Question 1

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Accepted Answer

A) True 
 B)False

Question 2

Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.

Accepted Answer

A) True 
 B)False

Question 3

The "brain drain" problem in the DVCs refers to the fact that the best-educated workers

Accepted Answer

A) are concentrated in the public, rather than the private, sector. 
B) are concentrated in the private, rather than the public, sector. 
C) are concentrated in urban, rather than rural, areas. 
D) have emigrated from the DVCs to the IACs. 
A) are concentrated in the public, rather than the private, sector. 
B) are concentrated in the private, rather than the public, sector. 
C) are concentrated in urban, rather than rural, areas. 
D) have emigrated from the DVCs to the IACs.

Question 4

The absolute income gap between the IACs and the DVCs has

Accepted Answer

A) remained constant over time. 
B) increased over time. 
C) decreased over time. 
D) increased in nominal terms but decreased in real terms. 
A) remained constant over time. 
B) increased over time. 
C) decreased over time. 
D) increased in nominal terms but decreased in real terms.

Question 5

Which of the following countries had the highest population growth rate in 2013-2014?

Accepted Answer

A) United States 
B) Pakistan 
C) China 
D) Venezuela 
A) United States 
B) Pakistan 
C) China 
D) Venezuela

Question 6

(Last Word) Early experience with conditional cash transfers has revealed that

Accepted Answer

A) most of these cash transfers available go unused because parents don't want to fulfill the requirements. 
B) there is no significant improvement in nutrition and health compared to nonrecipients. 
C) they encourage school enrollment, but poor-quality schools limit the ability to lift people out of poverty. 
D) the resulting improvements in education and health give the recipients a significant earnings advantage over nonrecipients. 
A) most of these cash transfers available go unused because parents don't want to fulfill the requirements. 
B) there is no significant improvement in nutrition and health compared to nonrecipients. 
C) they encourage school enrollment, but poor-quality schools limit the ability to lift people out of poverty. 
D) the resulting improvements in education and health give the recipients a significant earnings advantage over nonrecipients.

Question 7

Which of the following does not correlate positively with economic growth?

Accepted Answer

A) output per capita 
B) life expectancy 
C) the percentage of the population engaged in agriculture 
D) the literacy rate 
A) output per capita 
B) life expectancy 
C) the percentage of the population engaged in agriculture 
D) the literacy rate

Question 8

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

Accepted Answer

A) population growth for a greater labor supply. 
B) output and slow down their population growth. 
C) birth rates to expand their available resources. 
D) mortality rates to slow down their population growth. 
A) population growth for a greater labor supply. 
B) output and slow down their population growth. 
C) birth rates to expand their available resources. 
D) mortality rates to slow down their population growth.

Question 9

In 2014, Wal-Mart's annual revenues were greater than the national incomes of

Accepted Answer

A) the United States. 
B) Germany. 
C) all but 26 nations. 
D) all nations except for the 5 largest ones. 
A) the United States. 
B) Germany. 
C) all but 26 nations. 
D) all nations except for the 5 largest ones.

Question 10

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Accepted Answer

A) will remain constant. 
B) may either widen or diminish. 
C) will diminish. 
D) will widen. 
A) will remain constant. 
B) may either widen or diminish. 
C) will diminish. 
D) will widen.

Question 11

Which of the following is a major obstacle to economic growth in DVCs?

Accepted Answer

A) a fall in population growth 
B) a decline in demographic transition 
C) the low demand for natural resources 
D) the low supply of saving 
A) a fall in population growth 
B) a decline in demographic transition 
C) the low demand for natural resources 
D) the low supply of saving

Question 12

Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig several wells.This is an illustration of

Accepted Answer

A) foreign aid. 
B) capital-saving investment. 
C) in-kind investment. 
D) technological advance. 
A) foreign aid. 
B) capital-saving investment. 
C) in-kind investment. 
D) technological advance.

Question 13

Which of the following is a true statement?

Accepted Answer

A) Direct foreign investment to DVCs is increasingly provided by commercial banks. 
B) Direct foreign investment to DVCs has dwindled to near zero in recent years. 
C) Approximately 5 percent of the GDP of IACs goes to foreign aid. 
D) Foreign aid from the IACs to the DVCs has greatly expanded in the past several years. 
A) Direct foreign investment to DVCs is increasingly provided by commercial banks. 
B) Direct foreign investment to DVCs has dwindled to near zero in recent years. 
C) Approximately 5 percent of the GDP of IACs goes to foreign aid. 
D) Foreign aid from the IACs to the DVCs has greatly expanded in the past several years.

Question 14

Infrastructure is best illustrated by

Accepted Answer

A) business equipment and factories. 
B) agricultural machinery and tools. 
C) financial institutions. 
D) roads and bridges. 
A) business equipment and factories. 
B) agricultural machinery and tools. 
C) financial institutions. 
D) roads and bridges.

Exam 22: The Economics of Developing Countries

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.

The "brain drain" problem in the DVCs refers to the fact that the best-educated workers

The absolute income gap between the IACs and the DVCs has

Which of the following countries had the highest population growth rate in 2013-2014?

(Last Word) Early experience with conditional cash transfers has revealed that

Which of the following does not correlate positively with economic growth?

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

In 2014, Wal-Mart's annual revenues were greater than the national incomes of

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Which of the following is a major obstacle to economic growth in DVCs?

Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig several wells.This is an illustration of

Which of the following is a true statement?

Infrastructure is best illustrated by

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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