Question 1

Government-provided foreign aid to developing countries

Accepted Answer

A) has averaged about 1 percent of the IACs' GDP each year. 
B) has increased sharply and steadily since 1995. 
C) has dwarfed the size of foreign direct investment to the DVCs in recent years. 
D) declined in the late 1990s but increased from 2000 to 2008. 
A) has averaged about 1 percent of the IACs' GDP each year. 
B) has increased sharply and steadily since 1995. 
C) has dwarfed the size of foreign direct investment to the DVCs in recent years. 
D) declined in the late 1990s but increased from 2000 to 2008.

Question 2

Which of the following is most characteristic of developing nations?

Accepted Answer

A) a small percentage of the labor force in agriculture 
B) a relatively equitable distribution of income 
C) low levels of labor productivity 
D) low rates of population growth 
A) a small percentage of the labor force in agriculture 
B) a relatively equitable distribution of income 
C) low levels of labor productivity 
D) low rates of population growth

Question 3

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Accepted Answer

A) "The rich get richer, while the poor get poorer." 
B) "Fate dealt the poor nations a bad hand." 
C) "The poor nations stay poor because they are poor." 
D) "Historical developments have oppressed the poor nations' incomes." 
A) "The rich get richer, while the poor get poorer." 
B) "Fate dealt the poor nations a bad hand." 
C) "The poor nations stay poor because they are poor." 
D) "Historical developments have oppressed the poor nations' incomes."

Question 4

Many countries remain poor because they currently are poor.This statement summarizes the

Accepted Answer

A) infrastructure problem. 
B) vicious circle of poverty. 
C) demographic transition problem. 
D) problem of capital flight. 
A) infrastructure problem. 
B) vicious circle of poverty. 
C) demographic transition problem. 
D) problem of capital flight.

Question 5

Which of the following IACs (industrially advanced countries) gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

Accepted Answer

A) United States 
B) Japan 
C) Canada 
D) Germany 
A) United States 
B) Japan 
C) Canada 
D) Germany

Question 6

What is the immigration problem for DVCs?

Accepted Answer

A) Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers. 
B) Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers. 
C) Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers. 
D) Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers. 
A) Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers. 
B) Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers. 
C) Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers. 
D) Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers.

Question 7

If population is expanding at the same rate as real output,

Accepted Answer

A) real per capita output will increase. 
B) real per capita output will decrease. 
C) real per capita output will remain unchanged. 
D) living standards will increase. 
A) real per capita output will increase. 
B) real per capita output will decrease. 
C) real per capita output will remain unchanged. 
D) living standards will increase.

Question 8

Suppose that Alpha's real output rose from $400 billion in year 1 to $428 billion in year 2.Its growth rate for this period was

Accepted Answer

A) 14 percent. 
B) 12 percent. 
C) 9 percent. 
D) 7 percent. 
A) 14 percent. 
B) 12 percent. 
C) 9 percent. 
D) 7 percent.

Question 9

The World Bank

Accepted Answer

A) provides military assistance to those nations interested in improving national defense. 
B) makes and guarantees loans for basic development projects such as the construction of dams, roads, and schools. 
C) provides gold for DVCs that want to go on the gold standard. 
D) provides short-term loans to DVCs that are incurring balance of payments deficits. 
A) provides military assistance to those nations interested in improving national defense. 
B) makes and guarantees loans for basic development projects such as the construction of dams, roads, and schools. 
C) provides gold for DVCs that want to go on the gold standard. 
D) provides short-term loans to DVCs that are incurring balance of payments deficits.

Question 10

The populations of the developing nations are growing

Accepted Answer

A) at about 5 percent per year. 
B) at about the same rate as those of the industrially advanced nations. 
C) slower than those of the industrially advanced nations. 
D) faster than those of the industrially advanced nations. 
A) at about 5 percent per year. 
B) at about the same rate as those of the industrially advanced nations. 
C) slower than those of the industrially advanced nations. 
D) faster than those of the industrially advanced nations.

Question 11

Which of the following is a factor limiting saving in DVCs?

Accepted Answer

A) the lack of foreign aid and loans from the World Bank 
B) Governments control the banking system and set low interest rates. 
C) the flight of private savings to investments in IACs, where there is less risk 
D) Those who do save make their savings available only to their families, who use it for consumption. 
A) the lack of foreign aid and loans from the World Bank 
B) Governments control the banking system and set low interest rates. 
C) the flight of private savings to investments in IACs, where there is less risk 
D) Those who do save make their savings available only to their families, who use it for consumption.

