Question 1

During the last four decades, the United States has provided the developing world with over _____ in aid.

Accepted Answer

A)  $10 billion 
B)  $100 billion 
C)  $200 billion 
D)  $300 billion 
E)  $400 billion 
A)  $10 billion 
B)  $100 billion 
C)  $200 billion 
D)  $300 billion 
E)  $400 billion

Question 2

A study by the World Bank suggests a strong link in Africa between governments that _____ special-interest groups and _____ rates of economic growth.

Accepted Answer

A)  cater to; high 
B)  cater to; moderate 
C)  cater to; low 
D)  ignore; low 
E)  ignore; moderate 
A)  cater to; high 
B)  cater to; moderate 
C)  cater to; low 
D)  ignore; low 
E)  ignore; moderate

Question 3

What does USAID emphasize?

Accepted Answer

A)  balance-of-payments loans 
B)  investments in defense industries 
C)  short-range plans to promote dependence on wealthy nations 
D)  long-range plans to meet the basic needs of the poor and to promote self-sufficiency 
E)  stability in foreign exchange markets 
A)  balance-of-payments loans 
B)  investments in defense industries 
C)  short-range plans to promote dependence on wealthy nations 
D)  long-range plans to meet the basic needs of the poor and to promote self-sufficiency 
E)  stability in foreign exchange markets

Question 4

Which of the following is not true of the World Bank?

Accepted Answer

A)  It is an economic development institution. 
B)  It is affiliated with the United Nations. 
C)  It offers low-fee checking accounts to anyone in the world. 
D)  It estimates output per capita figures. 
E)  It uses output per capita figures to classify economies. 
A)  It is an economic development institution. 
B)  It is affiliated with the United Nations. 
C)  It offers low-fee checking accounts to anyone in the world. 
D)  It estimates output per capita figures. 
E)  It uses output per capita figures to classify economies.

Question 5

Laws, customs, conventions, and other institutional elements that sustain an economy fall under the category of _____

Accepted Answer

A)  the rules of the game. 
B)  human capital. 
C)  natural resources. 
D)  financial institutions. 
E)  capital infrastructure. 
A)  the rules of the game. 
B)  human capital. 
C)  natural resources. 
D)  financial institutions. 
E)  capital infrastructure.

Question 6

Which of the following groups of countries has the highest incidence of HIV/AIDS?

Accepted Answer

A)  Continental European countries 
B)  the Baltic countries 
C)  the Nordic countries 
D)  sub-Saharan African countries 
E)  Middle Eastern countries 
A)  Continental European countries 
B)  the Baltic countries 
C)  the Nordic countries 
D)  sub-Saharan African countries 
E)  Middle Eastern countries

Question 7

What is a reason that convergence may take a long time?

Accepted Answer

A)  The quality of human capital across countries is very uniform. 
B)  The roots of economic development go back centuries. 
C)  Poor economies must produce less to keep up with a growing population. 
D)  Newly developed infrastructures divert resources. 
E)  Developing countries often have a higher percentage of young people. 
A)  The quality of human capital across countries is very uniform. 
B)  The roots of economic development go back centuries. 
C)  Poor economies must produce less to keep up with a growing population. 
D)  Newly developed infrastructures divert resources. 
E)  Developing countries often have a higher percentage of young people.

Question 8

Workers are less productive in poor countries because _____

Accepted Answer

A)  the wealthy minority invests in stable foreign economies. 
B)  the government invests in stocks and bonds. 
C)  more than half of the population consists of people above 65 years of age. 
D)  they prefer leisure over work. 
E)  the government provides for unemployment benefits that make workers less willing to work. 
A)  the wealthy minority invests in stable foreign economies. 
B)  the government invests in stocks and bonds. 
C)  more than half of the population consists of people above 65 years of age. 
D)  they prefer leisure over work. 
E)  the government provides for unemployment benefits that make workers less willing to work.

