Question 1

Compared to industrial market countries,developing countries usually have

Accepted Answer

A) exports consisting mostly of agricultural products and raw materials 
B) faster population growth 
C) higher unemployment 
D) higher rates of illiteracy 
E) All of the answers are correct 
A) exports consisting mostly of agricultural products and raw materials 
B) faster population growth 
C) higher unemployment 
D) higher rates of illiteracy 
E) All of the answers are correct

Question 2

An example of a poverty trap is

Accepted Answer

A) extended time periods without war 
B) a lack of mineral wealth 
C) a dysfunctional or corrupt government 
D) laws and regulations to help detect fiscal fraud 
E) None of the answers is correct 
A) extended time periods without war 
B) a lack of mineral wealth 
C) a dysfunctional or corrupt government 
D) laws and regulations to help detect fiscal fraud 
E) None of the answers is correct

Question 3

One likely reason that the country of Appleland is poor is that it

Accepted Answer

A) does not produce many goods and services 
B) has highly educated and productive female workers 
C) has a low birth rate 
D) enjoys a low infant mortality rate 
E) has a high literacy rate 
A) does not produce many goods and services 
B) has highly educated and productive female workers 
C) has a low birth rate 
D) enjoys a low infant mortality rate 
E) has a high literacy rate

Question 4

Foreign aid often becomes a source of discretionary funds that benefit poor people in developing countries and not the countries' leaders.

Accepted Answer

A) True 
 B)False

Question 5

A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because

Accepted Answer

A) crop supply changes very little despite the weather 
B) crop supply fluctuates with the weather 
C) weather never varies 
D) crops go in and out of fashion as new diets are developed 
E) crop demand fluctuates with the weather 
A) crop supply changes very little despite the weather 
B) crop supply fluctuates with the weather 
C) weather never varies 
D) crops go in and out of fashion as new diets are developed 
E) crop demand fluctuates with the weather

Question 6

Which of the following is not a developing country classified as a high-income economy because of possessing huge oil reserves?

Accepted Answer

A) United Arab Emirates 
B) Chad 
C) Qatar 
D) Kuwait 
E) Bahrain 
A) United Arab Emirates 
B) Chad 
C) Qatar 
D) Kuwait 
E) Bahrain

Question 7

Foreign aid can take the form of

Accepted Answer

A) only money,capital goods,or technical assistance 
B) only capital goods,technical assistance,or food 
C) money,capital goods,technical assistance,or food 
D) only money,technical assistance,or food 
E) only technical assistance or food 
A) only money,capital goods,or technical assistance 
B) only capital goods,technical assistance,or food 
C) money,capital goods,technical assistance,or food 
D) only money,technical assistance,or food 
E) only technical assistance or food

Question 8

Which of the following groups has the lowest life expectancy at birth?

Accepted Answer

A) middle-income economies 
B) low-income economies 
C) high-income economies 
D) sub-Saharan African economies 
E) all the world's economies 
A) middle-income economies 
B) low-income economies 
C) high-income economies 
D) sub-Saharan African economies 
E) all the world's economies

Question 9

In 2011,in the world's poorest countries income per capita was less that one dollar per day.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a cause of higher birth rates in developing countries?

Accepted Answer

A) Children are viewed as a source of farm labor 
B) Children are viewed as economic and social security as the parents age 
C) Higher child mortality rates engender higher birth rates 
D) All the answers are correct 
E) None of the answers is correct 
A) Children are viewed as a source of farm labor 
B) Children are viewed as economic and social security as the parents age 
C) Higher child mortality rates engender higher birth rates 
D) All the answers are correct 
E) None of the answers is correct

Question 11

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?

Accepted Answer

A) middle-income economies 
B) low-income economies 
C) high-income economies 
D) sub-Saharan African economies 
E) all the world's economies 
A) middle-income economies 
B) low-income economies 
C) high-income economies 
D) sub-Saharan African economies 
E) all the world's economies

Question 12

If Gloria is woman in a developing country,then it is likely that

Accepted Answer

A) she is less educated than most men in her country 
B) her brother has dropped out of high school,but not she has graduated 
C) she has more employment opportunities and earns higher wages than her male classmates 
D) she and other women will not have to work long hours in agriculture 
E) she has special access to resources such as land,capital,and technology 
A) she is less educated than most men in her country 
B) her brother has dropped out of high school,but not she has graduated 
C) she has more employment opportunities and earns higher wages than her male classmates 
D) she and other women will not have to work long hours in agriculture 
E) she has special access to resources such as land,capital,and technology

Question 13

Which of the following does not describe the World Bank?

