Question 1

Which of the following countries had the highest per capita energy consumption in 2013?

Accepted Answer

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

Question 2

In 2014, the United States had about percent of the world's population and produced about percent of the world output.

Accepted Answer

A) 20; 30 
B) 3.6; 31 
C) 10; 28 
D) 4.4; 22 
A) 20; 30 
B) 3.6; 31 
C) 10; 28 
D) 4.4; 22

Question 3

The demographic transition view alleges that

Accepted Answer

A) the DVCs must first accept the use of birth control techniques to increase their standards of living. 
B) population growth will decline only if mortality rates exceed birth rates. 
C) if incomes first rise, population growth will then decline. 
D) population growth has no bearing on a nation's per capita income. 
A) the DVCs must first accept the use of birth control techniques to increase their standards of living. 
B) population growth will decline only if mortality rates exceed birth rates. 
C) if incomes first rise, population growth will then decline. 
D) population growth has no bearing on a nation's per capita income.

Question 4

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Accepted Answer

A) the World Bank 
B) the New Economic Order 
C) the Federal Reserve System 
D) the Committee on Economic Development 
A) the World Bank 
B) the New Economic Order 
C) the Federal Reserve System 
D) the Committee on Economic Development

Question 5

Because families can afford to have more children, population growth is greater in the IACs than in the DVCs.

Accepted Answer

A) True 
 B)False

Question 6

To be classified as a low-income developing country, annual per capita income in 2014 needed to be

Accepted Answer

A) $1,045 or less. 
B) $628 or less. 
C) $2,018 or less. 
D) $925 or less. 
A) $1,045 or less. 
B) $628 or less. 
C) $2,018 or less. 
D) $925 or less.

Question 7

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

Question 8

The absolute income gap between the IACs and the DVCs has

Accepted Answer

A) remained constant over time. 
B) increased over time. 
C) decreased over time. 
D) increased in nominal terms but decreased in real terms. 
A) remained constant over time. 
B) increased over time. 
C) decreased over time. 
D) increased in nominal terms but decreased in real terms.

Question 9

All developing countries suffer from a critical shortage of

Accepted Answer

A) land. 
B) population. 
C) capital goods. 
D) government regulation. 
A) land. 
B) population. 
C) capital goods. 
D) government regulation.

Question 10

The basic role of the International Finance Corporation is to

Accepted Answer

A) make loans to governments in developing nations. 
B) invest in private enterprises in developing nations. 
C) finance exports from the United States to developing nations. 
D) make loans to the World Bank, which in turn makes loans to governments in developing nations. 
A) make loans to governments in developing nations. 
B) invest in private enterprises in developing nations. 
C) finance exports from the United States to developing nations. 
D) make loans to the World Bank, which in turn makes loans to governments in developing nations.

Question 11

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

Accepted Answer

A) is capital saving rather than capital intensive. 
B) provides incentives for a brain drain. 
C) encourages corruption and misuse of funds. 
D) gives too much power and control to the International Monetary Fund. 
A) is capital saving rather than capital intensive. 
B) provides incentives for a brain drain. 
C) encourages corruption and misuse of funds. 
D) gives too much power and control to the International Monetary Fund.

Question 12

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

Accepted Answer

A) low trade barriers 
B) large international debts 
C) an increase in the rate of saving 
D) a slowing of population growth 
A) low trade barriers 
B) large international debts 
C) an increase in the rate of saving 
D) a slowing of population growth

Question 13

(Last Word) Loans offered through microcredit programs

Accepted Answer

A) are usually spent on food. 
B) suffer from low repayment rates. 
C) have very high repayment rates. 
D) have lifted borrowers out of poverty at a faster pace than nonrecipients of loans. 
A) are usually spent on food. 
B) suffer from low repayment rates. 
C) have very high repayment rates. 
D) have lifted borrowers out of poverty at a faster pace than nonrecipients of loans.

Question 14

The vast majority of the labor forces of the low-income DVCs are engaged in agriculture.

Accepted Answer

A) True 
 B)False

Question 15

Suppose that the average annual rate of population increase in Econland in recent years was about 2 percent.Based on this rate of growth, the population of Econland will double in about

Accepted Answer

A) 7 years. 
B) 11 years. 
C) 35 years. 
D) 46 years. 
A) 7 years. 
B) 11 years. 
C) 35 years. 
D) 46 years.

Question 16

The population growth rate of the DVCs (developing countries) as a group in recent decades has been

Accepted Answer

A) steady. 
B) declining. 
C) rising modestly. 
D) rising rapidly. 
A) steady. 
B) declining. 
C) rising modestly. 
D) rising rapidly.

Question 17

One reason why foreign aid is viewed as harmful is that it promotes dependency.

Accepted Answer

A) True 
 B)False

Question 18

Which attitude or custom is the most conducive to long-term economic growth?

Accepted Answer

A) a focus on group contentment rather than individual achievement 
B) the belief that there is little or no correlation between an individual's economic actions and her or his economic fortunes 
C) the belief that there is a direct connection between individual efforts (including educational efforts) and economic rewards 
D) the use of the majority of resources for religious structures and ceremonies 
A) a focus on group contentment rather than individual achievement 
B) the belief that there is little or no correlation between an individual's economic actions and her or his economic fortunes 
C) the belief that there is a direct connection between individual efforts (including educational efforts) and economic rewards 
D) the use of the majority of resources for religious structures and ceremonies

Question 19

Which of the following countries had the best score in the Corruption Perception Index in 2015?

Accepted Answer

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

Question 20

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth.What view of DVC population growth would this study be supporting?

Accepted Answer

A) traditional view 
B) peasant agriculture view 
C) the will-to-develop view 
D) demographic transition view 
A) traditional view 
B) peasant agriculture view 
C) the will-to-develop view 
D) demographic transition view

Exam 19: The Economics of Developing Countries

Which of the following countries had the highest per capita energy consumption in 2013?

In 2014, the United States had about percent of the world's population and produced about percent of the world output.

The demographic transition view alleges that

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Because families can afford to have more children, population growth is greater in the IACs than in the DVCs.

To be classified as a low-income developing country, annual per capita income in 2014 needed to be

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?

The absolute income gap between the IACs and the DVCs has

All developing countries suffer from a critical shortage of

The basic role of the International Finance Corporation is to

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

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

(Last Word) Loans offered through microcredit programs

The vast majority of the labor forces of the low-income DVCs are engaged in agriculture.

Suppose that the average annual rate of population increase in Econland in recent years was about 2 percent.Based on this rate of growth, the population of Econland will double in about

The population growth rate of the DVCs (developing countries) as a group in recent decades has been

One reason why foreign aid is viewed as harmful is that it promotes dependency.

Which attitude or custom is the most conducive to long-term economic growth?

Which of the following countries had the best score in the Corruption Perception Index in 2015?

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth.What view of DVC population growth would this study be supporting?

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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