Question 9

The country of Erbia can discourage foreign investment by _____

Accepted Answer

A)  requiring foreign investors to find a local partner who must be granted controlling interest. 
B)  setting the same exchange rates for different categories of transactions. 
C)  freely allowing private international borrowing and lending. 
D)  reducing government intervention in the market. 
E)  making consumers aware of the gains from freer trade. 
A)  requiring foreign investors to find a local partner who must be granted controlling interest. 
B)  setting the same exchange rates for different categories of transactions. 
C)  freely allowing private international borrowing and lending. 
D)  reducing government intervention in the market. 
E)  making consumers aware of the gains from freer trade.

Question 10

Most countries have received foreign aid for industrialization.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is correct?

Accepted Answer

A)  Private international borrowing and lending are heavily restricted by the governments of developing countries. 
B)  Poor countries generate enough savings to fund an adequate level of investment. 
C)  Poor countries generate enough savings to fund investments. 
D)  In some developing countries, different exchange rates apply to different categories of transactions. 
E)  In some developing countries, local currency is not easily convertible into other currencies. 
A)  Private international borrowing and lending are heavily restricted by the governments of developing countries. 
B)  Poor countries generate enough savings to fund an adequate level of investment. 
C)  Poor countries generate enough savings to fund investments. 
D)  In some developing countries, different exchange rates apply to different categories of transactions. 
E)  In some developing countries, local currency is not easily convertible into other currencies.

Question 12

Which of the following is a difference between bilateral aid and multilateral aid?

Accepted Answer

A)  Multilateral aid is a country-to-country aid, whereas bilateral aid comes from organizations using funds from many countries. 
B)  Multilateral aid comes from organizations using funds from many countries, whereas bilateral aid is a country-to-country aid. 
C)  Multilateral aid is a country-to-country aid, whereas bilateral aid comes from philanthropic organizations. 
D)  Multilateral aid comes from philanthropic organizations, whereas bilateral aid comes from organizations using funds from many countries. 
E)  Multilateral aid comes from established individuals who plan on helping poor countries, whereas bilateral aid comes from philanthropic organizations. 
A)  Multilateral aid is a country-to-country aid, whereas bilateral aid comes from organizations using funds from many countries. 
B)  Multilateral aid comes from organizations using funds from many countries, whereas bilateral aid is a country-to-country aid. 
C)  Multilateral aid is a country-to-country aid, whereas bilateral aid comes from philanthropic organizations. 
D)  Multilateral aid comes from philanthropic organizations, whereas bilateral aid comes from organizations using funds from many countries. 
E)  Multilateral aid comes from established individuals who plan on helping poor countries, whereas bilateral aid comes from philanthropic organizations.

Question 13

Evidence from developing countries suggests that fertility rates decline when _____

Accepted Answer

A)  households are headed by women. 
B)  the proportion of children in the population exceeds that of the young adults. 
C)  households are headed by men. 
D)  literacy among women declines. 
E)  women have employment opportunities outside their home. 
A)  households are headed by women. 
B)  the proportion of children in the population exceeds that of the young adults. 
C)  households are headed by men. 
D)  literacy among women declines. 
E)  women have employment opportunities outside their home.

Question 14

Foreign aid often becomes a source of discretionary funds that benefit poor people in developing countries and not the countries' leaders.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following regions has the lowest life expectancy at birth?

Accepted Answer

A)  Continental European countries 
B)  the Baltic countries 
C)  the Nordic countries 
D)  sub-Saharan African countries 
E)  Middle Eastern countries 
A)  Continental European countries 
B)  the Baltic countries 
C)  the Nordic countries 
D)  sub-Saharan African countries 
E)  Middle Eastern countries

Question 16

In developing countries, farm productivity is low because _____

Accepted Answer

A)  half of the labor force is involved in industrial activities. 
B)  half of the labor force is involved in the service sector. 
C)  more than half of the population consists of old people. 
D)  farming methods are generally primitive. 
E)  people prefer leisure over working. 
A)  half of the labor force is involved in industrial activities. 
B)  half of the labor force is involved in the service sector. 
C)  more than half of the population consists of old people. 
D)  farming methods are generally primitive. 
E)  people prefer leisure over working.

Question 17

Private international borrowing and lending is freely allowed by governments of developing countries.

