Question 1

All of the following are obstacles in a country's ability to rely on a general strategy of import substitution in its development efforts except

Accepted Answer

A)  a shortage of managerial talent and skilled labor. 
B)  a corrupt bureaucracy. 
C)  a lack of capital goods. 
D)  a lack of natural resources. 
A)  a shortage of managerial talent and skilled labor. 
B)  a corrupt bureaucracy. 
C)  a lack of capital goods. 
D)  a lack of natural resources. D

Question 2

A country's rate of real GDP growth is 3% per year. Its population is growing 4% per year. At what rate is its real GDP per capita changing?

Accepted Answer

A)  Real GDP per capita is increasing by 0.75%. 
B)  Real GDP per capita is increasing by 7%. 
C)  Real GDP per capita is decreasing by 1.33%. 
D)  Real GDP per capita is decreasing by 1%. 
A)  Real GDP per capita is increasing by 0.75%. 
B)  Real GDP per capita is increasing by 7%. 
C)  Real GDP per capita is decreasing by 1.33%. 
D)  Real GDP per capita is decreasing by 1%. D

Question 3

Which of the following statements is true about population growth rates?

Accepted Answer

A)  Overall, the rate of population growth has decreased sharply among high-income nations, and increased modestly among low-income nations. 
B)  Overall, the rate of population growth has decreased sharply among rich and middle-income people, and increased modestly among poor people. 
C)  Overall, the rate of population growth has decreased sharply among the wealthy but has increased among middle- and low-income people. 
D)  Overall, the rate of population growth has slowed modestly among nations at all income levels. 
A)  Overall, the rate of population growth has decreased sharply among high-income nations, and increased modestly among low-income nations. 
B)  Overall, the rate of population growth has decreased sharply among rich and middle-income people, and increased modestly among poor people. 
C)  Overall, the rate of population growth has decreased sharply among the wealthy but has increased among middle- and low-income people. 
D)  Overall, the rate of population growth has slowed modestly among nations at all income levels. D

Question 4

The gender development index (GDI)

Accepted Answer

A)  is an index that quantifies economic participation and decision-making by women. 
B)  measures the differences between female and male participation in various sectors of economic productivity. 
C)  measures how HYPERLINK "http://www.nationmaster.com/graph/eco_hum_dev_ind" human development indices for longevity, knowledge, and standards of living are differentiated by gender. 
D)  measures the share of a country's GDP that is produced by females and female-headed business. 
A)  is an index that quantifies economic participation and decision-making by women. 
B)  measures the differences between female and male participation in various sectors of economic productivity. 
C)  measures how HYPERLINK "http://www.nationmaster.com/graph/eco_hum_dev_ind" human development indices for longevity, knowledge, and standards of living are differentiated by gender. 
D)  measures the share of a country's GDP that is produced by females and female-headed business.

Question 5

Economic systems that have achieved the highest levels of development have been

Accepted Answer

A)  market systems. 
B)  centrally planned systems. 
C)  socialist systems. 
D)  command economies. 
A)  market systems. 
B)  centrally planned systems. 
C)  socialist systems. 
D)  command economies.

Question 6

A country's rate of real GDP growth is 7% per year. If real GDP per capita increases by 3%, at what rate is its population changing?

Accepted Answer

A)  Population has increased by 10%. 
B)  Population has increased by 4%. 
C)  Population has decreased by 2.33%. 
D)  Population has decreased by 4%. 
A)  Population has increased by 10%. 
B)  Population has increased by 4%. 
C)  Population has decreased by 2.33%. 
D)  Population has decreased by 4%.

Question 7

In 2000, the international community adopted and concretely specified developments goals, the progresses of which are to be monitored by the World Bank. Of the goals included here, which goal is least likely to be achieved by their target dates, mostly 2015?

Accepted Answer

A)  Reducing the absolute poverty rate by half 
B)  Increasing primary school enrolment 
C)  Promoting gender equality 
D)  Reducing deaths from measles and AIDS 
A)  Reducing the absolute poverty rate by half 
B)  Increasing primary school enrolment 
C)  Promoting gender equality 
D)  Reducing deaths from measles and AIDS

Question 8

Income inequality is usually lower in developing countries than in more industrialized countries.

Accepted Answer

A) True 
 B)False

Question 9

In 1974, the poorest nations among the developing nations introduced into the United Nations a Declaration on the Establishment of a New International Economic Order. What is the main idea of this program?

