Question 1

The transition to a developing economy typically involves a movement away from agriculture.

Accepted Answer

A) True 
 B)False

Question 2

In some African nations, less than half of the adult population are literate.

Accepted Answer

A) True 
 B)False

Question 3

Related to the Economics in Practice on page 716: In the Kerala region of India, fishermen used cell phones to help connect buyers and sellers, reducing waste. All of the following describe ways in which technology is likely to improve information flow and increase economic efficiency except

Accepted Answer

A)  fax technology makes it possible to transmit signed contracts in seconds, allowing the parties to the contract to begin performing their contract duties more quickly. 
B)  high-speed Internet connections allow engineers in developing countries to collaborate with firms all around the world. 
C)  e-mail now makes criminals who commit certain kinds of fraud very difficult to identify and arrest. 
D)  video conferencing decreases the need for expensive business travel. 
A)  fax technology makes it possible to transmit signed contracts in seconds, allowing the parties to the contract to begin performing their contract duties more quickly. 
B)  high-speed Internet connections allow engineers in developing countries to collaborate with firms all around the world. 
C)  e-mail now makes criminals who commit certain kinds of fraud very difficult to identify and arrest. 
D)  video conferencing decreases the need for expensive business travel.

Question 4

Remittances sent from developed countries are estimated at approximately ________ per year.

Accepted Answer

A)  $2 million 
B)  $50 million 
C)  $100 billion 
D)  $5 trillion 
A)  $2 million 
B)  $50 million 
C)  $100 billion 
D)  $5 trillion

Question 5

With random experiments, outcomes of specific interventions are are determined by using the intervention in a(n) ________ subset of a sample and then comparing outcomes from the exposed and control group.

Accepted Answer

A)  previously tested 
B)  randomly selected 
C)  unrelated 
D)  predetermined 
A)  previously tested 
B)  randomly selected 
C)  unrelated 
D)  predetermined

Question 6

Building infrastructure is referred to as

Accepted Answer

A)  human capital. 
B)  physical capital. 
C)  social overhead capital. 
D)  financial capital. 
A)  human capital. 
B)  physical capital. 
C)  social overhead capital. 
D)  financial capital.

Question 7

Social overhead capital is basic infrastructure projects such as roads, power generation and irrigation systems.

Accepted Answer

A) True 
 B)False

Question 8

Compensation sent back to family in the home country by recent emigrants is known as

Accepted Answer

A)  remittances. 
B)  transaction costs. 
C)  outsourcing. 
D)  capital flight. 
A)  remittances. 
B)  transaction costs. 
C)  outsourcing. 
D)  capital flight.

Question 9

Which of the following characteristics is generally representative of developing countries relative to developed countries?

Accepted Answer

A)  a smaller percentage of the labor force in urban areas 
B)  a lower infant mortality rate 
C)  a greater availability of college education. 
D)  a lower rate of illiteracy 
A)  a smaller percentage of the labor force in urban areas 
B)  a lower infant mortality rate 
C)  a greater availability of college education. 
D)  a lower rate of illiteracy

Question 10

Throughout the developing world, ________ is a problem that affects education.

Accepted Answer

A)  student absenteeism 
B)  teacher absenteeism 
C)  an excess supply of classrooms 
D)  Both A and B are correct. 
A)  student absenteeism 
B)  teacher absenteeism 
C)  an excess supply of classrooms 
D)  Both A and B are correct.

Question 11

Related to the Economic in Practice on page 710: Corruption often leads to more efficient firms producing the goods and services in a society.

Accepted Answer

A) True 
 B)False

Question 12

With ________, outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.

Accepted Answer

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

Question 13

The process of developing local industries to manufacture goods to replace imports is known as

Accepted Answer

A)  export promotion. 
B)  import substitution. 
C)  export favoritism. 
D)  import promotion. 
A)  export promotion. 
B)  import substitution. 
C)  export favoritism. 
D)  import promotion.

Question 14

The policy in which industrial production is oriented towards foreign consumers is called

Accepted Answer

A)  import substitution. 
B)  export promotion. 
C)  export orientation. 
D)  import promotion. 
A)  import substitution. 
B)  export promotion. 
C)  export orientation. 
D)  import promotion.

Question 15

If a developing economy ________ the amount of money its citizens can invest abroad, it has ________ chance of increasing capital formation by forcing its citizens to invest in their own country.

