Question 1

Policies designed to promote import substitution often encouraged capital-intensive production methods.

Accepted Answer

A) True 
 B)False

Question 2

"Brain drain" results in many of the most talented minds leaving developing countries for developed countries.

Accepted Answer

A) True 
 B)False

Question 3

Building roads, power generators, and irrigation systems are projects that are referred to as

Accepted Answer

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

Question 4

Despite India being on the World Bank's list of low-income countries, its capital city, Mumbai, is one of the top ten centers of commerce in the world.

Accepted Answer

A) True 
 B)False

Question 5

Social overhead capital guarantees economic growth.

Accepted Answer

A) True 
 B)False

Question 6

Investment in social overhead capital refers to investment in areas like education and nutrition.

Accepted Answer

A) True 
 B)False

Question 7

Human capital shortages are not a barrier to economic growth in developing countries.

Accepted Answer

A) True 
 B)False

Question 8

Over the past 25 years, child mortality has ________ and literacy has ________ in developed 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 9

China's approach to market development has been

Accepted Answer

A)  pragmatic and gradual. 
B)  nonexistent. 
C)  inefficient and intermittent. 
D)  unrealistic and uneven. 
A)  pragmatic and gradual. 
B)  nonexistent. 
C)  inefficient and intermittent. 
D)  unrealistic and uneven.

Question 10

Related to the Economics in Practice on p. 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, ________ in this fishing industry was virtually eliminated.

Accepted Answer

A)  human capital 
B)  profit 
C)  competition 
D)  waste 
A)  human capital 
B)  profit 
C)  competition 
D)  waste

Question 11

An economy is not able to develop because of a lack of capital. Which of the following strategies would you suggest this economy pursue?

Accepted Answer

A)  lower interest rates 
B)  impose quotas on how much capital can be imported from other countries to reduce dependency on foreign capital 
C)  increase the political stability of the economy 
D)  nationalize private enterprises because the government sector is not motivated by profit maximization 
A)  lower interest rates 
B)  impose quotas on how much capital can be imported from other countries to reduce dependency on foreign capital 
C)  increase the political stability of the economy 
D)  nationalize private enterprises because the government sector is not motivated by profit maximization

Question 12

Compared to traditional bank loans, microfinance loans have all of the following characteristics except

Accepted Answer

A)  they are much smaller. 
B)  they require no collateral. 
C)  they are made more frequently to women than to men. 
D)  they have repayments that begin at a much later date. 
A)  they are much smaller. 
B)  they require no collateral. 
C)  they are made more frequently to women than to men. 
D)  they have repayments that begin at a much later date.

Question 13

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

Accepted Answer

A)  a higher rate of literacy 
B)  a larger percentage of the labor force in urban areas 
C)  a lower infant mortality rate 
D)  lower productivity in the agricultural sector 
A)  a higher rate of literacy 
B)  a larger percentage of the labor force in urban areas 
C)  a lower infant mortality rate 
D)  lower productivity in the agricultural sector

Policies designed to promote import substitution often encouraged capital-intensive production methods.

"Brain drain" results in many of the most talented minds leaving developing countries for developed countries.

Building roads, power generators, and irrigation systems are projects that are referred to as

Despite India being on the World Bank's list of low-income countries, its capital city, Mumbai, is one of the top ten centers of commerce in the world.

Social overhead capital guarantees economic growth.

Investment in social overhead capital refers to investment in areas like education and nutrition.

Human capital shortages are not a barrier to economic growth in developing countries.

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

China's approach to market development has been

Related to the Economics in Practice on p. 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, ________ in this fishing industry was virtually eliminated.

An economy is not able to develop because of a lack of capital. Which of the following strategies would you suggest this economy pursue?

Compared to traditional bank loans, microfinance loans have all of the following characteristics except

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

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

Exam 21: Economic Growth in Developing Economies

Policies designed to promote import substitution often encouraged capital-intensive production methods.

"Brain drain" results in many of the most talented minds leaving developing countries for developed countries.

Building roads, power generators, and irrigation systems are projects that are referred to as

Despite India being on the World Bank's list of low-income countries, its capital city, Mumbai, is one of the top ten centers of commerce in the world.

Social overhead capital guarantees economic growth.

Investment in social overhead capital refers to investment in areas like education and nutrition.

Human capital shortages are not a barrier to economic growth in developing countries.

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

China's approach to market development has been

Related to the Economics in Practice on p. 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, ________ in this fishing industry was virtually eliminated.

An economy is not able to develop because of a lack of capital. Which of the following strategies would you suggest this economy pursue?

Compared to traditional bank loans, microfinance loans have all of the following characteristics except

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

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

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