Question 1

The United States in 2014 had about

Accepted Answer

A) 1.8 percent of the world's population and generated about 10 percent of the world's output. 
B) 2.4 percent of the world's population and generated about 20 percent of the world's output. 
C) 4.4 percent of the world's population and generated about 22 percent of the world's output. 
D) 10 percent of the world's population and generated about 30 percent of the world's output. 
A) 1.8 percent of the world's population and generated about 10 percent of the world's output. 
B) 2.4 percent of the world's population and generated about 20 percent of the world's output. 
C) 4.4 percent of the world's population and generated about 22 percent of the world's output. 
D) 10 percent of the world's population and generated about 30 percent of the world's output.

Question 2

An advantage of direct foreign investment (compared to foreign loans) is that management skill and technological knowledge often accompany such capital flows.

Accepted Answer

A) True 
 B)False

Question 3

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses.This statement is an argument in favor of

Accepted Answer

A) free immigration and emigration. 
B) privatizing state industries. 
C) central planning. 
D) free trade. 
A) free immigration and emigration. 
B) privatizing state industries. 
C) central planning. 
D) free trade.

Question 4

An institutional change that is needed in most developing nations is

Accepted Answer

A) the will to develop. 
B) reduced foreign aid. 
C) birth control. 
D) land reform. 
A) the will to develop. 
B) reduced foreign aid. 
C) birth control. 
D) land reform.

Question 5

Brazil, Mexico, and Thailand are referred to as

Accepted Answer

A) industrially advanced countries. 
B) upper-middle-income developing countries. 
C) low-income developing countries. 
D) command economies. 
A) industrially advanced countries. 
B) upper-middle-income developing countries. 
C) low-income developing countries. 
D) command economies.

Question 6

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 120 million, its real per capita output will have

Accepted Answer

A) remained unchanged. 
B) increased by about $167. 
C) increased by about $55. 
D) decreased by about $20. 
A) remained unchanged. 
B) increased by about $167. 
C) increased by about $55. 
D) decreased by about $20.

Question 7

The capricious universe view is the idea that the IACs are exploiting the DVCs.

Accepted Answer

A) True 
 B)False

Question 8

Based on population and economic development trends, the world population is expected to in the last part of this century.

Accepted Answer

A) explode 
B) increase mildly 
C) become stable and constant 
D) decline 
A) explode 
B) increase mildly 
C) become stable and constant 
D) decline

Question 9

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

Accepted Answer

A) expanding trade 
B) admitting more temporary workers 
C) subsidizing their own (i.e., the IACs') agricultural sectors 
D) discouraging arms sales 
A) expanding trade 
B) admitting more temporary workers 
C) subsidizing their own (i.e., the IACs') agricultural sectors 
D) discouraging arms sales

Question 10

Microfinance or microcredit can help directly support

Accepted Answer

A) labor or workers. 
B) local governments. 
C) entrepreneurs. 
D) consumers. 
A) labor or workers. 
B) local governments. 
C) entrepreneurs. 
D) consumers.

Question 11

If it is cheaper in the long run to use a new metal plow that lasts a long time than an inferior wooden plow that needs to be replaced often, then this is an example of

Accepted Answer

A) a capital-using technology. 
B) a capital-saving technology. 
C) capital consumption. 
D) private capital flows. 
A) a capital-using technology. 
B) a capital-saving technology. 
C) capital consumption. 
D) private capital flows.

Question 12

In contrast to international development efforts in most of the 20th century, more recent projects like microfinance, microcredit, and cash transfers in the last few decades represent a major shift.That is because these recent projects are

Accepted Answer

A) all sponsored by local governments. 
B) done through the United Nations. 
C) launched by universities and colleges. 
D) focused on giving direct aid to poor individuals. 
A) all sponsored by local governments. 
B) done through the United Nations. 
C) launched by universities and colleges. 
D) focused on giving direct aid to poor individuals.

Question 13

(Last Word) Loans offered through microcredit programs

Accepted Answer

A) are usually spent on food. 
B) suffer from low repayment rates. 
C) have very high repayment rates. 
D) have lifted borrowers out of poverty at a faster pace than nonrecipients of loans. 
A) are usually spent on food. 
B) suffer from low repayment rates. 
C) have very high repayment rates. 
D) have lifted borrowers out of poverty at a faster pace than nonrecipients of loans.

