Question 1

The World Bank seeks to

Accepted Answer

A) provide financial backing for the work of the International Monetary Fund. 
B) maintain stable exchange rates in the currencies of developing countries. 
C) assist developing countries in achieving economic growth. 
D) maximize its profits for its worldwide shareholders. 
A) provide financial backing for the work of the International Monetary Fund. 
B) maintain stable exchange rates in the currencies of developing countries. 
C) assist developing countries in achieving economic growth. 
D) maximize its profits for its worldwide shareholders.

Question 2

The demographic transition view of population growth argues that, on average (and as perceived by parents), the marginal

Accepted Answer

A) benefits of extra children are larger in IACs than in DVCs. 
B) costs of extra children are lower in IACs than in DVCs. 
C) costs of extra children are larger in IACs than in DVCs. 
D) benefits of extra children are the same in DVCs and IACs. 
A) benefits of extra children are larger in IACs than in DVCs. 
B) costs of extra children are lower in IACs than in DVCs. 
C) costs of extra children are larger in IACs than in DVCs. 
D) benefits of extra children are the same in DVCs and IACs.

Question 3

Which of the following countries had the highest per capita income (on a purchasing power parity basis) in 2014?

Accepted Answer

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

Question 4

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Accepted Answer

A) True 
 B)False

Question 5

The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

Accepted Answer

A) True 
 B)False

Question 6

An IAC (industrially advanced country) had a per capita income of $28,200, while a DVC (developing country) had a per capita income of $1,200 in a given year.If both countries experience a per-capita-income growth of 2 percent, then their respective per-capita-income levels one year later will become

Accepted Answer

A) $33,840 and $1,440. 
B) $28,764 and $1,224. 
C) $33,840 and $1,224. 
D) $28,764 and $1,440. 
A) $33,840 and $1,440. 
B) $28,764 and $1,224. 
C) $33,840 and $1,224. 
D) $28,764 and $1,440.

Question 7

The role of government in fostering economic growth in DVCs has been criticized because

Accepted Answer

A) most governments operate as dictatorships. 
B) there is often poor administration and corruption in government. 
C) government is generally supportive of business at the expense of labor. 
D) governments have adopted the unpopular method of forced savings to stimulate investment. 
A) most governments operate as dictatorships. 
B) there is often poor administration and corruption in government. 
C) government is generally supportive of business at the expense of labor. 
D) governments have adopted the unpopular method of forced savings to stimulate investment.

Question 8

A reason for placing special emphasis on capital accumulation in developing countries is the high

Accepted Answer

A) level of adult illiteracy. 
B) productivity of workers in DVCs. 
C) marginal benefits of capital goods. 
D) level of import quotas and tariffs. 
A) level of adult illiteracy. 
B) productivity of workers in DVCs. 
C) marginal benefits of capital goods. 
D) level of import quotas and tariffs.

Question 9

(Last Word) Early experiments with unconditional cash transfers have revealed that

Accepted Answer

A) most of these cash transfers are repaid within a very short time. 
B) although the money is usually spent on education and capital, cultural obstacles generally prevent this spending from translating into long-term earnings gains. 
C) a majority of recipients use the money for training and equipment that results in a higher long-term income. 
D) most recipients spend the money on current consumption and realize no long-term gain in earning power. 
A) most of these cash transfers are repaid within a very short time. 
B) although the money is usually spent on education and capital, cultural obstacles generally prevent this spending from translating into long-term earnings gains. 
C) a majority of recipients use the money for training and equipment that results in a higher long-term income. 
D) most recipients spend the money on current consumption and realize no long-term gain in earning power.

Question 10

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth.What view of DVC population growth would this study be supporting?

