Question 1

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Accepted Answer

A)  "The rich get richer, while the poor get poorer." 
B)  "Fate dealt the poor nations a bad hand." 
C)  "The poor nations stay poor because they are poor." 
D)  "Historical developments have oppressed the poor nations' incomes." 
A)  "The rich get richer, while the poor get poorer." 
B)  "Fate dealt the poor nations a bad hand." 
C)  "The poor nations stay poor because they are poor." 
D)  "Historical developments have oppressed the poor nations' incomes."

Question 2

In the 1990s,

Accepted Answer

A)  direct private investment to the DVCs increased, and government-provided foreign aid decreased. 
B)  both direct private investment and government-provided foreign aid to the DVCs increased. 
C)  both direct private investment and government-provided foreign aid to the DVCs decreased. 
D)  direct private investment to the DVCs decreased, and government-provided foreign aid increased. 
A)  direct private investment to the DVCs increased, and government-provided foreign aid decreased. 
B)  both direct private investment and government-provided foreign aid to the DVCs increased. 
C)  both direct private investment and government-provided foreign aid to the DVCs decreased. 
D)  direct private investment to the DVCs decreased, and government-provided foreign aid increased.

Question 3

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

Accepted Answer

A)  24 percent 
B)  38 percent 
C)  60 percent 
D)  75 percent 
A)  24 percent 
B)  38 percent 
C)  60 percent 
D)  75 percent

Question 4

The populations of the developing nations are growing

Accepted Answer

A)  at about 5 percent per year. 
B)  at about the same rate as those of the industrially advanced nations. 
C)  slower than those of the industrially advanced nations. 
D)  faster than those of the industrially advanced nations. 
A)  at about 5 percent per year. 
B)  at about the same rate as those of the industrially advanced nations. 
C)  slower than those of the industrially advanced nations. 
D)  faster than those of the industrially advanced nations.

Question 5

In contrast to international development efforts in most of the 20th century, more recent projects like microfinance, microcredit, and cash transfers in the last few decades represent a major shift. That is because these recent projects are

Accepted Answer

A)  all sponsored by local governments. 
B)  done through the United Nations. 
C)  launched by universities and colleges. 
D)  focused on giving direct aid to poor individuals. 
A)  all sponsored by local governments. 
B)  done through the United Nations. 
C)  launched by universities and colleges. 
D)  focused on giving direct aid to poor individuals.

Question 6

Many countries remain poor because they currently are poor. This statement summarizes the

Accepted Answer

A)  infrastructure problem. 
B)  vicious circle of poverty. 
C)  demographic transition problem. 
D)  problem of capital flight. 
A)  infrastructure problem. 
B)  vicious circle of poverty. 
C)  demographic transition problem. 
D)  problem of capital flight.

Question 7

Per capita income in the United States in 2014 was how many times greater than that in China?

Accepted Answer

A)  3 times 
B)  12 times 
C)  7.5 times 
D)  17 times 
A)  3 times 
B)  12 times 
C)  7.5 times 
D)  17 times

Question 8

Small loans to entrepreneurs and small business owners in DVCs are referred to as

Accepted Answer

A)  human capital development projects. 
B)  microcredit. 
C)  capital flight promotion systems. 
D)  incubator lending. 
A)  human capital development projects. 
B)  microcredit. 
C)  capital flight promotion systems. 
D)  incubator lending.

Question 9

Which of the following does not correlate positively with economic growth?

Accepted Answer

A)  output per capita 
B)  life expectancy 
C)  the percentage of the population engaged in agriculture 
D)  the literacy rate 
A)  output per capita 
B)  life expectancy 
C)  the percentage of the population engaged in agriculture 
D)  the literacy rate

Question 10

The industrially advanced countries (IACs) had an average per capita income in 2014 of around

Accepted Answer

A)  $50,000 per person. 
B)  $27,000 per person. 
C)  $38,000 per person. 
D)  $61,000 per person. 
A)  $50,000 per person. 
B)  $27,000 per person. 
C)  $38,000 per person. 
D)  $61,000 per person.

Question 11

The richest 20 percent of the world's population receives more than 75 percent of the world's income, while the poorest 20 percent receives less than 2 percent of the world's income.

Accepted Answer

A) True 
 B)False

Question 12

Suppose that Alpha's real output rose from $400 billion in year 1 to $428 billion in year 2. Its growth rate for this period was

Accepted Answer

A)  14 percent. 
B)  12 percent. 
C)  9 percent. 
D)  7 percent. 
A)  14 percent. 
B)  12 percent. 
C)  9 percent. 
D)  7 percent.

Question 13

One suggested policy that industrially advanced nations could adopt to foster economic growth in less-developed nations would be to

Accepted Answer

A)  leave the responsibility to the World Bank. 
B)  direct foreign aid to the poorest DVCs. 
C)  recruit more skilled workers from DVCs. 
D)  target the banking sector for the most help. 
A)  leave the responsibility to the World Bank. 
B)  direct foreign aid to the poorest DVCs. 
C)  recruit more skilled workers from DVCs. 
D)  target the banking sector for the most help.

