Question 1

A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is

Accepted Answer

A) capital using. 
B) capital saving. 
C) capital intensive. 
D) an in-kind investment. 
A) capital using. 
B) capital saving. 
C) capital intensive. 
D) an in-kind investment.

Question 2

What is the World Bank? What is its major objective?

Accepted Answer

The World Bank is a bank that lends (and

Question 3

Capital flight is a problem facing DVCs that involves the

Accepted Answer

A) difficulty of sustaining skilled workers in the government sector of the DVC economies. 
B) transfer of private savings from DVCs to IACs. 
C) flight of agricultural workers from rural to urban areas, especially capital cities, to take advantage of better job opportunities. 
D) movement of capital goods from IACs to DVCs to avoid taxes. 
A) difficulty of sustaining skilled workers in the government sector of the DVC economies. 
B) transfer of private savings from DVCs to IACs. 
C) flight of agricultural workers from rural to urban areas, especially capital cities, to take advantage of better job opportunities. 
D) movement of capital goods from IACs to DVCs to avoid taxes.

Question 4

Which of the following is most characteristic of developing nations?

Accepted Answer

A) a small percentage of the labor force in agriculture 
B) a relatively equitable distribution of income 
C) low levels of labor productivity 
D) low rates of population growth 
A) a small percentage of the labor force in agriculture 
B) a relatively equitable distribution of income 
C) low levels of labor productivity 
D) low rates of population growth

Question 5

The demographic transition concept suggests that

Accepted Answer

A) effective birth control is the primary prerequisite of DVC income growth. 
B) income growth must first occur before DVC birth rates will decline. 
C) children are economic assets in the IACs but economic liabilities in the DVCs. 
D) the IACs will have higher birth rates than the DVCs. 
A) effective birth control is the primary prerequisite of DVC income growth. 
B) income growth must first occur before DVC birth rates will decline. 
C) children are economic assets in the IACs but economic liabilities in the DVCs. 
D) the IACs will have higher birth rates than the DVCs.

Question 6

In 2017, foreign aid from the IACs was

Accepted Answer

A) less than one-quarter of 1 percent of their collective output. 
B) about 1 percent of its output. 
C) about 3 percent of its output. 
D) about 5 percent of its output. 
A) less than one-quarter of 1 percent of their collective output. 
B) about 1 percent of its output. 
C) about 3 percent of its output. 
D) about 5 percent of its output.

Question 7

Which of the following nations is not considered an industrially advanced country?

Accepted Answer

A) Brazil 
B) Japan 
C) Canada 
D) Australia 
A) Brazil 
B) Japan 
C) Canada 
D) Australia

Question 8

Which characteristic is most typical of human resources in developing nations?

Accepted Answer

A) a small population base 
B) low unemployment in urban areas 
C) low unemployment in rural areas 
D) high unemployment in urban areas 
A) a small population base 
B) low unemployment in urban areas 
C) low unemployment in rural areas 
D) high unemployment in urban areas

Question 9

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

Accepted Answer

A) are concentrated in the public, rather than the private, sector. 
B) are concentrated in the private, rather than the public, sector. 
C) are concentrated in urban, rather than rural, areas. 
D) have emigrated from the DVCs to the IACs. 
A) are concentrated in the public, rather than the private, sector. 
B) are concentrated in the private, rather than the public, sector. 
C) are concentrated in urban, rather than rural, areas. 
D) have emigrated from the DVCs to the IACs.

Question 10

Early experience with conditional cash transfers has revealed that

Accepted Answer

A) most of these cash transfers available go unused because parents don't want to fulfill the requirements. 
B) there is no significant improvement in nutrition and health compared to nonrecipients. 
C) they encourage school enrollment, but poor-quality schools limit the ability to lift people out of poverty. 
D) the resulting improvements in education and health give the recipients a significant earnings advantage over nonrecipients. 
A) most of these cash transfers available go unused because parents don't want to fulfill the requirements. 
B) there is no significant improvement in nutrition and health compared to nonrecipients. 
C) they encourage school enrollment, but poor-quality schools limit the ability to lift people out of poverty. 
D) the resulting improvements in education and health give the recipients a significant earnings advantage over nonrecipients.

Question 11

The World Bank operates primarily as a

Accepted Answer

A) deposit institution for nations' gold supplies. 
B) coordinator for private banks in major nations. 
C) lender of last resort to less-developed nations. 
D) U.S. government agency that supervises banks worldwide. 
A) deposit institution for nations' gold supplies. 
B) coordinator for private banks in major nations. 
C) lender of last resort to less-developed nations. 
D) U.S. government agency that supervises banks worldwide.

Question 12

Low-income developing countries generally have the following characteristics except

Accepted Answer

A) low population growth rates. 
B) low levels of industrialization. 
C) dependency on exports of agricultural products or raw materials. 
D) minimal amounts of capital resources. 
A) low population growth rates. 
B) low levels of industrialization. 
C) dependency on exports of agricultural products or raw materials. 
D) minimal amounts of capital resources.

Question 13

All of the following contribute to low investment spending in DVCs except

Accepted Answer

A) low rates of saving. 
B) inadequacy of public capital goods (infrastructure). 
C) political instability. 
D) expensive labor. 
A) low rates of saving. 
B) inadequacy of public capital goods (infrastructure). 
C) political instability. 
D) expensive labor.

Question 14

In the DVCs, underemployment frequently takes the form of

Accepted Answer

A) factory workers who are working longer hours than they would prefer. 
B) workers who are employed inefficiently in small industry when they could be highly productive in agriculture. 
C) farmers whose productivity is very low. 
D) craft workers and artisans who are replaced by simple machinery and equipment. 
A) factory workers who are working longer hours than they would prefer. 
B) workers who are employed inefficiently in small industry when they could be highly productive in agriculture. 
C) farmers whose productivity is very low. 
D) craft workers and artisans who are replaced by simple machinery and equipment.

Question 15

The average per capita income in 2017 for low-income developing nations was about

Accepted Answer

A) $775. 
B) $2,100. 
C) $1,990. 
D) $4,600. 
A) $775. 
B) $2,100. 
C) $1,990. 
D) $4,600.

Question 16

The low per capita outputs of the DVCs are explained by

Accepted Answer

A) insufficient saving and investment. 
B) overinvestment in human capital. 
C) slow population growth. 
D) excessively rapid technological advance. 
A) insufficient saving and investment. 
B) overinvestment in human capital. 
C) slow population growth. 
D) excessively rapid technological advance.

Question 17

What is needed to aid capital formation in developing countries?

Accepted Answer

A) more capital flight 
B) more oil resources 
C) more entrepreneurship 
D) higher price supports for products 
A) more capital flight 
B) more oil resources 
C) more entrepreneurship 
D) higher price supports for products

Exam 28: The Economics of Developing Countries

A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is

What is the World Bank? What is its major objective?

Capital flight is a problem facing DVCs that involves the

Which of the following is most characteristic of developing nations?

The demographic transition concept suggests that

In 2017, foreign aid from the IACs was

Which of the following nations is not considered an industrially advanced country?

Which characteristic is most typical of human resources in developing nations?

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

Early experience with conditional cash transfers has revealed that

The World Bank operates primarily as a

Low-income developing countries generally have the following characteristics except

All of the following contribute to low investment spending in DVCs except

In the DVCs, underemployment frequently takes the form of

The average per capita income in 2017 for low-income developing nations was about

The low per capita outputs of the DVCs are explained by

What is needed to aid capital formation in developing countries?

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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