Question 14

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Accepted Answer

A) Cash transfers never worked, because the recipients just wasted the money on unproductive spending. 
B) These transfers have shown positive early results; the majority of the recipients spent the money as intended. 
C) Only conditional cash transfers worked.Unconditional cash transfers never worked. 
D) These cash transfers worked only if the aid providers frequently followed up on the recipients. 
A) Cash transfers never worked, because the recipients just wasted the money on unproductive spending. 
B) These transfers have shown positive early results; the majority of the recipients spent the money as intended. 
C) Only conditional cash transfers worked.Unconditional cash transfers never worked. 
D) These cash transfers worked only if the aid providers frequently followed up on the recipients.

Question 15

The demographic transition view alleges that

Accepted Answer

A) the DVCs must first accept the use of birth control techniques to increase their standards of living. 
B) population growth will decline only if mortality rates exceed birth rates. 
C) if incomes first rise, population growth will then decline. 
D) population growth has no bearing on a nation's per capita income. 
A) the DVCs must first accept the use of birth control techniques to increase their standards of living. 
B) population growth will decline only if mortality rates exceed birth rates. 
C) if incomes first rise, population growth will then decline. 
D) population growth has no bearing on a nation's per capita income.

Question 16

The demographic transition view of population and growth in DVCs is that

Accepted Answer

A) the most important factor affecting population growth in DVCs is demographic changes among the elderly. 
B) slower population growth is neither desirable nor productive for DVCs given the state of the economies in these nations. 
C) reduced birth rates must come first in DVCs, and then higher per capita incomes will follow. 
D) higher per capita incomes must come first in DVCs, and then reduced birth rates will follow. 
A) the most important factor affecting population growth in DVCs is demographic changes among the elderly. 
B) slower population growth is neither desirable nor productive for DVCs given the state of the economies in these nations. 
C) reduced birth rates must come first in DVCs, and then higher per capita incomes will follow. 
D) higher per capita incomes must come first in DVCs, and then reduced birth rates will follow.

Question 17

Because families can afford to have more children, population growth is greater in the IACs than in the DVCs.

Accepted Answer

A) True 
 B)False

Question 18

The low per capita outputs of the DVCs are explained by

Accepted Answer

A) insufficient saving and investment. 
B) overinvestment in human capital. 
C) slow population growth. 
D) excessively rapid technological advance. 
A) insufficient saving and investment. 
B) overinvestment in human capital. 
C) slow population growth. 
D) excessively rapid technological advance.

Question 19

The idea that a person's productive efforts and his or her economic rewards are unrelated

Accepted Answer

A) is the neocolonialism view of economic development. 
B) describes the vicious circle of poverty. 
C) is the surplus labor theory of economic development. 
D) is the capricious universe view. 
A) is the neocolonialism view of economic development. 
B) describes the vicious circle of poverty. 
C) is the surplus labor theory of economic development. 
D) is the capricious universe view.

Question 20

A large portion of foreign aid from IACs to DVCs is provided on the basis of

Accepted Answer

A) economic considerations. 
B) geographical considerations. 
C) humanitarian considerations. 
D) politico-military considerations. 
A) economic considerations. 
B) geographical considerations. 
C) humanitarian considerations. 
D) politico-military considerations.

Exam 22: The Economics of Developing Countries

The United States in 2014 had about

An advantage of direct foreign investment (compared to foreign loans) is that management skill and technological knowledge often accompany such capital flows.

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses.This statement is an argument in favor of

An institutional change that is needed in most developing nations is

Brazil, Mexico, and Thailand are referred to as

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 120 million, its real per capita output will have

The capricious universe view is the idea that the IACs are exploiting the DVCs.

Based on population and economic development trends, the world population is expected to in the last part of this century.

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

Microfinance or microcredit can help directly support

If it is cheaper in the long run to use a new metal plow that lasts a long time than an inferior wooden plow that needs to be replaced often, then this is an example of

In contrast to international development efforts in most of the 20th century, more recent projects like microfinance, microcredit, and cash transfers in the last few decades represent a major shift.That is because these recent projects are

(Last Word) Loans offered through microcredit programs

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

The demographic transition view alleges that

The demographic transition view of population and growth in DVCs is that

Because families can afford to have more children, population growth is greater in the IACs than in the DVCs.

The low per capita outputs of the DVCs are explained by

The idea that a person's productive efforts and his or her economic rewards are unrelated

A large portion of foreign aid from IACs to DVCs is provided on the basis of

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

A: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

B: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

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