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ACE24exam2 2008 guide (my version) - ACE/AFRST 254 Second...

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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 
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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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