Question 1

Which of the following is a barrier to economic growth in many developing nations?

Accepted Answer

A) the shortage of labor 
B) the lack of natural resources 
C) the lack of economic freedom 
D) the low level of restrictions in the labor market 
A) the shortage of labor 
B) the lack of natural resources 
C) the lack of economic freedom 
D) the low level of restrictions in the labor market

Question 2

A country experiencing an international financial crisis will likely

Accepted Answer

A) see an increase in portfolio investment. 
B) see an increase in foreign direct investment. 
C) encounter difficulty in sustaining its economic growth rate. 
D) be able to maintain growth and prosperity in its domestic economy, but its export sector will suffer. 
A) see an increase in portfolio investment. 
B) see an increase in foreign direct investment. 
C) encounter difficulty in sustaining its economic growth rate. 
D) be able to maintain growth and prosperity in its domestic economy, but its export sector will suffer.

Question 3

Discuss why the World Bank has been criticized for making loans to nations that can attract private funds.

Accepted Answer

Loans given to nations that ca

Question 4

Which of the following world regions has received the largest percentage of lending from the World Bank since 1990?

Accepted Answer

A) Latin America/Caribbean 
B) South Asia 
C) Africa 
D) Middle East 
A) Latin America/Caribbean 
B) South Asia 
C) Africa 
D) Middle East

Question 5

When an international financial crisis occurs

Accepted Answer

A) financial lenders protect their investments by pouring money into the ailing country. 
B) investors sell off bonds and restrict loans as a mechanism to help the country recover. 
C) financial flows can slow to a trickle, influencing economic growth. 
D) there are no serious financial effects that last more than a few months. 
A) financial lenders protect their investments by pouring money into the ailing country. 
B) investors sell off bonds and restrict loans as a mechanism to help the country recover. 
C) financial flows can slow to a trickle, influencing economic growth. 
D) there are no serious financial effects that last more than a few months.

Question 6

Which of the following statements is TRUE about the relationship between high birthrates and real GDP growth?

Accepted Answer

A) High birthrates in countries with little economic freedom will lead to higher labor force participation rates that in turn lead to higher growth of real GDP. 
B) High birthrates reduce per capita incomes, and a lack of economic freedom inhibits real GDP growth. 
C) There is no relationship between birthrates and real GDP growth. 
D) The influence that birthrates have on real GDP growth is the same in countries whether or not economic freedom exits. 
A) High birthrates in countries with little economic freedom will lead to higher labor force participation rates that in turn lead to higher growth of real GDP. 
B) High birthrates reduce per capita incomes, and a lack of economic freedom inhibits real GDP growth. 
C) There is no relationship between birthrates and real GDP growth. 
D) The influence that birthrates have on real GDP growth is the same in countries whether or not economic freedom exits.

Question 7

Which of the following is NOT a criticism that has been leveled at the World Bank?

Accepted Answer

A) Too many loans go to nations capable of privately financing their projects. 
B) Since 1990, the World Bank has loaned mostly to African countries, to the detriment of nations in other parts of the world. 
C) Some countries receiving World Bank loans are net lenders of funds to other nations and so should not be receiving World Bank funds. 
D) Despite receiving loans from the World Bank, economic growth in many client nations has been disappointing. 
A) Too many loans go to nations capable of privately financing their projects. 
B) Since 1990, the World Bank has loaned mostly to African countries, to the detriment of nations in other parts of the world. 
C) Some countries receiving World Bank loans are net lenders of funds to other nations and so should not be receiving World Bank funds. 
D) Despite receiving loans from the World Bank, economic growth in many client nations has been disappointing.

Question 8

What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4.5 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?

Accepted Answer

A) The annual rate of growth of per capita real GDP will increase from 7.5 percent to 8 percent. 
B) The annual rate of growth of per capita real GDP will increase from -1.5 percent to -1 percent. 
C) The annual rate of growth of per capita real GDP will remain unchanged. 
D) The annual rate of growth of per capita real GDP will decrease from 1.5 percent to 1 percent. 
A) The annual rate of growth of per capita real GDP will increase from 7.5 percent to 8 percent. 
B) The annual rate of growth of per capita real GDP will increase from -1.5 percent to -1 percent. 
C) The annual rate of growth of per capita real GDP will remain unchanged. 
D) The annual rate of growth of per capita real GDP will decrease from 1.5 percent to 1 percent.

Question 9

Two types of asymmetric information that create problems for international investment are

Accepted Answer

A) adverse hazard and moral selection. 
B) adverse hazard and moral hazard. 
C) adverse selection and moral hazard. 
D) adverse selection and moral selection. 
A) adverse hazard and moral selection. 
B) adverse hazard and moral hazard. 
C) adverse selection and moral hazard. 
D) adverse selection and moral selection.

Question 10

Countries with the highest degrees of governmental bureaucratic inefficiency index

Accepted Answer

A) typically are nations with the highest real GDP per capita. 
B) typically are nations with the lowest real GDP per capita. 
C) normally have the lowest measured levels of dead capital. 
D) normally have the highest measured levels of economic freedom. 
A) typically are nations with the highest real GDP per capita. 
B) typically are nations with the lowest real GDP per capita. 
C) normally have the lowest measured levels of dead capital. 
D) normally have the highest measured levels of economic freedom.

Question 11

Most of the loanable funds available to the World Bank to lend to developing nations come from

Accepted Answer

A) the sale of oil. 
B) developing nations. 
C) the world's wealthiest nations. 
D) the sale of international bonds that are issued by the World Bank. 
A) the sale of oil. 
B) developing nations. 
C) the world's wealthiest nations. 
D) the sale of international bonds that are issued by the World Bank.

