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40. The Lewis dual-sector model emphasizes development through
A. Movement of surplus labour from traditional agriculture to a modern industrial sector
B. Permanent expansion of subsistence agriculture
C. Elimination of industrialization
D. Declining urbanization

39. Infrastructure contributes to economic development by
A. Raising transaction and transportation costs
B. Facilitating production, trade, communication, and access to services
C. Reducing connectivity
D. Preventing private investment

38. Corruption can hinder economic development by
A. Improving resource allocation in all cases
B. Increasing transaction costs and diverting resources from productive uses
C. Increasing institutional efficiency automatically
D. Eliminating uncertainty

37. Good governance is generally associated with
A. Greater accountability, transparency, and effective public institutions
B. Complete absence of government
C. Permanent economic isolation
D. Elimination of private investment

36. Secure property rights can encourage investment because they
A. Increase uncertainty over ownership
B. Give individuals greater confidence that returns from investment can be retained
C. Eliminate all investment risks
D. Prevent innovation

35. Institutions can promote economic development by
A. Protecting property rights and supporting predictable economic transactions
B. Eliminating incentives to invest
C. Increasing uncertainty about contracts
D. Preventing entrepreneurship

34. Renewable resources differ from non-renewable resources because renewable resources
A. Can regenerate naturally under appropriate conditions
B. Cannot be depleted under any circumstances
C. Exist only in developed economies
D. Have no economic value

33. Environmental degradation can hinder long-run development by
A. Increasing the quality of natural resources automatically
B. Reducing environmental quality and potentially damaging productive capacity
C. Eliminating all production costs
D. Increasing human capital automatically

32. Sustainable development requires economic progress that
A. Ignores environmental consequences
B. Meets present needs without undermining future generations' ability to meet their needs
C. Depends entirely on natural-resource extraction
D. Eliminates economic growth

31. Inclusive growth emphasizes economic growth that
A. Benefits only capital owners
B. Creates broad opportunities and allows different groups to participate in and benefit from growth
C. Requires permanent trade restrictions
D. Excludes low-income households