Industry and Development Vocabulary Practice Test

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• How does scarcity drive trade-offs in development planning?
• Lead time in manufacturing is best described as what?
• Define knowledge spillovers.
• Brain drain refers to:
• Which statement describes the benefits of supply chain mapping?
• In a value chain, which of the following best describes upstream activities?
• Which index is widely used to compare development levels by combining life expectancy, education, and income?
• Which term refers to the part of the economy concerned with research, gathering and dissemination of information, and administration, often considered a specialized subdivision of tertiary activities?
• Which term describes the increase in time and cost that usually comes with increasing distance?
• Which statement best describes knowledge spillovers in practice?
• What is fiscal space in macroeconomic terms?
• The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.
• What is the purpose of a cost-benefit analysis in development projects?
• Which term describes a world economic system characterized by a more flexible set of production practices in which goods are not mass-produced; production is accelerated and dispersed globally by multinational companies that shift production, outsourcing it around the world and bringing places closer together in time and space than would have been imaginable at the beginning of the twentieth century?
• Which statement best describes fiscal policy?
• What measure assesses the extent of gender inequality in a country?
• Which concept describes a model of economic development that argues disparities arise from historical power relations in the global economy, rather than natural differences in capability?
• Which statement best explains depreciation’s effect on profitability and taxation?
• HDI is composed of three components. Which set correctly lists them?
• What is the primary purpose of industrial policy?
• Which statement about the impact of climate risk on development planning is most accurate?
• In a public-private partnership, why are risks shared between the public and private partners?
• What does comparative advantage mean in international trade?
• What is a base year in economic indices?
• What is trade openness and how does it influence industrial development?
• Which term refers to mass production in which each worker is assigned one specific task to perform repeatedly?
• Which policy can help retain skilled workers and reduce brain drain?
• What is meant by the value chain in industry?
• What is green finance and what are two common instruments?
• What is industrial diversification and what are its benefits?
• Which concept describes the global distribution of production tasks across multiple locations to capitalize on diverse labor costs?
• Why is climate risk relevant to industry and development planning?
• Which statement correctly describes a key feature of export-led growth?
• Which policy measure is commonly used to support export-led growth?
• Which term refers to a series of improvements in industrial technology that transformed the process of manufacturing goods?
• Two typical instruments used by governments in industrial policy.
• Carbon intensity is defined as what?
• Mercosur is a pact among Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area. Which of the following best describes it?
• Define Foreign Direct Investment (FDI) and name a potential benefit and risk.
• Which economic indicator sums the value of goods and services produced within a country plus the net income from abroad?
• What is a greenfield investment and how does it contrast with brownfield investment?
• Explain 'policy reform' in the context of development.
• Define labor productivity and give a simple formula.
• What is the primary aim of Just-In-Time manufacturing?
• Green industrial policy aims to prioritize environmental sustainability. Which of the following is a typical example?
• Which term denotes the power or effectiveness that emerges when combining two or more forces or elements?
• How is Return on Investment (ROI) calculated and what does it indicate?
• Which statement best defines infrastructure in the context of development?
• What is a cluster in economic development theory?
• Which term denotes service sector industries that require a high level of specialized knowledge or skill, such as high-level management?
• Which agreement is known for promoting free trade among three North American countries?
• What is foreign exchange rate risk and how can firms hedge it?
• Which model, developed by Alfred Weber, suggests location is determined by minimizing three expenses: labor, transportation, and agglomeration?
• GDP measures the value of all final goods and services produced domestically in a country in a period. Which option accurately reflects GDP's geographic scope?
• What term describes a specific area within a country where tax incentives and less stringent environmental regulations are used to attract foreign investment?
• Which statement best defines human capital?
• Which instrument is commonly used to fund environmental projects?
• Which model explains global inequality in terms of the historical exploitation of poor nations by rich nations?
• Explain policy conditionality in development finance.
• Define debt sustainability in macro development context.
• What term refers to loans from international financial institutions such as the World Bank or IMF to peripheral or semi-peripheral countries in exchange for reforms such as privatization and opening to foreign trade?
