Question 1

According to the World Bank's classification of countries' levels of per capita gross national income,

Accepted Answer

A)  about one-third of the world's population lived in high-income countries in 2007. 
B)  less than 20% of the world's population lived in high-income countries in 2007. 
C)  the percentage of the world's population living in high-income countries increased significantly between 1997 and 2007. 
D)  the percentage of the world's population migrating from middle-income to high-income countries has been increasing since 2000. 
A)  about one-third of the world's population lived in high-income countries in 2007. 
B)  less than 20% of the world's population lived in high-income countries in 2007. 
C)  the percentage of the world's population living in high-income countries increased significantly between 1997 and 2007. 
D)  the percentage of the world's population migrating from middle-income to high-income countries has been increasing since 2000.

Question 2

Discuss the positive role government can play in economic development. Can there be problems with government actions in developing countries? Discuss.

Accepted Answer

The government can play a positive role

Question 3

The process that produces sustained and widely shared gains in per capita GDP is called

Accepted Answer

A)  economic growth. 
B)  economic transition. 
C)  economic development. 
D)  economic advancement. 
A)  economic growth. 
B)  economic transition. 
C)  economic development. 
D)  economic advancement.

Question 4

Evaluate and discuss in detail the following statement: "It is impossible for a nation to grow or develop into a wealthy and productive nation without a very large natural resource base."

Accepted Answer

The statement that it is impossible for

Question 5

Dependency theory argues that high income nations promote economic development in less developed nations.

Accepted Answer

A) True 
 B)False

Question 6

Economic development is the process by which a nation's _______ increases and is widely shared by the population over a long period of time.

Accepted Answer

A)  real total output 
B)  real total income 
C)  per capita real GDP 
D)  per capita nominal GDP 
A)  real total output 
B)  real total income 
C)  per capita real GDP 
D)  per capita nominal GDP

Question 7

Which of the following statements is true about an international dollar?

Accepted Answer

A)  It has the same purchasing power as does the U.S. dollar in the United States. 
B)  One international dollar has a greater purchasing power in the United States than in India. 
C)  One international dollar has a lower purchasing power in the United States than in India. 
D)  It is not possible to compare the purchasing power of one international dollar without information on the prices of goods and services in different countries. 
A)  It has the same purchasing power as does the U.S. dollar in the United States. 
B)  One international dollar has a greater purchasing power in the United States than in India. 
C)  One international dollar has a lower purchasing power in the United States than in India. 
D)  It is not possible to compare the purchasing power of one international dollar without information on the prices of goods and services in different countries.

Question 8

The Malthusian trap refers to

Accepted Answer

A)  the point at which natural population checks such as disease and famine have kept population growth below its replacement rate. 
B)  the point at which scarce natural resources have been depleted. 
C)  the point at which the world is no longer able to meet food requirements of its population. 
D)  the low-level equilibrium an economy is stuck at because productive resources have been exhausted. 
A)  the point at which natural population checks such as disease and famine have kept population growth below its replacement rate. 
B)  the point at which scarce natural resources have been depleted. 
C)  the point at which the world is no longer able to meet food requirements of its population. 
D)  the low-level equilibrium an economy is stuck at because productive resources have been exhausted.

Question 9

The United Nations' Human Development Index does not include

Accepted Answer

A)  life expectancy. 
B)  educational attainment. 
C)  purchasing-power-adjusted per capita real GDP. 
D)  an adjustment for gender inequality. 
A)  life expectancy. 
B)  educational attainment. 
C)  purchasing-power-adjusted per capita real GDP. 
D)  an adjustment for gender inequality.

Question 10

A necessary condition for successful economic development is democracy.

Accepted Answer

A) True 
 B)False

Question 11

What is the fundamental argument in Malthus' population theory? Explain how technological progress negates his argument.

