffs
    • Managing exchange rates
  17. Which issue is a major drawback of relying solely on market-orientated development strategies?

    • Excessive nationalisation
    • High government spending
    • Market failure
    • Strict trade barriers
  18. Removing import tariffs and floating the exchange rate are examples of which strategy?

    • Interventionist strategy
    • Protectionist strategy
    • Market-orientated strategy
    • Fiscal policy strategy
  19. What is the primary economic objective of privatisation in a developing nation?

    • Raising import tariffs
    • Increasing efficiency
    • Fixing exchange rates
    • Expanding state ownership
  20. Which policy measure is most likely to breach World Trade Organisation rules?

    • Education subsidies
    • Infrastructure spending
    • Import tariffs
    • Privatisation programmes

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