Question 1

A recommended policy for DVCs to implement that promotes economic growth is

Accepted Answer

A) establishing realistic policies for exchange rates. 
B) obtaining more low-interest loans from the U.S.government. 
C) encouraging more tariffs and quotas to protect DVC businesses. 
D) discouraging direct foreign investment to make DVCs more self-sufficient. 
A) establishing realistic policies for exchange rates. 
B) obtaining more low-interest loans from the U.S.government. 
C) encouraging more tariffs and quotas to protect DVC businesses. 
D) discouraging direct foreign investment to make DVCs more self-sufficient.

Question 2

Most economists agree that government efforts in economic development must be

Accepted Answer

A) employed to substitute for private efforts. 
B) designed to support private efforts. 
C) the sole driver of economic development. 
D) kept at a minimum because we can always rely on markets. 
A) employed to substitute for private efforts. 
B) designed to support private efforts. 
C) the sole driver of economic development. 
D) kept at a minimum because we can always rely on markets.

Question 3

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. 
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.

Question 4

The government of a DVC may purposely cause inflation because

Accepted Answer

A) a rapid rate of inflation attracts private foreign capital into a DVC. 
B) there is conclusive evidence that inflation discourages people from having large families. 
C) this will strengthen the nation's position in international markets. 
D) inflation works like taxation in that it may release resources from consumption so that they can be invested. 
A) a rapid rate of inflation attracts private foreign capital into a DVC. 
B) there is conclusive evidence that inflation discourages people from having large families. 
C) this will strengthen the nation's position in international markets. 
D) inflation works like taxation in that it may release resources from consumption so that they can be invested.

Question 5

Income gains in the poorest DVCs may increase population growth initially, at least for a while, due to the following reasons except

Accepted Answer

A) declining death rates 
B) increasing birth rates 
C) reduced infant mortality 
D) decreasing life expectancy 
A) declining death rates 
B) increasing birth rates 
C) reduced infant mortality 
D) decreasing life expectancy

Question 6

Which of these sets of nations consists of low-income developing nations?

Accepted Answer

A) Brazil, Australia, and South Africa 
B) Uganda, Madagascar, and Burkina Faso 
C) Canada, Switzerland, and France 
D) Germany, South Korea, and Mexico 
A) Brazil, Australia, and South Africa 
B) Uganda, Madagascar, and Burkina Faso 
C) Canada, Switzerland, and France 
D) Germany, South Korea, and Mexico

Question 7

(Last Word) Early experience with conditional cash transfers has revealed that

Accepted Answer

A) most of these cash transfers available go unused because parents don't want to fulfill the requirements. 
B) there is no significant improvement in nutrition and health compared to nonrecipients. 
C) they encourage school enrollment, but poor-quality schools limit the ability to lift people out of poverty. 
D) the resulting improvements in education and health give the recipients a significant earnings advantage over nonrecipients. 
A) most of these cash transfers available go unused because parents don't want to fulfill the requirements. 
B) there is no significant improvement in nutrition and health compared to nonrecipients. 
C) they encourage school enrollment, but poor-quality schools limit the ability to lift people out of poverty. 
D) the resulting improvements in education and health give the recipients a significant earnings advantage over nonrecipients.

Question 8

The capricious universe view indicates that

Accepted Answer

A) in the long run, "acts of God" have contained population growth and thus contributed to economic development. 
B) DVCs will obtain biological and chemical weapons and force the redistribution of world wealth. 
C) there is little or no correlation between one's efforts and the rewards he or she receives. 
D) international and civil wars have been the primary impediment to growth. 
A) in the long run, "acts of God" have contained population growth and thus contributed to economic development. 
B) DVCs will obtain biological and chemical weapons and force the redistribution of world wealth. 
C) there is little or no correlation between one's efforts and the rewards he or she receives. 
D) international and civil wars have been the primary impediment to growth.

Question 9

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses.This statement is an argument in favor of

Accepted Answer

A) free immigration and emigration. 
B) privatizing state industries. 
C) central planning. 
D) free trade. 
A) free immigration and emigration. 
B) privatizing state industries. 
C) central planning. 
D) free trade.

Question 10

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. 
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.

Question 11

Development assistance as a percentage of GDP is greatest for which of the following industrialized nations (as of 2015)?

