Question 1

To follow an outward-oriented strategy, a country that has scarce natural resources and abundant labor supplies should _____.

Accepted Answer

A) export primary goods and import manufactured products 
B) export manufactured goods and impose import restrictions on primary goods 
C) export both primary and manufactured products 
D) export primary goods and impose trade restrictions on manufactured goods 
E) export manufactured products and import primary goods 
A) export primary goods and import manufactured products 
B) export manufactured goods and impose import restrictions on primary goods 
C) export both primary and manufactured products 
D) export primary goods and impose trade restrictions on manufactured goods 
E) export manufactured products and import primary goods

Question 2

Bilateral aid is foreign aid that:

Accepted Answer

A) goes to both communist and noncommunist developing countries. 
B) affects two foreign markets. 
C) is a joint aid package from two industrial countries that benefits a developing country. 
D) flows from one country to another. 
E) is paid in two parts. 
A) goes to both communist and noncommunist developing countries. 
B) affects two foreign markets. 
C) is a joint aid package from two industrial countries that benefits a developing country. 
D) flows from one country to another. 
E) is paid in two parts.

Question 3

Which of the following sentences about the benefits of foreign investment is true?

Accepted Answer

A) Foreign investment is invited only in labor-intensive industries. 
B) The emphasis on capital-intensive industries is that foreign investment has more effect on employment in developing countries. 
C) Most expenditures on research and development are made by the major developing countries. 
D) The ability of foreign firms to utilize modern technology in a developing country depends on having a supply of engineers and technical personnel in the host country. 
E) Foreign investment will improve balance of payments if the foreign investment is used to produce goods primarily for domestic consumption. 
A) Foreign investment is invited only in labor-intensive industries. 
B) The emphasis on capital-intensive industries is that foreign investment has more effect on employment in developing countries. 
C) Most expenditures on research and development are made by the major developing countries. 
D) The ability of foreign firms to utilize modern technology in a developing country depends on having a supply of engineers and technical personnel in the host country. 
E) Foreign investment will improve balance of payments if the foreign investment is used to produce goods primarily for domestic consumption.

Question 4

Corruption reduces growth most directly because governments invest in projects with low productivity.

Accepted Answer

A) True 
 B)False

Exam 29: Development Economics

To follow an outward-oriented strategy, a country that has scarce natural resources and abundant labor supplies should _____.

Bilateral aid is foreign aid that:

Which of the following sentences about the benefits of foreign investment is true?

Corruption reduces growth most directly because governments invest in projects with low productivity.

Economics: The World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

National Income Accounting

an Introduction to the Foreign Exchange Market and the Balance of Payments

Consumer Choice

Supply: The Costs of Doing Business

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Profit Maximization

Aggregate Expenditures

Perfect Competition

Income and Expenditures Equilibrium

Monopoly

Fiscal Policy

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Money and Banking

Market Failures, Government Failures, and Rent Seeking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Resource Markets

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

The Labor Market

Capital Markets

Economic Growth

the Land Market and Natural Resources

Aging, Social Security and Health Care

Globalization

Elasticity: Demand and Supply

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

Consumer Choice

International Trade Restrictions

World Trade Equilibrium

Exchange Rates and Financial Links Between Countries

International Trade Restrictions

Supply: the Costs of Doing Business

Exchange Rates and Financial Links Between Countries

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

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