Question 1

Based on population and economic development trends, the world population is expected to in the last part of this century.

Accepted Answer

A)  explode 
B)  increase mildly 
C)  become stable and constant 
D)  decline 
A)  explode 
B)  increase mildly 
C)  become stable and constant 
D)  decline

Question 2

Large agricultural subsidies for food and fiber in IACs hurt the economies of the DVCs by

Accepted Answer

A)  causing higher prices for imported food products. 
B)  lowering saving rates in the DVCs. 
C)  encouraging "brain drains" from the DVCs. 
D)  reducing world agricultural prices and thus export income of the DVCs. 
A)  causing higher prices for imported food products. 
B)  lowering saving rates in the DVCs. 
C)  encouraging "brain drains" from the DVCs. 
D)  reducing world agricultural prices and thus export income of the DVCs.

Question 3

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Accepted Answer

A)  Cash transfers never worked, because the recipients just wasted the money on unproductive spending. 
B)  These transfers have shown positive early results; the majority of the recipients spent the money as intended. 
C)  Only conditional cash transfers worked. Unconditional cash transfers never worked. 
D)  These cash transfers worked only if the aid providers frequently followed up on the recipients. 
A)  Cash transfers never worked, because the recipients just wasted the money on unproductive spending. 
B)  These transfers have shown positive early results; the majority of the recipients spent the money as intended. 
C)  Only conditional cash transfers worked. Unconditional cash transfers never worked. 
D)  These cash transfers worked only if the aid providers frequently followed up on the recipients.

Question 4

If the real GDP of a DVC increases from $600 billion to $630 billion and its population increases from 200 million to 216 million, its real per capita GDP will

Accepted Answer

A)  increase by about $83. 
B)  decrease by about $83. 
C)  remained unchanged. 
D)  decrease by about $19. 
A)  increase by about $83. 
B)  decrease by about $83. 
C)  remained unchanged. 
D)  decrease by about $19.

Question 5

Low-income developing countries generally have the following characteristics except

Accepted Answer

A)  low population growth rates. 
B)  low levels of industrialization. 
C)  dependency on exports of agricultural products or raw materials. 
D)  minimal amounts of capital resources. 
A)  low population growth rates. 
B)  low levels of industrialization. 
C)  dependency on exports of agricultural products or raw materials. 
D)  minimal amounts of capital resources.

Question 6

In 2014, the United States had about percent of the world's population and produced about percent of the world output.

Accepted Answer

A)  20; 30 
B)  3.6; 31 
C)  10; 28 
D)  4.4; 22 
A)  20; 30 
B)  3.6; 31 
C)  10; 28 
D)  4.4; 22

Question 7

Which of the following is not inversely related to per capita income?

Accepted Answer

A)  mortality rates for children under five years of age 
B)  adult illiteracy rates 
C)  per capita energy consumption 
D)  population growth rates 
A)  mortality rates for children under five years of age 
B)  adult illiteracy rates 
C)  per capita energy consumption 
D)  population growth rates

Question 8

A major criticism of foreign aid to developing nations is that it

Accepted Answer

A)  is capital saving rather than capital intensive. 
B)  provides incentives for a brain drain. 
C)  encourages corruption and misuse of funds. 
D)  gives too much power and control to the International Monetary Fund. 
A)  is capital saving rather than capital intensive. 
B)  provides incentives for a brain drain. 
C)  encourages corruption and misuse of funds. 
D)  gives too much power and control to the International Monetary Fund.

Question 9

The idea that a person's productive efforts and his or her economic rewards are unrelated

Accepted Answer

A)  is the neocolonialism view of economic development. 
B)  describes the vicious circle of poverty. 
C)  is the surplus labor theory of economic development. 
D)  is the capricious universe view. 
A)  is the neocolonialism view of economic development. 
B)  describes the vicious circle of poverty. 
C)  is the surplus labor theory of economic development. 
D)  is the capricious universe view.

Question 10

Assume the total real output of a developing country increases from $8 billion to $8.2 billion, while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has

Accepted Answer

A)  increased by $25 per person. 
B)  decreased by $25 per person. 
C)  increased by $533 per person. 
D)  decreased by $533 per person. 
A)  increased by $25 per person. 
B)  decreased by $25 per person. 
C)  increased by $533 per person. 
D)  decreased by $533 per person.

Question 11

One of the major objectives of the World Bank is to

Accepted Answer

A)  provide financial backing for the United Nations. 
B)  maximize its profits for its worldwide shareholders. 
C)  provide technical assistance to DVCs. 
D)  maintain stable exchange rates in IACs and DVCs. 
A)  provide financial backing for the United Nations. 
B)  maximize its profits for its worldwide shareholders. 
C)  provide technical assistance to DVCs. 
D)  maintain stable exchange rates in IACs and DVCs.

