Question 1

The "brain drain" problem in the DVCs refers to the fact the best-educated workers

Accepted Answer

A)  are reluctant to become entrepreneurs. 
B)  are concentrated in rural areas where their skills are underutilized. 
C)  often immigrate to industrialized countries. 
D)  are reluctant to work in the public sector. 
A)  are reluctant to become entrepreneurs. 
B)  are concentrated in rural areas where their skills are underutilized. 
C)  often immigrate to industrialized countries. 
D)  are reluctant to work in the public sector.

Question 2

The basic role of the International Finance Corporation is to

Accepted Answer

A)  make loans to governments in developing nations. 
B)  invest in private enterprises in developing nations. 
C)  finance exports from the United States to developing nations. 
D)  make loans to the World Bank, which in turn makes loans to governments in developing nations. 
A)  make loans to governments in developing nations. 
B)  invest in private enterprises in developing nations. 
C)  finance exports from the United States to developing nations. 
D)  make loans to the World Bank, which in turn makes loans to governments in developing nations.

Question 3

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is most characteristic of most developing nations?

Accepted Answer

A)  roughly equal distribution of income among the population 
B)  high levels of labor productivity in agriculture 
C)  low propensity to consume goods and services 
D)  low levels of saving and investment 
A)  roughly equal distribution of income among the population 
B)  high levels of labor productivity in agriculture 
C)  low propensity to consume goods and services 
D)  low levels of saving and investment

Question 5

Population expansion can impede economic development for the following reasons except

Accepted Answer

A)  reduced saving and investment rates. 
B)  reduced productivity of labor. 
C)  a larger supply of labor. 
D)  its contribution to urban congestion and problems. 
A)  reduced saving and investment rates. 
B)  reduced productivity of labor. 
C)  a larger supply of labor. 
D)  its contribution to urban congestion and problems.

Question 6

Which of the following includes only examples of industrially advanced countries (IACs)?

Accepted Answer

A)  the United States, Canada, and Mexico 
B)  Pakistan, India, and China 
C)  Japan, South Korea, and China 
D)  Germany, Italy, and France 
A)  the United States, Canada, and Mexico 
B)  Pakistan, India, and China 
C)  Japan, South Korea, and China 
D)  Germany, Italy, and France

Question 7

The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.

Accepted Answer

A) True 
 B)False

Question 8

China is close to catching up with the United States in its standard of living as measured by per capita income.

Accepted Answer

A) True 
 B)False

Question 9

Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.

Accepted Answer

A) True 
 B)False

Question 10

(Last Word) Loans offered through microcredit programs

Accepted Answer

A)  are usually spent on food. 
B)  suffer from low repayment rates. 
C)  have very high repayment rates. 
D)  have lifted borrowers out of poverty at a faster pace than nonrecipients of loans. 
A)  are usually spent on food. 
B)  suffer from low repayment rates. 
C)  have very high repayment rates. 
D)  have lifted borrowers out of poverty at a faster pace than nonrecipients of loans.

Question 11

The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth.

Accepted Answer

A) True 
 B)False

Question 12

Underemployment occurs

Accepted Answer

A)  when workers do not have jobs. 
B)  when farm workers become more productive. 
C)  when workers are working fewer hours than they desire or when they are working less productively than they are capable of. 
D)  in IACs but not in the DVCs. 
A)  when workers do not have jobs. 
B)  when farm workers become more productive. 
C)  when workers are working fewer hours than they desire or when they are working less productively than they are capable of. 
D)  in IACs but not in the DVCs.

Question 13

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and Japan) and the DVCs of Africa, Latin America, and Asia have been narrowing significantly over the decades.

Accepted Answer

A) True 
 B)False

Question 14

One policy recommended by most economists for promoting economic growth in DVCs is the nationalization and protection of domestic industries.

Accepted Answer

A) True 
 B)False

Question 15

Rapid population growth can be an obstacle to economic development

Accepted Answer

A)  because it can translate a relatively large increase in real output into a small increase in real output per capita. 
B)  because more investment will be required to simply maintain the quantity of capital goods per person. 
C)  because it may lead to the overutilization and therefore ecological degradation of farmland. 
D)  for all of these reasons. 
A)  because it can translate a relatively large increase in real output into a small increase in real output per capita. 
B)  because more investment will be required to simply maintain the quantity of capital goods per person. 
C)  because it may lead to the overutilization and therefore ecological degradation of farmland. 
D)  for all of these reasons.

Question 16

Avenues for the government to foster economic growth and development include the following, except

Accepted Answer

A)  nationalization and protection of domestic industries. 
B)  establishing the rule of law and protection of property rights. 
C)  building infrastructure and technological support. 
D)  building human capital and entrepreneurship. 
A)  nationalization and protection of domestic industries. 
B)  establishing the rule of law and protection of property rights. 
C)  building infrastructure and technological support. 
D)  building human capital and entrepreneurship.

Question 17

One of the essential paths to economic growth is

Accepted Answer

A)  increasing population growth. 
B)  expanding the role of government. 
C)  using existing resources more efficiently. 
D)  expanding tax credits for business investment. 
A)  increasing population growth. 
B)  expanding the role of government. 
C)  using existing resources more efficiently. 
D)  expanding tax credits for business investment.

Question 18

Which attitude or custom is the most conducive to long-term economic growth?

Accepted Answer

A)  a focus on group contentment rather than individual achievement 
B)  the belief that there is little or no correlation between an individual's economic actions and her or his economic fortunes 
C)  the belief that there is a direct connection between individual efforts (including educational efforts) and economic rewards 
D)  the use of the majority of resources for religious structures and ceremonies 
A)  a focus on group contentment rather than individual achievement 
B)  the belief that there is little or no correlation between an individual's economic actions and her or his economic fortunes 
C)  the belief that there is a direct connection between individual efforts (including educational efforts) and economic rewards 
D)  the use of the majority of resources for religious structures and ceremonies

Question 19

Development assistance as a percentage of GDP is greatest for which of the following industrialized nations (as of 2015)?

Accepted Answer

A)  the United States 
B)  Norway 
C)  Sweden 
D)  Netherlands 
A)  the United States 
B)  Norway 
C)  Sweden 
D)  Netherlands

Question 20

One recommended policy that IACs could adopt to help DVCs is to recruit and hire skilled workers from DVCs for businesses in IACs.

Accepted Answer

A) True 
 B)False

Exam 28: The Economics of Developing Countries

The "brain drain" problem in the DVCs refers to the fact the best-educated workers

The basic role of the International Finance Corporation is to

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Which of the following is most characteristic of most developing nations?

Population expansion can impede economic development for the following reasons except

Which of the following includes only examples of industrially advanced countries (IACs)?

The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.

China is close to catching up with the United States in its standard of living as measured by per capita income.

Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.

(Last Word) Loans offered through microcredit programs

The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth.

Underemployment occurs

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and Japan) and the DVCs of Africa, Latin America, and Asia have been narrowing significantly over the decades.

One policy recommended by most economists for promoting economic growth in DVCs is the nationalization and protection of domestic industries.

Rapid population growth can be an obstacle to economic development

Avenues for the government to foster economic growth and development include the following, except

One of the essential paths to economic growth is

Which attitude or custom is the most conducive to long-term economic growth?

Development assistance as a percentage of GDP is greatest for which of the following industrialized nations (as of 2015)?

One recommended policy that IACs could adopt to help DVCs is to recruit and hire skilled workers from DVCs for businesses in IACs.

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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