Question 1

In recent years, U.S.foreign aid has been

Accepted Answer

A) less than one-quarter of 1 percent of its output. 
B) about 1 percent of its output. 
C) about 3 percent of its output. 
D) about 5 percent of its output. 
A) less than one-quarter of 1 percent of its output. 
B) about 1 percent of its output. 
C) about 3 percent of its output. 
D) about 5 percent of its output.

Question 2

Refer to the table.Which of the following might reduce the per capita income gap between countries A and E?

Accepted Answer

A) faster population growth in country A than in country E 
B) greater investment relative to GDP in country E than in country A 
C) more rapid improvement in literacy and education in country A than in country E 
D) increased capital flight from country A relative to that from country E 
A) faster population growth in country A than in country E 
B) greater investment relative to GDP in country E than in country A 
C) more rapid improvement in literacy and education in country A than in country E 
D) increased capital flight from country A relative to that from country E

Question 3

DVCs tend to have permanent shortages of farm labor.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7 percent per year.This compares to what percentage growth per year in low- income DVCs (developing countries)?

Accepted Answer

A) 1.1 percent 
B) 2.1 percent 
C) 4.0 percent 
D) 0.4 percent 
A) 1.1 percent 
B) 2.1 percent 
C) 4.0 percent 
D) 0.4 percent

Question 6

All of the following contribute to low investment spending in DVCs except

Accepted Answer

A) low rates of saving. 
B) inadequacy of public capital goods (infrastructure). 
C) political instability. 
D) expensive labor. 
A) low rates of saving. 
B) inadequacy of public capital goods (infrastructure). 
C) political instability. 
D) expensive labor.

Question 7

Which of the following is not part of a nation's infrastructure?

Accepted Answer

A) communications facilities 
B) roads, highways, and bridges 
C) the electrical power system 
D) industrial plants and equipment 
A) communications facilities 
B) roads, highways, and bridges 
C) the electrical power system 
D) industrial plants and equipment

Question 8

Rapid population growth can be an obstacle to economic development

Accepted Answer

A) because it can translate a relatively large increase in real output into a small increase in real output per capita. 
B) because more investment will be required to simply maintain the quantity of capital goods per person. 
C) because it may lead to the overutilization and therefore ecological degradation of farmland. 
D) for all of these reasons. 
A) because it can translate a relatively large increase in real output into a small increase in real output per capita. 
B) because more investment will be required to simply maintain the quantity of capital goods per person. 
C) because it may lead to the overutilization and therefore ecological degradation of farmland. 
D) for all of these reasons.

Question 9

If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards that are given to that person, this leader is most likely expressing a

Accepted Answer

A) description of the vicious cycle of poverty. 
B) theory of exploitation and dependence. 
C) capricious view of the universe. 
D) rationale for neocolonialism. 
A) description of the vicious cycle of poverty. 
B) theory of exploitation and dependence. 
C) capricious view of the universe. 
D) rationale for neocolonialism.

Question 10

Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

Accepted Answer

A) True 
 B)False

Question 11

One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.

Accepted Answer

A) True 
 B)False

Question 12

Which of the given nations would be high-income countries (IACs), according to the World Bank?

Accepted Answer

A) country C only 
B) countries B, C, and D 
C) countries B, C, D, and E 
D) countries B and C 
A) country C only 
B) countries B, C, and D 
C) countries B, C, D, and E 
D) countries B and C

Question 13

(Last Word) Providing poor families with grants if they send their children to school and get proper medical care is known as

Accepted Answer

A) microcredit. 
B) in-kind transfers. 
C) unconditional cash transfers. 
D) conditional cash transfers. 
A) microcredit. 
B) in-kind transfers. 
C) unconditional cash transfers. 
D) conditional cash transfers.

Question 14

Developing countries (DVCs) can be subdivided into the following groups except

Accepted Answer

A) low-income economies. 
B) high-income economies. 
C) lower-middle-income economies. 
D) upper-middle-income economies. 
A) low-income economies. 
B) high-income economies. 
C) lower-middle-income economies. 
D) upper-middle-income economies.

Question 15

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. 
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.

Question 16

Which of the following IACs (industrially advanced countries) was the leading provider of development assistance to DVCs (developing countries) in 2015, in terms of absolute dollar amounts?

Accepted Answer

A) United States 
B) Japan 
C) Canada 
D) Germany 
A) United States 
B) Japan 
C) Canada 
D) Germany

Question 17

In 2014, the GDP of the United States was approximately

Accepted Answer

A) $8 trillion less than the GDP of the 135 DVCs in that year. 
B) $8 trillion more than the GDP of the 135 DVCs in that year. 
C) twice the GDP of the 135 DVCs in that year. 
D) the same as the GDP of 135 DVCs in that year. 
A) $8 trillion less than the GDP of the 135 DVCs in that year. 
B) $8 trillion more than the GDP of the 135 DVCs in that year. 
C) twice the GDP of the 135 DVCs in that year. 
D) the same as the GDP of 135 DVCs in that year.

Question 18

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will

Accepted Answer

A) shift outward the production possibilities curve for a nation. 
B) increase the demand for and decrease the supply of productive resources. 
C) make a nation less productive because of the need to coordinate the increased quantity of resources. 
D) lead to increased population growth that will decrease the per capita growth in a nation. 
A) shift outward the production possibilities curve for a nation. 
B) increase the demand for and decrease the supply of productive resources. 
C) make a nation less productive because of the need to coordinate the increased quantity of resources. 
D) lead to increased population growth that will decrease the per capita growth in a nation.

Question 19

Which of the following DVC policies is not likely to increase DVC economic growth?

Accepted Answer

A) privatizing state industries 
B) controlling population growth 
C) restricting direct foreign investment from abroad 
D) building human capital 
A) privatizing state industries 
B) controlling population growth 
C) restricting direct foreign investment from abroad 
D) building human capital

Question 20

Which of the following is not inversely related to per capita income?

Accepted Answer

A) mortality rates for children under five years of age 
B) adult illiteracy rates 
C) per capita energy consumption 
D) population growth rates 
A) mortality rates for children under five years of age 
B) adult illiteracy rates 
C) per capita energy consumption 
D) population growth rates

Exam 19: The Economics of Developing Countries

In recent years, U.S.foreign aid has been

Refer to the table.Which of the following might reduce the per capita income gap between countries A and E?

DVCs tend to have permanent shortages of farm labor.

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

The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7 percent per year.This compares to what percentage growth per year in low- income DVCs (developing countries)?

All of the following contribute to low investment spending in DVCs except

Which of the following is not part of a nation's infrastructure?

Rapid population growth can be an obstacle to economic development

If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards that are given to that person, this leader is most likely expressing a

Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.

Which of the given nations would be high-income countries (IACs), according to the World Bank?

(Last Word) Providing poor families with grants if they send their children to school and get proper medical care is known as

Developing countries (DVCs) can be subdivided into the following groups except

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

Which of the following IACs (industrially advanced countries) was the leading provider of development assistance to DVCs (developing countries) in 2015, in terms of absolute dollar amounts?

In 2014, the GDP of the United States was approximately

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will

Which of the following DVC policies is not likely to increase DVC economic growth?

Which of the following is not inversely related to per capita income?

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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