Accepted Answer

A) an economic development institution 
B) affiliated with the United Nations 
C) offers low-fee checking accounts to anyone in the world 
D) estimates output per capita figures 
E) uses output per capital figures to classify economies 
A) an economic development institution 
B) affiliated with the United Nations 
C) offers low-fee checking accounts to anyone in the world 
D) estimates output per capita figures 
E) uses output per capital figures to classify economies

Question 14

The economic system that includes private ownership of most resources and the coordination of economic activity by price signals generated by market forces is

Accepted Answer

A) capitalism 
B) socialism 
C) communism 
D) mercantilism 
E) progressivism 
A) capitalism 
B) socialism 
C) communism 
D) mercantilism 
E) progressivism

Question 15

Which of the following countries is not in the poorest-billion category?

Accepted Answer

A) Bolivia 
B) Cambodia 
C) Vietnam 
D) Myanmar 
E) Yemen 
A) Bolivia 
B) Cambodia 
C) Vietnam 
D) Myanmar 
E) Yemen

Question 16

Which of the following is true?

Accepted Answer

A) In low-income countries,less than 5 percent of those 15 and older were illiterate in 2007 
B) In middle-income countries,17 percent of those 15 and older were illiterate in 2007 
C) In high-income countries,38 percent of those 15 and older were illiterate in 2007 
D) Education bears little relationship to economic development in high income countries 
E) Education is more important to the economic development of low income countries than it is to high income countries 
A) In low-income countries,less than 5 percent of those 15 and older were illiterate in 2007 
B) In middle-income countries,17 percent of those 15 and older were illiterate in 2007 
C) In high-income countries,38 percent of those 15 and older were illiterate in 2007 
D) Education bears little relationship to economic development in high income countries 
E) Education is more important to the economic development of low income countries than it is to high income countries

Question 17

The country of Yipi can raise its productivity by investing more in

Accepted Answer

A) both human and physical capital 
B) human capital only 
C) physical capital only 
D) stable foreign economies 
E) stocks and bonds 
A) both human and physical capital 
B) human capital only 
C) physical capital only 
D) stable foreign economies 
E) stocks and bonds

Question 18

Social capital is

Accepted Answer

A) the shared values and trust that promote cooperation in the economy 
B) the buildings and equipment used to produce goods and services 
C) a government regulation aimed at improving health and safety 
D) the accumulated knowledge,skill,and experience of the labor force 
E) the owner's own or borrowed money invested in a business 
A) the shared values and trust that promote cooperation in the economy 
B) the buildings and equipment used to produce goods and services 
C) a government regulation aimed at improving health and safety 
D) the accumulated knowledge,skill,and experience of the labor force 
E) the owner's own or borrowed money invested in a business

Question 19

In 2011,middle-income economies with almost three-fourths of the world's population produced less than one-quarter of the worlds output.

Accepted Answer

A) True 
 B)False

Question 20

When a developing country relies on import substitution,

Accepted Answer

A) it sacrifices the gains from specialization and comparative advantage 
B) replaces low-cost foreign goods with high-cost domestic goods 
C) domestic producers,shielded from foreign competition,usually fail to become efficient 
D) other countries often retaliate with their own trade restrictions 
E) All of the answers are correct 
A) it sacrifices the gains from specialization and comparative advantage 
B) replaces low-cost foreign goods with high-cost domestic goods 
C) domestic producers,shielded from foreign competition,usually fail to become efficient 
D) other countries often retaliate with their own trade restrictions 
E) All of the answers are correct

Exam 21: Economic Development

Compared to industrial market countries,developing countries usually have

An example of a poverty trap is

One likely reason that the country of Appleland is poor is that it

Foreign aid often becomes a source of discretionary funds that benefit poor people in developing countries and not the countries' leaders.

A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because

Which of the following is not a developing country classified as a high-income economy because of possessing huge oil reserves?

Foreign aid can take the form of

Which of the following groups has the lowest life expectancy at birth?

In 2011,in the world's poorest countries income per capita was less that one dollar per day.

Which of the following is a cause of higher birth rates in developing countries?

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?

If Gloria is woman in a developing country,then it is likely that

Which of the following does not describe the World Bank?

The economic system that includes private ownership of most resources and the coordination of economic activity by price signals generated by market forces is

Which of the following countries is not in the poorest-billion category?

Which of the following is true?

The country of Yipi can raise its productivity by investing more in

Social capital is

In 2011,middle-income economies with almost three-fourths of the world's population produced less than one-quarter of the worlds output.

When a developing country relies on import substitution,

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aaggregate Expenditure and Aggregate Demand

Baggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

Externalities and the Environment

International Finance

understanding Graphs

National Income Accounts

The Algebra of Demand-Side Equilibrium

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