• Which agreement allows open trade between the US, Mexico, and Canada?
• What is the term for the ability to produce a good at a lower opportunity cost than another producer?
• In the Human Development Index, the standard of living is proxied by which metric?
• Which statement best differentiates insourcing from outsourcing?
• How is the HDI typically presented in development metrics?
• Which term refers to tax incentives and less stringent environmental regulations to attract foreign investment?
• What are sustainable development goals (SDGs) and their relevance to industry?
• Which best describes a circular economy's contrast with a linear model?
• Which statement best defines modular manufacturing?
• Which term means to use outside suppliers and manufacturers to produce goods and services?
• Which policy best describes import-substitution industrialization (ISI)?
• Define 'supply chain mapping' and its importance.
• A primary policy instrument under green industrial policy is:
• What distinguishes Foreign Direct Investment from portfolio investment?
• Which statement best describes the difference between GDP and GNI?
• What is the 'shadow price' or externalities value in cost-benefit analysis?
• What does elasticity of supply measure?
• What is export-led growth and what policy measures support it?
• What is a key goal of Industry 4.0 technologies?
• Economies of scale occur when which of the following is true?
• A global value chain includes activities such as design, manufacturing, and marketing across borders. Which statement about GVC is most accurate?
• Outsourcing can lower costs but increases reliance on what?
• What term describes the practice of a company controlling the full supply chain from raw materials to final distribution?
• Which statement best describes microfinance?
• What term describes the domination of newly independent countries by foreign business interests that sustains colonial-style economies and monoculture?
• Global value chains typically require upgrading in which area to stay competitive?
• What does supply chain resilience mean?
• Nearshoring is a strategy to accomplish what goal?
• Which term describes the part of the economy that provides market availability of commodities and connects consumers with service providers, including wholesale and retail trade and related services?
• Which agreement allows open trade among the United States, Mexico, and Canada?
• HDIA stands for which of the following?
• Which phenomenon describes how an initial injection of spending, such as a new factory, can lead to a magnified increase in regional economic growth through indirect jobs?
• Which term describes service sectors that require a high level of specialized knowledge or skill, often associated with high-level management?
• Mercosur is best described as which of the following?
• A circular economy is best described as what?
• Which of the following is a positive externality in industry?
• Which stage follows Takeoff in Rostow's five-stage model?
• Which statement describes the circular economy concept and a practical example?
• A non-governmental, non-profit organization that runs aid programs and lobbies for people's rights around the world describes which term?
• Which statement about lead time is true?
• Which statement best differentiates economies of scale and economies of scope?
• Why is human capital central to development, and how can it be enhanced?
• What is the term for a type of monopoly where a single company buys out all of its competition?
• Which area is planned for high technology where agglomeration among technological companies occurs?
• What is a Special Economic Zone and its purpose in development policy?
• Which developmental framework describes economic modernization as a five-stage process beginning with traditional society?
• Which SDG-related consideration is commonly relevant to industry?
• NGOs are best described as which?
• Which balance of payments component records transactions in financial assets and liabilities?
• A Special Economic Zone (SEZ) is best described as which?
• Transfers of money, goods, or services that are not reported to the government are part of which economy?
• What term refers to when a poorer country ties its currency to that of a wealthier country or adopts that currency as its own?
• How does price elasticity of demand influence tax incidence?
• What is capacity building in development cooperation?
• Which term is defined as a logical attempt to explain the locational pattern of an economic activity and how its producing areas are interrelated?
• Which technologies are associated with Industry 4.0?
• Which activity level is defined as the part of the economy concerned with research, gathering and dissemination of information, and administration?
• Which statement about Free Trade Agreements is accurate?
• Which term denotes moving production to another country to exploit cheaper labor?
• How do foreign aid and development assistance differ conceptually?
• Which term describes the power that results from the combination of two or more forces?
• What are zones established by many countries in the periphery that offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment?
• Which concept describes an industrial location theory stating that firms will substitute one factor of production for another to minimize costs and maximize net profit at a specific location, allowing for flexibility in choosing a site rather than just focusing on transportation costs?
