Question 1

From 1978 to 2003, the economy of ________ grew on average 9 percent per year, a rate faster than any other country in the world.

Accepted Answer

A)  India 
B)  China 
C)  the United States 
D)  Russia 
A)  India 
B)  China 
C)  the United States 
D)  Russia B

Question 2

Human capital is an important ingredient in the economic growth of a nation.

Accepted Answer

A) True 
 B)False  True

Question 3

Most economists believe that import-substitution strategies have been quite successful around the world.

Accepted Answer

A) True 
 B)False  False

Question 4

All of the following are factors that limit a poor nation's economic growth except

Accepted Answer

A)  insufficient capital formation. 
B)  insufficient controls on free trade. 
C)  lack of entrepreneurial ability. 
D)  lack of human capital. 
A)  insufficient capital formation. 
B)  insufficient controls on free trade. 
C)  lack of entrepreneurial ability. 
D)  lack of human capital.

Question 5

Related to the Economics in Practice on page 716: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, profits ________ and consumer prices ________.

Accepted Answer

A)  rose; fell 
B)  fell; rose 
C)  rose; rose 
D)  fell; fell 
A)  rose; fell 
B)  fell; rose 
C)  rose; rose 
D)  fell; fell

Question 6

Related to the Economics in Practice on page 707: Which of the following is not one of the MDG concerns?

Accepted Answer

A)  hunger 
B)  gender equality 
C)  stunting 
D)  investment opportunities for the poor 
A)  hunger 
B)  gender equality 
C)  stunting 
D)  investment opportunities for the poor

Question 7

The ________ capital in developing nations causes labor productivity to remain low.

Accepted Answer

A)  lack of 
B)  subsidized 
C)  reassignment of 
D)  increase in privately controlled 
A)  lack of 
B)  subsidized 
C)  reassignment of 
D)  increase in privately controlled

Question 8

The following situation is an example of an export promotion strategy. Guatemala has a comparative advantage in the production of bananas and, as a result, the Guatemalan government grants incentives to banana growers to improve their performance in the international marketplace.

Accepted Answer

A) True 
 B)False

Question 9

The International Monetary Fund lends money to countries to

Accepted Answer

A)  finance their international transactions. 
B)  stabilize their exchange rates. 
C)  promote their economic development. 
D)  Both A and B are correct. 
A)  finance their international transactions. 
B)  stabilize their exchange rates. 
C)  promote their economic development. 
D)  Both A and B are correct.

Question 10

China and India both have rapidly developing economies. Which of the following characteristics is shared by India and China?

Accepted Answer

A)  Both have embraced free-market economies. 
B)  Property rights are well established in both countries. 
C)  Both are democratic countries. 
D)  Both have high literacy rates. 
A)  Both have embraced free-market economies. 
B)  Property rights are well established in both countries. 
C)  Both are democratic countries. 
D)  Both have high literacy rates.

Question 11

________ is (are) estimated at approximately $100 billion per year.

Accepted Answer

A)  Remittances sent from developed countries to less developed countries 
B)  Capital flight from the United States 
C)  Social overhead capital in the United States 
D)  The value of brain drain flowing into the United States 
A)  Remittances sent from developed countries to less developed countries 
B)  Capital flight from the United States 
C)  Social overhead capital in the United States 
D)  The value of brain drain flowing into the United States

Question 12

Literacy rates in the Global South ________ the Global North.

Accepted Answer

A)  have caught up to those in 
B)  are still significantly lower than those in 
C)  have surpassed those in 
D)  are falling even farther behind those in 
A)  have caught up to those in 
B)  are still significantly lower than those in 
C)  have surpassed those in 
D)  are falling even farther behind those in

Question 13

A policy in which a government actively picks industries to support as a base for economic development is known as

Accepted Answer

A)  social policy. 
B)  first-choice policy. 
C)  preferential policy. 
D)  industrial policy. 
A)  social policy. 
B)  first-choice policy. 
C)  preferential policy. 
D)  industrial policy.

Question 14

Microfinance is aimed at introducing entrepreneurs among the very poorest parts of the developing world to the capital market.

Accepted Answer

A) True 
 B)False

Question 15

From 1978 to 2003, China grew on average ________ percent per year, a rate faster than any other country in the world.

Accepted Answer

A)  4 
B)  9 
C)  25 
D)  75 
A)  4 
B)  9 
C)  25 
D)  75

Question 16

Microfinance is the practice of lending ________, with no collateral, and accepting ________ savings deposits.

Accepted Answer

A)  very small amounts of money; small 
B)  foreign currency; foreign currency as 
C)  money electronically; electronic 
D)  government-backed funds; government securities as 
A)  very small amounts of money; small 
B)  foreign currency; foreign currency as 
C)  money electronically; electronic 
D)  government-backed funds; government securities as

Question 17

The International Monetary Fund (IMF) makes loans to encourage economic development.

Accepted Answer

A) True 
 B)False

Question 18

Microfinance is aimed at encouraging entrepreneurs among the very poorest parts of the developing world to relocate to high-income countries.

Accepted Answer

A) True 
 B)False

Question 19

A World bank study conducted in Kenya found that as the proportion of vaccinated people in a village grew, more people wanted to get vaccinated.

Accepted Answer

A) True 
 B)False

Question 20

One of the most successful countries in implementing export promotion policies is

Accepted Answer

A)  the United States. 
B)  Germany. 
C)  China. 
D)  Japan. 
A)  the United States. 
B)  Germany. 
C)  China. 
D)  Japan.

Exam 21: Economic Growth in Developing Economies

From 1978 to 2003, the economy of ________ grew on average 9 percent per year, a rate faster than any other country in the world.

Human capital is an important ingredient in the economic growth of a nation.

Most economists believe that import-substitution strategies have been quite successful around the world.

All of the following are factors that limit a poor nation's economic growth except

Related to the Economics in Practice on page 716: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, profits ________ and consumer prices ________.

Related to the Economics in Practice on page 707: Which of the following is not one of the MDG concerns?

The ________ capital in developing nations causes labor productivity to remain low.

The following situation is an example of an export promotion strategy. Guatemala has a comparative advantage in the production of bananas and, as a result, the Guatemalan government grants incentives to banana growers to improve their performance in the international marketplace.

The International Monetary Fund lends money to countries to

China and India both have rapidly developing economies. Which of the following characteristics is shared by India and China?

________ is (are) estimated at approximately $100 billion per year.

Literacy rates in the Global South ________ the Global North.

A policy in which a government actively picks industries to support as a base for economic development is known as

Microfinance is aimed at introducing entrepreneurs among the very poorest parts of the developing world to the capital market.

From 1978 to 2003, China grew on average ________ percent per year, a rate faster than any other country in the world.

Microfinance is the practice of lending ________, with no collateral, and accepting ________ savings deposits.

The International Monetary Fund (IMF) makes loans to encourage economic development.

Microfinance is aimed at encouraging entrepreneurs among the very poorest parts of the developing world to relocate to high-income countries.

A World bank study conducted in Kenya found that as the proportion of vaccinated people in a village grew, more people wanted to get vaccinated.

One of the most successful countries in implementing export promotion policies is

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Critical Thinking About Research

Filters

Related to the Economics in Practice on page 716: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, profits and consumer prices .

Microfinance is the practice of lending , with no collateral, and accepting savings deposits.