Question 1

If a technological advance expands output and requires a smaller investment in capital goods, this technological advance

Accepted Answer

A) is capital-using. 
B) must involve nonfinancial investment. 
C) is capital-saving. 
D) must pertain to the infrastructure. 
A) is capital-using. 
B) must involve nonfinancial investment. 
C) is capital-saving. 
D) must pertain to the infrastructure.

Question 2

List the three major human resource problems in developing nations.

Accepted Answer

The three major human resource problems

Question 3

The demographic transition view of population growth believes that slower population growth will lead to rising incomes.

Accepted Answer

A) True 
 B)False

Question 4

Trade barriers that restrict imports from developing countries tend to be

Accepted Answer

A) highest in the capital goods and technology sectors of those economies. 
B) lowest in the labor-intensive manufacturing sectors of those economies. 
C) lowest for those products in which DVCs have a comparative advantage. 
D) highest for those products in which DVCs have a comparative advantage. 
A) highest in the capital goods and technology sectors of those economies. 
B) lowest in the labor-intensive manufacturing sectors of those economies. 
C) lowest for those products in which DVCs have a comparative advantage. 
D) highest for those products in which DVCs have a comparative advantage.

Question 5

Which two of the following countries had the best score in the Corruption Perceptions Index in 2015?

Accepted Answer

A) Japan and Spain 
B) China and Russia 
C) United States and Canada 
D) Denmark and Singapore 
A) Japan and Spain 
B) China and Russia 
C) United States and Canada 
D) Denmark and Singapore

Question 6

Which of the following describes the vicious circle of poverty?

Accepted Answer

A) Government spending for public goods is inflationary, and this undermines incentives to save and invest. 
B) Higher incomes increase consumption at the expense of capital accumulation, which causes income to fall. 
C) Low per capita incomes cause low levels of saving and investment, which mean low productivity and therefore low incomes. 
D) A growing national income increases the demand for money, which increases the interest rate and reduces investment. 
A) Government spending for public goods is inflationary, and this undermines incentives to save and invest. 
B) Higher incomes increase consumption at the expense of capital accumulation, which causes income to fall. 
C) Low per capita incomes cause low levels of saving and investment, which mean low productivity and therefore low incomes. 
D) A growing national income increases the demand for money, which increases the interest rate and reduces investment.

Question 7

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Accepted Answer

A) "The rich get richer, while the poor get poorer." 
B) "Fate dealt the poor nations a bad hand." 
C) "The poor nations stay poor because they are poor." 
D) "Historical developments have oppressed the poor nations' incomes." 
A) "The rich get richer, while the poor get poorer." 
B) "Fate dealt the poor nations a bad hand." 
C) "The poor nations stay poor because they are poor." 
D) "Historical developments have oppressed the poor nations' incomes."

Question 8

Which of the given nations would be high-income countries (IACs), according to the World Bank?

Accepted Answer

A) country C only 
B) countries B, C, and D 
C) countries B, C, D, and E 
D) countries B and C 
A) country C only 
B) countries B, C, and D 
C) countries B, C, D, and E 
D) countries B and C

Question 9

The industrially advanced countries (IACs)had an average per capita income in 2017 of around

Accepted Answer

A) $82,000 per person. 
B) $27,000 per person. 
C) $40,000 per person. 
D) $61,000 per person. 
A) $82,000 per person. 
B) $27,000 per person. 
C) $40,000 per person. 
D) $61,000 per person.

Question 10

Which of the following DVC policies is not likely to increase DVC economic growth?

Accepted Answer

A) privatizing state industries 
B) controlling population growth 
C) restricting direct foreign investment from abroad 
D) building human capital 
A) privatizing state industries 
B) controlling population growth 
C) restricting direct foreign investment from abroad 
D) building human capital

Question 11

Land reform (or the reform of land ownership)is a relatively minor institutional obstacle to economic growth in many developing countries.

