Question 1

Production and exchange depend on an reliable infrastructure of

Accepted Answer

A) transportation 
B) communication 
C) sanitation 
D) electricity 
E) All of the answers are correct 
A) transportation 
B) communication 
C) sanitation 
D) electricity 
E) All of the answers are correct

Question 2

Newly industrialized countries typically have lower GDP growth rates than more developed industrialized countries.

Accepted Answer

A) True 
 B)False

Question 3

Privatization is the process of turning government enterprises into private enterprises in transitional economies.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true about foreign aid provided by the United States?

Accepted Answer

A) During the last four decades,the U.S.has provided less than $400 million in aid 
B) Most U.S.aid has been coordinated by the Department of Defense 
C) The U.S.Agency for International Development emphasizes short-range plans 
D) The U.S.Agency for International Development concentrates primarily on health,education,and agriculture 
E) Foreign aid is large part of the U.S.federal budget 
A) During the last four decades,the U.S.has provided less than $400 million in aid 
B) Most U.S.aid has been coordinated by the Department of Defense 
C) The U.S.Agency for International Development emphasizes short-range plans 
D) The U.S.Agency for International Development concentrates primarily on health,education,and agriculture 
E) Foreign aid is large part of the U.S.federal budget

Question 5

According to the convergence theory,

Accepted Answer

A) less-developed countries should grow faster than advanced ones because of the ability to copy new technology 
B) the growth rates of all countries converge because in the long run,all resources are alike 
C) human capital differences can never be made up 
D) GDP and productivity growth rates should converge over time 
E) the impact of basic and applied research should converge over time 
A) less-developed countries should grow faster than advanced ones because of the ability to copy new technology 
B) the growth rates of all countries converge because in the long run,all resources are alike 
C) human capital differences can never be made up 
D) GDP and productivity growth rates should converge over time 
E) the impact of basic and applied research should converge over time

Question 6

One impediment to the convergence of world economies is the vast differences in human capital.

Accepted Answer

A) True 
 B)False

Question 7

The major advantage of a market economy is that

Accepted Answer

A) it maximizes the need for resource-flow data 
B) prices convey most of the information necessary to coordinate economic activity among firms 
C) data are aimed at central planners 
D) prices are essentially meaningless 
E) All of the answers are correct 
A) it maximizes the need for resource-flow data 
B) prices convey most of the information necessary to coordinate economic activity among firms 
C) data are aimed at central planners 
D) prices are essentially meaningless 
E) All of the answers are correct

Question 8

Which of the following transitional economies has become a high-income nation?

Accepted Answer

A) Czech Republic 
B) Kazakhstan 
C) China 
D) Vietnam 
E) None of the answers is correct 
A) Czech Republic 
B) Kazakhstan 
C) China 
D) Vietnam 
E) None of the answers is correct

Question 9

To escape poverty,a country needs

Accepted Answer

A) Western banks to report deposits by corrupt officials 
B) to develop laws and regulations to ensure the transparent management of natural resources 
C) special trade advantages 
D) ten years of domestic peace 
E) All of the answers are correct 
A) Western banks to report deposits by corrupt officials 
B) to develop laws and regulations to ensure the transparent management of natural resources 
C) special trade advantages 
D) ten years of domestic peace 
E) All of the answers are correct

Question 10

If the country of Deficitland is experiencing trade deficits,they are more likely to cut imports of

Accepted Answer

A) beef 
B) cocoa 
C) coffee 
D) capital goods 
E) soybeans 
A) beef 
B) cocoa 
C) coffee 
D) capital goods 
E) soybeans

Question 11

The World Bank sorts countries into the following three major groups:

Accepted Answer

A) high-income economies,middle-income economies,low-spending economies 
B) high-spending economies,middle-spending economies,low-spending economies 
C) super-high-income economies,middle-income economies,low-income economies 
D) high-income economies,middle-income economies,zero-income economies 
E) high-income economies,middle-income economies,low-income economies 
A) high-income economies,middle-income economies,low-spending economies 
B) high-spending economies,middle-spending economies,low-spending economies 
C) super-high-income economies,middle-income economies,low-income economies 
D) high-income economies,middle-income economies,zero-income economies 
E) high-income economies,middle-income economies,low-income economies

Question 12

One of the reasons that import substitution is popular is that

Accepted Answer

A) there was never any demand for the products in question 
B) infant industries would have to compete against global rivals 
C) it benefits suppliers to the favored domestic industries 
D) it slows down the progression through the production chain 
E) the emphasis is on comparative advantage and trade expansion 
A) there was never any demand for the products in question 
B) infant industries would have to compete against global rivals 
C) it benefits suppliers to the favored domestic industries 
D) it slows down the progression through the production chain 
E) the emphasis is on comparative advantage and trade expansion

Question 13

Which of the following is not a country or region most likely to be among industrial market countries?

