Question 1

Which of the following does not hinder economic development?

Accepted Answer

A) Lack of education 
B) Poor agricultural productivity 
C) Low investment in human capital 
D) Lack of technology 
E) Good nutrition 
A) Lack of education 
B) Poor agricultural productivity 
C) Low investment in human capital 
D) Lack of technology 
E) Good nutrition

Question 2

How much of the U.S. federal budget is spent on foreign aid?

Accepted Answer

A) About 1 percent. 
B) About 5 percent. 
C) About 25 percent. 
D) About 50 percent. 
A) About 1 percent. 
B) About 5 percent. 
C) About 25 percent. 
D) About 50 percent.

Question 3

The nation of Exland is considered a less-developed country and has the following characteristics. Which one is not typical of a less-developed country?

Accepted Answer

A) High illiteracy. 
B) High unemployment. 
C) Rapid growth of technology. 
D) Low growth in technology. 
E) Rapid population growth. 
A) High illiteracy. 
B) High unemployment. 
C) Rapid growth of technology. 
D) Low growth in technology. 
E) Rapid population growth.

Question 4

According to the classification in the text, which of the following is not an industrially advanced country (IAC)?

Accepted Answer

A) Singapore. 
B) Hong Kong. 
C) United Arab Emirates. 
D) Ireland. 
A) Singapore. 
B) Hong Kong. 
C) United Arab Emirates. 
D) Ireland.

Question 5

The vicious circle of poverty makes it difficult for an LDC to:

Accepted Answer

A) establish political institutions. 
B) control inflation. 
C) save and invest. 
D) fix its exchange rate. 
A) establish political institutions. 
B) control inflation. 
C) save and invest. 
D) fix its exchange rate.

Question 6

In general, GDP per capita is not highly correlated with alternative measures of quality of life.

Accepted Answer

A) True 
 B)False

Question 7

"Countries are poor because they cannot afford to save and invest" is called the:

Accepted Answer

A) vicious circle of poverty. 
B) savings-investment trap. 
C) LDC trap. 
D) cycle of insufficient credit. 
A) vicious circle of poverty. 
B) savings-investment trap. 
C) LDC trap. 
D) cycle of insufficient credit.

Question 8

Which of the following makes long-term low-interest loans to LDCs?

Accepted Answer

A) Agency for International Development (AI
D) . 
B) World Bank. 
C) International Monetary Fund (IMF). 
D) New International Economic Order (NIEO). 
A) Agency for International Development (AI
D) . 
B) World Bank. 
C) International Monetary Fund (IMF). 
D) New International Economic Order (NIEO).

Question 9

An industrially advanced country (IAC)is defined as a country with a GDP per capita among the top ____ countries in the world.

Accepted Answer

A) 5 
B) 10 
C) 20 
D) 27 
A) 5 
B) 10 
C) 20 
D) 27

Question 10

The "Four Tigers" of East Asia are the newly industrialized countries of Taiwan, South Korea, Hong Kong, and:

Accepted Answer

A) Japan. 
B) Singapore. 
C) the Philippines. 
D) Vietnam. 
A) Japan. 
B) Singapore. 
C) the Philippines. 
D) Vietnam.

Question 11

According to the text, Ireland and Israel are classified as industrially advanced countries (IACs).

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a characteristic of most less-developed countries?

Accepted Answer

A) Inadequate human capital. 
B) Inadequate capital goods. 
C) High population growth rate. 
D) Inadequate water supplies. 
E) High productivity. 
A) Inadequate human capital. 
B) Inadequate capital goods. 
C) High population growth rate. 
D) Inadequate water supplies. 
E) High productivity.

Question 13

To grow and prosper, less-developed countries must not :

Accepted Answer

A) invest in human capital. 
B) build a strong infrastructure. 
C) shift resources out of the production of consumer goods and into the production of capital goods. 
D) shift resources out of the production of capital goods and into the production of consumer goods 
E) improve the quality of the water supply 
A) invest in human capital. 
B) build a strong infrastructure. 
C) shift resources out of the production of consumer goods and into the production of capital goods. 
D) shift resources out of the production of capital goods and into the production of consumer goods 
E) improve the quality of the water supply

Question 14

A country with a high GDP per capita can be classified as an industrially advanced country (IAC)regardless of its industrial development.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following makes short-term conditional low-interest loans to LDCs?

Accepted Answer

A) World Bank. 
B) Agency for International Development (AI
D) . 
C) Agency for International Finance (AIF). 
D) International Monetary Fund (IMF). 
A) World Bank. 
B) Agency for International Development (AI
D) . 
C) Agency for International Finance (AIF). 
D) International Monetary Fund (IMF).

Question 16

Explain why the LDCs are unable to invest much in capital goods and human capital.

Accepted Answer

The demands of the growing populations i

Question 17

Which of the following is not an example of a country's infrastructure?

Accepted Answer

A) Transportation system. 
B) Communications system. 
C) Political system. 
D) Educational system. 
E) Energy system. 
A) Transportation system. 
B) Communications system. 
C) Political system. 
D) Educational system. 
E) Energy system.

Question 18

Which of the following provides the best explanation of why low-income countries generally remain poor?

Accepted Answer

A) Their political environment and policies often discourage productive activity and reduce the potential gains from specialization and exchange. 
B) They are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. 
C) They are poorly endowed with natural resources, which are essential for long-term rapid growth. 
D) When the average income level is low, workers have little incentive to earn higher incomes. 
A) Their political environment and policies often discourage productive activity and reduce the potential gains from specialization and exchange. 
B) They are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. 
C) They are poorly endowed with natural resources, which are essential for long-term rapid growth. 
D) When the average income level is low, workers have little incentive to earn higher incomes.

Question 19

Receipt of foreign aid permits less-developed countries to move to a point outside their production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following can be a barrier to an LDC's economic growth and development?

Accepted Answer

A) Low population growth. 
B) A low level of human capital. 
C) Faster capital accumulation. 
D) More infrastructure. 
A) Low population growth. 
B) A low level of human capital. 
C) Faster capital accumulation. 
D) More infrastructure.

Exam 20: Growth and the Less-Developed Countries

Which of the following does not hinder economic development?

How much of the U.S. federal budget is spent on foreign aid?

The nation of Exland is considered a less-developed country and has the following characteristics. Which one is not typical of a less-developed country?

According to the classification in the text, which of the following is not an industrially advanced country (IAC)?

The vicious circle of poverty makes it difficult for an LDC to:

In general, GDP per capita is not highly correlated with alternative measures of quality of life.

"Countries are poor because they cannot afford to save and invest" is called the:

Which of the following makes long-term low-interest loans to LDCs?

An industrially advanced country (IAC)is defined as a country with a GDP per capita among the top ____ countries in the world.

The "Four Tigers" of East Asia are the newly industrialized countries of Taiwan, South Korea, Hong Kong, and:

According to the text, Ireland and Israel are classified as industrially advanced countries (IACs).

Which of the following is not a characteristic of most less-developed countries?

To grow and prosper, less-developed countries must not :

A country with a high GDP per capita can be classified as an industrially advanced country (IAC)regardless of its industrial development.

Which of the following makes short-term conditional low-interest loans to LDCs?

Explain why the LDCs are unable to invest much in capital goods and human capital.

Which of the following is not an example of a country's infrastructure?

Which of the following provides the best explanation of why low-income countries generally remain poor?

Receipt of foreign aid permits less-developed countries to move to a point outside their production possibilities curve.

Which of the following can be a barrier to an LDC's economic growth and development?

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters