Exam 19: The Economics of Developing Countries

If the real outputs per capita of a rich nation and a poor nation grow at the same percentage rate, the absolute income gap between the two nations will shrink.

Which of the following is not a reason why government may play a key role in the early stage of economic development in developing nations?

The average per capita income in 2014 for low-income developing nations was about

Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig several wells.This is an illustration of

The lack of an entrepreneurial class in developing nations tends to

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

The "brain drain" problem in the DVCs refers to the fact the best-educated workers

Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.

The role of government in fostering economic growth in DVCs has been criticized because

Assume that the real output of a developing nation increases from $120 billion to $140 billion, while its population expands from 100 to 110 million.As a result, real income per capita has increased by about

Which of the following is most characteristic of developing nations?

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Which of the following seems to be the most acute institutional problem that needs to be resolved by many DVCs?

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?

The United States in 2014 had about

Per capita incomes must first grow for birth rates to decline.This statement describes the

Brazil, Mexico, and Thailand are referred to as

Foreign aid to the DVCs has been criticized