Question 1

Which of the following is a true statement?

Accepted Answer

A)  The LDC classification is of the questionable accuracy. 
B)  GDP per capita ignores the degree of income distribution. 
C)  GDP per capita is affected by exchange rate changes. 
D)  GDP per capita does not account for the difference in the cost of living among nations. 
E)  All of these are true. 
A)  The LDC classification is of the questionable accuracy. 
B)  GDP per capita ignores the degree of income distribution. 
C)  GDP per capita is affected by exchange rate changes. 
D)  GDP per capita does not account for the difference in the cost of living among nations. 
E)  All of these are true.

Question 2

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

Accepted Answer

A)  High rates of illiteracy. 
B)  High unemployment. 
C)  Over half of the labor force in agriculture. 
D)  Low savings and investment rates. 
E)  Low infant mortality rates. 
A)  High rates of illiteracy. 
B)  High unemployment. 
C)  Over half of the labor force in agriculture. 
D)  Low savings and investment rates. 
E)  Low infant mortality rates.

Question 3

Which of the following is a characteristic of an LDC?

Accepted Answer

A)  Capital flight. 
B)  Vicious circle of poverty. 
C)  Lack of entrepreneurs. 
D)  All of these. 
A)  Capital flight. 
B)  Vicious circle of poverty. 
C)  Lack of entrepreneurs. 
D)  All of these.

Question 4

Which of the following is in charge of U.S. aid to foreign countries?

Accepted Answer

A)  Agency for International Development (AI
D) . 
B)  World Bank. 
C)  International Monetary Fund (IMF). 
D)  New International Economic Order (NIEO). 
A)  Agency for International Development (AI
D) . 
B)  World Bank. 
C)  International Monetary Fund (IMF). 
D)  New International Economic Order (NIEO).

Question 5

__________ generally results in increases in per-capita GDP.

Accepted Answer

A)  Civil war 
B)  High levels of inequality in the distribution of land ownership 
C)  Investment in human capital 
D)  A stock of natural resources 
A)  Civil war 
B)  High levels of inequality in the distribution of land ownership 
C)  Investment in human capital 
D)  A stock of natural resources

Question 6

According to the classification in the text, which of the following is not an industrially advanced country (IAC)?

Accepted Answer

A)  United Arab Emirates. 
B)  Israel. 
C)  Greece. 
D)  All of the above are IACs. 
E)  None of the above are IACs. 
A)  United Arab Emirates. 
B)  Israel. 
C)  Greece. 
D)  All of the above are IACs. 
E)  None of the above are IACs.

Question 7

Which of the following is a problem when comparing GDPs per capita between nations?

Accepted Answer

A)  GDP per capita fails to measure income distribution. 
B)  Fluctuations in exchange rates affect differences in GDP per capita. 
C)  GDP per capita is subject to greater measurement errors for LDCs compared to IACs. 
D)  All of these. 
A)  GDP per capita fails to measure income distribution. 
B)  Fluctuations in exchange rates affect differences in GDP per capita. 
C)  GDP per capita is subject to greater measurement errors for LDCs compared to IACs. 
D)  All of these.

Question 8

GDP per capita provides a reasonably accurate measurement of a country's income distribution.

Accepted Answer

A) True 
 B)False

Question 9

The world bank is the agency of the U.S. State Department that is in charge of U.S. loans to foreign countries.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is most likely to be a major source of growth in per capita GDP?

Accepted Answer

A)  A high investment / GDP ratio 
B)  A high rate of inflation 
C)  Rapid population growth 
D)  Rapid growth in the money supply 
A)  A high investment / GDP ratio 
B)  A high rate of inflation 
C)  Rapid population growth 
D)  Rapid growth in the money supply

Question 11

Which of the following is infrastructure?

Accepted Answer

A)  Police. 
B)  Training and education. 
C)  Highways. 
D)  All of the above. 
E)  None of the above. 
A)  Police. 
B)  Training and education. 
C)  Highways. 
D)  All of the above. 
E)  None of the above.

Question 12

Domestic law and order, the infrastructure, and the climate of international trade are all aspects of a country's:

Accepted Answer

A)  natural resources endowment. 
B)  human resources investment. 
C)  capital investment. 
D)  political environment. 
A)  natural resources endowment. 
B)  human resources investment. 
C)  capital investment. 
D)  political environment.

Question 13

The "Four Tigers" of East Asia are the newly industrialized countries of Taiwan, South Korea, Hong Kong, and:

Accepted Answer

A)  Japan. 
B)  Singapore. 
C)  the Philippines. 
D)  Vietnam. 
A)  Japan. 
B)  Singapore. 
C)  the Philippines. 
D)  Vietnam.

