Question 1

Economic development

Accepted Answer

A)  examines the process by which a country's production possibilities curve shifts outward over time. 
B)  focuses on how countries can move toward their level of potential output and achieve widely shared gains in GDP per capita. 
C)  concentrates on how a country can increase its human capital and labor productivity to bring about changes in productive processes. 
D)  requires reductions in a country's population growth rate and at the same time, increases in real GDP. 
A)  examines the process by which a country's production possibilities curve shifts outward over time. 
B)  focuses on how countries can move toward their level of potential output and achieve widely shared gains in GDP per capita. 
C)  concentrates on how a country can increase its human capital and labor productivity to bring about changes in productive processes. 
D)  requires reductions in a country's population growth rate and at the same time, increases in real GDP.

Question 2

Economic development is defined as a process that produces sustained and widely shared gains in per capita real GDP.

Accepted Answer

A) True 
 B)False

Question 3

China is an example of a country that has achieved a very low rate of population growth and a very high rate of growth in per capita GNP. Which of the following policies did the Chinese government adopt to bring about this dramatic drop in the population growth rate? 
I. The government started and enforced a "one-child family" policy which included mandatory birth control and forced sterilization.
II. Couples who opted to have only one child were rewarded with special benefits such as compensation for mothers who follow China's birth policies.
III. Couples who opted to have more than one child were dealt punishments such as fines, loss of employment and confiscation of property.

Accepted Answer

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

Question 4

The proposal to provide different and special treatment in international trade to developing nations is espoused by adherents to the

Accepted Answer

A)  neo-classical growth theory. 
B)  preferential trade theory. 
C)  convergence theory. 
D)  dependency theory. 
A)  neo-classical growth theory. 
B)  preferential trade theory. 
C)  convergence theory. 
D)  dependency theory.

Question 5

Roads, telephone lines, power facilities, and schools are examples of a nation's

Accepted Answer

A)  technostructure. 
B)  infrastructure. 
C)  physiostructure. 
D)  sociostructure. 
A)  technostructure. 
B)  infrastructure. 
C)  physiostructure. 
D)  sociostructure.

Question 6

Which of the following statements is true? According to the World Bank,

Accepted Answer

A)  in 2005 about 1.4 billion people, about a quarter of the population of developing countries was poor, defined as living on less than $1.25 a day, the international poverty line. 
B)  between 1980 and 2005, the number of people living below the international poverty line, defined as living on less than $1.25 a day, has decreased significantly. 
C)  poverty reduction in sub-Saharan Africa has been phenomenal over the last 25 years. 
D)  the majority of the world's poor are in the Indian sub-continent and in China. 
A)  in 2005 about 1.4 billion people, about a quarter of the population of developing countries was poor, defined as living on less than $1.25 a day, the international poverty line. 
B)  between 1980 and 2005, the number of people living below the international poverty line, defined as living on less than $1.25 a day, has decreased significantly. 
C)  poverty reduction in sub-Saharan Africa has been phenomenal over the last 25 years. 
D)  the majority of the world's poor are in the Indian sub-continent and in China.

Question 7

A primary source of growth in wealthy countries has been a shift out of agriculture into more productive sectors.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a common of feature of economies such as South Korea, Taiwan, Hong Kong, Singapore, Chile that have achieved significant gains in economic growth?

Accepted Answer

A)  Abundant exportable natural resources 
B)  The existence of a market economy 
C)  A low degree of government involvement in the provision of housing, health care, and education 
D)  Heavy reliance on foreign investments 
A)  Abundant exportable natural resources 
B)  The existence of a market economy 
C)  A low degree of government involvement in the provision of housing, health care, and education 
D)  Heavy reliance on foreign investments

Question 9

One dominant characteristic of poor countries is that too many people are engaged in the industrial sector and not enough people are in agriculture to produce badly needed food.

Accepted Answer

A) True 
 B)False

Question 10

Over a 10-year period, country A has real GDP and population growth rates of 5% and 7%, respectively; country B has real GDP and population growth rates of 3% and 1%, respectively. All other things unchanged, per capita real GDP has increased

Accepted Answer

A)  more in country A. 
B)  more in country B. 
C)  about the same in both countries. 
D)  in neither country. 
A)  more in country A. 
B)  more in country B. 
C)  about the same in both countries. 
D)  in neither country.

