Question 1

Usually the poorest fifth of the population in a developing country receives more than 20 percent of the country's income.

Accepted Answer

A) True 
 B)False

Question 2

Labor productivity depends on the

Accepted Answer

A) quality of the labor 
B) the effectiveness of government 
C) the proportion of the labor force that is unionized 
D) the size of the economy 
E) All of the answers are correct 
A) quality of the labor 
B) the effectiveness of government 
C) the proportion of the labor force that is unionized 
D) the size of the economy 
E) All of the answers are correct

Question 3

Laws, customs, conventions, and other institutional elements that sustain an economy fall under the category of

Accepted Answer

A) rules of the game 
B) human capital 
C) natural resources 
D) financial institutions 
E) capital infrastructure 
A) rules of the game 
B) human capital 
C) natural resources 
D) financial institutions 
E) capital infrastructure

Question 4

In 2011, middle-income economies with almost three-fourths of the world's population produced less than one-quarter of the worlds output.

Accepted Answer

A) True 
 B)False

Question 5

The country of Yipi can raise its productivity by investing more in

Accepted Answer

A) both human and physical capital 
B) human capital only 
C) physical capital only 
D) stable foreign economies 
E) stocks and bonds 
A) both human and physical capital 
B) human capital only 
C) physical capital only 
D) stable foreign economies 
E) stocks and bonds

Question 6

Which of the following is not a country that has more people over the age of 65 than under the age of 15?

Accepted Answer

A) Italy 
B) Japan 
C) Burundi 
D) Germany 
E) Portugal 
A) Italy 
B) Japan 
C) Burundi 
D) Germany 
E) Portugal

Question 7

The group of countries more likely to have a high number of telephone lines per 1, 000 people is

Accepted Answer

A) high-income countries 
B) zero-income countries 
C) infinite-income countries 
D) low-income countries 
E) middle-income countries 
A) high-income countries 
B) zero-income countries 
C) infinite-income countries 
D) low-income countries 
E) middle-income countries

Question 8

Which of the following is true about foreign aid provided by the United States?

Accepted Answer

A) During the last four decades, the U.S.has provided less than $400 million in aid 
B) Most U.S.aid has been coordinated by the Department of Defense 
C) The U.S.Agency for International Development emphasizes short-range plans 
D) The U.S.Agency for International Development concentrates primarily on health, education, and agriculture 
E) Foreign aid is large part of the U.S.federal budget 
A) During the last four decades, the U.S.has provided less than $400 million in aid 
B) Most U.S.aid has been coordinated by the Department of Defense 
C) The U.S.Agency for International Development emphasizes short-range plans 
D) The U.S.Agency for International Development concentrates primarily on health, education, and agriculture 
E) Foreign aid is large part of the U.S.federal budget

Question 9

Unemployment is measured primarily in urban areas because in rural areas farm work is usually an outlet for labor.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?

Accepted Answer

A) middle-income economies 
B) low-income economies 
C) high-income economies 
D) sub-Saharan African economies 
E) all the world's economies 
A) middle-income economies 
B) low-income economies 
C) high-income economies 
D) sub-Saharan African economies 
E) all the world's economies

Question 11

If the country of Zorg has a birth rate of greater than 2.2 births per woman, it is likely that Zorg is an industrial market country.

Accepted Answer

A) True 
 B)False

Question 12

A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because

Accepted Answer

A) crop supply changes very little despite the weather 
B) crop supply fluctuates with the weather 
C) weather never varies 
D) crops go in and out of fashion as new diets are developed 
E) crop demand fluctuates with the weather 
A) crop supply changes very little despite the weather 
B) crop supply fluctuates with the weather 
C) weather never varies 
D) crops go in and out of fashion as new diets are developed 
E) crop demand fluctuates with the weather

Question 13

Nationalizationis the process of turning government enterprises into private enterprises in transitional economies.

