Question 1

Insufficient capital formation has been suggested as an explanation for the ________ economic growth in many poor nations.

Accepted Answer

A)  lack of 
B)  rapid 
C)  slow and steady 
D)  continued 
A)  lack of 
B)  rapid 
C)  slow and steady 
D)  continued

Question 2

Import substitution is the process of developing local industries to manufacture goods to

Accepted Answer

A)  replace imports. 
B)  import. 
C)  replace exports. 
D)  export. 
A)  replace imports. 
B)  import. 
C)  replace exports. 
D)  export.

Question 3

Data from the United Nations indicate that in 2014, ________ people experienced extreme hunger.

Accepted Answer

A)  125 million 
B)  870 million 
C)  5.4 billion 
D)  almost 10 billion 
A)  125 million 
B)  870 million 
C)  5.4 billion 
D)  almost 10 billion

Question 4

Export promotion policies try to encourage firms to produce more of the products for which the country has a comparative advantage.

Accepted Answer

A) True 
 B)False

Question 5

China is politically authoritarian and does not have well-established property rights, characteristics which were once thought to hinder growth.

Accepted Answer

A) True 
 B)False

Question 6

A lack of infrastructure can limit a poor nation's economic growth.

Accepted Answer

A) True 
 B)False

Question 7

________ refers to the fact that both human and financial capital leave developing countries in search of a higher rate of return.

Accepted Answer

A)  Urbanization 
B)  Capital flight 
C)  Outsourcing 
D)  Divestiture 
A)  Urbanization 
B)  Capital flight 
C)  Outsourcing 
D)  Divestiture

Question 8

Countries with the highest level of per-capita GNI tend to generate a large percentage of GDP from agriculture production.

Accepted Answer

A) True 
 B)False

Question 9

Export promotion is the policy in which industrial production is oriented towards

Accepted Answer

A)  foreign producers. 
B)  foreign consumers. 
C)  domestic consumers. 
D)  both A and B. 
A)  foreign producers. 
B)  foreign consumers. 
C)  domestic consumers. 
D)  both A and B.

Question 10

Farm output per person in the Global South is often barely sufficient to feed a farmer's own family.

Accepted Answer

A) True 
 B)False

Question 11

Related to the Economics in Practice on page 704: ________ children under 5 years of age in the world are characterized as extremely short due to malnutrition.

Accepted Answer

A)  1 in 20 
B)  1 in 10 
C)  1 in 4 
D)  1 in 2 
A)  1 in 20 
B)  1 in 10 
C)  1 in 4 
D)  1 in 2

Question 12

A "brain drain" is

Accepted Answer

A)  the tendency of workers in developing countries to reject new technologies. 
B)  the tendency of talented people in developing countries to get education in developed countries and to stay there after graduation. 
C)  the impact of poverty on the productivity of workers in developing countries. 
D)  the impact of malnutrition on education and productivity in developing countries. 
A)  the tendency of workers in developing countries to reject new technologies. 
B)  the tendency of talented people in developing countries to get education in developed countries and to stay there after graduation. 
C)  the impact of poverty on the productivity of workers in developing countries. 
D)  the impact of malnutrition on education and productivity in developing countries.

Question 13

The disparity in child mortality rates between the Global North and the Global South

Accepted Answer

A)  has virtually disappeared. 
B)  remains very high. 
C)  has been cut roughly in half in percentage terms. 
D)  has more than tripled over the past 25 years. 
A)  has virtually disappeared. 
B)  remains very high. 
C)  has been cut roughly in half in percentage terms. 
D)  has more than tripled over the past 25 years.

Question 14

A World Bank study found that charging user fees for medical treatment in developing countries

Accepted Answer

A)  had no significant effect on treatment rates. 
B)  dramatically reduced treatment rates. 
C)  slightly increased treatment rates. 
D)  greatly increased treatment rates. 
A)  had no significant effect on treatment rates. 
B)  dramatically reduced treatment rates. 
C)  slightly increased treatment rates. 
D)  greatly increased treatment rates.

Question 15

Related to the Economics in Practice on page 710: Which of the following is true concerning economic development in many countries?

Accepted Answer

A)  It is affected by the level of corruption. 
B)  It is affected by inefficiency in government. 
C)  As corruption falls, the cost of production often falls. 
D)  All of the above are true. 
A)  It is affected by the level of corruption. 
B)  It is affected by inefficiency in government. 
C)  As corruption falls, the cost of production often falls. 
D)  All of the above are true.

Question 16

A very small percentage of GDP tends to come from the service sectors in poor countries.

Accepted Answer

A) True 
 B)False

Question 17

In a developing economy, scarcity of capital may have more to do with a lack of incentive for citizens to save and invest productively than with any absolute scarcity of income available for capital accumulation.

Accepted Answer

A) True 
 B)False

Question 18

Health and education are two of the lynch pins of economic development.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following characteristics is shared by India and China?

Accepted Answer

A)  Both are typically labeled as developing countries. 
B)  Both have increasing birth rates. 
C)  Both are politically authoritarian. 
D)  Both have low life-expectancy rates. 
A)  Both are typically labeled as developing countries. 
B)  Both have increasing birth rates. 
C)  Both are politically authoritarian. 
D)  Both have low life-expectancy rates.

Question 20

Which of the following factors has been suggested as an explanation for the lack of economic growth in many poor nations?

Accepted Answer

A)  insufficient capital formation 
B)  the supply of human resources is too high. 
C)  inadequate level of resources 
D)  a lack of dependence on the already developed nations 
A)  insufficient capital formation 
B)  the supply of human resources is too high. 
C)  inadequate level of resources 
D)  a lack of dependence on the already developed nations

Exam 21: Economic Growth in Developing Economies

Insufficient capital formation has been suggested as an explanation for the ________ economic growth in many poor nations.

Import substitution is the process of developing local industries to manufacture goods to

Data from the United Nations indicate that in 2014, ________ people experienced extreme hunger.

Export promotion policies try to encourage firms to produce more of the products for which the country has a comparative advantage.

China is politically authoritarian and does not have well-established property rights, characteristics which were once thought to hinder growth.

A lack of infrastructure can limit a poor nation's economic growth.

________ refers to the fact that both human and financial capital leave developing countries in search of a higher rate of return.

Countries with the highest level of per-capita GNI tend to generate a large percentage of GDP from agriculture production.

Export promotion is the policy in which industrial production is oriented towards

Farm output per person in the Global South is often barely sufficient to feed a farmer's own family.

Related to the Economics in Practice on page 704: ________ children under 5 years of age in the world are characterized as extremely short due to malnutrition.

A "brain drain" is

The disparity in child mortality rates between the Global North and the Global South

A World Bank study found that charging user fees for medical treatment in developing countries

Related to the Economics in Practice on page 710: Which of the following is true concerning economic development in many countries?

A very small percentage of GDP tends to come from the service sectors in poor countries.

In a developing economy, scarcity of capital may have more to do with a lack of incentive for citizens to save and invest productively than with any absolute scarcity of income available for capital accumulation.

Health and education are two of the lynch pins of economic development.

Which of the following characteristics is shared by India and China?

Which of the following factors has been suggested as an explanation for the lack of economic growth in many poor nations?

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

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