Accepted Answer

A) the United States 
B) Norway 
C) Sweden 
D) Netherlands 
A) the United States 
B) Norway 
C) Sweden 
D) Netherlands

Question 12

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

Accepted Answer

A) rising slowly. 
B) rising quickly. 
C) staying constant. 
D) declining. 
A) rising slowly. 
B) rising quickly. 
C) staying constant. 
D) declining.

Question 13

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. 
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.

Question 14

Underemployment occurs

Accepted Answer

A) when workers do not have jobs. 
B) when farm workers become more productive. 
C) when workers are working fewer hours than they desire or when they are working less productively than they are capable of. 
D) in IACs but not in the DVCs. 
A) when workers do not have jobs. 
B) when farm workers become more productive. 
C) when workers are working fewer hours than they desire or when they are working less productively than they are capable of. 
D) in IACs but not in the DVCs.

Question 15

If a technological advance expands output and requires a smaller investment in capital goods, this technological advance

Accepted Answer

A) is capital-using. 
B) must involve nonfinancial investment. 
C) is capital-saving. 
D) must pertain to the infrastructure. 
A) is capital-using. 
B) must involve nonfinancial investment. 
C) is capital-saving. 
D) must pertain to the infrastructure.

Question 16

Which of these sets of countries has the greatest degree of internal corruption as of 2015, according to Transparency International?

Accepted Answer

A) Somalia, Afghanistan, and North Korea 
B) Finland, Denmark, and New Zealand 
C) Spain, Greece, and Italy 
D) Mexico, China, and Russia 
A) Somalia, Afghanistan, and North Korea 
B) Finland, Denmark, and New Zealand 
C) Spain, Greece, and Italy 
D) Mexico, China, and Russia

Question 17

What is needed to aid capital formation in developing countries?

Accepted Answer

A) more capital flight 
B) more oil resources 
C) more entrepreneurship 
D) higher price supports for products 
A) more capital flight 
B) more oil resources 
C) more entrepreneurship 
D) higher price supports for products

Question 18

Which of the following is generally not an effective strategy to promote DVC growth?

Accepted Answer

A) microlending 
B) human capital development 
C) fighting wars against neighbors to obtain resources and stimulate aggregate demand through arms spending 
D) controlling inflation 
A) microlending 
B) human capital development 
C) fighting wars against neighbors to obtain resources and stimulate aggregate demand through arms spending 
D) controlling inflation

Question 19

It is sometimes difficult to transfer the advanced technologies of the industrialized nations to the DVCs because

Accepted Answer

A) the technologies of the IACs are frequently based on relatively expensive labor and relatively cheap capital. 
B) the resource endowments of the IACs and the DVCs are highly similar. 
C) international patent laws prohibit such transfers. 
D) the technologies of the IACs are frequently based on relatively cheap labor and relatively expensive capital. 
A) the technologies of the IACs are frequently based on relatively expensive labor and relatively cheap capital. 
B) the resource endowments of the IACs and the DVCs are highly similar. 
C) international patent laws prohibit such transfers. 
D) the technologies of the IACs are frequently based on relatively cheap labor and relatively expensive capital.

Question 20

In 2014, Wal-Mart's annual revenues were greater than the national incomes of

Accepted Answer

A) the United States. 
B) Germany. 
C) all but 26 nations. 
D) all nations except for the 5 largest ones. 
A) the United States. 
B) Germany. 
C) all but 26 nations. 
D) all nations except for the 5 largest ones.

Exam 19: The Economics of Developing Countries

A recommended policy for DVCs to implement that promotes economic growth is

Most economists agree that government efforts in economic development must be

Trade barriers that restrict imports from developing countries tend to be

The government of a DVC may purposely cause inflation because

Income gains in the poorest DVCs may increase population growth initially, at least for a while, due to the following reasons except

Which of these sets of nations consists of low-income developing nations?

(Last Word) Early experience with conditional cash transfers has revealed that

The capricious universe view indicates that

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses.This statement is an argument in favor of

The populations of the developing nations are growing

Development assistance as a percentage of GDP is greatest for which of the following industrialized nations (as of 2015)?

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

In the DVCs, underemployment frequently takes the form of

Underemployment occurs

If a technological advance expands output and requires a smaller investment in capital goods, this technological advance

Which of these sets of countries has the greatest degree of internal corruption as of 2015, according to Transparency International?

What is needed to aid capital formation in developing countries?

Which of the following is generally not an effective strategy to promote DVC growth?

It is sometimes difficult to transfer the advanced technologies of the industrialized nations to the DVCs because

In 2014, Wal-Mart's annual revenues were greater than the national incomes of

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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