Accepted Answer

A) True 
 B)False

Question 12

The demographic transition view of population growth argues that, on average (and as perceived by parents), the opportunity

Accepted Answer

A) benefits of extra children are larger in IACs than in DVCs. 
B) costs of extra children are lower in IACs than in DVCs. 
C) costs of extra children are larger in IACs than in DVCs. 
D) benefits of extra children are the same in DVCs and IACs. 
A) benefits of extra children are larger in IACs than in DVCs. 
B) costs of extra children are lower in IACs than in DVCs. 
C) costs of extra children are larger in IACs than in DVCs. 
D) benefits of extra children are the same in DVCs and IACs.

Question 13

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Accepted Answer

A) True 
 B)False

Question 14

Many economists believe that the key to breaking the vicious circle of poverty is to

Accepted Answer

A) cut down the mortality rates in poor nations. 
B) reduce the birth rates in poor nations. 
C) increase the mobility of labor and migration. 
D) increase the rate of capital accumulation in poor nations. 
A) cut down the mortality rates in poor nations. 
B) reduce the birth rates in poor nations. 
C) increase the mobility of labor and migration. 
D) increase the rate of capital accumulation in poor nations.

Question 15

For DVC per capita incomes to rise, birth rates must first be reduced. This statement describes the

Accepted Answer

A) human capital view of population growth. 
B) traditional view of population growth. 
C) capricious universe view. 
D) demographic transition view of population growth. 
A) human capital view of population growth. 
B) traditional view of population growth. 
C) capricious universe view. 
D) demographic transition view of population growth.

Question 16

Describe the main characteristics of direct foreign aid from IACs to DVCs.

Accepted Answer

The United States and other IACs have as

Question 17

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater

Accepted Answer

A) capital flight. 
B) economic growth. 
C) underemployment. 
D) unemployment. 
A) capital flight. 
B) economic growth. 
C) underemployment. 
D) unemployment.

Question 18

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 19

An economy's infrastructure refers to its

Accepted Answer

A) public capital goods, such as roads, schools, and power facilities. 
B) financial and banking institutions. 
C) land and natural resources. 
D) surplus supplies of unskilled labor. 
A) public capital goods, such as roads, schools, and power facilities. 
B) financial and banking institutions. 
C) land and natural resources. 
D) surplus supplies of unskilled labor.

Question 20

In recent decades,

Accepted Answer

A) all countries classified as DVCs have had little or no economic growth. 
B) some nations classified as DVCs have grown rapidly, while others have grown very slowly or not at all. 
C) all countries classified as DVCs have experienced rapid economic growth and rising living standards. 
D) all countries classified as low-income DVCs have had declining per capita GDPs. 
A) all countries classified as DVCs have had little or no economic growth. 
B) some nations classified as DVCs have grown rapidly, while others have grown very slowly or not at all. 
C) all countries classified as DVCs have experienced rapid economic growth and rising living standards. 
D) all countries classified as low-income DVCs have had declining per capita GDPs.

Exam 28: The Economics of Developing Countries

If a technological advance expands output and requires a smaller investment in capital goods, this technological advance

List the three major human resource problems in developing nations.

The demographic transition view of population growth believes that slower population growth will lead to rising incomes.

Trade barriers that restrict imports from developing countries tend to be

Which two of the following countries had the best score in the Corruption Perceptions Index in 2015?

Which of the following describes the vicious circle of poverty?

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Which of the given nations would be high-income countries (IACs), according to the World Bank?

The industrially advanced countries (IACs)had an average per capita income in 2017 of around

Which of the following DVC policies is not likely to increase DVC economic growth?

Land reform (or the reform of land ownership)is a relatively minor institutional obstacle to economic growth in many developing countries.

The demographic transition view of population growth argues that, on average (and as perceived by parents), the opportunity

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Many economists believe that the key to breaking the vicious circle of poverty is to

For DVC per capita incomes to rise, birth rates must first be reduced. This statement describes the

Describe the main characteristics of direct foreign aid from IACs to DVCs.

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater

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

An economy's infrastructure refers to its

In recent decades,

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, 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

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

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