Accepted Answer

A) Western Europe 
B) North American 
C) Australia 
D) South Asia 
E) Japan 
A) Western Europe 
B) North American 
C) Australia 
D) South Asia 
E) Japan

Question 14

Successful management of resource wealth is a poverty trap

Accepted Answer

A) True 
 B)False

Question 15

Which of the following creates an obstacle to pursuing freer international trade?

Accepted Answer

A) Consumers do not recognize their potential gains 
B) Losses are widespread 
C) Domestic producers do not recognize their potential losses 
D) Government has plenty of political will and support to remove trade barriers 
E) Consumers can easily organize to demand free trade 
A) Consumers do not recognize their potential gains 
B) Losses are widespread 
C) Domestic producers do not recognize their potential losses 
D) Government has plenty of political will and support to remove trade barriers 
E) Consumers can easily organize to demand free trade

Question 16

In 2011,high-income economies with only about one eighth of the world's population produced more than one-half of the worlds output.

Accepted Answer

A) True 
 B)False

Question 17

Nationalization is the process of turning government enterprises into private enterprises in transitional economies.

Accepted Answer

A) True 
 B)False

Question 18

A trend in developing countries is that

Accepted Answer

A) the birth rate during a typical woman's lifetime has increased from three to six children 
B) attitudes toward family size are changing 
C) when women have employment opportunities outside the home,fertility rates increase 
D) as women become better educated,they earn less 
E) as women become less educated,they tend to have fewer children 
A) the birth rate during a typical woman's lifetime has increased from three to six children 
B) attitudes toward family size are changing 
C) when women have employment opportunities outside the home,fertility rates increase 
D) as women become better educated,they earn less 
E) as women become less educated,they tend to have fewer children

Question 19

Usually the poorest fifth of the population in a developing country receives more than 20 percent of the country's income.

Accepted Answer

A) True 
 B)False

Question 20

Disappointed with problems caused by being a recipient of foreign aid from donor governments,the country of Upsilon should consider

Accepted Answer

A) refusing all future offers of aid 
B) privatizing of aid,such as receiving funds from private not-for-profit agencies 
C) becoming a donor instead 
D) seeking even more government-sponsored aid 
E) All of the answers are correct 
A) refusing all future offers of aid 
B) privatizing of aid,such as receiving funds from private not-for-profit agencies 
C) becoming a donor instead 
D) seeking even more government-sponsored aid 
E) All of the answers are correct

Exam 21: Economic Development

Production and exchange depend on an reliable infrastructure of

Newly industrialized countries typically have lower GDP growth rates than more developed industrialized countries.

Privatization is the process of turning government enterprises into private enterprises in transitional economies.

Which of the following is true about foreign aid provided by the United States?

According to the convergence theory,

One impediment to the convergence of world economies is the vast differences in human capital.

The major advantage of a market economy is that

Which of the following transitional economies has become a high-income nation?

To escape poverty,a country needs

If the country of Deficitland is experiencing trade deficits,they are more likely to cut imports of

The World Bank sorts countries into the following three major groups:

One of the reasons that import substitution is popular is that

Which of the following is not a country or region most likely to be among industrial market countries?

Successful management of resource wealth is a poverty trap

Which of the following creates an obstacle to pursuing freer international trade?

In 2011,high-income economies with only about one eighth of the world's population produced more than one-half of the worlds output.

Nationalization is the process of turning government enterprises into private enterprises in transitional economies.

A trend in developing countries is that

Usually the poorest fifth of the population in a developing country receives more than 20 percent of the country's income.

Disappointed with problems caused by being a recipient of foreign aid from donor governments,the country of Upsilon should consider

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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