Accepted Answer

A) True 
 B)False

Question 14

The country of Excludania can discourage foreign investment by

Accepted Answer

A) requiring foreign investors to find a local partner who must be granted controlling interest 
B) setting different exchange rates for different categories of transactions 
C) heavily restricting private international borrowing and lending 
D) All the answers are correct 
E) None of the answers is correct 
A) requiring foreign investors to find a local partner who must be granted controlling interest 
B) setting different exchange rates for different categories of transactions 
C) heavily restricting private international borrowing and lending 
D) All the answers are correct 
E) None of the answers is correct

Question 15

On average, about half the labor force in developing countries works in agriculture, versus only about 3 percent in industrial market countries.

Accepted Answer

A) True 
 B)False

Question 16

Foreign aid can take the form of

Accepted Answer

A) only money, capital goods, or technical assistance 
B) only capital goods, technical assistance, or food 
C) money, capital goods, technical assistance, or food 
D) only money, technical assistance, or food 
E) only technical assistance or food 
A) only money, capital goods, or technical assistance 
B) only capital goods, technical assistance, or food 
C) money, capital goods, technical assistance, or food 
D) only money, technical assistance, or food 
E) only technical assistance or food

Question 17

In developing nations, the combined rate of urban and rural unemployment or underemployment is about

Accepted Answer

A) 1 percent 
B) 10 percent 
C) 20 percent 
D) 30 percent 
E) 80 percent 
A) 1 percent 
B) 10 percent 
C) 20 percent 
D) 30 percent 
E) 80 percent

Question 18

Social capital is

Accepted Answer

A) the shared values and trust that promote cooperation in the economy 
B) the buildings and equipment used to produce goods and services 
C) a government regulation aimed at improving health and safety 
D) the accumulated knowledge, skill, and experience of the labor force 
E) the owner's own or borrowed money invested in a business 
A) the shared values and trust that promote cooperation in the economy 
B) the buildings and equipment used to produce goods and services 
C) a government regulation aimed at improving health and safety 
D) the accumulated knowledge, skill, and experience of the labor force 
E) the owner's own or borrowed money invested in a business

Question 19

Sjen Mavago, the economics minister of the country of X-Marks-the-Spot, has concluded that entrepreneurs are unable to generate the kind of growth the country needs.Her decision to create state enterprises might be motivated by the desire to

Accepted Answer

A) earn profit 
B) provide jobs for friends and relatives of government officials 
C) take risks 
D) encourage a free market 
E) limit government's role in the economy 
A) earn profit 
B) provide jobs for friends and relatives of government officials 
C) take risks 
D) encourage a free market 
E) limit government's role in the economy

Question 20

The yardstick most often used to compare living standards across nations is

Accepted Answer

A) average production cost per unit 
B) sales revenue per month 
C) utility per capita 
D) output per capita 
E) imports per year 
A) average production cost per unit 
B) sales revenue per month 
C) utility per capita 
D) output per capita 
E) imports per year

Exam 21: Economic Development

Usually the poorest fifth of the population in a developing country receives more than 20 percent of the country's income.

Labor productivity depends on the

Laws, customs, conventions, and other institutional elements that sustain an economy fall under the category of

In 2011, middle-income economies with almost three-fourths of the world's population produced less than one-quarter of the worlds output.

The country of Yipi can raise its productivity by investing more in

Which of the following is not a country that has more people over the age of 65 than under the age of 15?

The group of countries more likely to have a high number of telephone lines per 1, 000 people is

Which of the following is true about foreign aid provided by the United States?

Unemployment is measured primarily in urban areas because in rural areas farm work is usually an outlet for labor.

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?

If the country of Zorg has a birth rate of greater than 2.2 births per woman, it is likely that Zorg is an industrial market country.

A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because

Nationalizationis the process of turning government enterprises into private enterprises in transitional economies.

The country of Excludania can discourage foreign investment by

On average, about half the labor force in developing countries works in agriculture, versus only about 3 percent in industrial market countries.

Foreign aid can take the form of

In developing nations, the combined rate of urban and rural unemployment or underemployment is about

Social capital is

Sjen Mavago, the economics minister of the country of X-Marks-the-Spot, has concluded that entrepreneurs are unable to generate the kind of growth the country needs.Her decision to create state enterprises might be motivated by the desire to

The yardstick most often used to compare living standards across nations is

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

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