Question 1

Each nation's International Monetary Fund (IMF)quota subscription is based on

Accepted Answer

A) its national income. 
B) its share in world trade. 
C) its public debt. 
D) its trade surplus. 
A) its national income. 
B) its share in world trade. 
C) its public debt. 
D) its trade surplus. A

Question 2

Which of the following has contributed to developing countries' poor economic performance?

Accepted Answer

A) low population growth 
B) corruption 
C) high capital investment 
D) foreign direct investment 
A) low population growth 
B) corruption 
C) high capital investment 
D) foreign direct investment B

Question 3

The International Monetary Fund (IMF)is an international organization designed to

Accepted Answer

A) promote world economic growth by means of greater financial stability. 
B) promote world economic growth via loans to developed nations. 
C) circulate a single currency worldwide. 
D) act as the world's central bank. 
A) promote world economic growth by means of greater financial stability. 
B) promote world economic growth via loans to developed nations. 
C) circulate a single currency worldwide. 
D) act as the world's central bank. A

Question 4

Portfolio investment means the

Accepted Answer

A) purchase of less than 20 percent of the shares of ownership in a company in another country. 
B) purchase of less than 50 percent of the shares of ownership in a company in another country. 
C) purchase of less than 80 percent of the shares of ownership in a company in another country. 
D) purchase of less than 10 percent of the shares of ownership in a company in another country. 
A) purchase of less than 20 percent of the shares of ownership in a company in another country. 
B) purchase of less than 50 percent of the shares of ownership in a company in another country. 
C) purchase of less than 80 percent of the shares of ownership in a company in another country. 
D) purchase of less than 10 percent of the shares of ownership in a company in another country.

Question 5

An international organization formed with the aim of promoting world economic growth through financial stability is called

Accepted Answer

A) the World Bank. 
B) the International Development Association. 
C) the International Finance Corporation. 
D) the International Monetary Fund (IMF). 
A) the World Bank. 
B) the International Development Association. 
C) the International Finance Corporation. 
D) the International Monetary Fund (IMF).

Question 6

Those who advocate a role for the World Bank in establishing systems of well-defined property and contract rights in developing nations would argue that

Accepted Answer

A) such changes would eliminate the need for long-term capital funding. 
B) such changes would eliminate the need for short-term loans. 
C) such changes would make these economies more productive. 
D) asymmetric information is currently not a problem in these countries. 
A) such changes would eliminate the need for long-term capital funding. 
B) such changes would eliminate the need for short-term loans. 
C) such changes would make these economies more productive. 
D) asymmetric information is currently not a problem in these countries.

Question 7

If there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as

Accepted Answer

A) moral hazard. 
B) adverse selection crisis. 
C) portfolio investment crisis. 
D) international financial crisis. 
A) moral hazard. 
B) adverse selection crisis. 
C) portfolio investment crisis. 
D) international financial crisis.

Question 8

As productive capital goods are established in developing nations

Accepted Answer

A) developed nations will become less prosperous. 
B) they will be less likely to engage in international trade. 
C) these countries will experience higher rates of economic growth. 
D) portfolio investment will be replaced by loans from international aid agencies. 
A) developed nations will become less prosperous. 
B) they will be less likely to engage in international trade. 
C) these countries will experience higher rates of economic growth. 
D) portfolio investment will be replaced by loans from international aid agencies.

Question 9

The rapid withdrawal of foreign investment funds from a nation creates

Accepted Answer

A) an international financial crisis. 
B) an international funding crisis. 
C) an international fiscal crisis. 
D) an international fiduciary crisis. 
A) an international financial crisis. 
B) an international funding crisis. 
C) an international fiscal crisis. 
D) an international fiduciary crisis.

Question 10

When government inefficiencies exist and government officials can be bribed, then

Accepted Answer

A) dead capital will not exist. 
B) the country will have positive economic growth. 
C) a bribe will increase the cost of investing in capital. 
D) property rights will be more secure since an official has been bribed to grant ownership to the business. 
A) dead capital will not exist. 
B) the country will have positive economic growth. 
C) a bribe will increase the cost of investing in capital. 
D) property rights will be more secure since an official has been bribed to grant ownership to the business.

Question 11

The international organization with the sole goal of promoting global antipoverty efforts is the

Accepted Answer

A) World Bank. 
B) International Monetary Fund. 
C) Board of Governors of the Federal Reserve System. 
D) GAE. 
A) World Bank. 
B) International Monetary Fund. 
C) Board of Governors of the Federal Reserve System. 
D) GAE.

Question 12

The goal of the World Bank is to

Accepted Answer

A) supervise exchange rate stability. 
B) supervise the activities of the central banks of member nations. 
C) sell the government securities of member nations on the open market. 
D) help finance economic development. 
A) supervise exchange rate stability. 
B) supervise the activities of the central banks of member nations. 
C) sell the government securities of member nations on the open market. 
D) help finance economic development.

Question 13

Which of the following is NOT one of the three primary sources of private investment funds flowing into developing nations?

Accepted Answer

A) bank loans 
B) foreign direct investment 
C) World Bank and IMF loans 
D) portfolio investment 
A) bank loans 
B) foreign direct investment 
C) World Bank and IMF loans 
D) portfolio investment

Question 14

According to the text, is there any relationship between bureaucratic inefficiency and economic growth?

