Assignment 1: Find the best match for Colum A from Column C.

Write the letter of the best match in Column B

A B C
Traditional role of agriculture in economic development a “squeezing of the peasantry,”
Traditional role of industry in strategy of economic b Agrarian system
development”
product, foreign exchange, market and factor c Agriculturally transforming
“contributions to economic development”: economies
Reaping profits from agriculture that would be reinvested d Agriculture-based economies,
in industry
Aims of agriculture-and-employment-based strategy of e Emphasis on the cultivation of one
economic development particular crop
Prevalence of subsistence farming f Diversified agriculture
Prevalence of Mixed farming g Dynamic “leading sector
Prevalence of commercial farming h Green Revolution
Production with new hybrid seed varieties of that have i Risk Aversion, Uncertainty, and
resulted in high farm yields in many developing countries Survival
Environmental externalities, public good nature of j Land reform
agricultural research and information asymmetry
Land distribution, ownership, management, the social and k Market failures in agriculture
institutional structure of the agricultural economy
Crop production, stock rearing, and other activities l Output growth, rising domestic
conducted mainly for personal consumption demand, diversification,
Causes for persistence in subsistence farming m Passive and supportive
A relationship associated with lower level of marginal n Commercial farming
productivity
The production of both staple crops and cash crops and o Sharecropping
simple animal husbandry
Production pattern of the most advanced stage of the p Simon Kuznets’ view on agricultural
evolution of agricultural production contribution
Using capital-intensive, labor saving techniques of q Specialized farming
production, and relying on economies of scale
No different in concept or operation from large industrial r Subsistence farming
enterprises
Part of deliberate attempts to reorganize and transform s Macroeconomic instability
agrarian systems
Scale-neutral farm technology t Urbanized economies

The volume of private foreign investment and public u Unaffected by size; that can lead to
grants and loans that flow into and out of a country over a the achievement of higher output
given period, usually one year. levels irrespective of the size (scale)
of a firm
The transfer of funds to a foreign country by a citizen or v Stabilization policies
business to avoid conditions in the source country.
High inflation accompanied by rising budget and trade w Capital account
deficits and a rapidly expanding money supply.
A coordinated set of mostly restrictive fiscal and monetary x Capital flight
policies aimed at reducing inflation, cutting budget
deficits, and improving the balance of payments.

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Assignment 2: Find the best Match for Colum A from Column C. Write the letter of the best match in Column B
A B C
Concentration of resources in the production of A process by which the economies of the world
relatively few commodities a become more integrated
A deliberate effort to replace consumer imports by
promoting the emergence and expansion of domestic
World trade organization, b industries.
A fixed-percentage tax on the value of an imported
Consuming similar goods and services across countries c commodity
A payment by the government to producers or
Refers to the increased openness of economies to distributors in an industry to prevent decline,
international trade, financial flows, and direct foreign expanding employment, increasing exports, or
investment, d reducing selected prices paid by consumers.
Efficiency gains from trade, more rapid growth of A rationale for opening world markets to developing
knowledge and innovation, and the transfer of such countries through international trade to make better
knowledge to developing countries, e use of formerly underutilized land and labor resources
Troubling concerns of globalization f Absolute advantage
Factor endowment trade theory g Balanced trade
Production of a commodity with the same amount of Countries tend to specialize in the production of the
real resources as another producer but at a lower commodities that make use of their abundant factors
absolute unit cost h of production (land, labor, capital, etc.)
Commodity terms of trade for primary-product
exports of developing countries tends to decline over
Comparative advantage i time
Globalization process j Business opportunities of globalization
Encourage exports, often through the free movement
Vent-for-surplus theory of international trade k of capital, workers, enterprises, and students
Tariff l Export promotion
Inequalities, environmental degradation, international
A physical limitation on the quantity of any item that dominance by the richest countries and some peoples
can be imported into a country. m and regions being left further behind.
Subsidy n Global culture
Gains from trade o Global economic policymaking
Production of a commodity at a lower opportunity
A situation where the value of a country’s exports and cost than any of the alternative commodities that
the value of its imports are equal p could be produced.
Outward-looking development policies; q Industrial policy
Policies that stress economic self-reliance on the part of
developing countries, r Free trade
Import substitution s Inward-looking development policies
Expanding the volume of a country’s exports through
increasing export incentives, decreasing disincentives, t Globalization
An excess of import expenditures over export receipts u Quota
Prebisch-Singer hypothesis v Specialization
The importation and exportation of goods without any The increase in output and consumption resulting
barriers w from specialization in production and free trade
Commodity terms of trade x The market value of a country’s exports and imports.
Deliberate effort by governments to guide the market by The ratio of a country’s average export price to its
coordinating and supporting specific industrial activities y average import price.
Current account z Trade deficit