Question 12

All developing countries suffer from a critical shortage of

Accepted Answer

A)  land. 
B)  population. 
C)  capital goods. 
D)  government regulation. 
A)  land. 
B)  population. 
C)  capital goods. 
D)  government regulation.

Question 13

Industrially advanced countries can best help DVCs by

Accepted Answer

A)  directing requests from DVCs for aid to the World Bank. 
B)  using the International Monetary Fund to determine exchange rates in DVCs. 
C)  increasing management control over development projects. 
D)  adopting policies that expand trade with DVCs. 
A)  directing requests from DVCs for aid to the World Bank. 
B)  using the International Monetary Fund to determine exchange rates in DVCs. 
C)  increasing management control over development projects. 
D)  adopting policies that expand trade with DVCs.

Question 14

Birth- and population-control efforts in many DVCs (developing countries) face the following obstacles except

Accepted Answer

A)  low literacy rates. 
B)  religious reasons. 
C)  a peasant agriculture view about children. 
D)  government authorities. 
A)  low literacy rates. 
B)  religious reasons. 
C)  a peasant agriculture view about children. 
D)  government authorities.

Question 15

Development experts are less enthusiastic than they used to be about three decades ago about the positive role of DVC governments in promoting economic growth in their less- developed nations because of the

Accepted Answer

A)  corruption in government. 
B)  availability of foreign aid. 
C)  need for a greater tax collection. 
D)  need for more public capital goods. 
A)  corruption in government. 
B)  availability of foreign aid. 
C)  need for a greater tax collection. 
D)  need for more public capital goods.

Question 16

Which of the following countries had the highest population density (population per square km) in 2014?

Accepted Answer

A)  United States 
B)  India 
C)  China 
D)  Venezuela 
A)  United States 
B)  India 
C)  China 
D)  Venezuela

Question 17

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Accepted Answer

A)  more consumption 
B)  more food production 
C)  an increase in the birth rate 
D)  an increase in labor productivity 
A)  more consumption 
B)  more food production 
C)  an increase in the birth rate 
D)  an increase in labor productivity

Question 18

Infrastructure is best illustrated by

Accepted Answer

A)  farm equipment. 
B)  school buildings and highways. 
C)  machinery and equipment for the production of consumer goods. 
D)  government tax revenues. 
A)  farm equipment. 
B)  school buildings and highways. 
C)  machinery and equipment for the production of consumer goods. 
D)  government tax revenues.

Question 19

Government can play a major positive role in the early stage of economic development by

Accepted Answer

A)  providing an adequate infrastructure. 
B)  establishing price controls for products. 
C)  promoting exports by subsidizing them. 
D)  creating marketing boards for export products. 
A)  providing an adequate infrastructure. 
B)  establishing price controls for products. 
C)  promoting exports by subsidizing them. 
D)  creating marketing boards for export products.

Question 20

Most of the world's population lives in

Accepted Answer

A)  North America. 
B)  the DVCs. 
C)  Western Europe. 
D)  the IACs. 
A)  North America. 
B)  the DVCs. 
C)  Western Europe. 
D)  the IACs.

Exam 28: The Economics of Developing Countries

Based on population and economic development trends, the world population is expected to in the last part of this century.

Large agricultural subsidies for food and fiber in IACs hurt the economies of the DVCs by

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

If the real GDP of a DVC increases from $600 billion to $630 billion and its population increases from 200 million to 216 million, its real per capita GDP will

Low-income developing countries generally have the following characteristics except

In 2014, the United States had about percent of the world's population and produced about percent of the world output.

Which of the following is not inversely related to per capita income?

A major criticism of foreign aid to developing nations is that it

The idea that a person's productive efforts and his or her economic rewards are unrelated

Assume the total real output of a developing country increases from $8 billion to $8.2 billion, while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has

One of the major objectives of the World Bank is to

All developing countries suffer from a critical shortage of

Industrially advanced countries can best help DVCs by

Birth- and population-control efforts in many DVCs (developing countries) face the following obstacles except

Development experts are less enthusiastic than they used to be about three decades ago about the positive role of DVC governments in promoting economic growth in their less- developed nations because of the

Which of the following countries had the highest population density (population per square km) in 2014?

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Infrastructure is best illustrated by

Government can play a major positive role in the early stage of economic development by

Most of the world's population lives in

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

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Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

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The Balance of Payments, Exchange Rates, and Trade Deficits

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