Accepted Answer

A) Yes, bureaucratic inefficiency and economic growth are positively related. 
B) Yes, but only in the most economically developed nations. 
C) Yes, bureaucratic inefficiency and economic growth are inversely related. 
D) No. Some nations' economies grow rapidly despite their inefficient governments while others collapse with inefficient governments. 
A) Yes, bureaucratic inefficiency and economic growth are positively related. 
B) Yes, but only in the most economically developed nations. 
C) Yes, bureaucratic inefficiency and economic growth are inversely related. 
D) No. Some nations' economies grow rapidly despite their inefficient governments while others collapse with inefficient governments.

Question 15

The World Bank specializes in making loans to

Accepted Answer

A) industrialized nations. 
B) communist nations. 
C) developing nations. 
D) African nations. 
A) industrialized nations. 
B) communist nations. 
C) developing nations. 
D) African nations.

Question 16

Extensive government restrictions on the use of capital are likely to

Accepted Answer

A) create dead capital. 
B) enhance economic growth. 
C) enhance economic freedom. 
D) result in capital resources being devoted to their most efficient uses. 
A) create dead capital. 
B) enhance economic growth. 
C) enhance economic freedom. 
D) result in capital resources being devoted to their most efficient uses.

Question 17

The rate of growth in real GDP minus the rate of growth of the population is the

Accepted Answer

A) rate of growth of nominal GDP. 
B) unemployment rate. 
C) population growth rate. 
D) rate of growth of per capita real GDP. 
A) rate of growth of nominal GDP. 
B) unemployment rate. 
C) population growth rate. 
D) rate of growth of per capita real GDP.

Question 18

The right to openly support and to elect leaders in a democratic way is known as

Accepted Answer

A) political freedom. 
B) economic freedom. 
C) constitutional freedom. 
D) external freedom. 
A) political freedom. 
B) economic freedom. 
C) constitutional freedom. 
D) external freedom.

Question 19

If you invest in a foreign company by buying 28 percent of its shares of stock, you have engaged in

Accepted Answer

A) portfolio investment. 
B) moral hazard. 
C) foreign direct investment. 
D) adverse selection. 
A) portfolio investment. 
B) moral hazard. 
C) foreign direct investment. 
D) adverse selection.

Question 20

The World Bank

Accepted Answer

A) determines the price level in each of its member nations. 
B) determines the labor force participation rate in each of its member nations. 
C) mediates contracts regarding minimum prices for various globally-traded commodities. 
D) extends long-term loans for capital investment projects to developing nations. 
A) determines the price level in each of its member nations. 
B) determines the labor force participation rate in each of its member nations. 
C) mediates contracts regarding minimum prices for various globally-traded commodities. 
D) extends long-term loans for capital investment projects to developing nations.

Each nation's International Monetary Fund (IMF)quota subscription is based on

Which of the following has contributed to developing countries' poor economic performance?

The International Monetary Fund (IMF)is an international organization designed to

Portfolio investment means the

An international organization formed with the aim of promoting world economic growth through financial stability is called

Those who advocate a role for the World Bank in establishing systems of well-defined property and contract rights in developing nations would argue that

If there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as

As productive capital goods are established in developing nations

The rapid withdrawal of foreign investment funds from a nation creates

When government inefficiencies exist and government officials can be bribed, then

The international organization with the sole goal of promoting global antipoverty efforts is the

The goal of the World Bank is to

Which of the following is NOT one of the three primary sources of private investment funds flowing into developing nations?

According to the text, is there any relationship between bureaucratic inefficiency and economic growth?

The World Bank specializes in making loans to

Extensive government restrictions on the use of capital are likely to

The rate of growth in real GDP minus the rate of growth of the population is the

The right to openly support and to elect leaders in a democratic way is known as

If you invest in a foreign company by buying 28 percent of its shares of stock, you have engaged in

The World Bank

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 17: Policies and Prospects for Global Economic Growth

Each nation's International Monetary Fund (IMF)quota subscription is based on

Which of the following has contributed to developing countries' poor economic performance?

The International Monetary Fund (IMF)is an international organization designed to

Portfolio investment means the

An international organization formed with the aim of promoting world economic growth through financial stability is called

Those who advocate a role for the World Bank in establishing systems of well-defined property and contract rights in developing nations would argue that

If there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as

As productive capital goods are established in developing nations

The rapid withdrawal of foreign investment funds from a nation creates

When government inefficiencies exist and government officials can be bribed, then

The international organization with the sole goal of promoting global antipoverty efforts is the

The goal of the World Bank is to

Which of the following is NOT one of the three primary sources of private investment funds flowing into developing nations?

According to the text, is there any relationship between bureaucratic inefficiency and economic growth?

The World Bank specializes in making loans to

Extensive government restrictions on the use of capital are likely to

The rate of growth in real GDP minus the rate of growth of the population is the

The right to openly support and to elect leaders in a democratic way is known as

If you invest in a foreign company by buying 28 percent of its shares of stock, you have engaged in

The World Bank

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters