Question 1

The levels of national income per capita among developing countries (DVCs) are

Accepted Answer

A)  all within a narrow range. 
B)  widely varied. 
C)  all growing rapidly. 
D)  about half of those of industrially advanced countries (IACs). 
A)  all within a narrow range. 
B)  widely varied. 
C)  all growing rapidly. 
D)  about half of those of industrially advanced countries (IACs).

Question 2

Which of the following IACs (industrially advanced countries) gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

Accepted Answer

A)  United States 
B)  Japan 
C)  Canada 
D)  Germany 
A)  United States 
B)  Japan 
C)  Canada 
D)  Germany

Question 3

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

Accepted Answer

A) True 
 B)False

Question 4

The demographic transition view of population growth argues that, on average (and as perceived by parents), the marginal

Accepted Answer

A)  benefits of extra children are larger in IACs than in DVCs. 
B)  costs of extra children are lower in IACs than in DVCs. 
C)  costs of extra children are larger in IACs than in DVCs. 
D)  benefits of extra children are the same in DVCs and IACs. 
A)  benefits of extra children are larger in IACs than in DVCs. 
B)  costs of extra children are lower in IACs than in DVCs. 
C)  costs of extra children are larger in IACs than in DVCs. 
D)  benefits of extra children are the same in DVCs and IACs.

Question 5

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Accepted Answer

A) True 
 B)False

Question 6

Most economists agree that government efforts in economic development must be

Accepted Answer

A)  employed to substitute for private efforts. 
B)  designed to support private efforts. 
C)  the sole driver of economic development. 
D)  kept at a minimum because we can always rely on markets. 
A)  employed to substitute for private efforts. 
B)  designed to support private efforts. 
C)  the sole driver of economic development. 
D)  kept at a minimum because we can always rely on markets.

Question 7

An obstacle to economic growth in developing countries is

Accepted Answer

A)  the limited demand for natural resources. 
B)  the limited supply of capital goods. 
C)  a decline in population growth. 
D)  the low productivity of capital. 
A)  the limited demand for natural resources. 
B)  the limited supply of capital goods. 
C)  a decline in population growth. 
D)  the low productivity of capital.

Question 8

The traditional view regarding population and growth in DVCs is that

Accepted Answer

A)  the most important factor affecting population growth in DVCs is per capita consumption of energy. 
B)  unemployment and underemployment are the major sources of population growth in DVCs. 
C)  reduced birth rates must come first in DVCs, and then higher per capita incomes will follow. 
D)  higher per capita incomes must come first in DVCs, and then reduced birth rates will follow. 
A)  the most important factor affecting population growth in DVCs is per capita consumption of energy. 
B)  unemployment and underemployment are the major sources of population growth in DVCs. 
C)  reduced birth rates must come first in DVCs, and then higher per capita incomes will follow. 
D)  higher per capita incomes must come first in DVCs, and then reduced birth rates will follow.

Question 9

One of the major investment obstacles in less-developed nations is

Accepted Answer

A)  an accumulation of savings with no place to invest the funds. 
B)  a poor public infrastructure that hurts returns on private investment. 
C)  a progressive tax system that is efficient in collecting taxes on investment. 
D)  a low unemployment rate that makes it difficult to find the needed workers for businesses. 
A)  an accumulation of savings with no place to invest the funds. 
B)  a poor public infrastructure that hurts returns on private investment. 
C)  a progressive tax system that is efficient in collecting taxes on investment. 
D)  a low unemployment rate that makes it difficult to find the needed workers for businesses.

Question 10

Industrially advanced countries can best help developing countries by

Accepted Answer

A)  establishing price supports for the products produced by DVCs. 
B)  increasing tariffs and quotas on products produced by DVCs. 
C)  increasing the flows of private capital to DVCs. 
D)  increasing control over DVCs' capital markets. 
A)  establishing price supports for the products produced by DVCs. 
B)  increasing tariffs and quotas on products produced by DVCs. 
C)  increasing the flows of private capital to DVCs. 
D)  increasing control over DVCs' capital markets.

