Question 1

Child labor limits educational opportunities in developing countries and slows the rate of growth of technological change.

Accepted Answer

A) True 
 B)False

Question 2

Suppose the best and the brightest professionals of the country of Eronia migrate to Glassen for work. The upside of this brain drain is _____

Accepted Answer

A)  the remittances sent to Eronia. 
B)  the foreign aid sent to Eronia. 
C)  increase in the gross domestic product of Eronia. 
D)  decreased labor supply in Eronia. 
E)  increased income inequality in Eronia. 
A)  the remittances sent to Eronia. 
B)  the foreign aid sent to Eronia. 
C)  increase in the gross domestic product of Eronia. 
D)  decreased labor supply in Eronia. 
E)  increased income inequality in Eronia.

Question 3

In 2016, high-income economies, home to less than _____ of the world's population, produced more than _____of the world's output.

Accepted Answer

A)  one fifth; half 
B)  one tenth; half 
C)  one quarter; three quarters 
D)  half; three quarters 
A)  one fifth; half 
B)  one tenth; half 
C)  one quarter; three quarters 
D)  half; three quarters

Question 4

The "Asian Tigers" that have graduated from developing economies to industrial market economies include Hong Kong, Singapore, South Korea, and Taiwan.

Accepted Answer

A) True 
 B)False

Question 5

The International Monetary Fund providing assistance to a country to improve that country's balance of payments is an example of multilateral assistance.

Accepted Answer

A) True 
 B)False

Question 6

Most developing countries are in trouble whenever oil prices rise because _____

Accepted Answer

A)  they are the major exporters of oil, and their export income falls. 
B)  it causes political instability in the countries. 
C)  it causes an increase in frictional unemployment. 
D)  higher oil prices drain the developing countries of foreign exchange. 
E)  it causes deflation in domestic economies. 
A)  they are the major exporters of oil, and their export income falls. 
B)  it causes political instability in the countries. 
C)  it causes an increase in frictional unemployment. 
D)  higher oil prices drain the developing countries of foreign exchange. 
E)  it causes deflation in domestic economies.

Question 7

Child labor in developing countries _____

Accepted Answer

A)  means that children have to look after their grandparents. 
B)  pushes the government to invest in education. 
C)  limits educational opportunities. 
D)  means that children they prefer leisure over school. 
E)  leads the government to provide for child benefits. 
A)  means that children have to look after their grandparents. 
B)  pushes the government to invest in education. 
C)  limits educational opportunities. 
D)  means that children they prefer leisure over school. 
E)  leads the government to provide for child benefits.

Question 8

Differences in stages of development among countries are reflected in a number of ways besides per capita income.

Accepted Answer

A) True 
 B)False

Question 9

International loans extended at favorable repayment terms have temporarily raised the living standard in some developing countries but _____

Accepted Answer

A)  have not necessarily increased their ability to become self-supporting at that higher standard of living. 
B)  have also dislodged corrupt governments from power. 
C)  have never become a source of discretionary funding that benefits unintended beneficiaries. 
D)  have never insulated public officials from their own incompetence. 
E)  have also helped most countries achieve industrial status. 
A)  have not necessarily increased their ability to become self-supporting at that higher standard of living. 
B)  have also dislodged corrupt governments from power. 
C)  have never become a source of discretionary funding that benefits unintended beneficiaries. 
D)  have never insulated public officials from their own incompetence. 
E)  have also helped most countries achieve industrial status.

Question 10

One of the drawbacks of implementing an import-substitution policy is that _____

Accepted Answer

A)  it makes other countries impose trade restrictions as a retaliatory measure. 
B)  it makes the economy vulnerable to global economic fluctuations. 
C)  it leads to brain drain, by which educated and knowledgeable resources are lost. 
D)  it increases the dependence on foreign capital goods for economic growth. 
E)  it increases the budget deficit of the domestic country. 
A)  it makes other countries impose trade restrictions as a retaliatory measure. 
B)  it makes the economy vulnerable to global economic fluctuations. 
C)  it leads to brain drain, by which educated and knowledgeable resources are lost. 
D)  it increases the dependence on foreign capital goods for economic growth. 
E)  it increases the budget deficit of the domestic country.