• Differentiate quality control from quality assurance.
• Which phrase best describes a corporate strategy where a firm acquires its competitors to create a single, larger entity?
• In Rostow's modernization model, what is Stage 3 called?
• Which statement best describes the relevance of SDGs to industry?
• What is opportunity cost?
• What is the purpose of value-stream mapping in lean manufacturing?
• Which program provides small loans to poor people, especially women, to encourage development of small businesses?
• What is monetary policy and its potential impact on development?
• Define agglomeration economies and give an example in industry.
• How are the United Nations Sustainable Development Goals (SDGs) relevant to industry and development vocabulary?
• What is an offset in international procurement?
• Which statement best describes the multiplier effect in development policy?
• What is absorptive capacity and why matters for technology transfer?
• Which of the following is NOT typically associated with deindustrialization?
• Which term describes relocating production to a third party located outside of the country?
• What does structural transformation refer to in development?
• Which term describes a regional trade bloc in South America?
• Which term describes the part of the economy involved in processing raw materials and altering or combining materials to produce commodities of enhanced utility and value?
• Which statement about tariffs is true?
• Which approach minimizes inventory by delivering components just before they are needed?
• Program that provides small loans to poor people, especially women, to encourage development of small businesses describes which term?
• Which theory is defined as a general term for a model of economic development that treats disparities among countries as the result of historically derived power relations within the global economic system?
• What is technology transfer in development?
• What is fiscal policy and how can it affect development outcomes?
• In Foreign Direct Investment, what is the typical threshold that indicates control or significant influence?
• Which statement about industrial diversification is most accurate?
• What is the core idea of the Lewis two-sector model in development economics?
• Which term refers to the process of industrial deconcentration in response to technology and congestion costs?
• Which location is defined as a place where transfers between transportation modes can occur?
• Which statement correctly distinguishes CAPEX from OPEX and why reporting matters?
• What is Purchasing Power Parity (PPP) used for?
• What is the term for the practice where a single entity controls the entire process of a product, from raw materials to distribution?
• A typical HDIA focus area includes:
• In production systems, what is a bottleneck and how does it affect throughput?
• What does the learning curve in manufacturing productivity describe?
• What is debt service and how does it impact a country’s fiscal space?
• What does the acronym NAFTA stand for?
• Which theory proposed by Immanuel Wallerstein describes core, periphery, and semi-periphery in the world economy?
• What is deindustrialization and its typical drivers?
• What does the infrastructure gap refer to in developing economies?
• Which concept explains why a country or producer should specialize in goods that can be produced at lower opportunity costs relative to others?
• Which term describes the portion of the economy that is not taxed or monitored by the government?
• How do export-led growth and import-substitution industrialization differ?
• Which term describes an organization that advocates for people's rights and provides aid but is not part of a government?
• Which term is used for zones offering tax incentives to attract investment?
• Which term describes expenses that increase with the quantity of output produced?
• Which term refers to an area designed for high technology with clusters of tech companies?
• What is a tariff and how can it affect industrial development?
• What is a Public-Private Partnership and why are they used for development projects?
• What is capacity utilization and why is it important for development planning?
• Which process involves adopting another country's currency as one's own, effectively surrendering monetary sovereignty?
• Which statement best describes marginal cost, marginal revenue, and the production rule for expansion?
• What is the term for the ability to produce a good using fewer inputs than another producer?
• What is the term for a location where transfer is possible from one mode of transportation to another?
• Which indicator, constructed by the United Nations, combines income, literacy, education, and life expectancy to measure development?
• What is the balance of payments and what are its main components?
• Which of the following best describes absorptive capacity in the context of knowledge transfer?
• Walter Rostow developed this model - a liberal model that postulates that economic modernization occurs in five basic stages: Stage 1: Traditional Stage 2: Preconditions for takeoff Stage 3: Takeoff Stage 4: Drive to Maturity Stage 5: Age of Mass Consumption. What is this model called?
