Question 1

Per capita income in the United States in 2017 was about how many times greater than that in China?

Accepted Answer

A)  8.5 times 
B)  12 times 
C)  3.5 times 
D)  17 times 
A)  8.5 times 
B)  12 times 
C)  3.5 times 
D)  17 times

Question 2

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 3

Most of the world's population lives in

Accepted Answer

A)  North America. 
B)  the DVCs. 
C)  Western Europe. 
D)  the IACs. 
A)  North America. 
B)  the DVCs. 
C)  Western Europe. 
D)  the IACs.

Question 4

What is the natural resource problem in DVCs?

Accepted Answer

The distribution of natural resources is

Question 5

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 6

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Accepted Answer

A)  "The rich get richer, while the poor get poorer." 
B)  "Fate dealt the poor nations a bad hand." 
C)  "The poor nations stay poor because they are poor." 
D)  "Historical developments have oppressed the poor nations' incomes." 
A)  "The rich get richer, while the poor get poorer." 
B)  "Fate dealt the poor nations a bad hand." 
C)  "The poor nations stay poor because they are poor." 
D)  "Historical developments have oppressed the poor nations' incomes."

Question 7

One suggested policy that industrially advanced nations could adopt to foster economic growth in less-developed nations would be to

Accepted Answer

A)  leave the responsibility to the World Bank. 
B)  direct foreign aid to the poorest DVCs. 
C)  recruit more skilled workers from DVCs. 
D)  target the banking sector for the most help. 
A)  leave the responsibility to the World Bank. 
B)  direct foreign aid to the poorest DVCs. 
C)  recruit more skilled workers from DVCs. 
D)  target the banking sector for the most help.

Question 8

The lack of an entrepreneurial class in developing nations tends to

Accepted Answer

A)  keep workers from migrating to cities from rural areas. 
B)  reduce the level of capital investment. 
C)  force the need for land reform. 
D)  keep governments stable. 
A)  keep workers from migrating to cities from rural areas. 
B)  reduce the level of capital investment. 
C)  force the need for land reform. 
D)  keep governments stable.

Question 9

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 10

(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 11

Which of the following countries had the highest population density (population per square km) in 2017?

Accepted Answer

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

Question 12

One common measure of the "standard of living" in a nation is

Accepted Answer

A)  real income per capita. 
B)  unemployment rate. 
C)  real GDP. 
D)  population size. 
A)  real income per capita. 
B)  unemployment rate. 
C)  real GDP. 
D)  population size.

Question 13

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Accepted Answer

A)  United Nations. 
B)  International Finance Corporation. 
C)  New Global Compact. 
D)  International Development Association. 
A)  United Nations. 
B)  International Finance Corporation. 
C)  New Global Compact. 
D)  International Development Association.

Question 14

Which of the following statements is correct?

Accepted Answer

A)  Saving is high in less-developed nations because the opportunities for consumption are limited. 
B)  For developing nations, the annual rate of population increase is about 5 percent. 
C)  Most of the labor forces of developing nations are engaged in light industrial production. 
D)  Investment is low in developing nations, making it diﬃcult to increase productivity and incomes. 
A)  Saving is high in less-developed nations because the opportunities for consumption are limited. 
B)  For developing nations, the annual rate of population increase is about 5 percent. 
C)  Most of the labor forces of developing nations are engaged in light industrial production. 
D)  Investment is low in developing nations, making it diﬃcult to increase productivity and incomes.

Question 15

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

Accepted Answer

A)  expanding trade 
B)  admitting more temporary workers 
C)  subsidizing their own (i.e., the IACs?) agricultural sectors 
D)  discouraging arms sales 
A)  expanding trade 
B)  admitting more temporary workers 
C)  subsidizing their own (i.e., the IACs?) agricultural sectors 
D)  discouraging arms sales

Question 16

An obstacle to economic growth in developing countries is

Accepted Answer

A)  the limited demand for natural resources. 
B)  the limited supply of capital goods. 
C)  a decline in population growth. 
D)  the low productivity of capital. 
A)  the limited demand for natural resources. 
B)  the limited supply of capital goods. 
C)  a decline in population growth. 
D)  the low productivity of capital.

Question 17

Which of the following nations is not considered an industrially advanced country?

Accepted Answer

A)  Brazil 
B)  Japan 
C)  Canada 
D)  Australia 
A)  Brazil 
B)  Japan 
C)  Canada 
D)  Australia

Question 18

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real
Per capita output gap will

Accepted Answer

A)  remain unchanged at $19,000. 
B)  increase by $760. 
C)  decrease by $1,000. 
D)  increase by $19,760. 
A)  remain unchanged at $19,000. 
B)  increase by $760. 
C)  decrease by $1,000. 
D)  increase by $19,760.

Question 19

Which of the following factors contributes most to the high per capita incomes in developed nations?

Accepted Answer

A)  high rates of population growth 
B)  high rates of economic growth 
C)  low rates of investment 
D)  low rates of saving 
A)  high rates of population growth 
B)  high rates of economic growth 
C)  low rates of investment 
D)  low rates of saving

Question 20

Per capita incomes must ﬁrst grow for birth rates to decline. This statement describes the

Accepted Answer

A)  human capital view of population growth. 
B)  traditional view of population growth. 
C)  capricious universe view. 
D)  demographic transition view of population growth. 
A)  human capital view of population growth. 
B)  traditional view of population growth. 
C)  capricious universe view. 
D)  demographic transition view of population growth.

Exam 22: The Economics of Developing Countries

Per capita income in the United States in 2017 was about how many times greater than that in China?

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

Most of the world's population lives in

What is the natural resource problem in DVCs?

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

The vicious circle of poverty in the poorest DVCs can also be expressed as,

One suggested policy that industrially advanced nations could adopt to foster economic growth in less-developed nations would be to

The lack of an entrepreneurial class in developing nations tends to

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

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

Which of the following countries had the highest population density (population per square km) in 2017?

One common measure of the "standard of living" in a nation is

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Which of the following statements is correct?

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

An obstacle to economic growth in developing countries is

Which of the following nations is not considered an industrially advanced country?

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real Per capita output gap will

Which of the following factors contributes most to the high per capita incomes in developed nations?

Per capita incomes must ﬁrst grow for birth rates to decline. This statement describes the

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