Question 1

Which of the following is true?

Accepted Answer

A)  Nations achieve high rates of economic growth primarily because of their natural resource endowments. 
B)  Human and physical capital investments are largely irrelevant to economic growth. 
C)  Poor nations grow slowly because they do not have access to modern technology. 
D)  A favorable political environment attracts more investment in human and physical capital. 
A)  Nations achieve high rates of economic growth primarily because of their natural resource endowments. 
B)  Human and physical capital investments are largely irrelevant to economic growth. 
C)  Poor nations grow slowly because they do not have access to modern technology. 
D)  A favorable political environment attracts more investment in human and physical capital.

Question 2

Which of the following is not a problem for less-developed countries?

Accepted Answer

A)  Poor health and nutrition. 
B)  Shortages of labor. 
C)  High unemployment rates. 
D)  Low labor productivity. 
E)  low life expectancy 
A)  Poor health and nutrition. 
B)  Shortages of labor. 
C)  High unemployment rates. 
D)  Low labor productivity. 
E)  low life expectancy

Question 3

The vicious circle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services.

Accepted Answer

A) True 
 B)False

Question 4

Infrastructure investment appears to have little impact on economic growth and development.

Accepted Answer

A) True 
 B)False

Question 5

Describe in general terms four or five characteristics of less-developed countries.

Accepted Answer

Less-developed countries have high popul

Question 6

The poorest regions in the world, as measured by GDP per capita, are:

Accepted Answer

A)  Latin America and the Caribbean. 
B)  the Middle East and North Africa. 
C)  Sub-Saharan Africa and South Asia. 
D)  Australia and New Zealand. 
A)  Latin America and the Caribbean. 
B)  the Middle East and North Africa. 
C)  Sub-Saharan Africa and South Asia. 
D)  Australia and New Zealand.

Question 7

In general, GDP per capita is not highly correlated with alternative measures of quality of life.

Accepted Answer

A) True 
 B)False

Question 8

The main purpose of the International Monetary Fund is to manage and distribute U.S. foreign aid.

Accepted Answer

A) True 
 B)False

Question 9

Real GDP per capita and other alternative measures of the quality of life are:

Accepted Answer

A)  independent. 
B)  directly correlated. 
C)  poorly correlated. 
D)  inversely related. 
A)  independent. 
B)  directly correlated. 
C)  poorly correlated. 
D)  inversely related.

Question 10

Which of the following is infrastructure?

Accepted Answer

A)  Highways. 
B)  Bridges. 
C)  Airports. 
D)  All of these. 
A)  Highways. 
B)  Bridges. 
C)  Airports. 
D)  All of these.

Question 11

Receipt of foreign aid permits less-developed countries to move to a point outside their production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 12

Economic development encompasses which of the following measures?

Accepted Answer

A)  Economic growth. 
B)  The political environment. 
C)  Education. 
D)  All of these. 
A)  Economic growth. 
B)  The political environment. 
C)  Education. 
D)  All of these.

Question 13

An outward shift of an economy's production possibilities curve is caused by:

Accepted Answer

A)  an increase in capital. 
B)  an increase in labor. 
C)  an advance in technology. 
D)  all of these. 
A)  an increase in capital. 
B)  an increase in labor. 
C)  an advance in technology. 
D)  all of these.

Question 14

Most LDCs face the problems of low population growth and excessive saving.

Accepted Answer

A) True 
 B)False

Question 15

GDP per capita is about 10 times higher in industrially advanced countries (IACs) than in the poorer less-developed countries (LDCs).

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?

Accepted Answer

A)  The development of strong labor unions. 
B)  A sharp increase in the legal minimum wage. 
C)  An increase in expenditures on education and capital investment. 
D)  Rapid growth rate of the money supply. 
A)  The development of strong labor unions. 
B)  A sharp increase in the legal minimum wage. 
C)  An increase in expenditures on education and capital investment. 
D)  Rapid growth rate of the money supply.

Question 17

The vicious circle of poverty makes it difficult for an LDC to:

Accepted Answer

A)  establish political institutions. 
B)  control inflation. 
C)  save and invest. 
D)  fix its exchange rate. 
A)  establish political institutions. 
B)  control inflation. 
C)  save and invest. 
D)  fix its exchange rate.

Question 18

Explain why the LDCs are unable to invest much in capital goods and human capital.

Accepted Answer

The demands of the growing populations i

Question 19

The recent growth records of Japan and Hong Kong during the last 50 years indicate that a nation can grow rapidly without:

Accepted Answer

A)  securely defined property rights. 
B)  adopting modern technology. 
C)  significant capital formation. 
D)  abundant domestic natural resources. 
A)  securely defined property rights. 
B)  adopting modern technology. 
C)  significant capital formation. 
D)  abundant domestic natural resources.

Question 20

Economic growth and development in LDCs are low because many of them lack:

Accepted Answer

A)  saving. 
B)  infrastructure. 
C)  a political environment favorable to growth. 
D)  All of these. 
A)  saving. 
B)  infrastructure. 
C)  a political environment favorable to growth. 
D)  All of these.

Which of the following is true?

Which of the following is not a problem for less-developed countries?

The vicious circle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services.

Infrastructure investment appears to have little impact on economic growth and development.

Describe in general terms four or five characteristics of less-developed countries.

The poorest regions in the world, as measured by GDP per capita, are:

In general, GDP per capita is not highly correlated with alternative measures of quality of life.

The main purpose of the International Monetary Fund is to manage and distribute U.S. foreign aid.

Real GDP per capita and other alternative measures of the quality of life are:

Which of the following is infrastructure?

Receipt of foreign aid permits less-developed countries to move to a point outside their production possibilities curve.

Economic development encompasses which of the following measures?

An outward shift of an economy's production possibilities curve is caused by:

Most LDCs face the problems of low population growth and excessive saving.

GDP per capita is about 10 times higher in industrially advanced countries (IACs) than in the poorer less-developed countries (LDCs).

Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?

The vicious circle of poverty makes it difficult for an LDC to:

Explain why the LDCs are unable to invest much in capital goods and human capital.

The recent growth records of Japan and Hong Kong during the last 50 years indicate that a nation can grow rapidly without:

Economic growth and development in LDCs are low because many of them lack:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Filters

Exam 17: Growth and the

Which of the following is true?

Which of the following is not a problem for less-developed countries?

The vicious circle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services.

Infrastructure investment appears to have little impact on economic growth and development.

Describe in general terms four or five characteristics of less-developed countries.

The poorest regions in the world, as measured by GDP per capita, are:

In general, GDP per capita is not highly correlated with alternative measures of quality of life.

The main purpose of the International Monetary Fund is to manage and distribute U.S. foreign aid.

Real GDP per capita and other alternative measures of the quality of life are:

Which of the following is infrastructure?

Receipt of foreign aid permits less-developed countries to move to a point outside their production possibilities curve.

Economic development encompasses which of the following measures?

An outward shift of an economy's production possibilities curve is caused by:

Most LDCs face the problems of low population growth and excessive saving.

GDP per capita is about 10 times higher in industrially advanced countries (IACs) than in the poorer less-developed countries (LDCs).

Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?

The vicious circle of poverty makes it difficult for an LDC to:

Explain why the LDCs are unable to invest much in capital goods and human capital.

The recent growth records of Japan and Hong Kong during the last 50 years indicate that a nation can grow rapidly without:

Economic growth and development in LDCs are low because many of them lack:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Filters