Question 11

Which of the following is an example of multilateral transfer?

Accepted Answer

A)  the United States providing manufactured goods at low prices to a developing country in Africa 
B)  the United States supplying medicines and other healthcare equipment to Botswana 
C)  the World Bank helping to finance communication networks in a developing country 
D)  China helping to finance and build telephone lines in East Africa 
E)  England providing educational resources to a developing country 
A)  the United States providing manufactured goods at low prices to a developing country in Africa 
B)  the United States supplying medicines and other healthcare equipment to Botswana 
C)  the World Bank helping to finance communication networks in a developing country 
D)  China helping to finance and build telephone lines in East Africa 
E)  England providing educational resources to a developing country

Question 12

Which of the following is at the end of the production chain that a typical economy moves up along?

Accepted Answer

A)  raw materials 
B)  agriculture 
C)  hunting and gathering 
D)  services 
E)  manufacturing 
A)  raw materials 
B)  agriculture 
C)  hunting and gathering 
D)  services 
E)  manufacturing

Question 13

Low-income and middle-income countries are usually referred to 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 14

Which of the following is not correct?

Accepted Answer

A)  Differences in economic vitality among countries are huge. 
B)  Some of the world's 7.5 billion people have little housing or food. 
C)  Some of the world's 7.5 billion people have little clothing. 
D)  Some of the world's 7.5 billion people have no formal job. 
E)  Many of the world's 7.5 billion people can read or write. 
A)  Differences in economic vitality among countries are huge. 
B)  Some of the world's 7.5 billion people have little housing or food. 
C)  Some of the world's 7.5 billion people have little clothing. 
D)  Some of the world's 7.5 billion people have no formal job. 
E)  Many of the world's 7.5 billion people can read or write.

Question 15

In the 1950s, the United States began the Food for Peace program that resulted in _____

Accepted Answer

A)  the sale of U.S. farm products abroad. 
B)  the sale of farm products from Africa in the United States. 
C)  the sale of U.S. industrial products abroad. 
D)  the sale of U.S. software services in foreign countries. 
E)  a rise in contribution by the agricultural sector to the gross domestic product of the United States. 
A)  the sale of U.S. farm products abroad. 
B)  the sale of farm products from Africa in the United States. 
C)  the sale of U.S. industrial products abroad. 
D)  the sale of U.S. software services in foreign countries. 
E)  a rise in contribution by the agricultural sector to the gross domestic product of the United States.

Question 16

Which of the following statements is true of foreign aid received by a developing country?

Accepted Answer

A)  Private international borrowing and lending are highly encouraged by the governments of developing countries. 
B)  Private international borrowing and lending are heavily restricted by the governments of developing countries. 
C)  Foreign aid permanently raises the standard of living in developing countries. 
D)  Foreign aid can help in eliminating corruption in developing countries. 
E)  Foreign aid to developing countries is coordinated by the United Nations. 
A)  Private international borrowing and lending are highly encouraged by the governments of developing countries. 
B)  Private international borrowing and lending are heavily restricted by the governments of developing countries. 
C)  Foreign aid permanently raises the standard of living in developing countries. 
D)  Foreign aid can help in eliminating corruption in developing countries. 
E)  Foreign aid to developing countries is coordinated by the United Nations.

Question 17

A disadvantage of foreign aid is that _____

Accepted Answer

A)  it leads to a decline in the standard of living in donor countries. 
B)  it leads to the disinvestment of public sector industries in recipient countries. 
C)  the agricultural sectors of recipient countries experience surplus output. 
D)  government officials are insulated from their own incompetence. 
E)  it leads to hyperinflation in the recipient countries. 
A)  it leads to a decline in the standard of living in donor countries. 
B)  it leads to the disinvestment of public sector industries in recipient countries. 
C)  the agricultural sectors of recipient countries experience surplus output. 
D)  government officials are insulated from their own incompetence. 
E)  it leads to hyperinflation in the recipient countries.

Question 18

More than half of the labor force in India is engaged in the manufacturing sector.

Accepted Answer

A) True 
 B)False

Question 19

Unemployment occurs _____

Accepted Answer

A)  when skilled workers are employed in low-skill jobs. 
B)  when workers who are willing and able to work cannot find a job. 
C)  when workers drop out of the labor force in frustration. 
D)  only when a country adopts an export-promotion strategy. 
E)  only when a country adopts an import-substitution strategy. 
A)  when skilled workers are employed in low-skill jobs. 
B)  when workers who are willing and able to work cannot find a job. 
C)  when workers drop out of the labor force in frustration. 
D)  only when a country adopts an export-promotion strategy. 
E)  only when a country adopts an import-substitution strategy.

Question 20

Many developing countries were once under colonial rule, a system of government that _____

Accepted Answer

A)  offered the local population large opportunities to develop entrepreneurial skills. 
B)  offered the local population fewer opportunities to develop entrepreneurial skills. 
C)  did not offer any opportunity to the local population to develop entrepreneurial skills. 
D)  believed in a free-market economy. 
E)  offered immigrants opportunities to become entrepreneurs. 
A)  offered the local population large opportunities to develop entrepreneurial skills. 
B)  offered the local population fewer opportunities to develop entrepreneurial skills. 
C)  did not offer any opportunity to the local population to develop entrepreneurial skills. 
D)  believed in a free-market economy. 
E)  offered immigrants opportunities to become entrepreneurs.

Child labor limits educational opportunities in developing countries and slows the rate of growth of technological change.

Suppose the best and the brightest professionals of the country of Eronia migrate to Glassen for work. The upside of this brain drain is _____

In 2016, high-income economies, home to less than _ of the world's population, produced more than _of the world's output.

The "Asian Tigers" that have graduated from developing economies to industrial market economies include Hong Kong, Singapore, South Korea, and Taiwan.

The International Monetary Fund providing assistance to a country to improve that country's balance of payments is an example of multilateral assistance.

Most developing countries are in trouble whenever oil prices rise because _____

Child labor in developing countries _____

Differences in stages of development among countries are reflected in a number of ways besides per capita income.

International loans extended at favorable repayment terms have temporarily raised the living standard in some developing countries but _____

One of the drawbacks of implementing an import-substitution policy is that _____

Which of the following is an example of multilateral transfer?

Which of the following is at the end of the production chain that a typical economy moves up along?

Low-income and middle-income countries are usually referred to as _____

Which of the following is not correct?

In the 1950s, the United States began the Food for Peace program that resulted in _____

Which of the following statements is true of foreign aid received by a developing country?

A disadvantage of foreign aid is that _____

More than half of the labor force in India is engaged in the manufacturing sector.

Unemployment occurs _____

Many developing countries were once under colonial rule, a system of government that _____

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.

Child labor limits educational opportunities in developing countries and slows the rate of growth of technological change.

Suppose the best and the brightest professionals of the country of Eronia migrate to Glassen for work. The upside of this brain drain is _____

In 2016, high-income economies, home to less than _____ of the world's population, produced more than _____of the world's output.

The "Asian Tigers" that have graduated from developing economies to industrial market economies include Hong Kong, Singapore, South Korea, and Taiwan.

The International Monetary Fund providing assistance to a country to improve that country's balance of payments is an example of multilateral assistance.

Most developing countries are in trouble whenever oil prices rise because _____

Child labor in developing countries _____

Differences in stages of development among countries are reflected in a number of ways besides per capita income.

International loans extended at favorable repayment terms have temporarily raised the living standard in some developing countries but _____

One of the drawbacks of implementing an import-substitution policy is that _____

Which of the following is an example of multilateral transfer?

Which of the following is at the end of the production chain that a typical economy moves up along?

Low-income and middle-income countries are usually referred to as _____

Which of the following is not correct?

In the 1950s, the United States began the Food for Peace program that resulted in _____

Which of the following statements is true of foreign aid received by a developing country?

A disadvantage of foreign aid is that _____

More than half of the labor force in India is engaged in the manufacturing sector.

Unemployment occurs _____

Many developing countries were once under colonial rule, a system of government that _____

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

In 2016, high-income economies, home to less than _ of the world's population, produced more than _of the world's output.