Question 1

Microfinance is aimed at encouraging entrepreneurs among the very poorest parts of the developing world to relocate to high-income countries.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following characteristics is generally representative of developing counties relative to developed countries?

Accepted Answer

A)  a higher rate of literacy 
B)  a larger percentage of the labor force in urban areas 
C)  a lower infant mortality rate 
D)  lower productivity in the agricultural sector 
A)  a higher rate of literacy 
B)  a larger percentage of the labor force in urban areas 
C)  a lower infant mortality rate 
D)  lower productivity in the agricultural sector

Question 3

Related to the Economics in Practice on page 384: ________ children under 5 years of age in the world are characterized as extremely short due to malnutrition.

Accepted Answer

A)  1 in 20 
B)  1 in 10 
C)  1 in 4 
D)  1 in 2 
A)  1 in 20 
B)  1 in 10 
C)  1 in 4 
D)  1 in 2

Question 4

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

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 5

The government's role in a developing country is important during the country's development process for all of the following reasons except

Accepted Answer

A)  building social overhead capital cannot be taken on by the private sector. 
B)  building infrastructure is a huge project that only the government can undertake. 
C)  many social projects are associated with the free-rider problem, which minimizes the rate of return to the private sector. 
D)  the government is the only institution with a vested interest in a country's development. 
A)  building social overhead capital cannot be taken on by the private sector. 
B)  building infrastructure is a huge project that only the government can undertake. 
C)  many social projects are associated with the free-rider problem, which minimizes the rate of return to the private sector. 
D)  the government is the only institution with a vested interest in a country's development.

Question 6

Related to the Economics in Practice on p. 393: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, ________ increased and ________ decreased.

Accepted Answer

A)  profits; consumer prices 
B)  consumer prices; productivity 
C)  consumer prices; competition 
D)  competition; profits 
A)  profits; consumer prices 
B)  consumer prices; productivity 
C)  consumer prices; competition 
D)  competition; profits

Question 7

A frequently cited barrier to economic development is the apparent shortage of entrepreneurial activity in developing nations.

Accepted Answer

A) True 
 B)False

Question 8

An economy is not able to develop because of a lack of capital. Which of the following strategies would you suggest this economy pursue?

Accepted Answer

A)  lower interest rates 
B)  impose quotas on how much capital can be imported from other countries to reduce dependency on foreign capital 
C)  increase the political stability of the economy 
D)  nationalize private enterprises because the government sector is not motivated by profit maximization 
A)  lower interest rates 
B)  impose quotas on how much capital can be imported from other countries to reduce dependency on foreign capital 
C)  increase the political stability of the economy 
D)  nationalize private enterprises because the government sector is not motivated by profit maximization

Question 9

Capital flight refers to the fact that both human and financial capital

Accepted Answer

A)  flow into developing countries to build much needed infrastructure. 
B)  leave developing countries in search of a higher rate of return. 
C)  leave developed countries in search of a higher rate of return. 
D)  flow into developing countries to invest in risk free investments. 
A)  flow into developing countries to build much needed infrastructure. 
B)  leave developing countries in search of a higher rate of return. 
C)  leave developed countries in search of a higher rate of return. 
D)  flow into developing countries to invest in risk free investments.

Question 10

Farm output per person in the Global South is often barely sufficient to feed a farmer's own family.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following characteristics is generally representative of developed countries relative to developing nations?

Accepted Answer

A)  a smaller percentage of the population working in agriculture 
B)  a shorter life expectancy 
C)  a higher rate of infant mortality 
D)  a smaller percentage of children enrolled in college 
A)  a smaller percentage of the population working in agriculture 
B)  a shorter life expectancy 
C)  a higher rate of infant mortality 
D)  a smaller percentage of children enrolled in college

Question 12

Since the end of the 2008-2009 recession, remittances from illegal immigrants in the United States to Mexico

Accepted Answer

A)  continued to fall. 
B)  began to noticeably decrease. 
C)  have begun to increase. 
D)  did not noticeably change. 
A)  continued to fall. 
B)  began to noticeably decrease. 
C)  have begun to increase. 
D)  did not noticeably change.

Question 13

Remittances can be used as investment capital for small businesses.

Accepted Answer

A) True 
 B)False

Question 14

Countries with the highest level of per-capita GNI tend to generate a large percentage of GDP from agriculture production.

Accepted Answer

A) True 
 B)False

Question 15

Statistics show that the ________ a country is, the ________ is the share of agricultural output in its total output.

Accepted Answer

A)  more developed; larger 
B)  more developed; smaller 
C)  less populated; smaller 
D)  more populated; smaller 
A)  more developed; larger 
B)  more developed; smaller 
C)  less populated; smaller 
D)  more populated; smaller

Question 16

Statistics show that the less developed a country is,

Accepted Answer

A)  the larger is the share of industrial output in its total output. 
B)  the larger is the share of agricultural output in its total output. 
C)  the larger is the per capita income. 
D)  the larger is the GDP. 
A)  the larger is the share of industrial output in its total output. 
B)  the larger is the share of agricultural output in its total output. 
C)  the larger is the per capita income. 
D)  the larger is the GDP.

Question 17

With ________, outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.

Accepted Answer

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

Question 18

From 1978 to 2003, the economy of ________ grew on average 9 percent per year, a rate faster than any other country in the world.

Accepted Answer

A)  India 
B)  China 
C)  the United States 
D)  Russia 
A)  India 
B)  China 
C)  the United States 
D)  Russia

Question 19

The process of developing local industries to manufacture goods to replace imports is known as

Accepted Answer

A)  export promotion. 
B)  import substitution. 
C)  export favoritism. 
D)  import promotion. 
A)  export promotion. 
B)  import substitution. 
C)  export favoritism. 
D)  import promotion.

Question 20

Import substitution is the process of developing local industries to manufacture goods to

Accepted Answer

A)  replace imports. 
B)  import. 
C)  replace exports. 
D)  export. 
A)  replace imports. 
B)  import. 
C)  replace exports. 
D)  export.

Exam 20: Economic Growth in Developing Economies

Microfinance is aimed at encouraging entrepreneurs among the very poorest parts of the developing world to relocate to high-income countries.

Which of the following characteristics is generally representative of developing counties relative to developed countries?

Related to the Economics in Practice on page 384: ________ children under 5 years of age in the world are characterized as extremely short due to malnutrition.

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

The government's role in a developing country is important during the country's development process for all of the following reasons except

Related to the Economics in Practice on p. 393: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, ________ increased and ________ decreased.

A frequently cited barrier to economic development is the apparent shortage of entrepreneurial activity in developing nations.

An economy is not able to develop because of a lack of capital. Which of the following strategies would you suggest this economy pursue?

Capital flight refers to the fact that both human and financial capital

Farm output per person in the Global South is often barely sufficient to feed a farmer's own family.

Which of the following characteristics is generally representative of developed countries relative to developing nations?

Since the end of the 2008-2009 recession, remittances from illegal immigrants in the United States to Mexico

Remittances can be used as investment capital for small businesses.

Countries with the highest level of per-capita GNI tend to generate a large percentage of GDP from agriculture production.

Statistics show that the ________ a country is, the ________ is the share of agricultural output in its total output.

Statistics show that the less developed a country is,

With ________, outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.

From 1978 to 2003, the economy of ________ grew on average 9 percent per year, a rate faster than any other country in the world.

The process of developing local industries to manufacture goods to replace imports is known as

Import substitution is the process of developing local industries to manufacture goods to

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

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

Related to the Economics in Practice on p. 393: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, increased and decreased.

Statistics show that the a country is, the is the share of agricultural output in its total output.