Question 1

What role does population growth play in economic development?

Accepted Answer

Rapid population growth creates a high d

Question 2

A country cannot develop without a large natural resource base.

Accepted Answer

A) True 
 B)False

Question 3

If an economy's population grows at 3 percent and real GDP grows at 3 percent,then:

Accepted Answer

A)  per capita real GDP is declining. 
B)  the economy's standard of living is increasing. 
C)  per capita real GDP is negative. 
D)  per capita real GDP is constant. 
E)  the economy is experiencing unemployment. 
A)  per capita real GDP is declining. 
B)  the economy's standard of living is increasing. 
C)  per capita real GDP is negative. 
D)  per capita real GDP is constant. 
E)  the economy is experiencing unemployment.

Question 4

The vicious circle of poverty refers to a condition where:

Accepted Answer

A) c and d. 
B) c and e. 
C) people are poor because they cannot invest in capital goods and they cannot invest in capital goods because they are poor. 
D) people cannot invest in capital goods because they are poor and they are poor because they cannot invest in capital goods. 
E) poverty is relative and poor people remain poor because the wealthy grow wealthier. 
A) c and d. 
B) c and e. 
C) people are poor because they cannot invest in capital goods and they cannot invest in capital goods because they are poor. 
D) people cannot invest in capital goods because they are poor and they are poor because they cannot invest in capital goods. 
E) poverty is relative and poor people remain poor because the wealthy grow wealthier.

Question 5

Domestic law and order,the infrastructure,and the climate of international trade are all aspects of a country's:

Accepted Answer

A)  natural resources endowment. 
B)  human resources investment. 
C)  capital investment. 
D)  political environment. 
A)  natural resources endowment. 
B)  human resources investment. 
C)  capital investment. 
D)  political environment.

Question 6

Which of the following is not a characteristic of less-developed countries?

Accepted Answer

A)  High rates of illiteracy. 
B)  High unemployment. 
C)  Over half of the labor force in agriculture. 
D)  Low savings and investment rates. 
E)  Low infant mortality rates. 
A)  High rates of illiteracy. 
B)  High unemployment. 
C)  Over half of the labor force in agriculture. 
D)  Low savings and investment rates. 
E)  Low infant mortality rates.

Question 7

Which of the following is most likely to be a major source of growth in per capita GDP?

Accepted Answer

A)  A high investment/GDP ratio 
B)  A high rate of inflation 
C)  Rapid population growth 
D)  Rapid growth in the money supply 
A)  A high investment/GDP ratio 
B)  A high rate of inflation 
C)  Rapid population growth 
D)  Rapid growth in the money supply

Question 8

Which of the following is infrastructure?

Accepted Answer

A)  Schools. 
B)  Roads. 
C)  Public health and sanitation services. 
D)  All of the above. 
A)  Schools. 
B)  Roads. 
C)  Public health and sanitation services. 
D)  All of the above.

Question 9

GDP per capita is a relatively good measurement of:

Accepted Answer

A)  the distribution of income. 
B)  purchasing power. 
C)  household production. 
D)  the standard of living. 
A)  the distribution of income. 
B)  purchasing power. 
C)  household production. 
D)  the standard of living.

Question 10

Which of the following is infrastructure?

Accepted Answer

A)  Highways. 
B)  Bridges. 
C)  Airports. 
D)  All of the above. 
A)  Highways. 
B)  Bridges. 
C)  Airports. 
D)  All of the above.

Question 11

Which of the following can be a barrier to an LDC's economic growth and development?

Accepted Answer

A)  Low population growth. 
B)  A low level of human capital. 
C)  Faster capital accumulation. 
D)  More infrastructure. 
A)  Low population growth. 
B)  A low level of human capital. 
C)  Faster capital accumulation. 
D)  More infrastructure.

Question 12

Which of the following is in charge of U.S.aid to foreign countries?

Accepted Answer

A)  Agency for International Development (AI
D) . 
B)  World Bank. 
C)  International Monetary Fund (IMF). 
D)  New International Economic Order (NIEO). 
A)  Agency for International Development (AI
D) . 
B)  World Bank. 
C)  International Monetary Fund (IMF). 
D)  New International Economic Order (NIEO).

