Question 1

Most nations of the world are now IACs, not middle- and low-income DVCs.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following IACs (industrially advanced countries)was the leading provider of development assistance to DVCs (developing countries)in 2017, in terms of absolute dollar amounts?

Accepted Answer

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

Question 3

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Accepted Answer

A) land reform. 
B) population growth. 
C) underemployment and disguised unemployment. 
D) capital-saving technology. 
A) land reform. 
B) population growth. 
C) underemployment and disguised unemployment. 
D) capital-saving technology.

Question 4

Many countries remain poor because they currently are poor. This statement summarizes the

Accepted Answer

A) infrastructure problem. 
B) vicious circle of poverty. 
C) demographic transition problem. 
D) problem of capital flight. 
A) infrastructure problem. 
B) vicious circle of poverty. 
C) demographic transition problem. 
D) problem of capital flight.

Question 5

Saving is low in many DVCs primarily because income is very equally distributed.

Accepted Answer

A) True 
 B)False

Question 6

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Accepted Answer

A) Cash transfers never worked, because the recipients just wasted the money on unproductive spending. 
B) These transfers have shown positive early results; the majority of the recipients spent the money as intended. 
C) Only conditional cash transfers worked. Unconditional cash transfers never worked. 
D) These cash transfers worked only if the aid providers frequently followed up on the recipients. 
A) Cash transfers never worked, because the recipients just wasted the money on unproductive spending. 
B) These transfers have shown positive early results; the majority of the recipients spent the money as intended. 
C) Only conditional cash transfers worked. Unconditional cash transfers never worked. 
D) These cash transfers worked only if the aid providers frequently followed up on the recipients.

Question 7

Infrastructure is best illustrated by

Accepted Answer

A) business equipment and factories. 
B) agricultural machinery and tools. 
C) financial institutions. 
D) roads and bridges. 
A) business equipment and factories. 
B) agricultural machinery and tools. 
C) financial institutions. 
D) roads and bridges.

Question 8

Surplus agricultural labor in a developing nation usually means that there is

Accepted Answer

A) a caste system. 
B) widespread underemployment. 
C) immobility of labor resources. 
D) increased investment in agriculture. 
A) a caste system. 
B) widespread underemployment. 
C) immobility of labor resources. 
D) increased investment in agriculture.

Question 9

The demographic transition view alleges that

Accepted Answer

A) the DVCs must first accept the use of birth control techniques to increase their standards of living. 
B) population growth will decline only if mortality rates exceed birth rates. 
C) if incomes first rise, population growth will then decline. 
D) population growth has no bearing on a nation's per capita income. 
A) the DVCs must first accept the use of birth control techniques to increase their standards of living. 
B) population growth will decline only if mortality rates exceed birth rates. 
C) if incomes first rise, population growth will then decline. 
D) population growth has no bearing on a nation's per capita income.

Question 10

One reason why foreign aid is viewed as harmful is that it promotes dependency.

Accepted Answer

A) True 
 B)False

Question 11

The very poorest low-income DVCs typically have relatively

Accepted Answer

A) low rates of economic growth and relatively high rates of population growth. 
B) high rates of economic growth and relatively low rates of population growth. 
C) low rates of both population growth and economic growth. 
D) high rates of both population growth and economic growth. 
A) low rates of economic growth and relatively high rates of population growth. 
B) high rates of economic growth and relatively low rates of population growth. 
C) low rates of both population growth and economic growth. 
D) high rates of both population growth and economic growth.

Question 12

List the nine positive roles that DVC governments can play in promoting economic development.

Accepted Answer

The nine positive roles listed for DVC g

Question 13

Which of the following is not a way for industrially advanced countries (IACs)to help developing countries (DVCs)achieve faster economic growth?

Accepted Answer

A) expanding trade 
B) admitting more temporary workers 
C) subsidizing their own (i.e., the IACs')agricultural sectors 
D) discouraging arms sales 
A) expanding trade 
B) admitting more temporary workers 
C) subsidizing their own (i.e., the IACs')agricultural sectors 
D) discouraging arms sales

Question 14

The levels of national income per capita among developing countries (DVCs)are

Accepted Answer

A) all within a narrow range. 
B) widely varied. 
C) all growing rapidly. 
D) about half of those of industrially advanced countries (IACs). 
A) all within a narrow range. 
B) widely varied. 
C) all growing rapidly. 
D) about half of those of industrially advanced countries (IACs).

Question 15

An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.

Accepted Answer

A) True 
 B)False

Question 16

Most of the DVCs of the world are located in Western Europe.

Accepted Answer

A) True 
 B)False

Question 17

Economic growth in the DVCs might increase if IACs

Accepted Answer

A) reduce their tariffs and import quotas. 
B) encourage more immigration of highly skilled DVC workers. 
C) outlaw direct private investment abroad by IAC corporations. 
D) discourage capital flight to the DVCs. 
A) reduce their tariffs and import quotas. 
B) encourage more immigration of highly skilled DVC workers. 
C) outlaw direct private investment abroad by IAC corporations. 
D) discourage capital flight to the DVCs.

Question 18

From the years, 1990 to 2015, the extreme poverty rate for the world's population declined from 35.9 percent to 10.0 percent.

Accepted Answer

A) True 
 B)False

Question 19

A major criticism of foreign aid to developing nations is that it

Accepted Answer

A) provides incentives to reduce the role of government. 
B) is capital-using rather than capital-saving when it is spent. 
C) encourages dependency rather than self-sustained growth. 
D) leads to widespread underemployment and unemployment. 
A) provides incentives to reduce the role of government. 
B) is capital-using rather than capital-saving when it is spent. 
C) encourages dependency rather than self-sustained growth. 
D) leads to widespread underemployment and unemployment.

Question 20

Why do developing nations often have low labor productivity? Are the workers just lazy?

Accepted Answer

No, the workers are not just lazy. The l

Exam 28: The Economics of Developing Countries

Most nations of the world are now IACs, not middle- and low-income DVCs.

Which of the following IACs (industrially advanced countries)was the leading provider of development assistance to DVCs (developing countries)in 2017, in terms of absolute dollar amounts?

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Many countries remain poor because they currently are poor. This statement summarizes the

Saving is low in many DVCs primarily because income is very equally distributed.

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Infrastructure is best illustrated by

Surplus agricultural labor in a developing nation usually means that there is

The demographic transition view alleges that

One reason why foreign aid is viewed as harmful is that it promotes dependency.

The very poorest low-income DVCs typically have relatively

List the nine positive roles that DVC governments can play in promoting economic development.

Which of the following is not a way for industrially advanced countries (IACs)to help developing countries (DVCs)achieve faster economic growth?

The levels of national income per capita among developing countries (DVCs)are

An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.

Most of the DVCs of the world are located in Western Europe.

Economic growth in the DVCs might increase if IACs

From the years, 1990 to 2015, the extreme poverty rate for the world's population declined from 35.9 percent to 10.0 percent.

A major criticism of foreign aid to developing nations is that it

Why do developing nations often have low labor productivity? Are the workers just lazy?

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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