Industry and Development Vocabulary Practice Test

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