Question 1

When economists refer to capital flight,they are speaking of an:

Accepted Answer

A)  outflow of financial capital from a certain country. 
B)  outflow of real capital from a certain country. 
C)  outflow of financial and real capital from a certain country. 
D)  outflow of human capital from a certain country. 
A)  outflow of financial capital from a certain country. 
B)  outflow of real capital from a certain country. 
C)  outflow of financial and real capital from a certain country. 
D)  outflow of human capital from a certain country.

Question 2

Which of the following is characteristic of DVCs?

Accepted Answer

A)  A large percentage of the labor force is in agriculture. 
B)  High levels of saving and investment. 
C)  High labor productivity. 
D)  High levels of training. 
A)  A large percentage of the labor force is in agriculture. 
B)  High levels of saving and investment. 
C)  High labor productivity. 
D)  High levels of training.

Question 3

Which of the following DVC policies is not likely to increase DVC economic growth?

Accepted Answer

A)  Privatizing state industries. 
B)  Controlling population growth. 
C)  Restricting direct foreign investment from abroad. 
D)  Building human capital. 
A)  Privatizing state industries. 
B)  Controlling population growth. 
C)  Restricting direct foreign investment from abroad. 
D)  Building human capital.

Question 4

Which of the following is typically not a problem for low-income DVCs?

Accepted Answer

A)  Capital flight. 
B)  "Brain drains." 
C)  High saving rates that slow aggregate demand growth. 
D)  Poor infrastructure. 
A)  Capital flight. 
B)  "Brain drains." 
C)  High saving rates that slow aggregate demand growth. 
D)  Poor infrastructure.

Question 5

Which of these sets of nations are low-income developing nations?

Accepted Answer

A)  Brazil,Australia,and South Africa. 
B)  Uganda,Madagascar,and Burkina Faso. 
C)  Canada,Switzerland,and France. 
D)  Germany,South Korea,and Mexico. 
A)  Brazil,Australia,and South Africa. 
B)  Uganda,Madagascar,and Burkina Faso. 
C)  Canada,Switzerland,and France. 
D)  Germany,South Korea,and Mexico.

Question 6

The ability of the DVCs to use the technologies of the IACs is somewhat limited because:

Accepted Answer

A)  the IACs have patents on most of their technologies. 
B)  the IACs and the DVCs have much different resource endowments. 
C)  the technologies of the IACs rely heavily on unskilled labor. 
D)  IAC technologies are labor-intensive,while DVC technologies are capital-intensive. 
A)  the IACs have patents on most of their technologies. 
B)  the IACs and the DVCs have much different resource endowments. 
C)  the technologies of the IACs rely heavily on unskilled labor. 
D)  IAC technologies are labor-intensive,while DVC technologies are capital-intensive.

Question 7

Government-provided foreign aid to developing countries has:

Accepted Answer

A)  averaged about 1 percent of the IACs' GDP each year. 
B)  increased sharply since 1995. 
C)  dwarfed the size of foreign direct investment to the DVCs in recent years. 
D)  declined in the late 1990s but increased from 2000 to 2008. 
A)  averaged about 1 percent of the IACs' GDP each year. 
B)  increased sharply since 1995. 
C)  dwarfed the size of foreign direct investment to the DVCs in recent years. 
D)  declined in the late 1990s but increased from 2000 to 2008.

Question 8

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 9

The government of a DVC may purposely cause inflation because:

Accepted Answer

A)  a rapid rate of inflation attracts private foreign capital into a DVC. 
B)  there is conclusive evidence that inflation discourages people from having large families. 
C)  this will strengthen the nation's position in international markets. 
D)  inflation works like taxation in that it may release resources from consumption so that they can be invested. 
A)  a rapid rate of inflation attracts private foreign capital into a DVC. 
B)  there is conclusive evidence that inflation discourages people from having large families. 
C)  this will strengthen the nation's position in international markets. 
D)  inflation works like taxation in that it may release resources from consumption so that they can be invested.

Question 10

If population is expanding at the same rate as real output:

Accepted Answer

A)  real per capita output will increase. 
B)  real per capita output will decrease. 
C)  real per capita output will remain unchanged. 
D)  living standards will increase. 
A)  real per capita output will increase. 
B)  real per capita output will decrease. 
C)  real per capita output will remain unchanged. 
D)  living standards will increase.

Question 11

The capricious universe view is the idea that the IACs are exploiting the DVCs.