Accepted Answer

The fundamental argument in Malthus' pop

Question 12

Demographic transition is a process in which population growth

Accepted Answer

A)  falls with a rise in death rates and then rises with a reduction in birth rates 
B)  rises with a rise in death rates and then falls with an increase in death rates 
C)  rises with a fall in death rates and then falls with a reduction in birth rates 
D)  falls with a fall in death rates and then rises with an increase in death rates 
A)  falls with a rise in death rates and then rises with a reduction in birth rates 
B)  rises with a rise in death rates and then falls with an increase in death rates 
C)  rises with a fall in death rates and then falls with a reduction in birth rates 
D)  falls with a fall in death rates and then rises with an increase in death rates

Question 13

In addition to purchasing-power-adjusted per capita real GDP, the Human Development Index includes two dimensions related to the quality of life. What are these dimensions?

Accepted Answer

A)  Life expectancy, educational attainment 
B)  Access to health care, nutrition 
C)  Life expectancy, infant mortality rate 
D)  Nutrition, life expectancy 
A)  Life expectancy, educational attainment 
B)  Access to health care, nutrition 
C)  Life expectancy, infant mortality rate 
D)  Nutrition, life expectancy

Question 14

Which of the following statements is true about the process of demographic transition?

Accepted Answer

A)  Demographic transition is complete in the world's low-income countries. 
B)  Demographic transition is complete in high-income countries. 
C)  Demographic transition is not complete in high-income countries. 
D)  Demographic transition is complete in high-income European countries but not in high- income Asian countries. 
A)  Demographic transition is complete in the world's low-income countries. 
B)  Demographic transition is complete in high-income countries. 
C)  Demographic transition is not complete in high-income countries. 
D)  Demographic transition is complete in high-income European countries but not in high- income Asian countries.

Question 15

The Human Poverty Index (HPI), measures human deprivation and includes all of the following indicators except

Accepted Answer

A)  the percentage of people expected to die before age 40. 
B)  the percentage of underweight children under age 5. 
C)  the percentage of adults who are illiterate. 
D)  the percentage of households headed by women. 
A)  the percentage of people expected to die before age 40. 
B)  the percentage of underweight children under age 5. 
C)  the percentage of adults who are illiterate. 
D)  the percentage of households headed by women.

Question 16

Dependency theory assumes that export industries in a poor country have small multiplier effects throughout the rest of the economy. Which of the following is a policy implication of this assumption?

Accepted Answer

A)  Trade based on comparative advantage cannot benefit poor nations. 
B)  Governments of poor nations should take whatever steps are necessary to prevent the repatriation of profits earned by multinational corporations operating in their countries. 
C)  Production should be undertaken by the public sector and not the private sector. 
D)  These countries should pursue policies of self-reliance such as import-substitution policies rather than export-led policies. 
A)  Trade based on comparative advantage cannot benefit poor nations. 
B)  Governments of poor nations should take whatever steps are necessary to prevent the repatriation of profits earned by multinational corporations operating in their countries. 
C)  Production should be undertaken by the public sector and not the private sector. 
D)  These countries should pursue policies of self-reliance such as import-substitution policies rather than export-led policies.

Question 17

Which of the following is prerequisite of successful market economies?

Accepted Answer

A)  The existence and enforcement of property rights 
B)  A tax system that redistributes income from the rich to the poor 
C)  The ability of the government to appropriate economic profits beyond a certain amount to ensure equality in income distribution 
D)  A military presence to ensure political freedom 
A)  The existence and enforcement of property rights 
B)  A tax system that redistributes income from the rich to the poor 
C)  The ability of the government to appropriate economic profits beyond a certain amount to ensure equality in income distribution 
D)  A military presence to ensure political freedom

Question 18

Based on the work of Thomas Malthus, the graph of food production over time would be represented by

Accepted Answer

A)  an upward-sloping straight line and the graph of food required would be represented by an upward-sloping straight line with a greater slope. 
B)  an upward-sloping straight line and the graph of food required would be represented by an upward-sloping straight line with a lesser slope. 
C)  an upward-sloping straight line and the graph of food required would be represented by an upward-sloping curved line. 
D)  an upward-sloping curved line and the graph of food required would be represented by an upward-sloping straight line. 
A)  an upward-sloping straight line and the graph of food required would be represented by an upward-sloping straight line with a greater slope. 
B)  an upward-sloping straight line and the graph of food required would be represented by an upward-sloping straight line with a lesser slope. 
C)  an upward-sloping straight line and the graph of food required would be represented by an upward-sloping curved line. 
D)  an upward-sloping curved line and the graph of food required would be represented by an upward-sloping straight line.

