Question 1

The country with the second-highest GDP in the world, behind only the United States, is

Accepted Answer

A)  China. 
B)  India. 
C)  Germany. 
D)  Russia. 
A)  China. 
B)  India. 
C)  Germany. 
D)  Russia.

Question 2

Related to the Economics in Practice on p. 710: According to the World Bank, of the following countries, which one has the lowest controls on corruption?

Accepted Answer

A)  Germany 
B)  India 
C)  China 
D)  Nigeria 
A)  Germany 
B)  India 
C)  China 
D)  Nigeria

Question 3

An alternative to ________ is to rely on natural experiments to mimic the controlled experiment.

Accepted Answer

A)  random experiments 
B)  mirror experiments 
C)  manipulated experiments 
D)  predetermined experiments 
A)  random experiments 
B)  mirror experiments 
C)  manipulated experiments 
D)  predetermined experiments

Question 4

A frequently cited barrier to economic development is the apparent shortage of entrepreneurial activity in developing nations.

Accepted Answer

A) True 
 B)False

Question 5

In India, services have led to growth, particularly in the software industry.

Accepted Answer

A) True 
 B)False

Question 6

Related to the Economics in Practice on page 704: Of the children under 5 years of age in the world who are characterized as extremely short due to malnutrition, one half are in

Accepted Answer

A)  Africa. 
B)  Asia. 
C)  South America. 
D)  Eastern Europe. 
A)  Africa. 
B)  Asia. 
C)  South America. 
D)  Eastern Europe.

Question 7

Remittances can be used as investment capital for small businesses.

Accepted Answer

A) True 
 B)False

Question 8

With microfinance, the mechanism of peer lending is a way to avoid the problem of

Accepted Answer

A)  capital flight. 
B)  imperfect information. 
C)  the tragedy of the commons. 
D)  a double coincidence of wants. 
A)  capital flight. 
B)  imperfect information. 
C)  the tragedy of the commons. 
D)  a double coincidence of wants.

Question 9

Capital flight is a barrier to economic growth in developing countries.

Accepted Answer

A) True 
 B)False

Question 10

An alternative to random experiments is to rely on ________ to mimic the controlled experiment.

Accepted Answer

A)  natural experiments 
B)  mirror experiments 
C)  manipulated experiments 
D)  predetermined experiments 
A)  natural experiments 
B)  mirror experiments 
C)  manipulated experiments 
D)  predetermined experiments

Question 11

The World Bank is an international agency that lends money to individual countries for projects that promote economic development.

Accepted Answer

A) True 
 B)False

Question 12

India is a democratic country with a history of rule-of-law and an English-speaking heritage, all factors thought to give a development advantage.

Accepted Answer

A) True 
 B)False

Question 13

The practice of lending very small amounts of money, without collateral, and accepting small savings deposits is known as

Accepted Answer

A)  microfinance. 
B)  capital flight. 
C)  debt rescheduling. 
D)  a stabilization program. 
A)  microfinance. 
B)  capital flight. 
C)  debt rescheduling. 
D)  a stabilization program.

Question 14

Capital flight refers to the fact that both human and financial capital

Accepted Answer

A)  flow into developing countries to build much needed infrastructure. 
B)  leave developing countries in search of a higher rate of return. 
C)  leave developed countries in search of a higher rate of return. 
D)  flow into developing countries to invest in risk free investments. 
A)  flow into developing countries to build much needed infrastructure. 
B)  leave developing countries in search of a higher rate of return. 
C)  leave developed countries in search of a higher rate of return. 
D)  flow into developing countries to invest in risk free investments.

Question 15

From 1990 to 2013, mortality under age 5 has ________ and the literacy rate has ________ in China.

Accepted Answer

A)  increased; decreased 
B)  decreased; increased 
C)  increased; increased 
D)  decreased; decreased 
A)  increased; decreased 
B)  decreased; increased 
C)  increased; increased 
D)  decreased; decreased

Question 16

Economic growth guarantees economic development.

Accepted Answer

A) True 
 B)False

Question 17

A majority of the population of the Global South live in ________ and work ________.

Accepted Answer

A)  rural areas; in agriculture 
B)  urban areas; in factories 
C)  rural areas; in urban areas 
D)  urban areas; for the government 
A)  rural areas; in agriculture 
B)  urban areas; in factories 
C)  rural areas; in urban areas 
D)  urban areas; for the government

Question 18

The government's role in a developing country is important during the country's development process because building social overhead capital

Accepted Answer

A)  cannot be taken on by the private sector. 
B)  can only be financed by the private sector. 
C)  requires a joint venture between the public and private sectors. 
D)  can only be achieved in a developing country. 
A)  cannot be taken on by the private sector. 
B)  can only be financed by the private sector. 
C)  requires a joint venture between the public and private sectors. 
D)  can only be achieved in a developing country.

Question 19

________ implementing export promotion policies is Japan.

Accepted Answer

A)  One of the most successful countries in 
B)  One of the least successful countries in 
C)  The only developed country that has banned 
D)  The only developed country that has been successful in 
A)  One of the most successful countries in 
B)  One of the least successful countries in 
C)  The only developed country that has banned 
D)  The only developed country that has been successful in

Question 20

India is on the World Bank's list of ________ countries yet its capital city is one of the top ten centers of commerce in the world.

Accepted Answer

A)  low-income 
B)  lower middle-income 
C)  upper middle-income 
D)  high-income 
A)  low-income 
B)  lower middle-income 
C)  upper middle-income 
D)  high-income

Exam 21: Economic Growth in Developing Economies

The country with the second-highest GDP in the world, behind only the United States, is

Related to the Economics in Practice on p. 710: According to the World Bank, of the following countries, which one has the lowest controls on corruption?

An alternative to ________ is to rely on natural experiments to mimic the controlled experiment.

A frequently cited barrier to economic development is the apparent shortage of entrepreneurial activity in developing nations.

In India, services have led to growth, particularly in the software industry.

Related to the Economics in Practice on page 704: Of the children under 5 years of age in the world who are characterized as extremely short due to malnutrition, one half are in

Remittances can be used as investment capital for small businesses.

With microfinance, the mechanism of peer lending is a way to avoid the problem of

Capital flight is a barrier to economic growth in developing countries.

An alternative to random experiments is to rely on ________ to mimic the controlled experiment.

The World Bank is an international agency that lends money to individual countries for projects that promote economic development.

India is a democratic country with a history of rule-of-law and an English-speaking heritage, all factors thought to give a development advantage.

The practice of lending very small amounts of money, without collateral, and accepting small savings deposits is known as

Capital flight refers to the fact that both human and financial capital

From 1990 to 2013, mortality under age 5 has ________ and the literacy rate has ________ in China.

Economic growth guarantees economic development.

A majority of the population of the Global South live in ________ and work ________.

The government's role in a developing country is important during the country's development process because building social overhead capital

________ implementing export promotion policies is Japan.

India is on the World Bank's list of ________ countries yet its capital city is one of the top ten centers of commerce in the world.

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

From 1990 to 2013, mortality under age 5 has and the literacy rate has in China.

A majority of the population of the Global South live in and work .