Question 1

The populations of the developing nations are growing

Accepted Answer

A)  at about 5 percent per year.
B)  at about the same rate as those of the industrially advanced nations.
C)  slower than those of the industrially advanced nations.
D)  faster than those of the industrially advanced nations.E) A) and B)
F) B) and D)

Question 2

Which of the following IACs (industrially advanced countries)  gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries)  in 2015?

Accepted Answer

A)  United States
B)  Japan
C)  Canada
D)  GermanyE) A) and B)
F) A) and C)

Question 3

Most nations of the world are now IACs, not middle- and low-income DVCs.

Accepted Answer

A) True 
 B)False

Question 4

Government-provided foreign aid to developing countries

Accepted Answer

A)  has averaged about 1 percent of the IACs' GDP each year.
B)  has increased sharply and steadily since 1995.
C)  has dwarfed the size of foreign direct investment to the DVCs in recent years.
D)  declined in the late 1990s but increased from 2000 to 2008.E) None of the above
F) All of the above

Question 5

Trade barriers that restrict imports from developing countries tend to be

Accepted Answer

A)  highest in the capital goods and technology sectors of those economies.
B)  lowest in the labor-intensive manufacturing sectors of those economies.
C)  lowest for those products in which DVCs have a comparative advantage.
D)  highest for those products in which DVCs have a comparative advantage.E) All of the above
F) A) and B)

Question 6

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a recommended policy for industrially advanced countries to adopt in order to foster economic growth in DVCs?

Accepted Answer

A)  admitting more temporary workers from DVCs
B)  reducing the amount of debt relief for DVCs to make them less dependent
C)  eliminating loans from the World Bank because it encourages bureaucracy
D)  eliminating financial control of central banks where they have been establishedE) A) and D)
F) B) and C)

Question 8

What is the immigration problem for DVCs?

Accepted Answer

A)  Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers.
B)  Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers.
C)  Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers.
D)  Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers.E) B) and C)
F) A) and D)

Question 9

In the DVCs, underemployment frequently takes the form of

Accepted Answer

A)  factory workers who are working longer hours than they would prefer.
B)  workers who are employed inefficiently in small industry when they could be highly productive in agriculture.
C)  farmers whose productivity is very low.
D)  craft workers and artisans who are replaced by simple machinery and equipment.E) A) and B)
F) None of the above

Question 10

Which of the following is most characteristic of developing nations?

Accepted Answer

A)  a small percentage of the labor force in agriculture
B)  a relatively equitable distribution of income
C)  low levels of labor productivity
D)  low rates of population growthE) None of the above
F) A) and B)

Question 11

The lack of an entrepreneurial class in developing nations tends to

Accepted Answer

A)  keep workers from migrating to cities from rural areas.
B)  reduce the level of capital investment.
C)  force the need for land reform.
D)  keep governments stable.E) None of the above
F) B) and C)

Question 12

If population is expanding at the same rate as real output,

Accepted Answer

A)  real per capita output will increase.
B)  real per capita output will decrease.
C)  real per capita output will remain unchanged.
D)  living standards will increase.E) A) and B)
F) B) and C)

Question 13

The World Bank

Accepted Answer

A)  provides military assistance to those nations interested in improving national defense.
B)  makes and guarantees loans for basic development projects such as the construction of dams, roads, and schools.
C)  provides gold for DVCs that want to go on the gold standard.
D)  provides short-term loans to DVCs that are incurring balance of payments deficits.E) A) and B)
F) B) and C)

Question 14

An economy's infrastructure refers to its

Accepted Answer

A)  public capital goods, such as roads, schools, and power facilities.
B)  financial and banking institutions.
C)  land and natural resources.
D)  surplus supplies of unskilled labor.E) None of the above
F) A) and B)

Question 15

Which of the following is a factor limiting saving in DVCs?

Accepted Answer

A)  the lack of foreign aid and loans from the World Bank
B)  Governments control the banking system and set low interest rates.
C)  the flight of private savings to investments in IACs, where there is less risk
D)  Those who do save make their savings available only to their families, who use it for consumption.E) A) and D)
F) None of the above

Question 16

Suppose that Alpha's real output rose from $400 billion in year 1 to $428 billion in year 2.Its growth rate for this period was

Accepted Answer

A)  14 percent.
B)  12 percent.
C)  9 percent.
D)  7 percent.E) C) and D)
F) A) and B)

Question 17

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Accepted Answer

A)  "The rich get richer, while the poor get poorer."
B)  "Fate dealt the poor nations a bad hand."
C)  "The poor nations stay poor because they are poor."
D)  "Historical developments have oppressed the poor nations' incomes."E) A) and B)
F) A) and C)

Question 18

The World Bank operates primarily as a

Accepted Answer

A)  deposit institution for nations' gold supplies.
B)  coordinator for private banks in major nations.
C)  lender of last resort to less-developed nations.
D)  U.S.government agency that supervises banks worldwide.E) None of the above
F) A) and C)

Question 19

Many countries remain poor because they currently are poor.This statement summarizes the

Accepted Answer

A)  infrastructure problem.
B)  vicious circle of poverty.
C)  demographic transition problem.
D)  problem of capital flight.E) C) and D)
F) A) and B)

Question 20

Many economists believe that the key to breaking the vicious circle of poverty is to

Accepted Answer

A)  cut down the mortality rates in poor nations.
B)  reduce the birth rates in poor nations.
C)  increase the mobility of labor and migration.
D)  increase the rate of capital accumulation in poor nations.E) A) and D)
F) C) and D)

Exam 22: The Economics of Developing Countries

Trade barriers that restrict imports from developing countries tend to be

Correct AnswerverifiedShow Answer

Suppose that Alpha's real output rose from $400 billion in year 1 to $428 billion in year 2.Its growth rate for this period was

Correct AnswerverifiedShow Answer

Which of the following is a recommended policy for industrially advanced countries to adopt in order to foster economic growth in DVCs?

Correct AnswerverifiedShow Answer

If population is expanding at the same rate as real output,

Correct AnswerverifiedShow Answer

Which of the following is most characteristic of developing nations?

Correct AnswerverifiedShow Answer

The World Bank

Correct AnswerverifiedShow Answer

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Correct AnswerverifiedShow Answer

An economy's infrastructure refers to its

Correct AnswerverifiedShow Answer

The lack of an entrepreneurial class in developing nations tends to

Correct AnswerverifiedShow Answer

The populations of the developing nations are growing

Correct AnswerverifiedShow Answer

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

Correct AnswerverifiedShow Answer

Government-provided foreign aid to developing countries

Correct AnswerverifiedShow Answer

Most nations of the world are now IACs, not middle- and low-income DVCs.

Correct AnswerverifiedShow Answer

In the DVCs, underemployment frequently takes the form of

Correct AnswerverifiedShow Answer

The World Bank operates primarily as a

Correct AnswerverifiedShow Answer

Which of the following IACs (industrially advanced countries) gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

Correct AnswerverifiedShow Answer

Many countries remain poor because they currently are poor.This statement summarizes the

Correct AnswerverifiedShow Answer

Many economists believe that the key to breaking the vicious circle of poverty is to

Correct AnswerverifiedShow Answer

Which of the following is a factor limiting saving in DVCs?

Correct AnswerverifiedShow Answer

What is the immigration problem for DVCs?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified