Question 1

The population growth rate of the DVCs (developing countries) as a group in recent decades has been

Accepted Answer

A) steady. 
B) declining. 
C) rising modestly. 
D) rising rapidly. 
A) steady. 
B) declining. 
C) rising modestly. 
D) rising rapidly.

Question 2

Which of the following countries had the highest per capita energy consumption in 2013?

Accepted Answer

A) India 
B) China 
C) Japan 
D) United States 
A) India 
B) China 
C) Japan 
D) United States

Question 3

Which of the following is not inversely related to per capita income?

Accepted Answer

A) mortality rates for children under five years of age 
B) adult illiteracy rates 
C) per capita energy consumption 
D) population growth rates 
A) mortality rates for children under five years of age 
B) adult illiteracy rates 
C) per capita energy consumption 
D) population growth rates

Question 4

Industrially advanced countries can best help developing countries by

Accepted Answer

A) establishing price supports for the products produced by DVCs. 
B) increasing tariffs and quotas on products produced by DVCs. 
C) increasing the flows of private capital to DVCs. 
D) increasing control over DVCs' capital markets. 
A) establishing price supports for the products produced by DVCs. 
B) increasing tariffs and quotas on products produced by DVCs. 
C) increasing the flows of private capital to DVCs. 
D) increasing control over DVCs' capital markets.

Question 5

Per capita income in the United States in 2014 was about

Accepted Answer

A) $25,300 per person. 
B) $36,300 per person. 
C) $55,200 per person. 
D) $68,800 per person. 
A) $25,300 per person. 
B) $36,300 per person. 
C) $55,200 per person. 
D) $68,800 per person.

Question 6

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Accepted Answer

A) the World Bank 
B) the New Economic Order 
C) the Federal Reserve System 
D) the Committee on Economic Development 
A) the World Bank 
B) the New Economic Order 
C) the Federal Reserve System 
D) the Committee on Economic Development

Question 7

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by

Accepted Answer

A) increasing the amount of military aid to strengthen the government's role in providing law and order. 
B) increasing trade barriers so that less-developed nations will become more self-sufficient. 
C) reducing trade barriers and increasing the amount of private and public capital. 
D) decreasing the amounts of private capital or foreign aid to reduce the level of neocolonialism. 
A) increasing the amount of military aid to strengthen the government's role in providing law and order. 
B) increasing trade barriers so that less-developed nations will become more self-sufficient. 
C) reducing trade barriers and increasing the amount of private and public capital. 
D) decreasing the amounts of private capital or foreign aid to reduce the level of neocolonialism.

Question 8

(Last Word) Loans offered through microcredit programs

Accepted Answer

A) are usually spent on food. 
B) suffer from low repayment rates. 
C) have very high repayment rates. 
D) have lifted borrowers out of poverty at a faster pace than nonrecipients of loans. 
A) are usually spent on food. 
B) suffer from low repayment rates. 
C) have very high repayment rates. 
D) have lifted borrowers out of poverty at a faster pace than nonrecipients of loans.

Question 9

When technological advances are of the capital-using kind, it is possible for an economy to increase its productivity without any net investment in capital goods.

Accepted Answer

A) True 
 B)False

Question 10

Capital flight refers to

Accepted Answer

A) the tendency of large corporations of IACs to build new plants in the DVCs because labor is cheaper. 
B) DVC citizens accumulating or investing their savings in the IACs. 
C) the high international mobility of speculative funds caused by variations in exchange rates. 
D) the tendency of DVCs to overinvest in commercial aircraft. 
A) the tendency of large corporations of IACs to build new plants in the DVCs because labor is cheaper. 
B) DVC citizens accumulating or investing their savings in the IACs. 
C) the high international mobility of speculative funds caused by variations in exchange rates. 
D) the tendency of DVCs to overinvest in commercial aircraft.

Question 11

(Last Word) Providing poor families with grants if they send their children to school and get proper medical care is known as

Accepted Answer

A) microcredit. 
B) in-kind transfers. 
C) unconditional cash transfers. 
D) conditional cash transfers. 
A) microcredit. 
B) in-kind transfers. 
C) unconditional cash transfers. 
D) conditional cash transfers.