Accepted Answer

A)  It called upon the less developed countries to cut ties with the HYPERLINK "http://www.answers.com/topic/more-economically-developed-country" 	 "_top" more economically developed countries, and follow self-reliant, socialist systems. 
B)  It called for greater commitment from rich nations to invest in infrastructure development in poor countries, otherwise the latter are doomed to remain economically disadvantaged. 
C)  It called upon the rich nations to help them reduce the growing gap in real per capita income levels between the developed and developing nations. 
D)  It called for developed nations to involve economic leaders of poor countries in the formers' decision making processes to facilitate a greater degree of knowledge transfer. 
A)  It called upon the less developed countries to cut ties with the HYPERLINK "http://www.answers.com/topic/more-economically-developed-country" 	 "_top" more economically developed countries, and follow self-reliant, socialist systems. 
B)  It called for greater commitment from rich nations to invest in infrastructure development in poor countries, otherwise the latter are doomed to remain economically disadvantaged. 
C)  It called upon the rich nations to help them reduce the growing gap in real per capita income levels between the developed and developing nations. 
D)  It called for developed nations to involve economic leaders of poor countries in the formers' decision making processes to facilitate a greater degree of knowledge transfer.

Question 10

A point at which the world is no longer able to meet food requirements is called the Marxian Trap.

Accepted Answer

A) True 
 B)False

Question 11

Those countries not among the high-income nations of the world are considered

Accepted Answer

A)  dependent nations. 
B)  backward economies. 
C)  developing countries. 
D)  under-developed countries. 
A)  dependent nations. 
B)  backward economies. 
C)  developing countries. 
D)  under-developed countries.

Question 12

Which of the following is true about low-income countries?

Accepted Answer

A)  They face high levels of potential output, largely because of the size of their population. 
B)  They tend to have low levels of potential output and are producing well below their potential. 
C)  They face high levels of potential output, but tend to produce well below their potential because of high illiteracy rates. 
D)  They face high levels of potential output, but tend to produce well below their potential because of political instability. 
A)  They face high levels of potential output, largely because of the size of their population. 
B)  They tend to have low levels of potential output and are producing well below their potential. 
C)  They face high levels of potential output, but tend to produce well below their potential because of high illiteracy rates. 
D)  They face high levels of potential output, but tend to produce well below their potential because of political instability.

Question 13

Comparing incomes across countries based on per capita GNP figures that have been converted to dollars using the exchange rate

Accepted Answer

A)  is considered to be the best way to compare living standards across countries. 
B)  is a method of comparison that takes into account unequal distribution of income in a country. 
C)  accurately reflects differences in purchasing power across countries. 
D)  may not accurately reflect differences in purchasing power across countries. 
A)  is considered to be the best way to compare living standards across countries. 
B)  is a method of comparison that takes into account unequal distribution of income in a country. 
C)  accurately reflects differences in purchasing power across countries. 
D)  may not accurately reflect differences in purchasing power across countries.

Question 14

Dependency theory asserts that high poverty in poor countries is primarily caused by their inability to free themselves from dependence on rich, industrialized nations.

Accepted Answer

A) True 
 B)False

Question 15

In which of the following regions has poverty reduction been minimal in over the past 25 years?

Accepted Answer

A)  East Asia 
B)  sub-Saharan Africa 
C)  Latin America 
D)  North China and Tibet 
A)  East Asia 
B)  sub-Saharan Africa 
C)  Latin America 
D)  North China and Tibet

Question 16

The demographic transition refers to a shift from a period of

Accepted Answer

A)  declining food output per worker to a period of rising food output per worker due to advancements in agricultural technology. 
B)  rising population caused by falling death rates to a period of stable population caused by a matching reduction in birth rates. 
C)  rising infant mortality rate to a period of rising infant mortality rate caused by improved nutrition. 
D)  rising population in the agricultural sector to a period of falling population in the agricultural sector caused by rural-urban migration. 
A)  declining food output per worker to a period of rising food output per worker due to advancements in agricultural technology. 
B)  rising population caused by falling death rates to a period of stable population caused by a matching reduction in birth rates. 
C)  rising infant mortality rate to a period of rising infant mortality rate caused by improved nutrition. 
D)  rising population in the agricultural sector to a period of falling population in the agricultural sector caused by rural-urban migration.

Question 17

The Gender Development Index is expressed as a value between 0 and 1. Consider two countries, Country A which has a GDI of 0.968 and Country B which has a GDI of 0.336. Which of the following statements is true? 
I. There is a greater disparity in achievement between males and females in Country A than in Country B.
II. There is a greater disparity in achievement between males and females in Country B than in Country A.
III. The rate of illiteracy among women is likely to be lower in Country A than in
JCountry B.
IV. The rate of illiteracy among women is likely to be lower in Country B than in
JCountry A.

