Question 1

Because of disappointment with the results of government aid, the trend is to _____

Accepted Answer

A)  stop accepting outside aid altogether. 
B)  channel funds through profit-making organizations. 
C)  channel funds through private investors. 
D)  become the donor country from being the recipient country. 
E)  channel funds through private nonprofit agencies. 
A)  stop accepting outside aid altogether. 
B)  channel funds through profit-making organizations. 
C)  channel funds through private investors. 
D)  become the donor country from being the recipient country. 
E)  channel funds through private nonprofit agencies.

Question 2

Migrant workers around the world sent home about _____ in 2016.

Accepted Answer

A)  $1 billion 
B)  $15 billion 
C)  $235 billion 
D)  $536 billion 
E)  $1,000 billion 
A)  $1 billion 
B)  $15 billion 
C)  $235 billion 
D)  $536 billion 
E)  $1,000 billion

Question 3

Which of the following correctly identifies the difference between export promotion and import substitution as approaches to economic growth?

Accepted Answer

A)  Export promotion is based on the infant industry argument, while import substitution is based on the level-playing-field argument. 
B)  Export promotion requires more government intervention in the form of tariffs and quotas, while import substitution requires minimum government intervention. 
C)  Export promotion boosts domestic efficiency, while import substitution leads to inferior products being supplied by domestic producers and lowers efficiency. 
D)  Export promotion results in the replacement of low-cost foreign goods with high-cost domestic goods, while import substitution leads to the replacement of high-cost foreign goods with low-cost domestic goods. 
E)  Export promotion results in a decrease in the per capita GDP of a country, while import substitution results in an increase in the per capita GDP of a country. 
A)  Export promotion is based on the infant industry argument, while import substitution is based on the level-playing-field argument. 
B)  Export promotion requires more government intervention in the form of tariffs and quotas, while import substitution requires minimum government intervention. 
C)  Export promotion boosts domestic efficiency, while import substitution leads to inferior products being supplied by domestic producers and lowers efficiency. 
D)  Export promotion results in the replacement of low-cost foreign goods with high-cost domestic goods, while import substitution leads to the replacement of high-cost foreign goods with low-cost domestic goods. 
E)  Export promotion results in a decrease in the per capita GDP of a country, while import substitution results in an increase in the per capita GDP of a country.

Question 4

Which of the following leads to an inefficient use of labor?

Accepted Answer

A)  underemployment 
B)  a high rate of economic growth 
C)  overemployment 
D)  a high rate of growth of income 
E)  a high rate of inflation 
A)  underemployment 
B)  a high rate of economic growth 
C)  overemployment 
D)  a high rate of growth of income 
E)  a high rate of inflation

Question 5

Bilateral assistance is _____

Accepted Answer

A)  assistance provided by organizations. 
B)  country-to-country aid. 
C)  supplemental aid. 
D)  substitution aid. 
E)  interference in a sovereign nation. 
A)  assistance provided by organizations. 
B)  country-to-country aid. 
C)  supplemental aid. 
D)  substitution aid. 
E)  interference in a sovereign nation.

Question 6

Which countries have failed with their import-substitution approach?

Accepted Answer

A)  Argentina, India, and Peru 
B)  the United States and Canada 
C)  Hong Kong, South Korea, Singapore, and Taiwan 
D)  Great Britain and Ireland 
E)  the European Union 
A)  Argentina, India, and Peru 
B)  the United States and Canada 
C)  Hong Kong, South Korea, Singapore, and Taiwan 
D)  Great Britain and Ireland 
E)  the European Union

Question 7

A stable macroeconomic environment and reliable financial institutions help developing economies close the development gap.

Accepted Answer

A) True 
 B)False

Question 8

Consumers easily organize themselves to support government policies on free trade as soon as they become aware of the gains from free trade.

Accepted Answer

A) True 
 B)False

Question 9

Economically advanced capitalist countries, also known as developed countries and high-income economies, are classified by the World Bank as _____

Accepted Answer

A)  developing countries. 
B)  low-income economies. 
C)  middle-income economies. 
D)  transitional economies. 
E)  industrial market countries. 
A)  developing countries. 
B)  low-income economies. 
C)  middle-income economies. 
D)  transitional economies. 
E)  industrial market countries.

Question 10

Which of the following countries has a limited stock of natural resources?

Accepted Answer

A)  the United Arab Emirates 
B)  Chad 
C)  Qatar 
D)  Kuwait 
E)  Bahrain 
A)  the United Arab Emirates 
B)  Chad 
C)  Qatar 
D)  Kuwait 
E)  Bahrain

Question 11

It is clear that foreign aid is a source of discretionary funds that _____

Accepted Answer

A)  benefit only poor people. 
B)  benefit government leaders. 
C)  benefit only rich people. 
D)  benefit institutions like the World Bank and the IMF. 
E)  benefit all common people irrespective of their economic status. 
A)  benefit only poor people. 
B)  benefit government leaders. 
C)  benefit only rich people. 
D)  benefit institutions like the World Bank and the IMF. 
E)  benefit all common people irrespective of their economic status.

Question 12

Which of the following is true of import substitution?

Accepted Answer

A)  The government encourages domestic producers to make products that can compete in the international market. 
B)  The government takes steps to liberate imports and lift restrictions. 
C)  The government takes steps to promote exports and subsidizes export-oriented production. 
D)  The government insulates domestic producers by imposing strict tariffs and quotas. 
E)  The government focuses on service-oriented imports rather than primary imports. 
A)  The government encourages domestic producers to make products that can compete in the international market. 
B)  The government takes steps to liberate imports and lift restrictions. 
C)  The government takes steps to promote exports and subsidizes export-oriented production. 
D)  The government insulates domestic producers by imposing strict tariffs and quotas. 
E)  The government focuses on service-oriented imports rather than primary imports.

