Question 1

Labor productivity depends on the

Accepted Answer

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

Question 2

The economic theory that states that as time passes, economic systems become much more similar, with common rates of growth, common employment levels and common rates of inflation is known as

Accepted Answer

A) divergence theory 
B) parallel path theory 
C) convergence theory 
D) non-competing economic systems theory 
E) static state theory 
A) divergence theory 
B) parallel path theory 
C) convergence theory 
D) non-competing economic systems theory 
E) static state theory

Question 3

When a developing country relies on import substitution,

Accepted Answer

A) it sacrifices the gains from specialization and comparative advantage 
B) replaces low-cost foreign goods with high-cost domestic goods 
C) domestic producers, shielded from foreign competition, usually fail to become efficient 
D) other countries often retaliate with their own trade restrictions 
E) All of the answers are correct 
A) it sacrifices the gains from specialization and comparative advantage 
B) replaces low-cost foreign goods with high-cost domestic goods 
C) domestic producers, shielded from foreign competition, usually fail to become efficient 
D) other countries often retaliate with their own trade restrictions 
E) All of the answers are correct

Question 4

Which of the following groups has the lowest life expectancy at birth?

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 5

An example of a poverty trap is

Accepted Answer

A) extended time periods without war 
B) a lack of mineral wealth 
C) a dysfunctional or corrupt government 
D) laws and regulations to help detect fiscal fraud 
E) None of the answers is correct 
A) extended time periods without war 
B) a lack of mineral wealth 
C) a dysfunctional or corrupt government 
D) laws and regulations to help detect fiscal fraud 
E) None of the answers is correct

Question 6

If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following groups has the highest infant mortality rate?

Accepted Answer

A) middle-income economies 
B) low-income economies 
C) high-income economies 
D) Western European economies 
E) all the world's economies 
A) middle-income economies 
B) low-income economies 
C) high-income economies 
D) Western European economies 
E) all the world's economies

Question 8

Throughout the world, poverty is greater among women than men, particularly women who head households.

Accepted Answer

A) True 
 B)False

Question 9

Export promotion has been more successful than import substitution.

Accepted Answer

A) True 
 B)False

Question 10

Disappointed with problems caused by being a recipient of foreign aid from donor governments, the country of Upsilon should consider

Accepted Answer

A) refusing all future offers of aid 
B) privatizing of aid, such as receiving funds from private not-for-profit agencies 
C) becoming a donor instead 
D) seeking even more government-sponsored aid 
E) All of the answers are correct 
A) refusing all future offers of aid 
B) privatizing of aid, such as receiving funds from private not-for-profit agencies 
C) becoming a donor instead 
D) seeking even more government-sponsored aid 
E) All of the answers are correct

Question 11

A downside to foreign aid is that

Accepted Answer

A) developing countries have not necessarily increased their ability to become self-supporting at higher standards of living 
B) many recipient countries are doing less of what they had done well 
C) the agricultural sectors of recipient countries have suffered 
D) government officials have been insulated from their own incompetence 
E) All of the answers are correct 
A) developing countries have not necessarily increased their ability to become self-supporting at higher standards of living 
B) many recipient countries are doing less of what they had done well 
C) the agricultural sectors of recipient countries have suffered 
D) government officials have been insulated from their own incompetence 
E) All of the answers are correct

Question 12

The World Bank sorts countries into the following three major groups:

Accepted Answer

A) high-income economies, middle-income economies, low-spending economies 
B) high-spending economies, middle-spending economies, low-spending economies 
C) super-high-income economies, middle-income economies, low-income economies 
D) high-income economies, middle-income economies, zero-income economies 
E) high-income economies, middle-income economies, low-income economies 
A) high-income economies, middle-income economies, low-spending economies 
B) high-spending economies, middle-spending economies, low-spending economies 
C) super-high-income economies, middle-income economies, low-income economies 
D) high-income economies, middle-income economies, zero-income economies 
E) high-income economies, middle-income economies, low-income economies

Question 13

Around the world, once-socialist countries have replaced central plans with

Accepted Answer

A) foreign aid 
B) budgets 
C) special interests 
D) markets 
E) capital equipment 
A) foreign aid 
B) budgets 
C) special interests 
D) markets 
E) capital equipment

Question 14

One possible reason that the country of Whatsis is trapped in poverty is

Accepted Answer

A) a lack of mineral wealth 
B) an honest and functional government 
C) laws and regulations to help detect fiscal fraud 
D) a free press 
E) a civil war 
A) a lack of mineral wealth 
B) an honest and functional government 
C) laws and regulations to help detect fiscal fraud 
D) a free press 
E) a civil war

Question 15

One impediment to the convergence of world economies is the vast differences in human capital.

Accepted Answer

A) True 
 B)False

Question 16

To escape poverty, a country needs

Accepted Answer

A) Western banks to report deposits by corrupt officials 
B) to develop laws and regulations to ensure the transparent management of natural resources 
C) special trade advantages 
D) ten years of domestic peace 
E) All of the answers are correct 
A) Western banks to report deposits by corrupt officials 
B) to develop laws and regulations to ensure the transparent management of natural resources 
C) special trade advantages 
D) ten years of domestic peace 
E) All of the answers are correct

Question 17

Labor productivity depends on the

Accepted Answer

A) quality of the labor 
B) the amount of capital 
C) the amount of natural resources 
D) the amount of other inputs, such as technology 
E) All of the answers are correct 
A) quality of the labor 
B) the amount of capital 
C) the amount of natural resources 
D) the amount of other inputs, such as technology 
E) All of the answers are correct

Exam 21: Economic Development

Labor productivity depends on the

The economic theory that states that as time passes, economic systems become much more similar, with common rates of growth, common employment levels and common rates of inflation is known as

When a developing country relies on import substitution,

Which of the following groups has the lowest life expectancy at birth?

An example of a poverty trap is

If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result.

Which of the following groups has the highest infant mortality rate?

Throughout the world, poverty is greater among women than men, particularly women who head households.

Export promotion has been more successful than import substitution.

Disappointed with problems caused by being a recipient of foreign aid from donor governments, the country of Upsilon should consider

A downside to foreign aid is that

The World Bank sorts countries into the following three major groups:

Around the world, once-socialist countries have replaced central plans with

One possible reason that the country of Whatsis is trapped in poverty is

One impediment to the convergence of world economies is the vast differences in human capital.

To escape poverty, a country needs

Labor productivity depends on the

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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