Exam 38: Macro Policy in Developing Countries

When Zimbabwe needed to finance the war against Congo, the government issued bonds and forced the Central Bank to buy those bonds in exchange of new printed Zimbabwean dollars.This action prompted a hyperinflation of almost 100,000 percent.This is an example of a lack of:

If a currency is convertible on the current account, which of the following transactions would not be permissible?

Political instability is an obstacle to development in:

Countries such as China and South Korea have increased not only the size of their labor force but also the quality of their labor force over time.Workers in these countries have higher levels of education and skills that promote changes in the productivity per worker.If this is the case, these countries have experienced:

In a dual economy, it is generally the case that the majority of the population works in the:

Frequently, developing countries compete for foreign direct investment to be located in their countries.Which of the following are not something a developing country would likely offer?

The United Nations, in its annual publication Human Development Report, computes what it calls the human development index.If the purpose of this index is to measure development rather than growth, which of the following factors is most likely to be included in it?

Developing economies are generally characterized by a dual economy, which means that they have:

In the early 2000s, Ecuador replaced its currency, the sucre, with the U.S.dollar as its official currency.What will no longer be possible for the government of Ecuador?

Some economists and international organizations use the PPP method in order to compare the:

According to Hernando De Soto, a Peruvian economist, it takes 168 steps in order to have a house registered in The Philippines.In Haiti, it takes 111 visits to officials to formalize a business.However, "if you make the right payments, this tedious process may disappear." The textbook calls this situation an example of:

Developing countries would benefit the most from a given increase in their education budgets if they spent more:

Communal property rights and tradition, rather than market institutions, determine economic relationships in many developing countries.

The difference in terms of economic goals between developing countries and developed countries is that:

Buying and selling foreign currency by the central bank is a trade policy whose objective is:

The inflation tax is an:

The purpose of the IMF is to:

The dual nature of financial markets in developing countries-traditional and modern-implies that central banks in developing countries:

An increase in per capita incomes is guaranteed by:

Developing countries have different institutional priorities than developed countries for all of the following reasons except that they: