Question 1

The World Bank is the organization to which DVCs turn as a "last-resort" lending agency for projects that private institutions will not fund.

Accepted Answer

A) True 
 B)False

Question 2

A major criticism of foreign aid to developing nations is that it

Accepted Answer

A) provides incentives to reduce the role of government. 
B) is capital-using rather than capital-saving when it is spent. 
C) encourages dependency rather than self-sustained growth. 
D) leads to widespread underemployment and unemployment. 
A) provides incentives to reduce the role of government. 
B) is capital-using rather than capital-saving when it is spent. 
C) encourages dependency rather than self-sustained growth. 
D) leads to widespread underemployment and unemployment.

Question 3

Which of the following is not an example of a sociocultural impediment to economic growth?

Accepted Answer

A) tribal allegiances that take precedence over national unity 
B) religious beliefs and practices that severely limit economic activity 
C) migration of labor resources from agricultural to urban areas 
D) a system for allocating jobs based on caste or tradition 
A) tribal allegiances that take precedence over national unity 
B) religious beliefs and practices that severely limit economic activity 
C) migration of labor resources from agricultural to urban areas 
D) a system for allocating jobs based on caste or tradition

Question 4

Which of the following nations is not considered an industrially advanced country?

Accepted Answer

A) Russia 
B) Japan 
C) Canada 
D) Australia 
A) Russia 
B) Japan 
C) Canada 
D) Australia

Question 5

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. 
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.

Question 6

Most developing countries (DVCs) exhibit a low level of

Accepted Answer

A) illiteracy. 
B) population growth. 
C) life expectancy. 
D) infant mortality. 
A) illiteracy. 
B) population growth. 
C) life expectancy. 
D) infant mortality.

Question 7

Which of the following includes only examples of industrially advanced countries (IACs)?

Accepted Answer

A) the United States, Canada, and Mexico 
B) Pakistan, India, and China 
C) Japan, South Korea, and China 
D) Germany, Italy, and France 
A) the United States, Canada, and Mexico 
B) Pakistan, India, and China 
C) Japan, South Korea, and China 
D) Germany, Italy, and France

Question 8

A major complaint of DVCs about foreign aid from IACs is that it

Accepted Answer

A) is allocated just to the poorest nations. 
B) is equally borne by the donor nations. 
C) needs to be quantitatively larger for DVCs. 
D) takes too long a time to reach DVCs. 
A) is allocated just to the poorest nations. 
B) is equally borne by the donor nations. 
C) needs to be quantitatively larger for DVCs. 
D) takes too long a time to reach DVCs.

Question 9

The industrially advanced countries (IACs) had an average per capita income in 2014 of around

Accepted Answer

A) $50,000 per person. 
B) $27,000 per person. 
C) $38,000 per person. 
D) $61,000 per person. 
A) $50,000 per person. 
B) $27,000 per person. 
C) $38,000 per person. 
D) $61,000 per person.

Question 10

Microfinance or microcredit can help directly support

Accepted Answer

A) labor or workers. 
B) local governments. 
C) entrepreneurs. 
D) consumers. 
A) labor or workers. 
B) local governments. 
C) entrepreneurs. 
D) consumers.

Question 11

The levels of national income per capita among developing countries (DVCs) are

Accepted Answer

A) all within a narrow range. 
B) widely varied. 
C) all growing rapidly. 
D) about half of those of industrially advanced countries (IACs). 
A) all within a narrow range. 
B) widely varied. 
C) all growing rapidly. 
D) about half of those of industrially advanced countries (IACs).

Question 12

Assume the total real output of a developing country increases from $8 billion to $8.2 billion, while its population expands from 14 to 15 million people from one year to the next.Over the year, per capita income has

Accepted Answer

A) increased by $25 per person. 
B) decreased by $25 per person. 
C) increased by $533 per person. 
D) decreased by $533 per person. 
A) increased by $25 per person. 
B) decreased by $25 per person. 
C) increased by $533 per person. 
D) decreased by $533 per person.

Question 13

Per capita income in the United States in 2014 was about

Accepted Answer

A) $25,300 per person. 
B) $36,300 per person. 
C) $55,200 per person. 
D) $68,800 per person. 
A) $25,300 per person. 
B) $36,300 per person. 
C) $55,200 per person. 
D) $68,800 per person.

Question 14

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Accepted Answer

A) Cash transfers never worked, because the recipients just wasted the money on unproductive spending. 
B) These transfers have shown positive early results; the majority of the recipients spent the money as intended. 
C) Only conditional cash transfers worked.Unconditional cash transfers never worked. 
D) These cash transfers worked only if the aid providers frequently followed up on the recipients. 
A) Cash transfers never worked, because the recipients just wasted the money on unproductive spending. 
B) These transfers have shown positive early results; the majority of the recipients spent the money as intended. 
C) Only conditional cash transfers worked.Unconditional cash transfers never worked. 
D) These cash transfers worked only if the aid providers frequently followed up on the recipients.

Question 15

Which of the following countries had the highest per capita income (on a purchasing power parity basis) in 2014?

Accepted Answer

A) China 
B) United States 
C) Japan 
D) Brazil 
A) China 
B) United States 
C) Japan 
D) Brazil

Question 16

Avenues for the government to foster economic growth and development include the following, except

Accepted Answer

A) nationalization and protection of domestic industries. 
B) establishing the rule of law and protection of property rights. 
C) building infrastructure and technological support. 
D) building human capital and entrepreneurship. 
A) nationalization and protection of domestic industries. 
B) establishing the rule of law and protection of property rights. 
C) building infrastructure and technological support. 
D) building human capital and entrepreneurship.

Question 17

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. 
A) 14 percent. 
B) 12 percent. 
C) 9 percent. 
D) 7 percent.

Question 18

The international organization, with 188 member nations, whose major objective is to help DVCs achieve economic growth is the

Accepted Answer

A) World Trade Organization. 
B) World Bank. 
C) G8 Nations. 
D) United Nations. 
A) World Trade Organization. 
B) World Bank. 
C) G8 Nations. 
D) United Nations.

Question 19

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

Accepted Answer

A) expanding trade 
B) admitting more temporary workers 
C) subsidizing their own (i.e., the IACs') agricultural sectors 
D) discouraging arms sales 
A) expanding trade 
B) admitting more temporary workers 
C) subsidizing their own (i.e., the IACs') agricultural sectors 
D) discouraging arms sales

Question 20

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Accepted Answer

A) imports of the finished products of foreign industries. 
B) food. 
C) infrastructure. 
D) industrial development. 
A) imports of the finished products of foreign industries. 
B) food. 
C) infrastructure. 
D) industrial development.

Exam 19: The Economics of Developing Countries

The World Bank is the organization to which DVCs turn as a "last-resort" lending agency for projects that private institutions will not fund.

A major criticism of foreign aid to developing nations is that it

Which of the following is not an example of a sociocultural impediment to economic growth?

Which of the following nations is not considered an industrially advanced country?

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

Most developing countries (DVCs) exhibit a low level of

Which of the following includes only examples of industrially advanced countries (IACs)?

A major complaint of DVCs about foreign aid from IACs is that it

The industrially advanced countries (IACs) had an average per capita income in 2014 of around

Microfinance or microcredit can help directly support

The levels of national income per capita among developing countries (DVCs) are

Assume the total real output of a developing country increases from $8 billion to $8.2 billion, while its population expands from 14 to 15 million people from one year to the next.Over the year, per capita income has

Per capita income in the United States in 2014 was about

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Which of the following countries had the highest per capita income (on a purchasing power parity basis) in 2014?

Avenues for the government to foster economic growth and development include the following, except

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

The international organization, with 188 member nations, whose major objective is to help DVCs achieve economic growth is the

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Part A: Limits, Alternatives, and Choices

Part B: Limits, Alternatives, and Choices

Part A: The Market System and the Circular Flow

Part B: The Market System and the Circular Flow

Part A: Demand, Supply, and Market Equilibrium

Part B: Demand, Supply, and Market Equilibrium

Part A: Market Failures: Public Goods and Externalities

Part B: Market Failures: Public Goods and Externalities

Part A: Governments Role and Government Failure

Part B: Governments Role and Government Failure

Part A: An Introduction to Macroeconomics

Part B: An Introduction to Macroeconomics

Part A: Measuring the Economys Output

Part B: Measuring the Economys Output

Part A: Economic Growth

Part B: Economic Growth

Part A: Business Cycles, Unemployment, and Inflation

Part B: Business Cycles, Unemployment, and Inflation

Part A: Basic Macroeconomic Relationships

Part B: Basic Macroeconomic Relationships

Part A: The Aggregate Expenditures Model

Part B: The Aggregate Expenditures Model

Part A: Aggregate Demand and Aggregate Supply

Part B: Aggregate Demand and Aggregate Supply

Part A: Fiscal Policy, Deficits, Surpluses, and Debt

Part B: Fiscal Policy, Deficits, Surpluses, and Debt

Part A: Money, Banking, and Money Creation

Part B: Money, Banking, and Money Creation

Part A: Interest Rates and Monetary Policy

Part B: Interest Rates and Monetary Policy

Part A: Long-Run Macroeconomic Adjustments

Part B: Long-Run Macroeconomic Adjustments

Part A: International Trade

Part B: International Trade

Part C: Financial Economics

Part A: The Balance of Payments and Exchange Rates

Part B: The Balance of Payments and Exchange Rates

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