Question 1

It is sometimes difficult to transfer the advanced technologies of the industrialized nations to the DVCs because

Accepted Answer

A) the technologies of the IACs are frequently based on relatively expensive labor and relatively cheap capital. 
B) the resource endowments of the IACs and the DVCs are highly similar. 
C) international patent laws prohibit such transfers. 
D) the technologies of the IACs are frequently based on relatively cheap labor and relatively expensive capital. 
A) the technologies of the IACs are frequently based on relatively expensive labor and relatively cheap capital. 
B) the resource endowments of the IACs and the DVCs are highly similar. 
C) international patent laws prohibit such transfers. 
D) the technologies of the IACs are frequently based on relatively cheap labor and relatively expensive capital.

Question 2

For DVC per capita incomes to rise, birth rates must first be reduced.This statement describes the

Accepted Answer

A) human capital view of population growth. 
B) traditional view of population growth. 
C) capricious universe view. 
D) demographic transition view of population growth. 
A) human capital view of population growth. 
B) traditional view of population growth. 
C) capricious universe view. 
D) demographic transition view of population growth.

Question 3

Which of the following countries had the highest per capita energy consumption in 2013?

Accepted Answer

A) India 
B) China 
C) Japan 
D) United States 
A) India 
B) China 
C) Japan 
D) United States

Question 4

The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7 percent per year.This compares to what percentage growth per year in low- income DVCs (developing countries)?

Accepted Answer

A) 1.1 percent 
B) 2.1 percent 
C) 4.0 percent 
D) 0.4 percent 
A) 1.1 percent 
B) 2.1 percent 
C) 4.0 percent 
D) 0.4 percent

Question 5

An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.

Accepted Answer

A) True 
 B)False

Question 6

A highly active role by government may be needed to promote economic growth in low-income DVCs because of

Accepted Answer

A) a lack of infrastructure. 
B) rigid law enforcement in the country. 
C) excessive local entrepreneurship. 
D) all these reasons. 
A) a lack of infrastructure. 
B) rigid law enforcement in the country. 
C) excessive local entrepreneurship. 
D) all these reasons.

Question 7

Economic growth in the DVCs might increase if IACs

Accepted Answer

A) reduce their tariffs and import quotas. 
B) encourage more immigration of highly skilled DVC workers. 
C) outlaw direct private investment abroad by IAC corporations. 
D) discourage capital flight to the DVCs. 
A) reduce their tariffs and import quotas. 
B) encourage more immigration of highly skilled DVC workers. 
C) outlaw direct private investment abroad by IAC corporations. 
D) discourage capital flight to the DVCs.

Question 8

The ability of the DVCs to use the technologies of the IACs is somewhat limited because

Accepted Answer

A) the IACs have patents on most of their technologies. 
B) the IACs and the DVCs have much different resource endowments. 
C) the technologies of the IACs rely heavily on unskilled labor. 
D) IAC technologies are labor-intensive, while DVC technologies are capital-intensive. 
A) the IACs have patents on most of their technologies. 
B) the IACs and the DVCs have much different resource endowments. 
C) the technologies of the IACs rely heavily on unskilled labor. 
D) IAC technologies are labor-intensive, while DVC technologies are capital-intensive.

Question 9

If the real GDP of a DVC increases from $600 billion to $630 billion and its population increases from 200 million to 216 million, its real per capita GDP will

Accepted Answer

A) increase by about $83. 
B) decrease by about $83. 
C) remained unchanged. 
D) decrease by about $19. 
A) increase by about $83. 
B) decrease by about $83. 
C) remained unchanged. 
D) decrease by about $19.

Question 10

In the 1990s,

Accepted Answer

A) direct private investment to the DVCs increased, and government-provided foreign aid decreased. 
B) both direct private investment and government-provided foreign aid to the DVCs increased. 
C) both direct private investment and government-provided foreign aid to the DVCs decreased. 
D) direct private investment to the DVCs decreased, and government-provided foreign aid increased. 
A) direct private investment to the DVCs increased, and government-provided foreign aid decreased. 
B) both direct private investment and government-provided foreign aid to the DVCs increased. 
C) both direct private investment and government-provided foreign aid to the DVCs decreased. 
D) direct private investment to the DVCs decreased, and government-provided foreign aid increased.

Question 11

The levels of national income per capita among developing countries (DVCs) are

Accepted Answer

A) all within a narrow range. 
B) widely varied. 
C) all growing rapidly. 
D) about half of those of industrially advanced countries (IACs). 
A) all within a narrow range. 
B) widely varied. 
C) all growing rapidly. 
D) about half of those of industrially advanced countries (IACs).