Question 13

A country can develop without a large natural resource base.

Accepted Answer

A) True 
 B)False

Question 14

The poorest regions in the world,as measured by GDP per capita,are:

Accepted Answer

A)  Latin America and the Caribbean. 
B)  the Middle East and North Africa. 
C)  Sub-Saharan Africa and South Asia. 
D)  Australia and New Zealand. 
A)  Latin America and the Caribbean. 
B)  the Middle East and North Africa. 
C)  Sub-Saharan Africa and South Asia. 
D)  Australia and New Zealand.

Question 15

GDP per capita provides a reasonably accurate measurement of a country's income distribution.

Accepted Answer

A) True 
 B)False

Question 16

The number of the countries of the world classified as a less developed country (LDC)is about:

Accepted Answer

A)  50. 
B)  75. 
C)  100. 
D)  150. 
E)  300. 
A)  50. 
B)  75. 
C)  100. 
D)  150. 
E)  300.

Question 17

Of the following choices,which is the best example of a nation's economic infrastructure?

Accepted Answer

A)  Natural resources. 
B)  Highway system. 
C)  Government. 
D)  Religious and cultural beliefs. 
E)  Population growth rate. 
A)  Natural resources. 
B)  Highway system. 
C)  Government. 
D)  Religious and cultural beliefs. 
E)  Population growth rate.

Question 18

Which of the following helps low-income countries grow rapidly relative to high-income countries?

Accepted Answer

A)  Low-income countries are in a better position to save a larger share of their income. 
B)  Low-income countries can employ technologies and practices that have been successful in high-income countries. 
C)  Low-income countries generally have legal systems that protect property rights and enforce contracts in a more evenhanded manner. 
D)  Low-income countries generally have more favorable weather conditions. 
A)  Low-income countries are in a better position to save a larger share of their income. 
B)  Low-income countries can employ technologies and practices that have been successful in high-income countries. 
C)  Low-income countries generally have legal systems that protect property rights and enforce contracts in a more evenhanded manner. 
D)  Low-income countries generally have more favorable weather conditions.

Question 19

Describe the vicious cycle of poverty.What are the consequences of this cycle?

Accepted Answer

The vicious cycle of poverty explains th

Question 20

Which of the following would be most likely to improve the standard of living of people in less-developed nations?

Accepted Answer

A)  the development of strong labor unions 
B)  an increase in foreign investment 
C)  an increase in the share of the population under 15 years of age 
D)  higher tariffs and the imposition of other restraints designed to restrict international trade 
A)  the development of strong labor unions 
B)  an increase in foreign investment 
C)  an increase in the share of the population under 15 years of age 
D)  higher tariffs and the imposition of other restraints designed to restrict international trade

Exam 23: Growth and the Less-Developed Countries

What role does population growth play in economic development?

A country cannot develop without a large natural resource base.

If an economy's population grows at 3 percent and real GDP grows at 3 percent,then:

The vicious circle of poverty refers to a condition where:

Domestic law and order,the infrastructure,and the climate of international trade are all aspects of a country's:

Which of the following is not a characteristic of less-developed countries?

Which of the following is most likely to be a major source of growth in per capita GDP?

Which of the following is infrastructure?

GDP per capita is a relatively good measurement of:

Which of the following is infrastructure?

Which of the following can be a barrier to an LDC's economic growth and development?

Which of the following is in charge of U.S.aid to foreign countries?

A country can develop without a large natural resource base.

The poorest regions in the world,as measured by GDP per capita,are:

GDP per capita provides a reasonably accurate measurement of a country's income distribution.

The number of the countries of the world classified as a less developed country (LDC)is about:

Of the following choices,which is the best example of a nation's economic infrastructure?

Which of the following helps low-income countries grow rapidly relative to high-income countries?

Describe the vicious cycle of poverty.What are the consequences of this cycle?

Which of the following would be most likely to improve the standard of living of people in less-developed nations?

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

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