Question 11

Many of the major projects of the World Bank have been for

Accepted Answer

A)  making loans to private citizens. 
B)  building infrastructure in a nation. 
C)  supervising the banking system in DVCs. 
D)  establishing new tax systems for governments in DVCs. 
A)  making loans to private citizens. 
B)  building infrastructure in a nation. 
C)  supervising the banking system in DVCs. 
D)  establishing new tax systems for governments in DVCs.

Question 12

Brazil, Mexico, and Thailand are referred to as

Accepted Answer

A)  industrially advanced countries. 
B)  upper-middle-income developing countries. 
C)  low-income developing countries. 
D)  command economies. 
A)  industrially advanced countries. 
B)  upper-middle-income developing countries. 
C)  low-income developing countries. 
D)  command economies.

Question 13

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

Accepted Answer

A)  rising slowly. 
B)  rising quickly. 
C)  staying constant. 
D)  declining. 
A)  rising slowly. 
B)  rising quickly. 
C)  staying constant. 
D)  declining.

Question 14

The average per capita income in 2014 for low-income developing nations was about

Accepted Answer

A)  $630. 
B)  $2,100. 
C)  $1,240. 
D)  $4,600. 
A)  $630. 
B)  $2,100. 
C)  $1,240. 
D)  $4,600.

Question 15

The international organization, with 188 member nations, whose major objective is to help DVCs achieve economic growth is the

Accepted Answer

A)  World Trade Organization. 
B)  World Bank. 
C)  G8 Nations. 
D)  United Nations. 
A)  World Trade Organization. 
B)  World Bank. 
C)  G8 Nations. 
D)  United Nations.

Question 16

If the per capita incomes of DVCs (developing countries) grew at the same annual rate as those of IACs (industrially advanced countries), then the absolute income gap between rich and poor nations over the years would

Accepted Answer

A)  narrow. 
B)  widen. 
C)  stay the same. 
D)  reverse. 
A)  narrow. 
B)  widen. 
C)  stay the same. 
D)  reverse.

Question 17

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater

Accepted Answer

A)  capital flight. 
B)  economic growth. 
C)  underemployment. 
D)  unemployment. 
A)  capital flight. 
B)  economic growth. 
C)  underemployment. 
D)  unemployment.

Question 18

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses. This statement is an argument in favor of

Accepted Answer

A)  free immigration and emigration. 
B)  privatizing state industries. 
C)  central planning. 
D)  free trade. 
A)  free immigration and emigration. 
B)  privatizing state industries. 
C)  central planning. 
D)  free trade.

Question 19

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Accepted Answer

A)  land reform. 
B)  population growth. 
C)  underemployment and disguised unemployment. 
D)  capital-saving technology. 
A)  land reform. 
B)  population growth. 
C)  underemployment and disguised unemployment. 
D)  capital-saving technology.

Question 20

What is the immigration problem for DVCs?

Accepted Answer

A)  Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers. 
B)  Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers. 
C)  Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers. 
D)  Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers. 
A)  Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers. 
B)  Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers. 
C)  Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers. 
D)  Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers.

Exam 28: The Economics of Developing Countries

The levels of national income per capita among developing countries (DVCs) are

Which of the following IACs (industrially advanced countries) gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

The demographic transition view of population growth argues that, on average (and as perceived by parents), the marginal

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Most economists agree that government efforts in economic development must be

An obstacle to economic growth in developing countries is

The traditional view regarding population and growth in DVCs is that

One of the major investment obstacles in less-developed nations is

Industrially advanced countries can best help developing countries by

Many of the major projects of the World Bank have been for

Brazil, Mexico, and Thailand are referred to as

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

The average per capita income in 2014 for low-income developing nations was about

The international organization, with 188 member nations, whose major objective is to help DVCs achieve economic growth is the

If the per capita incomes of DVCs (developing countries) grew at the same annual rate as those of IACs (industrially advanced countries), then the absolute income gap between rich and poor nations over the years would

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses. This statement is an argument in favor of

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

What is the immigration problem for DVCs?

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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