Question 12

The populations of the developing nations are growing

Accepted Answer

A) at about 5 percent per year. 
B) at about the same rate as those of the industrially advanced nations. 
C) slower than those of the industrially advanced nations. 
D) faster than those of the industrially advanced nations. 
A) at about 5 percent per year. 
B) at about the same rate as those of the industrially advanced nations. 
C) slower than those of the industrially advanced nations. 
D) faster than those of the industrially advanced nations.

Question 13

Which of the following IACs (industrially advanced countries) gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

Accepted Answer

A) United States 
B) Japan 
C) Canada 
D) Germany 
A) United States 
B) Japan 
C) Canada 
D) Germany

Question 14

Which of the following IACs (industrially advanced countries) gave the largest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

Accepted Answer

A) Sweden 
B) Japan 
C) United States 
D) Germany 
A) Sweden 
B) Japan 
C) United States 
D) Germany

Question 15

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Accepted Answer

A) United Nations. 
B) International Finance Corporation. 
C) New Global Compact. 
D) International Development Association. 
A) United Nations. 
B) International Finance Corporation. 
C) New Global Compact. 
D) International Development Association.

Question 16

If population is expanding at the same rate as real output,

Accepted Answer

A) real per capita output will increase. 
B) real per capita output will decrease. 
C) real per capita output will remain unchanged. 
D) living standards will increase. 
A) real per capita output will increase. 
B) real per capita output will decrease. 
C) real per capita output will remain unchanged. 
D) living standards will increase.

Question 17

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Accepted Answer

A) will remain constant. 
B) may either widen or diminish. 
C) will diminish. 
D) will widen. 
A) will remain constant. 
B) may either widen or diminish. 
C) will diminish. 
D) will widen.

Question 18

Which of these sets of nations consists of low-income developing nations?

Accepted Answer

A) Brazil, Australia, and South Africa 
B) Uganda, Madagascar, and Burkina Faso 
C) Canada, Switzerland, and France 
D) Germany, South Korea, and Mexico 
A) Brazil, Australia, and South Africa 
B) Uganda, Madagascar, and Burkina Faso 
C) Canada, Switzerland, and France 
D) Germany, South Korea, and Mexico

Question 19

Which of the following is characteristic of DVCs?

Accepted Answer

A) A large percentage of the labor force is in agriculture. 
B) There are high levels of saving and investment. 
C) They have high labor productivity. 
D) There are high levels of training. 
A) A large percentage of the labor force is in agriculture. 
B) There are high levels of saving and investment. 
C) They have high labor productivity. 
D) There are high levels of training.

Question 20

A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be

Accepted Answer

A) cutting debt relief for DVCs. 
B) directing foreign aid to the more affluent DVCs. 
C) restricting immigration of low-skilled workers from DVCs. 
D) reducing tariffs and import quotas on labor-intensive products. 
A) cutting debt relief for DVCs. 
B) directing foreign aid to the more affluent DVCs. 
C) restricting immigration of low-skilled workers from DVCs. 
D) reducing tariffs and import quotas on labor-intensive products.

Exam 42: The Economics of Developing Countries

The population growth rate of the DVCs (developing countries) as a group in recent decades has been

Which of the following countries had the highest per capita energy consumption in 2013?

Which of the following is not inversely related to per capita income?

Industrially advanced countries can best help developing countries by

Per capita income in the United States in 2014 was about

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by

(Last Word) Loans offered through microcredit programs

When technological advances are of the capital-using kind, it is possible for an economy to increase its productivity without any net investment in capital goods.

Capital flight refers to

(Last Word) Providing poor families with grants if they send their children to school and get proper medical care is known as

The populations of the developing nations are growing

Which of the following IACs (industrially advanced countries) gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

Which of the following IACs (industrially advanced countries) gave the largest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

If population is expanding at the same rate as real output,

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Which of these sets of nations consists of low-income developing nations?

Which of the following is characteristic of DVCs?

A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

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