Question 1

Countries lacking an adequate endowment of natural resources have tended to remain poor.

Accepted Answer

A) True 
 B)False

Question 2

An emerging market country is a developing country.

Accepted Answer

A) True 
 B)False

Question 3

HIV-AIDS has killed about 3 billion people in Africa.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is true?

Accepted Answer

A) China has a lower level of GDP per capita than Japan, but a higher level of GDP than Japan. 
B) China's GDP and GDP per capita are lower than Japan's. 
C) China's GDP and GDP per capita are greater than Japan's. 
D) China has a higher level of GDP per capita than Japan, but a lower level of GDP than Japan. 
E) China's GDP is the same as Japan's, and its level of GDP per capita is lower than Japan's. 
A) China has a lower level of GDP per capita than Japan, but a higher level of GDP than Japan. 
B) China's GDP and GDP per capita are lower than Japan's. 
C) China's GDP and GDP per capita are greater than Japan's. 
D) China has a higher level of GDP per capita than Japan, but a lower level of GDP than Japan. 
E) China's GDP is the same as Japan's, and its level of GDP per capita is lower than Japan's.

Question 5

Data from the most advanced economies support the catch-up theory.

Accepted Answer

A) True 
 B)False

Question 6

All of the following are part of the "Emerging Africa" except

Accepted Answer

A) Tanzania. 
B) South Africa. 
C) Ghana. 
D) Zambia. 
E) Zimbawe. 
A) Tanzania. 
B) South Africa. 
C) Ghana. 
D) Zambia. 
E) Zimbawe.

Question 7

One of the 16 indicators used by the Millennium Challenge Corporation (MCC) to determine which countries obtain American foreign aid is Open Trade Policy, which refers to the accessibility of work visas that the country offers to foreigners.

Accepted Answer

A) True 
 B)False

Question 8

A line showing the inverse relationship between the level of productivity and the growth rate of productivity is referred to as the

Accepted Answer

A) production function. 
B) productivity function. 
C) aggregate demand curve. 
D) catch-up line. 
E) growth accounting line. 
A) production function. 
B) productivity function. 
C) aggregate demand curve. 
D) catch-up line. 
E) growth accounting line.

Question 9

For the majority of people in the world, per capita income is

Accepted Answer

A) greater than $7,000. 
B) greater than $10,000. 
C) greater than $15,000. 
D) less than $5,000. 
E) greater than $5,000. 
A) greater than $7,000. 
B) greater than $10,000. 
C) greater than $15,000. 
D) less than $5,000. 
E) greater than $5,000.

Question 10

In terms of the catch-up line for advanced countries from 1960 to 2005, Japan is an example of a country that was richer and therefore grew less rapidly.

Accepted Answer

A) True 
 B)False

Question 11

Informal sector is a term used to describe

Accepted Answer

A) one- or two-person firms. 
B) service-related industries. 
C) businesses that operate on barter. 
D) illegal businesses. 
E) part-time businesses. 
A) one- or two-person firms. 
B) service-related industries. 
C) businesses that operate on barter. 
D) illegal businesses. 
E) part-time businesses.

Question 12

Is the world distribution of income per capita skewed (that is, highly unequal)? Explain.

Accepted Answer

Yes, the distribution of per capita inco

Question 13

A major institution of the international monetary system is the IMF. What does IMF stand for?

Accepted Answer

A) International Money & Finance 
B) International Mechanism for Funding 
C) International Monetary Fund 
D) International Main Fund 
E) None of these 
A) International Money & Finance 
B) International Mechanism for Funding 
C) International Monetary Fund 
D) International Main Fund 
E) None of these

Question 14

Two important facts about economic growth to remember are that large and persistent economic growth

Accepted Answer

A) has occurred throughout history and economic growth has spread throughout much of the world. 
B) began about 200 years ago and economic growth has spread throughout much of the world. 
C) began about 200 years ago and economic growth has not spread throughout much of the world. 
D) has occurred throughout history and economic growth has not spread throughout much of the world. 
E) began about 100 years ago and economic growth has not spread throughout much of the world. 
A) has occurred throughout history and economic growth has spread throughout much of the world. 
B) began about 200 years ago and economic growth has spread throughout much of the world. 
C) began about 200 years ago and economic growth has not spread throughout much of the world. 
D) has occurred throughout history and economic growth has not spread throughout much of the world. 
E) began about 100 years ago and economic growth has not spread throughout much of the world.

