Chapter 34 — Quiz

Q1. The World Bank extreme poverty line is: a) $10/day b) $2.15/day (2017 PPP) c) $50/day d) $1/day Q2. The institutions hypothesis (Acemoglu-Robinson) says: a) Geography determines development b) Inclusive institutions drive growth; extractive institutions trap countries in poverty c) Aid is the solution d) Climate is everything Q3. The Sachs-Easterly debate is about: a) Exchange rates b) Whether top-down aid can break the poverty trap c) Inflation targeting d) Trade agreements Q4. RCTs in development economics were pioneered by: a) Friedman and Schwartz b) Banerjee, Duflo, and Kremer (2019 Nobel) c) Solow d) Keynes Q5. Conditional cash transfers work by: a) Giving unconditional aid b) Providing cash conditional on school attendance and health checkups c) Subsidizing exports d) Building factories Q6. Most of the global poverty reduction since 1990 has been in: a) Sub-Saharan Africa b) East and South Asia (especially China and India) c) Latin America d) Europe

SA1. Name three things RCTs have found to work in development. SA2. Why can't RCTs answer the big institutional questions? SA3. Compare Bangladesh and Haiti using the development framework.

TF1. Extreme poverty has increased since 1990. (T/F) TF2. Geography completely determines a country's development. (T/F) TF3. Microfinance has been shown to be transformatively effective by RCTs. (T/F)

Selected answers in appendices/answers-to-selected.md.