Question 19

Which of the following characterize low-income nations, compared to middle-income and high-income countries? 
I. higher rates of population growth
II. greater income inequality
III. a larger proportion of the labor force in agriculture
IV. a smaller share of income used for consumption
V. higher rates of unemployment

Accepted Answer

A)  all of the above 
B)  II, III, IV, and V only 
C)  II, III, and IV only 
D)  II, III, and V only 
A)  all of the above 
B)  II, III, IV, and V only 
C)  II, III, and IV only 
D)  II, III, and V only

Question 20

If political freedom is a normal good,

Accepted Answer

A)  the demand for political freedom increases as its opportunity cost falls. 
B)  the demand for political freedom increases as its opportunity cost rises. 
C)  the demand for political freedom increases as incomes rise. 
D)  the demand for political freedom decreases as incomes rise. 
A)  the demand for political freedom increases as its opportunity cost falls. 
B)  the demand for political freedom increases as its opportunity cost rises. 
C)  the demand for political freedom increases as incomes rise. 
D)  the demand for political freedom decreases as incomes rise.

According to the World Bank's classification of countries' levels of per capita gross national income,

Discuss the positive role government can play in economic development. Can there be problems with government actions in developing countries? Discuss.

The process that produces sustained and widely shared gains in per capita GDP is called

Evaluate and discuss in detail the following statement: "It is impossible for a nation to grow or develop into a wealthy and productive nation without a very large natural resource base."

Dependency theory argues that high income nations promote economic development in less developed nations.

Economic development is the process by which a nation's _______ increases and is widely shared by the population over a long period of time.

Which of the following statements is true about an international dollar?

The Malthusian trap refers to

The United Nations' Human Development Index does not include

A necessary condition for successful economic development is democracy.

What is the fundamental argument in Malthus' population theory? Explain how technological progress negates his argument.

Demographic transition is a process in which population growth

In addition to purchasing-power-adjusted per capita real GDP, the Human Development Index includes two dimensions related to the quality of life. What are these dimensions?

Which of the following statements is true about the process of demographic transition?

The Human Poverty Index (HPI), measures human deprivation and includes all of the following indicators except

Dependency theory assumes that export industries in a poor country have small multiplier effects throughout the rest of the economy. Which of the following is a policy implication of this assumption?

Which of the following is prerequisite of successful market economies?

Based on the work of Thomas Malthus, the graph of food production over time would be represented by

If political freedom is a normal good,

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

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Exam 19: Economic Development

According to the World Bank's classification of countries' levels of per capita gross national income,

Discuss the positive role government can play in economic development. Can there be problems with government actions in developing countries? Discuss.

The process that produces sustained and widely shared gains in per capita GDP is called

Evaluate and discuss in detail the following statement: "It is impossible for a nation to grow or develop into a wealthy and productive nation without a very large natural resource base."

Dependency theory argues that high income nations promote economic development in less developed nations.

Economic development is the process by which a nation's _______ increases and is widely shared by the population over a long period of time.

Which of the following statements is true about an international dollar?

The Malthusian trap refers to

The United Nations' Human Development Index does not include

A necessary condition for successful economic development is democracy.

What is the fundamental argument in Malthus' population theory? Explain how technological progress negates his argument.

Demographic transition is a process in which population growth

In addition to purchasing-power-adjusted per capita real GDP, the Human Development Index includes two dimensions related to the quality of life. What are these dimensions?

Which of the following statements is true about the process of demographic transition?

The Human Poverty Index (HPI), measures human deprivation and includes all of the following indicators except

Dependency theory assumes that export industries in a poor country have small multiplier effects throughout the rest of the economy. Which of the following is a policy implication of this assumption?

Which of the following is prerequisite of successful market economies?

Based on the work of Thomas Malthus, the graph of food production over time would be represented by

If political freedom is a normal good,

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