Question 1

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 2

Approximately what percent of the world's income is received by the poorest one-fifth of the world's population?

Accepted Answer

A)  2. 
B)  5. 
C)  7. 
D)  10. 
A)  2. 
B)  5. 
C)  7. 
D)  10.

Question 3

An increasing share of the private capital flows to DVCs in recent years has been in the form of:

Accepted Answer

A)  interest-free government loans. 
B)  educational and training assistance. 
C)  direct foreign investment. 
D)  bank loans. 
A)  interest-free government loans. 
B)  educational and training assistance. 
C)  direct foreign investment. 
D)  bank loans.

Question 4

Because families can afford to have more children,population growth is greater in the IACs than in the DVCs.

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

Famines in sub-Saharan Africa:

Accepted Answer

A)  are solely the result of unalterable weather conditions. 
B)  have become less common in recent decades. 
C)  are the result of drought,civil strife,large populations,and inappropriate public policies. 
D)  are solely the result of government policies that overprice agricultural products. 
A)  are solely the result of unalterable weather conditions. 
B)  have become less common in recent decades. 
C)  are the result of drought,civil strife,large populations,and inappropriate public policies. 
D)  are solely the result of government policies that overprice agricultural products.

Question 7

In recent decades:

Accepted Answer

A)  all countries classified as DVCs have had little or no economic growth. 
B)  some nations classified as DVCs have grown rapidly while others have grown very slowly or not at all. 
C)  all countries classified as DVCs have experienced rapid economic growth and rising living standards. 
D)  all countries classified as low-income DVCs have had declining per capita GDPs. 
A)  all countries classified as DVCs have had little or no economic growth. 
B)  some nations classified as DVCs have grown rapidly while others have grown very slowly or not at all. 
C)  all countries classified as DVCs have experienced rapid economic growth and rising living standards. 
D)  all countries classified as low-income DVCs have had declining per capita GDPs.

Question 8

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC.If both nations realize a 4 percent growth of their real per capita outputs,after one year the absolute real per capita output gap will:

Accepted Answer

A)  remain unchanged at $19,000. 
B)  increase by $760. 
C)  decrease by $1,000. 
D)  increase by $19,760. 
A)  remain unchanged at $19,000. 
B)  increase by $760. 
C)  decrease by $1,000. 
D)  increase by $19,760.

Question 9

Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.

Accepted Answer

A) True 
 B)False

Question 10

An example of direct foreign investment is:

Accepted Answer

A)  a U.S.bank granting a loan to a Guatemalan firm. 
B)  General Motors building an auto production facility in China. 
C)  a U.S.government foreign aid grant to Bangladesh. 
D)  the purchase of debt issued by the Panamanian government. 
A)  a U.S.bank granting a loan to a Guatemalan firm. 
B)  General Motors building an auto production facility in China. 
C)  a U.S.government foreign aid grant to Bangladesh. 
D)  the purchase of debt issued by the Panamanian government.

Question 11

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 12

The World Bank:

Accepted Answer

A)  provides military assistance to those nations interested in improving national defense. 
B)  makes and guarantees loans for basic development projects such as the construction of dams,roads,and schools. 
C)  provides gold for DVCs that want to go on the gold standard. 
D)  provides short-term loans to DVCs that are incurring balance of payments deficits. 
A)  provides military assistance to those nations interested in improving national defense. 
B)  makes and guarantees loans for basic development projects such as the construction of dams,roads,and schools. 
C)  provides gold for DVCs that want to go on the gold standard. 
D)  provides short-term loans to DVCs that are incurring balance of payments deficits.

Question 13

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 14

The World Bank:

Accepted Answer

A)  is also known as the International Monetary Fund (IMF). 
B)  lends money to developing nations for basic infrastructure projects such as dams,irrigation,health and sanitation,communications,and transportation. 
C)  is an affiliate of the World Trade Organization (WTO). 
D)  provides subsidies to private firms so they can improve their wages and working conditions. 
A)  is also known as the International Monetary Fund (IMF). 
B)  lends money to developing nations for basic infrastructure projects such as dams,irrigation,health and sanitation,communications,and transportation. 
C)  is an affiliate of the World Trade Organization (WTO). 
D)  provides subsidies to private firms so they can improve their wages and working conditions.

Question 15

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 16

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 17

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

Accepted Answer

A) True 
 B)False

Question 20

In 2010,the GDP of the United States was approximately:

Accepted Answer

A)  $5 trillion less than the GDP of the 144 DVCs in that year. 
B)  $5 trillion more than the GDP of the 144 DVCs in that year. 
C)  twice the GDP of the 144 DVCs in that year. 
D)  the same as the GDP of 144 DVCs in that year. 
A)  $5 trillion less than the GDP of the 144 DVCs in that year. 
B)  $5 trillion more than the GDP of the 144 DVCs in that year. 
C)  twice the GDP of the 144 DVCs in that year. 
D)  the same as the GDP of 144 DVCs in that year.

Exam 41: The Economics of Developing Countries

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

Approximately what percent of the world's income is received by the poorest one-fifth of the world's population?

An increasing share of the private capital flows to DVCs in recent years has been in the form of:

Because families can afford to have more children,population growth is greater in the IACs than in the DVCs.

Most of the world's population lives in:

Famines in sub-Saharan Africa:

In recent decades:

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC.If both nations realize a 4 percent growth of their real per capita outputs,after one year the absolute real per capita output gap will:

Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.

An example of direct foreign investment is:

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

The World Bank:

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

The World Bank:

In the 1990s:

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

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

The populations of the developing nations are growing:

The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

In 2010,the GDP of the United States was approximately:

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

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