Question 12

The international unit of accounting used by the International Monetary Fund (IMF)is called

Accepted Answer

A) the Eurodollar. 
B) the IMF dollar. 
C) the quota subscription. 
D) special drawing rights. 
A) the Eurodollar. 
B) the IMF dollar. 
C) the quota subscription. 
D) special drawing rights.

Question 13

Where does the World Bank get its funds?

Accepted Answer

A) from selling internal reports to the public 
B) from tariffs collected on goods traded internationally 
C) from governments of the wealthiest nations and from private financial markets 
D) from seizing dead capital in developing nations and selling it at auction 
A) from selling internal reports to the public 
B) from tariffs collected on goods traded internationally 
C) from governments of the wealthiest nations and from private financial markets 
D) from seizing dead capital in developing nations and selling it at auction

Question 14

The funds that nation's have on account at the International Monetary Fund is measured in

Accepted Answer

A) U.S. dollars. 
B) the currency of the nation that has deposited the funds. 
C) a quota subscription. 
D) an international unit of accounting called special drawing rights. 
A) U.S. dollars. 
B) the currency of the nation that has deposited the funds. 
C) a quota subscription. 
D) an international unit of accounting called special drawing rights.

Question 15

When lenders are unable to get good information about the worthiness of a project the lender has the problem of

Accepted Answer

A) adverse selection. 
B) adverse hazard. 
C) moral hazard. 
D) moral selection. 
A) adverse selection. 
B) adverse hazard. 
C) moral hazard. 
D) moral selection.

Question 16

There is a(n)________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency.

Accepted Answer

A) direct 
B) inverse 
C) proportional 
D) undefined 
A) direct 
B) inverse 
C) proportional 
D) undefined

Question 17

Both the World Bank and the IMF typically

Accepted Answer

A) make loans for less than 5 years only. 
B) impose stringent preconditions that the borrowers must meet. 
C) charge lower than average loan rates to ensure repayment. 
D) charge higher than average loan rates. 
A) make loans for less than 5 years only. 
B) impose stringent preconditions that the borrowers must meet. 
C) charge lower than average loan rates to ensure repayment. 
D) charge higher than average loan rates.

Question 18

The ________ specializes in making long-term loans for capital investment projects that do not have private financial support.

Accepted Answer

A) International Monetary Fund 
B) European Central Bank 
C) World Bank 
D) Federal Reserve Bank 
A) International Monetary Fund 
B) European Central Bank 
C) World Bank 
D) Federal Reserve Bank

Question 19

The primary source of funds for the World Bank is

Accepted Answer

A) quota subscriptions. 
B) private financial markets. 
C) the world's wealthiest countries. 
D) the New York Stock Exchange. 
A) quota subscriptions. 
B) private financial markets. 
C) the world's wealthiest countries. 
D) the New York Stock Exchange.

Question 20

A nation's account with the International Monetary Fund denominated in special drawing rights is

Accepted Answer

A) the quota subscription. 
B) the account at the World Bank. 
C) portfolio investment. 
D) the account at the Fed. 
A) the quota subscription. 
B) the account at the World Bank. 
C) portfolio investment. 
D) the account at the Fed.

Which of the following is a barrier to economic growth in many developing nations?

A country experiencing an international financial crisis will likely

Discuss why the World Bank has been criticized for making loans to nations that can attract private funds.

Which of the following world regions has received the largest percentage of lending from the World Bank since 1990?

When an international financial crisis occurs

Which of the following statements is TRUE about the relationship between high birthrates and real GDP growth?

Which of the following is NOT a criticism that has been leveled at the World Bank?

What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4.5 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?

Two types of asymmetric information that create problems for international investment are

Countries with the highest degrees of governmental bureaucratic inefficiency index

Most of the loanable funds available to the World Bank to lend to developing nations come from

The international unit of accounting used by the International Monetary Fund (IMF)is called

Where does the World Bank get its funds?

The funds that nation's have on account at the International Monetary Fund is measured in

When lenders are unable to get good information about the worthiness of a project the lender has the problem of

There is a(n)________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency.

Both the World Bank and the IMF typically

The ________ specializes in making long-term loans for capital investment projects that do not have private financial support.

The primary source of funds for the World Bank is

A nation's account with the International Monetary Fund denominated in special drawing rights is

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

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Exam 17: Policies and Prospects for Global Economic Growth

Which of the following is a barrier to economic growth in many developing nations?

A country experiencing an international financial crisis will likely

Discuss why the World Bank has been criticized for making loans to nations that can attract private funds.

Which of the following world regions has received the largest percentage of lending from the World Bank since 1990?

When an international financial crisis occurs

Which of the following statements is TRUE about the relationship between high birthrates and real GDP growth?

Which of the following is NOT a criticism that has been leveled at the World Bank?

What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4.5 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?

Two types of asymmetric information that create problems for international investment are

Countries with the highest degrees of governmental bureaucratic inefficiency index

Most of the loanable funds available to the World Bank to lend to developing nations come from

The international unit of accounting used by the International Monetary Fund (IMF)is called

Where does the World Bank get its funds?

The funds that nation's have on account at the International Monetary Fund is measured in

When lenders are unable to get good information about the worthiness of a project the lender has the problem of

There is a(n)________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency.

Both the World Bank and the IMF typically

The ________ specializes in making long-term loans for capital investment projects that do not have private financial support.

The primary source of funds for the World Bank is

A nation's account with the International Monetary Fund denominated in special drawing rights is

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