Question 14

Which of the following is not a characteristic of human resources in the poorest DVCs?

Accepted Answer

A)  Populations are large. 
B)  Unemployment and underemployment are widespread. 
C)  Population growth is low. 
D)  Labor productivity is low. 
A)  Populations are large. 
B)  Unemployment and underemployment are widespread. 
C)  Population growth is low. 
D)  Labor productivity is low.

Question 15

Per capita income in the United States in 2014 was about

Accepted Answer

A)  $25,300 per person. 
B)  $36,300 per person. 
C)  $55,200 per person. 
D)  $68,800 per person. 
A)  $25,300 per person. 
B)  $36,300 per person. 
C)  $55,200 per person. 
D)  $68,800 per person.

Question 16

Which of the following is most characteristic of developing nations?

Accepted Answer

A)  a small percentage of the labor force in agriculture 
B)  a relatively equitable distribution of income 
C)  low levels of labor productivity 
D)  low rates of population growth 
A)  a small percentage of the labor force in agriculture 
B)  a relatively equitable distribution of income 
C)  low levels of labor productivity 
D)  low rates of population growth

Question 17

Which of these sets of nations consists of high-income economies?

Accepted Answer

A)  Brazil, Thailand, and South Africa 
B)  China, India, and Russia 
C)  Canada, Switzerland, and France 
D)  United States, South Korea, and Mexico 
A)  Brazil, Thailand, and South Africa 
B)  China, India, and Russia 
C)  Canada, Switzerland, and France 
D)  United States, South Korea, and Mexico

Question 18

Which of these sets of countries has the greatest degree of internal corruption as of 2015, according to Transparency International?

Accepted Answer

A)  Somalia, Afghanistan, and North Korea 
B)  Finland, Denmark, and New Zealand 
C)  Spain, Greece, and Italy 
D)  Mexico, China, and Russia 
A)  Somalia, Afghanistan, and North Korea 
B)  Finland, Denmark, and New Zealand 
C)  Spain, Greece, and Italy 
D)  Mexico, China, and Russia

Question 19

(Last Word) Early experiments with unconditional cash transfers have revealed that

Accepted Answer

A)  most of these cash transfers are repaid within a very short time. 
B)  although the money is usually spent on education and capital, cultural obstacles generally prevent this spending from translating into long-term earnings gains. 
C)  a majority of recipients use the money for training and equipment that results in a higher long-term income. 
D)  most recipients spend the money on current consumption and realize no long-term gain in earning power. 
A)  most of these cash transfers are repaid within a very short time. 
B)  although the money is usually spent on education and capital, cultural obstacles generally prevent this spending from translating into long-term earnings gains. 
C)  a majority of recipients use the money for training and equipment that results in a higher long-term income. 
D)  most recipients spend the money on current consumption and realize no long-term gain in earning power.

Question 20

Which of the following is generally not an effective strategy to promote DVC growth?

Accepted Answer

A)  microlending 
B)  human capital development 
C)  fighting wars against neighbors to obtain resources and stimulate aggregate demand through arms spending 
D)  controlling inflation 
A)  microlending 
B)  human capital development 
C)  fighting wars against neighbors to obtain resources and stimulate aggregate demand through arms spending 
D)  controlling inflation

Exam 28: The Economics of Developing Countries

The vicious circle of poverty in the poorest DVCs can also be expressed as,

In the 1990s,

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

The populations of the developing nations are growing

In contrast to international development efforts in most of the 20th century, more recent projects like microfinance, microcredit, and cash transfers in the last few decades represent a major shift. That is because these recent projects are

Many countries remain poor because they currently are poor. This statement summarizes the

Per capita income in the United States in 2014 was how many times greater than that in China?

Small loans to entrepreneurs and small business owners in DVCs are referred to as

Which of the following does not correlate positively with economic growth?

The industrially advanced countries (IACs) had an average per capita income in 2014 of around

The richest 20 percent of the world's population receives more than 75 percent of the world's income, while the poorest 20 percent receives less than 2 percent of the world's income.

Suppose that Alpha's real output rose from $400 billion in year 1 to $428 billion in year 2. Its growth rate for this period was

One suggested policy that industrially advanced nations could adopt to foster economic growth in less-developed nations would be to

Which of the following is not a characteristic of human resources in the poorest DVCs?

Per capita income in the United States in 2014 was about

Which of the following is most characteristic of developing nations?

Which of these sets of nations consists of high-income economies?

Which of these sets of countries has the greatest degree of internal corruption as of 2015, according to Transparency International?

(Last Word) Early experiments with unconditional cash transfers have revealed that

Which of the following is generally not an effective strategy to promote DVC growth?

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

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

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