Question 11

Demographic transition is a process in which population growth initially rises with a fall in death rates and then falls with a reduction in birth rates.

Accepted Answer

A) True 
 B)False

Question 12

What is the difference between economic growth and economic development?

Accepted Answer

A)  Economic growth examines qualitative changes in the processes by which potential output increases over time, whereas economic development examines how a country moves from one point on its production possibility curve to another point on the curve. 
B)  Economic growth implies qualitative changes in productive processes whereas economic development requires quantitative change in virtually every aspect of life. 
C)  Economic growth implies quantitative changes in productive processes whereas economic development requires widespread structural changes in the way people live. 
D)  There is no difference between the two terms. 
A)  Economic growth examines qualitative changes in the processes by which potential output increases over time, whereas economic development examines how a country moves from one point on its production possibility curve to another point on the curve. 
B)  Economic growth implies qualitative changes in productive processes whereas economic development requires quantitative change in virtually every aspect of life. 
C)  Economic growth implies quantitative changes in productive processes whereas economic development requires widespread structural changes in the way people live. 
D)  There is no difference between the two terms.

Question 13

The World Bank, an international organization designed to support economic development, classifies countries according to their levels of per capita gross national income. Countries with per capita incomes of more than $936 but less than $11,455 in 2007 were classified as

Accepted Answer

A)  less-developed countries. 
B)  transitional countries. 
C)  developing countries. 
D)  middle-income countries. 
A)  less-developed countries. 
B)  transitional countries. 
C)  developing countries. 
D)  middle-income countries.

Question 14

The human development index is a more powerful alternative to GDP per capita as a summary measure of human well-being.

Accepted Answer

A) True 
 B)False

Question 15

Compared to middle- and high- income countries, low-income countries are often characterized by

Accepted Answer

A)  higher rates of population growth. 
B)  greater government control by large, relatively poor groups. 
C)  a smaller share of income used for consumption. 
D)  a smaller proportion of the labor force in agriculture. 
A)  higher rates of population growth. 
B)  greater government control by large, relatively poor groups. 
C)  a smaller share of income used for consumption. 
D)  a smaller proportion of the labor force in agriculture.

Question 16

The human development index captures all the different dimensions of human
Jdevelopment including political freedom and environmental sustainability.

Accepted Answer

A) True 
 B)False

Question 17

Low-income countries are usually characterized by high rates of population growth and very high unemployment.

Accepted Answer

A) True 
 B)False

Question 18

According to the World Bank's classification of countries' levels of per capita gross national income, in 2007 the majority of the world's population lived

Accepted Answer

A)  in middle-income countries. 
B)  in low-income countries. 
C)  below the international poverty line of $1.25 a day. 
D)  in the African continent. 
A)  in middle-income countries. 
B)  in low-income countries. 
C)  below the international poverty line of $1.25 a day. 
D)  in the African continent.

Question 19

What is the fundamental argument in Malthus' An Essay on the Principle of Population?

Accepted Answer

A)  Ultimately, population growth rate would outpace growth in real GDP leading to declining standards of living. 
B)  Population growth tends to undermine global stability which is a stimulus for future wars and conflicts. 
C)  Population would increase at a geometric rate and the food supply at an arithmetic rate and that this disharmony would lead to forced return to HYPERLINK "http://en.wikipedia.org/wiki/Subsistence" \o "Subsistence" subsistence-level conditions. 
D)  Population growth is the root cause of hunger, poverty, environmental destruction, disease, and social unrest. 
A)  Ultimately, population growth rate would outpace growth in real GDP leading to declining standards of living. 
B)  Population growth tends to undermine global stability which is a stimulus for future wars and conflicts. 
C)  Population would increase at a geometric rate and the food supply at an arithmetic rate and that this disharmony would lead to forced return to HYPERLINK "http://en.wikipedia.org/wiki/Subsistence" \o "Subsistence" subsistence-level conditions. 
D)  Population growth is the root cause of hunger, poverty, environmental destruction, disease, and social unrest.