Question 12

An economy's infrastructure refers to its

Accepted Answer

A) public capital goods, such as roads, schools, and power facilities. 
B) financial and banking institutions. 
C) land and natural resources. 
D) surplus supplies of unskilled labor. 
A) public capital goods, such as roads, schools, and power facilities. 
B) financial and banking institutions. 
C) land and natural resources. 
D) surplus supplies of unskilled labor.

Question 13

Many economists believe that the key to breaking the vicious circle of poverty is to

Accepted Answer

A) cut down the mortality rates in poor nations. 
B) reduce the birth rates in poor nations. 
C) increase the mobility of labor and migration. 
D) increase the rate of capital accumulation in poor nations. 
A) cut down the mortality rates in poor nations. 
B) reduce the birth rates in poor nations. 
C) increase the mobility of labor and migration. 
D) increase the rate of capital accumulation in poor nations.

Question 14

Most nations of the world are now IACs, not middle- and low-income DVCs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a recommended policy for industrially advanced countries to adopt in order to foster economic growth in DVCs?

Accepted Answer

A) admitting more temporary workers from DVCs 
B) reducing the amount of debt relief for DVCs to make them less dependent 
C) eliminating loans from the World Bank because it encourages bureaucracy 
D) eliminating financial control of central banks where they have been established 
A) admitting more temporary workers from DVCs 
B) reducing the amount of debt relief for DVCs to make them less dependent 
C) eliminating loans from the World Bank because it encourages bureaucracy 
D) eliminating financial control of central banks where they have been established

Question 16

In the DVCs, underemployment frequently takes the form of

Accepted Answer

A) factory workers who are working longer hours than they would prefer. 
B) workers who are employed inefficiently in small industry when they could be highly productive in agriculture. 
C) farmers whose productivity is very low. 
D) craft workers and artisans who are replaced by simple machinery and equipment. 
A) factory workers who are working longer hours than they would prefer. 
B) workers who are employed inefficiently in small industry when they could be highly productive in agriculture. 
C) farmers whose productivity is very low. 
D) craft workers and artisans who are replaced by simple machinery and equipment.

Question 17

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

Accepted Answer

A) True 
 B)False

Question 18

The World Bank operates primarily as a

Accepted Answer

A) deposit institution for nations' gold supplies. 
B) coordinator for private banks in major nations. 
C) lender of last resort to less-developed nations. 
D) U.S.government agency that supervises banks worldwide. 
A) deposit institution for nations' gold supplies. 
B) coordinator for private banks in major nations. 
C) lender of last resort to less-developed nations. 
D) U.S.government agency that supervises banks worldwide.

Question 19

The lack of an entrepreneurial class in developing nations tends to

Accepted Answer

A) keep workers from migrating to cities from rural areas. 
B) reduce the level of capital investment. 
C) force the need for land reform. 
D) keep governments stable. 
A) keep workers from migrating to cities from rural areas. 
B) reduce the level of capital investment. 
C) force the need for land reform. 
D) keep governments stable.

Question 20

Trade barriers that restrict imports from developing countries tend to be

Accepted Answer

A) highest in the capital goods and technology sectors of those economies. 
B) lowest in the labor-intensive manufacturing sectors of those economies. 
C) lowest for those products in which DVCs have a comparative advantage. 
D) highest for those products in which DVCs have a comparative advantage. 
A) highest in the capital goods and technology sectors of those economies. 
B) lowest in the labor-intensive manufacturing sectors of those economies. 
C) lowest for those products in which DVCs have a comparative advantage. 
D) highest for those products in which DVCs have a comparative advantage.

Exam 22: The Economics of Developing Countries

Government-provided foreign aid to developing countries

Which of the following is most characteristic of developing nations?

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Many countries remain poor because they currently are poor.This statement summarizes the

Which of the following IACs (industrially advanced countries) gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

What is the immigration problem for DVCs?

If population is expanding at the same rate as real output,

Suppose that Alpha's real output rose from $400 billion in year 1 to $428 billion in year 2.Its growth rate for this period was

The World Bank

The populations of the developing nations are growing

Which of the following is a factor limiting saving in DVCs?

An economy's infrastructure refers to its

Many economists believe that the key to breaking the vicious circle of poverty is to

Most nations of the world are now IACs, not middle- and low-income DVCs.

Which of the following is a recommended policy for industrially advanced countries to adopt in order to foster economic growth in DVCs?

In the DVCs, underemployment frequently takes the form of

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

The World Bank operates primarily as a

The lack of an entrepreneurial class in developing nations tends to

Trade barriers that restrict imports from developing countries tend to be

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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