Accepted Answer

A) traditional view 
B) peasant agriculture view 
C) the will-to-develop view 
D) demographic transition view 
A) traditional view 
B) peasant agriculture view 
C) the will-to-develop view 
D) demographic transition view

Question 11

In recent decades,

Accepted Answer

A) all countries classified as DVCs have had little or no economic growth. 
B) some nations classified as DVCs have grown rapidly, while others have grown very slowly or not at all. 
C) all countries classified as DVCs have experienced rapid economic growth and rising living standards. 
D) all countries classified as low-income DVCs have had declining per capita GDPs. 
A) all countries classified as DVCs have had little or no economic growth. 
B) some nations classified as DVCs have grown rapidly, while others have grown very slowly or not at all. 
C) all countries classified as DVCs have experienced rapid economic growth and rising living standards. 
D) all countries classified as low-income DVCs have had declining per capita GDPs.

Question 12

One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.

Accepted Answer

A) True 
 B)False

Question 13

One common measure of the "standard of living" in a nation is

Accepted Answer

A) per capita real income. 
B) unemployment rate. 
C) real GDP. 
D) population size. 
A) per capita real income. 
B) unemployment rate. 
C) real GDP. 
D) population size.

Question 14

Which of the following is not an example of a sociocultural impediment to economic growth?

Accepted Answer

A) tribal allegiances that take precedence over national unity 
B) religious beliefs and practices that severely limit economic activity 
C) migration of labor resources from agricultural to urban areas 
D) a system for allocating jobs based on caste or tradition 
A) tribal allegiances that take precedence over national unity 
B) religious beliefs and practices that severely limit economic activity 
C) migration of labor resources from agricultural to urban areas 
D) a system for allocating jobs based on caste or tradition

Question 15

Without an abundant endowment of natural resources, a nation cannot achieve rapid economic growth.

Accepted Answer

A) True 
 B)False

Question 16

Over the next 15 years, roughly what percentage of the increase in world population will come from DVCs?

Accepted Answer

A) 25 percent 
B) 50 percent 
C) 70 percent 
D) 90 percent 
A) 25 percent 
B) 50 percent 
C) 70 percent 
D) 90 percent

Question 17

Development experts are less enthusiastic than they used to be about three decades ago about the positive role of DVC governments in promoting economic growth in their less- developed nations because of the

Accepted Answer

A) corruption in government. 
B) availability of foreign aid. 
C) need for a greater tax collection. 
D) need for more public capital goods. 
A) corruption in government. 
B) availability of foreign aid. 
C) need for a greater tax collection. 
D) need for more public capital goods.

Question 18

Which of the following nations is not considered an industrially advanced country?

Accepted Answer

A) Russia 
B) Japan 
C) Canada 
D) Australia 
A) Russia 
B) Japan 
C) Canada 
D) Australia

Question 19

The poorest 20 percent of the world's population receive what percentage of world income?

Accepted Answer

A) less than 2 percent 
B) about 4 percent 
C) around 8 percent 
D) close to 10 percent 
A) less than 2 percent 
B) about 4 percent 
C) around 8 percent 
D) close to 10 percent

Question 20

A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is

Accepted Answer

A) capital using. 
B) capital saving. 
C) capital intensive. 
D) an in-kind investment. 
A) capital using. 
B) capital saving. 
C) capital intensive. 
D) an in-kind investment.

Exam 22: The Economics of Developing Countries

The World Bank seeks to

The demographic transition view of population growth argues that, on average (and as perceived by parents), the marginal

Which of the following countries had the highest per capita income (on a purchasing power parity basis) in 2014?

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

The role of government in fostering economic growth in DVCs has been criticized because

A reason for placing special emphasis on capital accumulation in developing countries is the high

(Last Word) Early experiments with unconditional cash transfers have revealed that

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth.What view of DVC population growth would this study be supporting?

In recent decades,

One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.

One common measure of the "standard of living" in a nation is

Which of the following is not an example of a sociocultural impediment to economic growth?

Without an abundant endowment of natural resources, a nation cannot achieve rapid economic growth.

Over the next 15 years, roughly what percentage of the increase in world population will come from DVCs?

Development experts are less enthusiastic than they used to be about three decades ago about the positive role of DVC governments in promoting economic growth in their less- developed nations because of the

Which of the following nations is not considered an industrially advanced country?

The poorest 20 percent of the world's population receive what percentage of world income?

A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is

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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