Question 1

China's approach to market development has been

Accepted Answer

A)  pragmatic and gradual. 
B)  nonexistent. 
C)  inefficient and intermittent. 
D)  unrealistic and uneven. 
A)  pragmatic and gradual. 
B)  nonexistent. 
C)  inefficient and intermittent. 
D)  unrealistic and uneven.

Question 2

Economic growth guarantees economic development.

Accepted Answer

A) True 
 B)False

Question 3

With microfinance, the mechanism of ________ is a way to avoid the problem of imperfect information.

Accepted Answer

A)  requiring no collateral 
B)  peer lending 
C)  making only small loans 
D)  accepting savings deposits 
A)  requiring no collateral 
B)  peer lending 
C)  making only small loans 
D)  accepting savings deposits

Question 4

Remittances are used to fund housing and education for families left behind in the home countries.

Accepted Answer

A) True 
 B)False

Question 5

________ refers to the fact that both human and financial capital leave developing countries in search of a higher rate of return.

Accepted Answer

A)  Urbanization 
B)  Capital flight 
C)  Outsourcing 
D)  Divestiture 
A)  Urbanization 
B)  Capital flight 
C)  Outsourcing 
D)  Divestiture

Question 6

The country with the second-highest GDP in the world, behind only the United States, is

Accepted Answer

A)  China. 
B)  India. 
C)  Germany. 
D)  Russia. 
A)  China. 
B)  India. 
C)  Germany. 
D)  Russia.

Question 7

Related to the Economic in Practice on p. 387: As corruption falls in a country, cost of production usually rises.

Accepted Answer

A) True 
 B)False

Question 8

Which agency lends money to countries to help them stabilize their exchange rates?

Accepted Answer

A)  the International Monetary Fund 
B)  the World Bank 
C)  the Federal Reserve 
D)  the Bureau de Change 
A)  the International Monetary Fund 
B)  the World Bank 
C)  the Federal Reserve 
D)  the Bureau de Change

Question 9

In India, services have led to growth, particularly in the software industry.

Accepted Answer

A) True 
 B)False

Question 10

If a developing economy ________ the amount of money its citizens can invest abroad, it has ________ chance of increasing capital formation by forcing its citizens to invest in their own country.

Accepted Answer

A)  restricts; a lesser 
B)  restricts; a greater 
C)  restricts; no 
D)  increases; a greater 
A)  restricts; a lesser 
B)  restricts; a greater 
C)  restricts; no 
D)  increases; a greater

Question 11

Compared to traditional bank loans, microfinance loans have all of the following characteristics except

Accepted Answer

A)  they are much smaller. 
B)  they require no collateral. 
C)  they are made more frequently to women than to men. 
D)  they have repayments that begin at a much later date. 
A)  they are much smaller. 
B)  they require no collateral. 
C)  they are made more frequently to women than to men. 
D)  they have repayments that begin at a much later date.

Question 12

An alternative to random experiments is to rely on ________ to mimic the controlled experiment.

Accepted Answer

A)  natural experiments 
B)  mirror experiments 
C)  manipulated experiments 
D)  predetermined experiments 
A)  natural experiments 
B)  mirror experiments 
C)  manipulated experiments 
D)  predetermined experiments

Question 13

The following situation is an example of an export promotion strategy. Guatemala has a comparative advantage in the production of bananas and, as a result, the Guatemalan government grants incentives to banana growers to improve their performance in the international marketplace.

Accepted Answer

A) True 
 B)False

Question 14

From 1990 to 2013, mortality under age 5 has ________ and the literacy rate has ________ in India.

Accepted Answer

A)  increased; decreased 
B)  decreased; increased 
C)  increased; increased 
D)  decreased; decreased 
A)  increased; decreased 
B)  decreased; increased 
C)  increased; increased 
D)  decreased; decreased

Question 15

The transition to a developing economy typically involves a movement away from agriculture.

Accepted Answer

A) True 
 B)False

Question 16

The International Monetary Fund lends money to countries to

Accepted Answer

A)  finance their international transactions. 
B)  stabilize their exchange rates. 
C)  promote their economic development. 
D)  Both A and B are correct. 
A)  finance their international transactions. 
B)  stabilize their exchange rates. 
C)  promote their economic development. 
D)  Both A and B are correct.

Question 17

Despite India being on the World Bank's list of low-income countries, its capital city, Mumbai, is one of the top ten centers of commerce in the world.

Accepted Answer

A) True 
 B)False

Question 18

Related to the Economics in Practice on p. 390: When the government of Bangladesh built flood embankments on the sides of rivers, this represented an investment in

Accepted Answer

A)  social overhead capital. 
B)  human capital. 
C)  financial capital. 
D)  intangible capital. 
A)  social overhead capital. 
B)  human capital. 
C)  financial capital. 
D)  intangible capital.

Question 19

Student absenteeism is a problem facing education in the developing world.

Accepted Answer

A) True 
 B)False

Question 20

In some nations, the government pays parents to send their children to school. There is ________ that these payments ________ school attendance.

Accepted Answer

A)  some evidence; actually decrease 
B)  no evidence; increase or decrease 
C)  no evidence; increase 
D)  some evidence; increase 
A)  some evidence; actually decrease 
B)  no evidence; increase or decrease 
C)  no evidence; increase 
D)  some evidence; increase

Exam 20: Economic Growth in Developing Economies

China's approach to market development has been

Economic growth guarantees economic development.

With microfinance, the mechanism of ________ is a way to avoid the problem of imperfect information.

Remittances are used to fund housing and education for families left behind in the home countries.

________ refers to the fact that both human and financial capital leave developing countries in search of a higher rate of return.

The country with the second-highest GDP in the world, behind only the United States, is

Related to the Economic in Practice on p. 387: As corruption falls in a country, cost of production usually rises.

Which agency lends money to countries to help them stabilize their exchange rates?

In India, services have led to growth, particularly in the software industry.

If a developing economy ________ the amount of money its citizens can invest abroad, it has ________ chance of increasing capital formation by forcing its citizens to invest in their own country.

Compared to traditional bank loans, microfinance loans have all of the following characteristics except

An alternative to random experiments is to rely on ________ to mimic the controlled experiment.

The following situation is an example of an export promotion strategy. Guatemala has a comparative advantage in the production of bananas and, as a result, the Guatemalan government grants incentives to banana growers to improve their performance in the international marketplace.

From 1990 to 2013, mortality under age 5 has ________ and the literacy rate has ________ in India.

The transition to a developing economy typically involves a movement away from agriculture.

The International Monetary Fund lends money to countries to

Despite India being on the World Bank's list of low-income countries, its capital city, Mumbai, is one of the top ten centers of commerce in the world.

Related to the Economics in Practice on p. 390: When the government of Bangladesh built flood embankments on the sides of rivers, this represented an investment in

Student absenteeism is a problem facing education in the developing world.

In some nations, the government pays parents to send their children to school. There is ________ that these payments ________ school attendance.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Critical Thinking About Research

Filters

If a developing economy the amount of money its citizens can invest abroad, it has chance of increasing capital formation by forcing its citizens to invest in their own country.

From 1990 to 2013, mortality under age 5 has and the literacy rate has in India.

In some nations, the government pays parents to send their children to school. There is that these payments school attendance.