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Unformatted text preview: ACE/AFRST 254 Second Midterm Exam …likely questions…. You have 50 minutes to complete this closed-book exam. Please write your answers on the exam sheet. If extra room is needed, use the reverse side of the page and indicate the number of the question being answered. 2. (2 points) State two reasons why “informal” small-scale enterprises might be more successful in bringing industrialization to Africa than earlier efforts at industrialization through large-scale ISI enterprises. SSE’s may be more appropriate because the: Do not rely on imported inputs, as ISI industries did Do not rely on foreign investment, as ISI industries did Do rely heavily on labor, which is available in Africa Do not require highly trained labor for entry (learning by doing useful strategy since formal education is not universal in Africa). Do produce products that are appropriate for local consumer (cheap) Do use inputs that are abundant and cheap locally Are flexible in production line. 3. (2 points) Give an example from the novel Smouldering Charcoal that demonstrates the conflict between enforcing high standards in urban areas and supporting wide access to urban services. Other questions on Smoulding Charcoal might relate to differentiation, rural-urban links, informal sector… 4. (3 points) State three ways in which economic decline in urban areas can cause economic hardships in rural areas. *answers in exam 2 from 2007,question #5. Found on compass. 5. (4 points) Cite examples from the film Zan Boko of a marginal small-scale enterprise based on labor and a more profitable small scale enterprise using labor and other inputs. (Other Zan Boko questions could relate to: Standards versus Access to services in urban areas, security of tenure with formalization, gender roles, …) 6. (2 points) How does Engel’s law relate to the tendency for economic growth to lead to urbanization? Engel’s Law states that as incomes rise, the percentage of income spent on food declines. This means that as an economy grows, a larger and larger share of incomes will be spent on non-food items. Increased demand for things other than food implies increased demand for products of the city (industry). Thus, economic growth stimulates urbanization. 7. (2 points) State one reason why rapid urbanization occurred in Africa in the absence of economic growth....
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This note was uploaded on 05/02/2008 for the course ACE 254 taught by Professor Winter-nelson during the Spring '08 term at University of Illinois at Urbana–Champaign.
- Spring '08