Question 1

One of the essential paths to economic growth is

Accepted Answer

A) increasing population growth. 
B) expanding the role of government. 
C) using existing resources more efficiently. 
D) expanding tax credits for business investment. 
A) increasing population growth. 
B) expanding the role of government. 
C) using existing resources more efficiently. 
D) expanding tax credits for business investment.

Question 2

Compare the GDP and GDP per capita of the United States with that of developing countries.

Accepted Answer

In 2017, U.S. GDP was $19 trillion while

Question 3

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 4

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 5

A large portion of foreign aid from IACs to DVCs is provided on the basis of

Accepted Answer

A) economic considerations. 
B) geographical considerations. 
C) humanitarian considerations. 
D) political and military considerations. 
A) economic considerations. 
B) geographical considerations. 
C) humanitarian considerations. 
D) political and military considerations.

Question 6

Which of the following would be an example of direct foreign investment in DVCs?

Accepted Answer

A) a grant from the World Bank to build an irrigation project in Kenya 
B) the financing of a new chemical plant in Peru by a German company 
C) a low-interest loan from the U.S. government to Turkey to purchase military hardware 
D) a loan from the Japanese government to the Indonesian government to pay for electronic equipment 
A) a grant from the World Bank to build an irrigation project in Kenya 
B) the financing of a new chemical plant in Peru by a German company 
C) a low-interest loan from the U.S. government to Turkey to purchase military hardware 
D) a loan from the Japanese government to the Indonesian government to pay for electronic equipment

Question 7

In 2017, the United States had about ___ percent of the world's population and produced about ___ percent of the world's output.

Accepted Answer

A) 20; 30 
B) 3.6; 31 
C) 10; 28 
D) 4.4; 24 
A) 20; 30 
B) 3.6; 31 
C) 10; 28 
D) 4.4; 24

Question 8

The vicious circle of poverty is based on the connections between low income, low saving, low investment, and low productivity.

Accepted Answer

A) True 
 B)False

Question 9

If it is cheaper in the long run to use a new metal plow that lasts a long time than an inferior wooden plow that needs to be replaced often, then this is an example of

Accepted Answer

A) a capital-using technology. 
B) a capital-saving technology. 
C) capital consumption. 
D) private capital flows. 
A) a capital-using technology. 
B) a capital-saving technology. 
C) capital consumption. 
D) private capital flows.

Question 10

An increasing share of the private capital flows to DVCs in recent years has been in the form of

Accepted Answer

A) interest-free government loans. 
B) educational and training assistance. 
C) direct foreign investment. 
D) bank loans. 
A) interest-free government loans. 
B) educational and training assistance. 
C) direct foreign investment. 
D) bank loans.

Question 11

The "brain drain" problem in the DVCs refers to the fact the best-educated workers

Accepted Answer

A) are reluctant to become entrepreneurs. 
B) are concentrated in rural areas where their skills are underutilized. 
C) often immigrate to industrialized countries. 
D) are reluctant to work in the public sector. 
A) are reluctant to become entrepreneurs. 
B) are concentrated in rural areas where their skills are underutilized. 
C) often immigrate to industrialized countries. 
D) are reluctant to work in the public sector.

Question 12

Explain the demographic transition view.

Accepted Answer

The demographic transition describes the

Question 13

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

Accepted Answer

A) 24 percent 
B) 38 percent 
C) 60 percent 
D) 75 percent 
A) 24 percent 
B) 38 percent 
C) 60 percent 
D) 75 percent

Question 14

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Accepted Answer

A) True 
 B)False

Question 15

Capital flight is a problem to DVCs because it

Accepted Answer

A) causes the value of a DVC's currency to appreciate. 
B) reduces the volume of DVC investment. 
C) reduces the flow of foreign aid from the IACs. 
D) causes inflation in the DVCs. 
A) causes the value of a DVC's currency to appreciate. 
B) reduces the volume of DVC investment. 
C) reduces the flow of foreign aid from the IACs. 
D) causes inflation in the DVCs.

Question 16

The World Bank

Accepted Answer

A) is also known as the International Monetary Fund (IMF). 
B) lends money to developing nations for basic infrastructure projects such as dams, irrigation, health and sanitation, communications, and transportation. 
C) is an affiliate of the World Trade Organization (WTO). 
D) provides subsidies to private firms so they can improve their wages and working conditions. 
A) is also known as the International Monetary Fund (IMF). 
B) lends money to developing nations for basic infrastructure projects such as dams, irrigation, health and sanitation, communications, and transportation. 
C) is an affiliate of the World Trade Organization (WTO). 
D) provides subsidies to private firms so they can improve their wages and working conditions.

Question 17

Successful foreign aid programs

Accepted Answer

A) enhance a DVC's resources and therefore shift its production possibilities curve to the left. 
B) enhance a DVC's resources and therefore shift its production possibilities curve to the right. 
C) move the DVC from a high-investment-low-consumption position to a low-investment-high-consumption position on its stable production possibilities curve. 
D) cause a DVC's exchange rate to depreciate. 
A) enhance a DVC's resources and therefore shift its production possibilities curve to the left. 
B) enhance a DVC's resources and therefore shift its production possibilities curve to the right. 
C) move the DVC from a high-investment-low-consumption position to a low-investment-high-consumption position on its stable production possibilities curve. 
D) cause a DVC's exchange rate to depreciate.

Question 18

A factor that limits the amount of saving in developing countries is the fact that

Accepted Answer

A) the banking system does not encourage saving. 
B) there is too much foreign aid, so savings is not needed. 
C) the level of aggregate domestic output is low. 
D) the government controls financial institutions and makes it difficult for people to save. 
A) the banking system does not encourage saving. 
B) there is too much foreign aid, so savings is not needed. 
C) the level of aggregate domestic output is low. 
D) the government controls financial institutions and makes it difficult for people to save.

Question 19

How can the DVCs break out of the vicious circle of poverty?

Accepted Answer

Many economists think that the key to br

Question 20

Microfinance or microcredit can help directly support

Accepted Answer

A) labor or workers. 
B) local governments. 
C) entrepreneurs. 
D) consumers. 
A) labor or workers. 
B) local governments. 
C) entrepreneurs. 
D) consumers.

Exam 28: The Economics of Developing Countries

One of the essential paths to economic growth is

Compare the GDP and GDP per capita of the United States with that of developing countries.

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

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

A large portion of foreign aid from IACs to DVCs is provided on the basis of

Which of the following would be an example of direct foreign investment in DVCs?

In 2017, the United States had about ___ percent of the world's population and produced about ___ percent of the world's output.

The vicious circle of poverty is based on the connections between low income, low saving, low investment, and low productivity.

If it is cheaper in the long run to use a new metal plow that lasts a long time than an inferior wooden plow that needs to be replaced often, then this is an example of

An increasing share of the private capital flows to DVCs in recent years has been in the form of

The "brain drain" problem in the DVCs refers to the fact the best-educated workers

Explain the demographic transition view.

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Capital flight is a problem to DVCs because it

The World Bank

Successful foreign aid programs

A factor that limits the amount of saving in developing countries is the fact that

How can the DVCs break out of the vicious circle of poverty?

Microfinance or microcredit can help directly support

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

Filters

In 2017, the United States had about _ percent of the world's population and produced about _ percent of the world's output.