Question 12

What measure of economic development is used most often to classify nations as industrially advanced or as developing?

Accepted Answer

A) per capita income 
B) life expectancy at birth 
C) per capita energy consumption 
D) daily per capita calorie supply 
A) per capita income 
B) life expectancy at birth 
C) per capita energy consumption 
D) daily per capita calorie supply

Question 13

One suggested policy that industrially advanced nations could adopt to foster economic growth in less-developed nations would be to

Accepted Answer

A) leave the responsibility to the World Bank. 
B) direct foreign aid to the poorest DVCs. 
C) recruit more skilled workers from DVCs. 
D) target the banking sector for the most help. 
A) leave the responsibility to the World Bank. 
B) direct foreign aid to the poorest DVCs. 
C) recruit more skilled workers from DVCs. 
D) target the banking sector for the most help.

Question 14

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Accepted Answer

A) True 
 B)False

Question 15

Increases in the total real output of many DVCs do not increase the nation's standard of living because

Accepted Answer

A) diminishing returns may be encountered in increasing total output. 
B) population increases may dissipate the increase in real output. 
C) disguised unemployment in agriculture will persist. 
D) surplus farm labor may move from rural areas to industrial areas, causing unemployment. 
A) diminishing returns may be encountered in increasing total output. 
B) population increases may dissipate the increase in real output. 
C) disguised unemployment in agriculture will persist. 
D) surplus farm labor may move from rural areas to industrial areas, causing unemployment.

Question 16

Most economists agree that government efforts in economic development must be

Accepted Answer

A) employed to substitute for private efforts. 
B) designed to support private efforts. 
C) the sole driver of economic development. 
D) kept at a minimum because we can always rely on markets. 
A) employed to substitute for private efforts. 
B) designed to support private efforts. 
C) the sole driver of economic development. 
D) kept at a minimum because we can always rely on markets.

Question 17

Approximately what percentage of the world's income is received by the poorest one-fifth of the world's population?

Accepted Answer

A) 2 
B) 5 
C) 7 
D) 10 
A) 2 
B) 5 
C) 7 
D) 10

Question 18

Government can play a major positive role in the early stage of economic development by

Accepted Answer

A) providing an adequate infrastructure. 
B) establishing price controls for products. 
C) promoting exports by subsidizing them. 
D) creating marketing boards for export products. 
A) providing an adequate infrastructure. 
B) establishing price controls for products. 
C) promoting exports by subsidizing them. 
D) creating marketing boards for export products.

Question 19

Which of the following is not a DVC policy likely to increase DVC economic growth?

Accepted Answer

A) encouraging direct foreign investment 
B) opening economics to world trade 
C) establishing independent central banks 
D) encouraging emigration of highly skilled workers 
A) encouraging direct foreign investment 
B) opening economics to world trade 
C) establishing independent central banks 
D) encouraging emigration of highly skilled workers

Question 20

Birth- and population-control efforts in many DVCs (developing countries) face the following obstacles except

Accepted Answer

A) low literacy rates. 
B) religious reasons. 
C) a peasant agriculture view about children. 
D) government authorities. 
A) low literacy rates. 
B) religious reasons. 
C) a peasant agriculture view about children. 
D) government authorities.

Exam 22: The Economics of Developing Countries

It is sometimes difficult to transfer the advanced technologies of the industrialized nations to the DVCs because

For DVC per capita incomes to rise, birth rates must first be reduced.This statement describes the

Which of the following countries had the highest per capita energy consumption in 2013?

The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7 percent per year.This compares to what percentage growth per year in low- income DVCs (developing countries)?

An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.

A highly active role by government may be needed to promote economic growth in low-income DVCs because of

Economic growth in the DVCs might increase if IACs

The ability of the DVCs to use the technologies of the IACs is somewhat limited because

If the real GDP of a DVC increases from $600 billion to $630 billion and its population increases from 200 million to 216 million, its real per capita GDP will

In the 1990s,

The levels of national income per capita among developing countries (DVCs) are

What measure of economic development is used most often to classify nations as industrially advanced or as developing?

One suggested policy that industrially advanced nations could adopt to foster economic growth in less-developed nations would be to

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Increases in the total real output of many DVCs do not increase the nation's standard of living because

Most economists agree that government efforts in economic development must be

Approximately what percentage of the world's income is received by the poorest one-fifth of the world's population?

Government can play a major positive role in the early stage of economic development by

Which of the following is not a DVC policy likely to increase DVC economic growth?

Birth- and population-control efforts in many DVCs (developing countries) face the following obstacles except

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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