• What is total factor productivity (TFP) and how does it differ from partial productivity measures?
• What does value addition mean in manufacturing?
• Capital deepening refers to which of the following?
• What is lean manufacturing and how does it reduce waste?
• Which term describes the process by which companies relocate industrial jobs to cheaper regions, leaving the original region to shift toward services and face unemployment?
• Which term describes shipment of parts and materials to arrive at a factory moments before they are needed?
• Which concept describes economic activities deliberately organized around one or more high-growth industries?
• What term describes a chain of links connecting the many stages of production and distribution, resulting in a commodity traded on the world market?
• Which term describes costs that vary with the quantity of output produced?
• Which term best describes the group of media executives, news editors, and prominent reporters who direct the flow of news?
• What is a Free Trade Agreement and how can it influence industrial development?
• Which term describes the portion of the economy that fulfills the exchange function, provides market availability of commodities, and brings together consumers and providers of services, including wholesale and retail trade, transport, and personal and professional services of all kinds?
• Which term refers to the grouping together of many firms from the same industry in a single area for shared infrastructure and labor resources?
• In production, what does throughput refer to, and how is it affected by a bottleneck?
• Energy intensity is best described as:
• Which statement accurately describes trade openness in the context of development?
• What does environmental sustainability mean for industry?
• Why are constant prices used in economic analysis?
• Which statement best describes a geographic cluster in economic development?
• Which statement best defines CAPEX?
• What is industrial policy?
• Just-In-Time (JIT) is a lean manufacturing principle. What is its primary benefit?
• The Gini coefficient measures what?
• Which of the following is NOT a mechanism by which economies of scale reduce average costs?
• What does supply chain resilience entail and why is it critical post-disruptions?
• Which set correctly lists the components of the Human Development Index (HDI)?
• Which policy instrument is most directly used to influence inflation and the cost of borrowing?
• Which strategy is NOT typically used to improve supply chain resilience?
• What is gross capital formation and why is it a development indicator?
• Which statement best describes depreciation and its impact on financial statements?
• Distinguish between capital expenditure (CAPEX) and operating expenditure (OPEX).
• What does just-in-time inventory aim to achieve in lean systems?
• What is the multiplier effect in macroeconomics and why is it important for development policy?
• In infrastructure development, what does PPP stand for?
• Which term describes the legal economy that governments tax and monitor?
• GNI equals GDP plus what adjustment?
• Which term is NOT a component of the Human Development Index (HDI)?
• Which phenomenon explains how initial investment can trigger a larger overall increase in regional growth by stimulating additional jobs and income?
• Which set of policies emphasizes free markets, deregulation of financial markets, individualism, and reduced state welfare?
• Which concept describes the industrial deconcentration that occurs when congestion or technological changes drive firms away from crowded areas?
• Which term refers to the total market value of all final goods and services produced in an economy in a year?
• Which term describes corporations drawing from labor around the globe for different components of production?
• Which theory, associated with Harold Hotelling, suggests competitors locate adjacent to one another in the middle of the customer base to constrain each other's sales?
• What term describes places where two or more modes of transportation meet, such as air, road, rail, and water routes?
• What is the 'tech adoption lifecycle' in industry development?
• Which action would directly help reduce energy intensity in industry?
• What is depreciation in accounting and why is it important for capital-heavy industries?
• What are economies of scale and how do they influence average costs as output increases?
• What is the term for zones near the U.S. border with factories that assemble components for export to the United States?
• What is depreciation and how does it relate to CAPEX?
• What term describes economic activities deliberately organized around one or more high-growth industries?
• Define Export Processing Zone (EPZ) and how it differs from a general SEZ.
• Which theory predicts that firms cluster in a way to maximize market access, leading competitors to position near each other within a shared customer base?
• Which policy framework favors privatization, deregulation, and integration into global markets?
• Which measure includes the total value of goods and services produced within a country together with the balance of income and payments from or to other countries?
• What does price elasticity of demand measure?
• Define return on investment (ROI) and its use in project appraisal.
• Which of the following is a recognized instrument of industrial policy?