Question 14

Which of the following best describes the vicious cycle of poverty?​

Accepted Answer

A)  ​Rich countries eventually decline because its citizens become lazy. 
B)  ​Poor countries eventually improve through investment in education, infrastructure, and capital accumulation. 
C)  ​Rich countries stay rich through continued high levels of investment in education, infrastructure, and capital accumulation. 
D)  ​Poor countries stay poor because they cannot afford to invest in education, infrastructure, and capital accumulation. 
A)  ​Rich countries eventually decline because its citizens become lazy. 
B)  ​Poor countries eventually improve through investment in education, infrastructure, and capital accumulation. 
C)  ​Rich countries stay rich through continued high levels of investment in education, infrastructure, and capital accumulation. 
D)  ​Poor countries stay poor because they cannot afford to invest in education, infrastructure, and capital accumulation.

Question 15

To grow and prosper, less-developed countries must not:

Accepted Answer

A)  invest in human capital. 
B)  build a strong infrastructure. 
C)  shift resources out of the production of consumer goods and into the production of capital goods. 
D)  shift resources out of the production of capital goods and into the production of consumer goods 
E)  improve the quality of the water supply 
A)  invest in human capital. 
B)  build a strong infrastructure. 
C)  shift resources out of the production of consumer goods and into the production of capital goods. 
D)  shift resources out of the production of capital goods and into the production of consumer goods 
E)  improve the quality of the water supply

Question 16

The number of the countries of the world classified as a less developed country (LDC) is about:

Accepted Answer

A)  50. 
B)  75. 
C)  100. 
D)  150. 
E)  300. 
A)  50. 
B)  75. 
C)  100. 
D)  150. 
E)  300.

Question 17

International comparisons of per capita GDP may not reflect the standard of living because __________. ​

Accepted Answer

A)  ​currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities. 
B)  ​people in some countries enjoy poverty and do not mind a lack of access to medicine, education, nutritious food, and safe drinking water. 
C)  ​markets do not exist in less-developed countries. 
D)  ​None of the answers above are correct. 
A)  ​currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities. 
B)  ​people in some countries enjoy poverty and do not mind a lack of access to medicine, education, nutritious food, and safe drinking water. 
C)  ​markets do not exist in less-developed countries. 
D)  ​None of the answers above are correct.

Which of the following is a true statement?

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

Which of the following is a characteristic of an LDC?

Which of the following is in charge of U.S. aid to foreign countries?

__________ generally results in increases in per-capita GDP.

According to the classification in the text, which of the following is not an industrially advanced country (IAC)?

Which of the following is a problem when comparing GDPs per capita between nations?

GDP per capita provides a reasonably accurate measurement of a country's income distribution.

The world bank is the agency of the U.S. State Department that is in charge of U.S. loans to foreign countries.

Which of the following is most likely to be a major source of growth in per capita GDP?

Which of the following is infrastructure?

Domestic law and order, the infrastructure, and the climate of international trade are all aspects of a country's:

The "Four Tigers" of East Asia are the newly industrialized countries of Taiwan, South Korea, Hong Kong, and:

Which of the following best describes the vicious cycle of poverty?

To grow and prosper, less-developed countries must not:

The number of the countries of the world classified as a less developed country (LDC) is about:

International comparisons of per capita GDP may not reflect the standard of living because __________.

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 a true statement?

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

Which of the following is a characteristic of an LDC?

Which of the following is in charge of U.S. aid to foreign countries?

__________ generally results in increases in per-capita GDP.

According to the classification in the text, which of the following is not an industrially advanced country (IAC)?

Which of the following is a problem when comparing GDPs per capita between nations?

GDP per capita provides a reasonably accurate measurement of a country's income distribution.

The world bank is the agency of the U.S. State Department that is in charge of U.S. loans to foreign countries.

Which of the following is most likely to be a major source of growth in per capita GDP?

Which of the following is infrastructure?

Domestic law and order, the infrastructure, and the climate of international trade are all aspects of a country's:

The "Four Tigers" of East Asia are the newly industrialized countries of Taiwan, South Korea, Hong Kong, and:

Which of the following best describes the vicious cycle of poverty?​

To grow and prosper, less-developed countries must not:

The number of the countries of the world classified as a less developed country (LDC) is about:

International comparisons of per capita GDP may not reflect the standard of living because __________. ​

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

Which of the following best describes the vicious cycle of poverty?

International comparisons of per capita GDP may not reflect the standard of living because __________.