Question 1

Deﬁne corruption. Is this common in DVCs?

Accepted Answer

Corruption is the misuse of government p

Question 2

List the nine positive roles that DVC governments can play in promoting economic development.

Accepted Answer

The nine positive roles listed for DVC g

Question 3

(Consider This) The World Bank has found that even households living in extreme poverty can
provide for basic human needs like safe water and sturdy shelter.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following does not correlate positively with economic growth?

Accepted Answer

A)  output per capita 
B)  life expectancy 
C)  the percentage of the population engaged in agriculture 
D)  the literacy rate 
A)  output per capita 
B)  life expectancy 
C)  the percentage of the population engaged in agriculture 
D)  the literacy rate

Question 5

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

Accepted Answer

A)  will remain constant. 
B)  may either widen or diminish. 
C)  will diminish. 
D)  will widen. 
A)  will remain constant. 
B)  may either widen or diminish. 
C)  will diminish. 
D)  will widen.

Question 6

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 7

Capital ﬂight from the DVCs may be caused by

Accepted Answer

A)  a fear of government privatization efforts. 
B)  slow domestic inﬂation. 
C)  low rates of domestic taxation. 
D)  risks of severe ﬂuctuations in exchange rates. 
A)  a fear of government privatization efforts. 
B)  slow domestic inﬂation. 
C)  low rates of domestic taxation. 
D)  risks of severe ﬂuctuations in exchange rates.

Question 8

One of the essential paths to economic growth is

Accepted Answer

A)  increasing population growth. 
B)  expanding the role of government. 
C)  using existing resources more eﬃciently. 
D)  expanding tax credits for business investment. 
A)  increasing population growth. 
B)  expanding the role of government. 
C)  using existing resources more eﬃciently. 
D)  expanding tax credits for business investment.

Question 9

Birth- and population-control efforts in many DVCs (developing countries) face the following obstacles except

Accepted Answer

A)  low literacy rates. 
B)  religious reasons. 
C)  a peasant agriculture view about children. 
D)  government authorities. 
A)  low literacy rates. 
B)  religious reasons. 
C)  a peasant agriculture view about children. 
D)  government authorities.

Question 10

Many countries remain poor because they currently are poor. This statement summarizes the

Accepted Answer

A)  infrastructure problem. 
B)  vicious circle of poverty. 
C)  demographic transition problem. 
D)  problem of capital ﬂight. 
A)  infrastructure problem. 
B)  vicious circle of poverty. 
C)  demographic transition problem. 
D)  problem of capital ﬂight.

Question 11

What is the difference between capital-using and capital-saving technological advances? Give an

Accepted Answer

example.
Capital-using technology refers

Question 12

$$\begin{array} { | c | c | } 
\hline \text { Country } & \text { Per Capita Income, } 2017 \
\hline A & \$ 621 \
\hline B & 14,894 \
\hline C & 31,555 \
\hline D & 3,498 \
\hline E & 2,005 \
\hline
\end{array}$$ 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 ?ight 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 ?ight from country A relative to that from country E

Question 13

Which of the following is typically not a problem for low-income DVCs?

Accepted Answer

A)  capital ﬂight 
B)  "brain drain" 
C)  high saving rates that slow aggregate demand growth 
D)  poor infrastructure 
A)  capital ﬂight 
B)  "brain drain" 
C)  high saving rates that slow aggregate demand growth 
D)  poor infrastructure

Question 14

Which of the following countries had the highest per capita energy consumption in 2015?

Accepted Answer

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

Question 15

In 2018, Wal-Mart?s annual revenues were greater than the national incomes of

Accepted Answer

A)  the United States. 
B)  Germany. 
C)  all but 23 nations. 
D)  all nations except for the 5 largest ones. 
A)  the United States. 
B)  Germany. 
C)  all but 23 nations. 
D)  all nations except for the 5 largest ones.

Question 16

Based on population and economic development trends, the world population is expected to ____ in the last part of this century.

Accepted Answer

A)  explode 
B)  increase mildly 
C)  become stable and constant 
D)  decline 
A)  explode 
B)  increase mildly 
C)  become stable and constant 
D)  decline

Question 17

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 120 million, its real per capita output will have

Accepted Answer

A)  remained unchanged. 
B)  increased by about $167. 
C)  increased by about $55. 
D)  decreased by about $20. 
A)  remained unchanged. 
B)  increased by about $167. 
C)  increased by about $55. 
D)  decreased by about $20.

Question 18

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and
Japan) and the DVCs of Africa, Latin America, and Asia have been narrowing signiﬁcantly over the
decades.

Accepted Answer

A) True 
 B)False

Question 19

Most of the DVCs of the world are located in Western Europe.

Accepted Answer

A) True 
 B)False

Question 20

The demographic transition view of population growth argues that, on average (and as perceived by parents), the opportunity

Accepted Answer

A)  beneﬁts of extra children are larger in IACs than in DVCs. 
B)  costs of extra children are lower in IACs than in DVCs. 
C)  costs of extra children are larger in IACs than in DVCs. 
D)  beneﬁts of extra children are the same in DVCs and IACs. 
A)  beneﬁts of extra children are larger in IACs than in DVCs. 
B)  costs of extra children are lower in IACs than in DVCs. 
C)  costs of extra children are larger in IACs than in DVCs. 
D)  beneﬁts of extra children are the same in DVCs and IACs.

Exam 22: The Economics of Developing Countries

Deﬁne corruption. Is this common in DVCs?

List the nine positive roles that DVC governments can play in promoting economic development.

(Consider This) The World Bank has found that even households living in extreme poverty can provide for basic human needs like safe water and sturdy shelter.

Which of the following does not correlate positively with economic growth?

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

In the DVCs, underemployment frequently takes the form of

Capital ﬂight from the DVCs may be caused by

One of the essential paths to economic growth is

Birth- and population-control efforts in many DVCs (developing countries) face the following obstacles except

Many countries remain poor because they currently are poor. This statement summarizes the

What is the difference between capital-using and capital-saving technological advances? Give an

Country Per Capita Income, 2017 A \ 621 B 14,894 C 31,555 D 3,498 E 2,005 Refer to the table. Which of the following might reduce the per capita income gap between countries A and E?

Which of the following is typically not a problem for low-income DVCs?

Which of the following countries had the highest per capita energy consumption in 2015?

In 2018, Wal-Mart?s annual revenues were greater than the national incomes of

Based on population and economic development trends, the world population is expected to ____ in the last part of this century.

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 120 million, its real per capita output will have

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and Japan) and the DVCs of Africa, Latin America, and Asia have been narrowing signiﬁcantly over the decades.

Most of the DVCs of the world are located in Western Europe.

The demographic transition view of population growth argues that, on average (and as perceived by parents), the opportunity

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

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