Question 1

Which of the following is not a common characteristic of IACs?

Accepted Answer

A)  Market-based economies. 
B)  Large stocks of technologically advanced capital. 
C)  Well-educated labor. 
D)  Low per capita energy consumption. 
A)  Market-based economies. 
B)  Large stocks of technologically advanced capital. 
C)  Well-educated labor. 
D)  Low per capita energy consumption.

Question 2

If population grows faster than GDP,then per capita GDP must fall.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following does not hinder economic development?

Accepted Answer

A)  Lack of education 
B)  Poor agricultural productivity 
C)  Low investment in human capital 
D)  Lack of technology 
E)  Good nutrition 
A)  Lack of education 
B)  Poor agricultural productivity 
C)  Low investment in human capital 
D)  Lack of technology 
E)  Good nutrition

Question 4

Economic development encompasses which of the following measures?

Accepted Answer

A)  Economic growth. 
B)  The political environment. 
C)  Education. 
D)  All of the above. 
A)  Economic growth. 
B)  The political environment. 
C)  Education. 
D)  All of the above.

Question 5

When per capita real GDP is increasing,real output is growing:

Accepted Answer

A)  more rapidly than prices. 
B)  more rapidly than population. 
C)  less rapidly than prices. 
D)  less rapidly than population. 
A)  more rapidly than prices. 
B)  more rapidly than population. 
C)  less rapidly than prices. 
D)  less rapidly than population.

Question 6

What is the economic criterion most often used to compare living standards across countries?

Accepted Answer

A)  Real GDP growth. 
B)  Unemployment rate. 
C)  Incidence of AIDS. 
D)  Rate of population growth. 
E)  Real per capita GDP. 
A)  Real GDP growth. 
B)  Unemployment rate. 
C)  Incidence of AIDS. 
D)  Rate of population growth. 
E)  Real per capita GDP.

Question 7

Most less-developed countries have sufficient infrastructure in place to become a developed country.

Accepted Answer

A) True 
 B)False

Question 8

The vicious circle of poverty refers to the fact that in LDCs,

Accepted Answer

A)  low living standards lead to declines in population growth. 
B)  too much spending leads to periods of recession. 
C)  people are poor because too much is spent on capital goods. 
D)  there are not enough people in the under-15 age groups. 
E)  poverty leads to low investment in capital goods. 
A)  low living standards lead to declines in population growth. 
B)  too much spending leads to periods of recession. 
C)  people are poor because too much is spent on capital goods. 
D)  there are not enough people in the under-15 age groups. 
E)  poverty leads to low investment in capital goods.

Question 9

The vicious circle of poverty makes it difficult for an LDC to:

Accepted Answer

A)  establish political institutions. 
B)  control inflation. 
C)  save and invest. 
D)  fix its exchange rate. 
A)  establish political institutions. 
B)  control inflation. 
C)  save and invest. 
D)  fix its exchange rate.

Question 10

In order to achieve a high economic freedom rating,a country must:

Accepted Answer

A)  provide secure protection of privately owned property and evenhanded enforcement of contracts. 
B)  refrain from creating barriers that limit domestic and international trade. 
C)  rely more fully on markets rather than governments to allocate goods and resources. 
D)  do all of the above. 
A)  provide secure protection of privately owned property and evenhanded enforcement of contracts. 
B)  refrain from creating barriers that limit domestic and international trade. 
C)  rely more fully on markets rather than governments to allocate goods and resources. 
D)  do all of the above.

Question 11

Real GDP per capita and other alternative measures of the quality of life are:

Accepted Answer

A)  independent. 
B)  directly correlated. 
C)  poorly correlated. 
D)  inversely related. 
A)  independent. 
B)  directly correlated. 
C)  poorly correlated. 
D)  inversely related.

Question 12

A country with a high GDP per capita is classified as an industrially advanced country (IAC).

Accepted Answer

A) True 
 B)False

Question 13

An outward shift of an economy's production possibilities curve is caused by:

Accepted Answer

A)  an increase in capital. 
B)  an increase in labor. 
C)  an advance in technology. 
D)  all of the above. 
A)  an increase in capital. 
B)  an increase in labor. 
C)  an advance in technology. 
D)  all of the above.

Question 14

Which of the following is not an example of a country's infrastructure?

Accepted Answer

A)  Transportation system. 
B)  Communications system. 
C)  Political system. 
D)  Educational system. 
E)  Energy system. 
A)  Transportation system. 
B)  Communications system. 
C)  Political system. 
D)  Educational system. 
E)  Energy system.

Question 15

According to the text,Singapore and Hong Kong are classified as industrially advanced countries (IACs).

Accepted Answer

A) True 
 B)False

Question 16

The vicious circle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services.

Accepted Answer

A) True 
 B)False

Question 17

If national real GDP grows at twice the rate of population growth,

Accepted Answer

A) c and e. 
B) eventually there will be too much GDP. 
C) per real capita GDP will double each year. 
D) per real capita GDP will be reduced by half each year. 
E) per real capita GDP growth will double each year. 
A) c and e. 
B) eventually there will be too much GDP. 
C) per real capita GDP will double each year. 
D) per real capita GDP will be reduced by half each year. 
E) per real capita GDP growth will double each year.

Question 18

Explain why the LDCs are unable to invest much in capital goods and human capital.

Accepted Answer

The demands of the growing populations i

Question 19

Economists believe that political instability can facilitate economic development in an LDC by making its citizens more open to change and new technology.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following distinguishes industrially advanced countries from less-developed countries?

Accepted Answer

A)  GDP per capita. 
B)  Educational attainment of the workforce. 
C)  Extent to which capital is technologically advanced. 
D)  All of the above. 
A)  GDP per capita. 
B)  Educational attainment of the workforce. 
C)  Extent to which capital is technologically advanced. 
D)  All of the above.

Exam 23: Growth and the Less-Developed Countries

Which of the following is not a common characteristic of IACs?

If population grows faster than GDP,then per capita GDP must fall.

Which of the following does not hinder economic development?

Economic development encompasses which of the following measures?

When per capita real GDP is increasing,real output is growing:

What is the economic criterion most often used to compare living standards across countries?

Most less-developed countries have sufficient infrastructure in place to become a developed country.

The vicious circle of poverty refers to the fact that in LDCs,

The vicious circle of poverty makes it difficult for an LDC to:

In order to achieve a high economic freedom rating,a country must:

Real GDP per capita and other alternative measures of the quality of life are:

A country with a high GDP per capita is classified as an industrially advanced country (IAC).

An outward shift of an economy's production possibilities curve is caused by:

Which of the following is not an example of a country's infrastructure?

According to the text,Singapore and Hong Kong are classified as industrially advanced countries (IACs).

The vicious circle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services.

If national real GDP grows at twice the rate of population growth,

Explain why the LDCs are unable to invest much in capital goods and human capital.

Economists believe that political instability can facilitate economic development in an LDC by making its citizens more open to change and new technology.

Which of the following distinguishes industrially advanced countries from less-developed countries?

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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