Question 20

All of the following are consequences of China's "one-child family" policy except

Accepted Answer

A)  Local officials in charge of monitoring births may have an incentive to underreport the number of births to avoid punishment by the government. 
B)  China's cultural preference for sons has led to a large number of incidences of female infanticide. 
C)  China's policy succeeded in lowering its birth rate and, despite the absolute size of its total population, led to a net decrease of its population. 
D)  There were political consequences: the United States, as well as many other countries, have publicly expressed their disapproval with Chinese leaders for their sterilization policies. 
A)  Local officials in charge of monitoring births may have an incentive to underreport the number of births to avoid punishment by the government. 
B)  China's cultural preference for sons has led to a large number of incidences of female infanticide. 
C)  China's policy succeeded in lowering its birth rate and, despite the absolute size of its total population, led to a net decrease of its population. 
D)  There were political consequences: the United States, as well as many other countries, have publicly expressed their disapproval with Chinese leaders for their sterilization policies.

Economic development

Economic development is defined as a process that produces sustained and widely shared gains in per capita real GDP.

The proposal to provide different and special treatment in international trade to developing nations is espoused by adherents to the

Roads, telephone lines, power facilities, and schools are examples of a nation's

Which of the following statements is true? According to the World Bank,

A primary source of growth in wealthy countries has been a shift out of agriculture into more productive sectors.

Which of the following is a common of feature of economies such as South Korea, Taiwan, Hong Kong, Singapore, Chile that have achieved significant gains in economic growth?

One dominant characteristic of poor countries is that too many people are engaged in the industrial sector and not enough people are in agriculture to produce badly needed food.

Over a 10-year period, country A has real GDP and population growth rates of 5% and 7%, respectively; country B has real GDP and population growth rates of 3% and 1%, respectively. All other things unchanged, per capita real GDP has increased

Demographic transition is a process in which population growth initially rises with a fall in death rates and then falls with a reduction in birth rates.

What is the difference between economic growth and economic development?

The World Bank, an international organization designed to support economic development, classifies countries according to their levels of per capita gross national income. Countries with per capita incomes of more than $936 but less than $11,455 in 2007 were classified as

The human development index is a more powerful alternative to GDP per capita as a summary measure of human well-being.

Compared to middle- and high- income countries, low-income countries are often characterized by

The human development index captures all the different dimensions of human Jdevelopment including political freedom and environmental sustainability.

Low-income countries are usually characterized by high rates of population growth and very high unemployment.

According to the World Bank's classification of countries' levels of per capita gross national income, in 2007 the majority of the world's population lived

What is the fundamental argument in Malthus' An Essay on the Principle of Population?

All of the following are consequences of China's "one-child family" policy except

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

Economic development

Economic development is defined as a process that produces sustained and widely shared gains in per capita real GDP.

The proposal to provide different and special treatment in international trade to developing nations is espoused by adherents to the

Roads, telephone lines, power facilities, and schools are examples of a nation's

Which of the following statements is true? According to the World Bank,

A primary source of growth in wealthy countries has been a shift out of agriculture into more productive sectors.

Which of the following is a common of feature of economies such as South Korea, Taiwan, Hong Kong, Singapore, Chile that have achieved significant gains in economic growth?

One dominant characteristic of poor countries is that too many people are engaged in the industrial sector and not enough people are in agriculture to produce badly needed food.

Over a 10-year period, country A has real GDP and population growth rates of 5% and 7%, respectively; country B has real GDP and population growth rates of 3% and 1%, respectively. All other things unchanged, per capita real GDP has increased

Demographic transition is a process in which population growth initially rises with a fall in death rates and then falls with a reduction in birth rates.

What is the difference between economic growth and economic development?

The World Bank, an international organization designed to support economic development, classifies countries according to their levels of per capita gross national income. Countries with per capita incomes of more than $936 but less than $11,455 in 2007 were classified as

The human development index is a more powerful alternative to GDP per capita as a summary measure of human well-being.

Compared to middle- and high- income countries, low-income countries are often characterized by

The human development index captures all the different dimensions of human Jdevelopment including political freedom and environmental sustainability.

Low-income countries are usually characterized by high rates of population growth and very high unemployment.

According to the World Bank's classification of countries' levels of per capita gross national income, in 2007 the majority of the world's population lived

What is the fundamental argument in Malthus' An Essay on the Principle of Population?

All of the following are consequences of China's "one-child family" policy except

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