Accepted Answer

A) True 
 B)False

Question 18

Foreign aid includes _____

Accepted Answer

A)  grants and loans extended on more favorable repayment terms than the recipient could normally secure. 
B)  only loans with strict repayment terms. 
C)  only grants which have to be repaid on some predetermined date. 
D)  the transfer of money by an overseas worker to his family. 
E)  medical equipment sent by a foreign country during times of need. 
A)  grants and loans extended on more favorable repayment terms than the recipient could normally secure. 
B)  only loans with strict repayment terms. 
C)  only grants which have to be repaid on some predetermined date. 
D)  the transfer of money by an overseas worker to his family. 
E)  medical equipment sent by a foreign country during times of need.

Question 19

Nearly ____of the labor force in developing countries works in agriculture versus only about _____ in industrial market countries.

Accepted Answer

A)  50 percent; 3 percent 
B)  6 percent; 4 percent 
C)  46 percent; 7 percent 
D)  12 percent; 2 percent 
E)  70 percent; 6 percent 
A)  50 percent; 3 percent 
B)  6 percent; 4 percent 
C)  46 percent; 7 percent 
D)  12 percent; 2 percent 
E)  70 percent; 6 percent

Question 20

Developing countries have higher birth rates because _____

Accepted Answer

A)  families with more children have higher levels of income. 
B)  children are viewed as economic and social security as parents age. 
C)  the opportunity cost of leisure for people in developing countries is less. 
D)  there are special government programs that encourage more children per family. 
E)  the infant mortality rate is low in developing countries. 
A)  families with more children have higher levels of income. 
B)  children are viewed as economic and social security as parents age. 
C)  the opportunity cost of leisure for people in developing countries is less. 
D)  there are special government programs that encourage more children per family. 
E)  the infant mortality rate is low in developing countries.

During the last four decades, the United States has provided the developing world with over _____ in aid.

A study by the World Bank suggests a strong link in Africa between governments that _ special-interest groups and _ rates of economic growth.

What does USAID emphasize?

Which of the following is not true of the World Bank?

Laws, customs, conventions, and other institutional elements that sustain an economy fall under the category of _____

Which of the following groups of countries has the highest incidence of HIV/AIDS?

What is a reason that convergence may take a long time?

Workers are less productive in poor countries because _____

The country of Erbia can discourage foreign investment by _____

Most countries have received foreign aid for industrialization.

Which of the following is correct?

Which of the following is a difference between bilateral aid and multilateral aid?

Evidence from developing countries suggests that fertility rates decline when _____

Foreign aid often becomes a source of discretionary funds that benefit poor people in developing countries and not the countries' leaders.

Which of the following regions has the lowest life expectancy at birth?

In developing countries, farm productivity is low because _____

Private international borrowing and lending is freely allowed by governments of developing countries.

Foreign aid includes _____

Nearly of the labor force in developing countries works in agriculture versus only about _ in industrial market countries.

Developing countries have higher birth rates because _____

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Filters

Exam 19: Economic Development.

During the last four decades, the United States has provided the developing world with over _____ in aid.

A study by the World Bank suggests a strong link in Africa between governments that _____ special-interest groups and _____ rates of economic growth.

What does USAID emphasize?

Which of the following is not true of the World Bank?

Laws, customs, conventions, and other institutional elements that sustain an economy fall under the category of _____

Which of the following groups of countries has the highest incidence of HIV/AIDS?

What is a reason that convergence may take a long time?

Workers are less productive in poor countries because _____

The country of Erbia can discourage foreign investment by _____

Most countries have received foreign aid for industrialization.

Which of the following is correct?

Which of the following is a difference between bilateral aid and multilateral aid?

Evidence from developing countries suggests that fertility rates decline when _____

Foreign aid often becomes a source of discretionary funds that benefit poor people in developing countries and not the countries' leaders.

Which of the following regions has the lowest life expectancy at birth?

In developing countries, farm productivity is low because _____

Private international borrowing and lending is freely allowed by governments of developing countries.

Foreign aid includes _____

Nearly ____of the labor force in developing countries works in agriculture versus only about _____ in industrial market countries.

Developing countries have higher birth rates because _____

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Filters

A study by the World Bank suggests a strong link in Africa between governments that _ special-interest groups and _ rates of economic growth.

Nearly of the labor force in developing countries works in agriculture versus only about _ in industrial market countries.