Question

Question 45

Economic growth is different from economic development of a country in that

		a) the former is qualitative while the latter is quantitative
		b) economic development is measured by more factors than the national income compared to growth
		c) the former is quantitative while the latter is qualitative
		d) b and c

Question 46

There is an argument or hypothesis that developing countries that have a loose or weak environmental standards and regulations will attract foreign manufacturers who want to escape the strict environmental standards in their own countries. This hypothesis is also known as:

		a) environmental goods hypothesis
		b) trade protection argument hypothesis
		c) WTO hypothesis
		d) pollution haven hypothesis

Question 47

One of the outcomes of the Uruguay Round Trade Talk is the formation of an organization that is responsible for setting trade policies, rules and regulations of the World Trade. This organizations is….

		a) United Nations Conference on Trade and Development (UNCTAD)
		b) World Commercial Council (WCC)
		c) World Trade Organization (WTO)
		d) General Agreement on Tariff and Trade (GATT)

Question 48

The UAE economy is known for being an open and actively trading economy. Do you agree?

		a) Yes, as being an actively trading economy, but less open
		b) No
		c) Yes
		d) Yes, as an open economy but less active in trading

Answer 1

Solution:

45: Option D
Economic growth is a quantitative measure whereas economic development is a more qualitative measure. Economic growth is a subset of economic development. Hence, It cannot be determined if a country is economically developed merely by measuring economic growth. There are various other factors to be included to calculate the overall economic development of the country. Hence, Option D is correct.

45: Option D
The pollution haven hypothesis states that companies operating in economically developed countries have strict environmental regulations and expensive labor, hence they look out for developing countries where the labor is cheap and the environmental policies are not strict. This is popularly known as the Pollution Haven Hypothesis.

46: Option C
The outcome of the Uruguay round was the formation of a governing body for international trade, trade policies, and dispute mechanisms. This organization is the World Trade Organization (WTO) which came into existence in 1995

47: Option C
Yes, The UAE economy is an open economy. This also leads UAE to be involved in inActive trade with other countries. Hence, the UAE is considered to be Open and actively trading economy.