Accepted Answer

A)  restricts; a lesser 
B)  restricts; a greater 
C)  restricts; no 
D)  increases; a greater 
A)  restricts; a lesser 
B)  restricts; a greater 
C)  restricts; no 
D)  increases; a greater

Question 16

Over the past 25 years, child mortality has ________ and literacy has ________ in developing countries.

Accepted Answer

A)  risen; risen 
B)  risen; fallen 
C)  fallen; fallen 
D)  fallen; risen 
A)  risen; risen 
B)  risen; fallen 
C)  fallen; fallen 
D)  fallen; risen

Question 17

A developing economy is considering restricting the amount of money its citizens can invest abroad. What might the purpose of this restriction be?

Accepted Answer

A)  to increase the dependency of the economy on developed economics 
B)  to increase capital formation by forcing its citizens to invest in their own country 
C)  to reduce the nation's trade deficit so that interest rates will be reduced and capital formation will increase 
D)  to increase the degree of equality in the income distribution 
A)  to increase the dependency of the economy on developed economics 
B)  to increase capital formation by forcing its citizens to invest in their own country 
C)  to reduce the nation's trade deficit so that interest rates will be reduced and capital formation will increase 
D)  to increase the degree of equality in the income distribution

Question 18

The government's role in a developing country is important during the country's development process for all of the following reasons except

Accepted Answer

A)  building social overhead capital cannot successfully be taken on by the private sector. 
B)  building infrastructure is a huge project that only the government can undertake. 
C)  many social projects are associated with the free-rider problem, which minimizes the rate of return to the private sector. 
D)  the government is the only institution with a vested interest in a country's development. 
A)  building social overhead capital cannot successfully be taken on by the private sector. 
B)  building infrastructure is a huge project that only the government can undertake. 
C)  many social projects are associated with the free-rider problem, which minimizes the rate of return to the private sector. 
D)  the government is the only institution with a vested interest in a country's development.

Question 19

Remittances are used to fund housing and education for families left behind in the home countries.

Accepted Answer

A) True 
 B)False

Question 20

Throughout the developing world, teacher absenteeism

Accepted Answer

A)  has a much smaller impact on education than does student absenteeism. 
B)  is much lower than it is in developed nations. 
C)  is virtually unheard of. 
D)  is a problem that affects education. 
A)  has a much smaller impact on education than does student absenteeism. 
B)  is much lower than it is in developed nations. 
C)  is virtually unheard of. 
D)  is a problem that affects education.

Exam 21: Economic Growth in Developing Economies

The transition to a developing economy typically involves a movement away from agriculture.

In some African nations, less than half of the adult population are literate.

Related to the Economics in Practice on page 716: In the Kerala region of India, fishermen used cell phones to help connect buyers and sellers, reducing waste. All of the following describe ways in which technology is likely to improve information flow and increase economic efficiency except

Remittances sent from developed countries are estimated at approximately ________ per year.

With random experiments, outcomes of specific interventions are are determined by using the intervention in a(n) ________ subset of a sample and then comparing outcomes from the exposed and control group.

Building infrastructure is referred to as

Social overhead capital is basic infrastructure projects such as roads, power generation and irrigation systems.

Compensation sent back to family in the home country by recent emigrants is known as

Which of the following characteristics is generally representative of developing countries relative to developed countries?

Throughout the developing world, ________ is a problem that affects education.

Related to the Economic in Practice on page 710: Corruption often leads to more efficient firms producing the goods and services in a society.

With ________, outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.

The process of developing local industries to manufacture goods to replace imports is known as

The policy in which industrial production is oriented towards foreign consumers is called

If a developing economy ________ the amount of money its citizens can invest abroad, it has ________ chance of increasing capital formation by forcing its citizens to invest in their own country.

Over the past 25 years, child mortality has ________ and literacy has ________ in developing countries.

A developing economy is considering restricting the amount of money its citizens can invest abroad. What might the purpose of this restriction be?

The government's role in a developing country is important during the country's development process for all of the following reasons except

Remittances are used to fund housing and education for families left behind in the home countries.

Throughout the developing world, teacher absenteeism

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

If a developing economy the amount of money its citizens can invest abroad, it has chance of increasing capital formation by forcing its citizens to invest in their own country.

Over the past 25 years, child mortality has and literacy has in developing countries.