Question 15

The first of the United Nations Millennium Development Goals was to

Accepted Answer

A) completely move those living in absolute poverty to the developed world. 
B) double the amount of food production by 2030. 
C) reduce the share of the world population living with an income of less than $1 a day by half. 
D) raise the world's GDP by 50 percent. 
E) eliminate poverty by 2020. 
A) completely move those living in absolute poverty to the developed world. 
B) double the amount of food production by 2030. 
C) reduce the share of the world population living with an income of less than $1 a day by half. 
D) raise the world's GDP by 50 percent. 
E) eliminate poverty by 2020.

Question 16

Which of the following was missing in countries that missed out on the Industrial Revolution?

Accepted Answer

A) Strong government leadership 
B) The more advanced state of scientific knowledge 
C) Colonialism and slavery 
D) A larger stock of key natural resources 
E) Individual property rights 
A) Strong government leadership 
B) The more advanced state of scientific knowledge 
C) Colonialism and slavery 
D) A larger stock of key natural resources 
E) Individual property rights

Question 17

Which of the following is true about the World Bank and the International Monetary Fund (IMF)?

Accepted Answer

A) The World Bank and the IMF were created after World War II as part of a major reform of the international monetary system. 
B) These institutions make loans to developing countries. 
C) They serve as intermediaries, channeling funds from industrialized countries to developing ones. 
D) All of the above are true. 
E) None of the above are true. 
A) The World Bank and the IMF were created after World War II as part of a major reform of the international monetary system. 
B) These institutions make loans to developing countries. 
C) They serve as intermediaries, channeling funds from industrialized countries to developing ones. 
D) All of the above are true. 
E) None of the above are true.

Question 18

The table below shows the level of GDP per capita in 1900 for four regions of the world, as well as their growth rates between 1900 and 1938. Plot this table to determine whether catch-up is likely to occur among these regions. Does growth theory explain the growth experience of these regions between 1900 and 1938?

Accepted Answer

As the graph below shows, the growth exp

Question 19

For the most advanced countries, there is an inverse relationship between the growth rate and the productivity level.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a developing country?

Accepted Answer

A) Australia 
B) Portugal 
C) Japan 
D) Indonesia 
E) Italy 
A) Australia 
B) Portugal 
C) Japan 
D) Indonesia 
E) Italy

Exam 28: Economic Growth Around the World

Countries lacking an adequate endowment of natural resources have tended to remain poor.

An emerging market country is a developing country.

HIV-AIDS has killed about 3 billion people in Africa.

Which of the following statements is true?

Data from the most advanced economies support the catch-up theory.

All of the following are part of the "Emerging Africa" except

One of the 16 indicators used by the Millennium Challenge Corporation (MCC) to determine which countries obtain American foreign aid is Open Trade Policy, which refers to the accessibility of work visas that the country offers to foreigners.

A line showing the inverse relationship between the level of productivity and the growth rate of productivity is referred to as the

For the majority of people in the world, per capita income is

In terms of the catch-up line for advanced countries from 1960 to 2005, Japan is an example of a country that was richer and therefore grew less rapidly.

Informal sector is a term used to describe

Is the world distribution of income per capita skewed (that is, highly unequal)? Explain.

A major institution of the international monetary system is the IMF. What does IMF stand for?

Two important facts about economic growth to remember are that large and persistent economic growth

The first of the United Nations Millennium Development Goals was to

Which of the following was missing in countries that missed out on the Industrial Revolution?

Which of the following is true about the World Bank and the International Monetary Fund (IMF)?

For the most advanced countries, there is an inverse relationship between the growth rate and the productivity level.

Which of the following is a developing country?

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

International Trade

International Finance

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