Question 13

The United States Agency for International Development focuses on short-range plans to meet the basic needs of the poor.

Accepted Answer

A) True 
 B)False

Question 14

The newly industrialized Asian economies have developed _____

Accepted Answer

A)  by adopting the latest technology. 
B)  investing in the agricultural sector. 
C)  investing in defense equipment. 
D)  by halting public infrastructure projects such as roads, communication, and transport. 
E)  by developing consumer-oriented products. 
A)  by adopting the latest technology. 
B)  investing in the agricultural sector. 
C)  investing in defense equipment. 
D)  by halting public infrastructure projects such as roads, communication, and transport. 
E)  by developing consumer-oriented products.

Question 15

Which of the following is true of the poorest countries of the world?

Accepted Answer

A)  Children make up less than one-fifth of the population. 
B)  There are more people over the age of 65 than under the age of 15. 
C)  Children under the age of 15 make up nearly half the population. 
D)  Fertility rates are very low compared to those in industrial countries. 
E)  The growth rate in total production generally exceeds the population growth rate. 
A)  Children make up less than one-fifth of the population. 
B)  There are more people over the age of 65 than under the age of 15. 
C)  Children under the age of 15 make up nearly half the population. 
D)  Fertility rates are very low compared to those in industrial countries. 
E)  The growth rate in total production generally exceeds the population growth rate.

Question 16

Which of the following countries has the highest infant mortality rate?

Accepted Answer

A)  Japan 
B)  Congo 
C)  the United States 
D)  Norway 
E)  Germany 
A)  Japan 
B)  Congo 
C)  the United States 
D)  Norway 
E)  Germany

Question 17

One likely reason that a country is poor is that it _____

Accepted Answer

A)  does not produce many goods and services. 
B)  has a low unemployment rate. 
C)  has a low birth rate. 
D)  enjoys a low infant mortality rate. 
E)  has a high literacy rate. 
A)  does not produce many goods and services. 
B)  has a low unemployment rate. 
C)  has a low birth rate. 
D)  enjoys a low infant mortality rate. 
E)  has a high literacy rate.

Question 18

In 2014, high-income economies with only about one-fifth of the world's population produced more than half of the world's output.

Accepted Answer

A) True 
 B)False

Question 19

The yardstick most often used to compare living standards across nations is _____

Accepted Answer

A)  the average production cost per unit. 
B)  the sales revenue per month for all the firms in an economy. 
C)  the utility per capita. 
D)  the output per capita. 
E)  the volume of imports per year. 
A)  the average production cost per unit. 
B)  the sales revenue per month for all the firms in an economy. 
C)  the utility per capita. 
D)  the output per capita. 
E)  the volume of imports per year.

Question 20

What might foreign aid include?

Accepted Answer

A)  grants that do not have to be repaid 
B)  unilateral transfers 
C)  loans at market rates 
D)  Foreign Direct Investment (FDI) 
E)  remittances 
A)  grants that do not have to be repaid 
B)  unilateral transfers 
C)  loans at market rates 
D)  Foreign Direct Investment (FDI) 
E)  remittances

Because of disappointment with the results of government aid, the trend is to _____

Migrant workers around the world sent home about _____ in 2016.

Which of the following correctly identifies the difference between export promotion and import substitution as approaches to economic growth?

Which of the following leads to an inefficient use of labor?

Bilateral assistance is _____

Which countries have failed with their import-substitution approach?

A stable macroeconomic environment and reliable financial institutions help developing economies close the development gap.

Consumers easily organize themselves to support government policies on free trade as soon as they become aware of the gains from free trade.

Economically advanced capitalist countries, also known as developed countries and high-income economies, are classified by the World Bank as _____

Which of the following countries has a limited stock of natural resources?

It is clear that foreign aid is a source of discretionary funds that _____

Which of the following is true of import substitution?

The United States Agency for International Development focuses on short-range plans to meet the basic needs of the poor.

The newly industrialized Asian economies have developed _____

Which of the following is true of the poorest countries of the world?

Which of the following countries has the highest infant mortality rate?

One likely reason that a country is poor is that it _____

In 2014, high-income economies with only about one-fifth of the world's population produced more than half of the world's output.

The yardstick most often used to compare living standards across nations is _____

What might foreign aid include?

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.

Because of disappointment with the results of government aid, the trend is to _____

Migrant workers around the world sent home about _____ in 2016.

Which of the following correctly identifies the difference between export promotion and import substitution as approaches to economic growth?

Which of the following leads to an inefficient use of labor?

Bilateral assistance is _____

Which countries have failed with their import-substitution approach?

A stable macroeconomic environment and reliable financial institutions help developing economies close the development gap.

Consumers easily organize themselves to support government policies on free trade as soon as they become aware of the gains from free trade.

Economically advanced capitalist countries, also known as developed countries and high-income economies, are classified by the World Bank as _____

Which of the following countries has a limited stock of natural resources?

It is clear that foreign aid is a source of discretionary funds that _____

Which of the following is true of import substitution?

The United States Agency for International Development focuses on short-range plans to meet the basic needs of the poor.

The newly industrialized Asian economies have developed _____

Which of the following is true of the poorest countries of the world?

Which of the following countries has the highest infant mortality rate?

One likely reason that a country is poor is that it _____

In 2014, high-income economies with only about one-fifth of the world's population produced more than half of the world's output.

The yardstick most often used to compare living standards across nations is _____

What might foreign aid include?

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