Accepted Answer

A) True 
 B)False

Question 12

The very poorest low-income DVCs typically have relatively:

Accepted Answer

A)  low rates of economic growth and relatively high rates of population growth. 
B)  high rates of economic growth and relatively low rates of population growth. 
C)  low rates of both population growth and economic growth. 
D)  high rates of both population growth and economic growth. 
A)  low rates of economic growth and relatively high rates of population growth. 
B)  high rates of economic growth and relatively low rates of population growth. 
C)  low rates of both population growth and economic growth. 
D)  high rates of both population growth and economic growth.

Question 13

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 14

The capricious universe view indicates that:

Accepted Answer

A)  in the long run,"acts of God" have contained population growth and thus contributed to economic development. 
B)  DVCs will obtain biological and chemical weapons and force the redistribution of world wealth. 
C)  there is little or no correlation between one's efforts and the rewards he or she receives. 
D)  international and civil wars have been the primary impediment to growth. 
A)  in the long run,"acts of God" have contained population growth and thus contributed to economic development. 
B)  DVCs will obtain biological and chemical weapons and force the redistribution of world wealth. 
C)  there is little or no correlation between one's efforts and the rewards he or she receives. 
D)  international and civil wars have been the primary impediment to growth.

Question 15

Capital flight from the DVCs may be caused by:

Accepted Answer

A)  a fear of government privatization efforts. 
B)  slow domestic inflation. 
C)  low rates of domestic taxation. 
D)  risks of severe fluctuations in exchange rates. 
A)  a fear of government privatization efforts. 
B)  slow domestic inflation. 
C)  low rates of domestic taxation. 
D)  risks of severe fluctuations in exchange rates.

Question 16

If the real outputs per capita of a rich nation and a poor nation grow at the same percentage rate,the absolute income gap between the two nations will shrink.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not part of a nation's infrastructure?

Accepted Answer

A)  Communications facilities. 
B)  Roads,highways,and bridges. 
C)  The electrical power system. 
D)  Industrial plants and equipment. 
A)  Communications facilities. 
B)  Roads,highways,and bridges. 
C)  The electrical power system. 
D)  Industrial plants and equipment.

Question 18

For DVC per capita incomes to rise,birth rates must first be reduced.This statement describes the:

Accepted Answer

A)  human capital view of population growth. 
B)  traditional view of population growth. 
C)  capricious universe view. 
D)  demographic transition view of population growth. 
A)  human capital view of population growth. 
B)  traditional view of population growth. 
C)  capricious universe view. 
D)  demographic transition view of population growth.

Question 19

In 2010,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)  3.5;41 
C)  10;32 
D)  4.5;23 
A)  20;30 
B)  3.5;41 
C)  10;32 
D)  4.5;23

Question 20

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

Accepted Answer

A)  are concentrated in the public,rather than the private,sector. 
B)  are concentrated in the private,rather than the public,sector. 
C)  are concentrated in urban,rather than rural,areas. 
D)  have emigrated from the DVCs to the IACs. 
A)  are concentrated in the public,rather than the private,sector. 
B)  are concentrated in the private,rather than the public,sector. 
C)  are concentrated in urban,rather than rural,areas. 
D)  have emigrated from the DVCs to the IACs.

Exam 41: The Economics of Developing Countries

When economists refer to capital flight,they are speaking of an:

Which of the following is characteristic of DVCs?

Which of the following DVC policies is not likely to increase DVC economic growth?

Which of the following is typically not a problem for low-income DVCs?

Which of these sets of nations are low-income developing nations?

The ability of the DVCs to use the technologies of the IACs is somewhat limited because:

Government-provided foreign aid to developing countries has:

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

The government of a DVC may purposely cause inflation because:

If population is expanding at the same rate as real output:

The capricious universe view is the idea that the IACs are exploiting the DVCs.

The very poorest low-income DVCs typically have relatively:

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

The capricious universe view indicates that:

Capital flight from the DVCs may be caused by:

If the real outputs per capita of a rich nation and a poor nation grow at the same percentage rate,the absolute income gap between the two nations will shrink.

Which of the following is not part of a nation's infrastructure?

For DVC per capita incomes to rise,birth rates must first be reduced.This statement describes the:

In 2010,the United States had about ___ percent of the world's population and produced about ___ percent of the world output.

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

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The United States and the Global Economy

Filters

In 2010,the United States had about _ percent of the world's population and produced about _ percent of the world output.