Accepted Answer

A)  I only 
B)  II only 
C)  I and III only 
D)  I and IV only 
A)  I only 
B)  II only 
C)  I and III only 
D)  I and IV only

Question 18

Advocates of dependency theory assert that

Accepted Answer

A)  poor countries are hampered from participating in free trade because of a lack of transportation infrastructure. 
B)  the high rate of poverty in poor countries is attributed to underdeveloped markets and the lack of property rights. 
C)  trade based on comparative advantage benefits developed countries at the expense of poor countries. 
D)  the key reason why poor nations have been slow to industrialize is because of persistent misallocation of resources. 
A)  poor countries are hampered from participating in free trade because of a lack of transportation infrastructure. 
B)  the high rate of poverty in poor countries is attributed to underdeveloped markets and the lack of property rights. 
C)  trade based on comparative advantage benefits developed countries at the expense of poor countries. 
D)  the key reason why poor nations have been slow to industrialize is because of persistent misallocation of resources.

Question 19

Market economies with legal systems that provide for the reliable protection of property rights and enforcement of contracts tend to promote economic growth.

Accepted Answer

A) True 
 B)False

Question 20

In 1798, An Essay on the Principle of Population was written by

Accepted Answer

A)  Adam Smith. 
B)  Thomas Malthus. 
C)  Karl Marx. 
D)  David Ricardo. 
A)  Adam Smith. 
B)  Thomas Malthus. 
C)  Karl Marx. 
D)  David Ricardo.

All of the following are obstacles in a country's ability to rely on a general strategy of import substitution in its development efforts except

A country's rate of real GDP growth is 3% per year. Its population is growing 4% per year. At what rate is its real GDP per capita changing?

Which of the following statements is true about population growth rates?

The gender development index (GDI)

Economic systems that have achieved the highest levels of development have been

A country's rate of real GDP growth is 7% per year. If real GDP per capita increases by 3%, at what rate is its population changing?

In 2000, the international community adopted and concretely specified developments goals, the progresses of which are to be monitored by the World Bank. Of the goals included here, which goal is least likely to be achieved by their target dates, mostly 2015?

Income inequality is usually lower in developing countries than in more industrialized countries.

In 1974, the poorest nations among the developing nations introduced into the United Nations a Declaration on the Establishment of a New International Economic Order. What is the main idea of this program?

A point at which the world is no longer able to meet food requirements is called the Marxian Trap.

Those countries not among the high-income nations of the world are considered

Which of the following is true about low-income countries?

Comparing incomes across countries based on per capita GNP figures that have been converted to dollars using the exchange rate

Dependency theory asserts that high poverty in poor countries is primarily caused by their inability to free themselves from dependence on rich, industrialized nations.

In which of the following regions has poverty reduction been minimal in over the past 25 years?

The demographic transition refers to a shift from a period of

Advocates of dependency theory assert that

Market economies with legal systems that provide for the reliable protection of property rights and enforcement of contracts tend to promote economic growth.

In 1798, An Essay on the Principle of Population was written by

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Socialist Economies in Transition

Filters

Exam 19: Economic Development

All of the following are obstacles in a country's ability to rely on a general strategy of import substitution in its development efforts except

A country's rate of real GDP growth is 3% per year. Its population is growing 4% per year. At what rate is its real GDP per capita changing?

Which of the following statements is true about population growth rates?

The gender development index (GDI)

Economic systems that have achieved the highest levels of development have been

A country's rate of real GDP growth is 7% per year. If real GDP per capita increases by 3%, at what rate is its population changing?

In 2000, the international community adopted and concretely specified developments goals, the progresses of which are to be monitored by the World Bank. Of the goals included here, which goal is least likely to be achieved by their target dates, mostly 2015?

Income inequality is usually lower in developing countries than in more industrialized countries.

In 1974, the poorest nations among the developing nations introduced into the United Nations a Declaration on the Establishment of a New International Economic Order. What is the main idea of this program?

A point at which the world is no longer able to meet food requirements is called the Marxian Trap.

Those countries not among the high-income nations of the world are considered

Which of the following is true about low-income countries?

Comparing incomes across countries based on per capita GNP figures that have been converted to dollars using the exchange rate

Dependency theory asserts that high poverty in poor countries is primarily caused by their inability to free themselves from dependence on rich, industrialized nations.

In which of the following regions has poverty reduction been minimal in over the past 25 years?

The demographic transition refers to a shift from a period of

Advocates of dependency theory assert that

Market economies with legal systems that provide for the reliable protection of property rights and enforcement of contracts tend to promote economic growth.

In 1798, An Essay on the Principle of Population was written by

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Socialist Economies in Transition

Filters