Question 1

An economy's infrastructure refers to its

Accepted Answer

A)  public capital goods, such as roads, schools, and power facilities. 
B)  ﬁnancial and banking institutions. 
C)  land and natural resources. 
D)  surplus supplies of unskilled labor. 
A)  public capital goods, such as roads, schools, and power facilities. 
B)  ﬁnancial and banking institutions. 
C)  land and natural resources. 
D)  surplus supplies of unskilled labor.

Question 2

The two paths to economic development, which are the same for both developing countries and industrially advanced economies, are

Accepted Answer

A)  use existing resources more eﬃciently and expand the available resources. 
B)  expand the government sector and preserve all available resources. 
C)  enhance regulation and taxation, and redistribute income to reduce income disparity. 
D)  expand the money supply and eliminate budget deﬁcits. 
A)  use existing resources more eﬃciently and expand the available resources. 
B)  expand the government sector and preserve all available resources. 
C)  enhance regulation and taxation, and redistribute income to reduce income disparity. 
D)  expand the money supply and eliminate budget deﬁcits.

Question 3

The United States in 2017 had about

Accepted Answer

A)  1.8 percent of the world's population and generated about 10 percent of the world's output. 
B)  2.4 percent of the world's population and generated about 20 percent of the world's output. 
C)  4.4 percent of the world's population and generated about 24 percent of the world's output. 
D)  10 percent of the world's population and generated about 30 percent of the world's output. 
A)  1.8 percent of the world's population and generated about 10 percent of the world's output. 
B)  2.4 percent of the world's population and generated about 20 percent of the world's output. 
C)  4.4 percent of the world's population and generated about 24 percent of the world's output. 
D)  10 percent of the world's population and generated about 30 percent of the world's output.

Question 4

$$\begin{array} { | c | c | } 
\hline \text { Country } & \text { Per Capita Income, } 2017 \
\hline A & \$ 621 \
\hline B & 14,894 \
\hline C & 31,555 \
\hline D & 3,498 \
\hline E & 2,005 \
\hline
\end{array}$$ Refer to the table. If per capita income increases by 10 percent over ?ve years in each of the nations shown, the per capita income gap between country C and country A

Accepted Answer

A)  will remain the same. 
B)  will rise from $30,934 to $34,027. 
C)  may rise or fall depending on the rate of population growth. 
D)  will rise from $31,555 to $34,710. 
A)  will remain the same. 
B)  will rise from $30,934 to $34,027. 
C)  may rise or fall depending on the rate of population growth. 
D)  will rise from $31,555 to $34,710.

Question 5

Which of the following countries had the highest population growth rate in 2016-2017?

Accepted Answer

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

Question 6

According to the United Nations, approximately what percentage of the world's income is received by the richest one-ﬁfth of the world's population?

Accepted Answer

A)  24 percent 
B)  38 percent 
C)  60 percent 
D)  75 percent 
A)  24 percent 
B)  38 percent 
C)  60 percent 
D)  75 percent

Question 7

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Accepted Answer

A)  land reform. 
B)  population growth. 
C)  underemployment and disguised unemployment. 
D)  capital-saving technology. 
A)  land reform. 
B)  population growth. 
C)  underemployment and disguised unemployment. 
D)  capital-saving technology.

Question 8

Many economists believe that the key to breaking the vicious circle of poverty is to

Accepted Answer

A)  cut down the mortality rates in poor nations. 
B)  reduce the birth rates in poor nations. 
C)  increase the mobility of labor and migration. 
D)  increase the rate of capital accumulation in poor nations. 
A)  cut down the mortality rates in poor nations. 
B)  reduce the birth rates in poor nations. 
C)  increase the mobility of labor and migration. 
D)  increase the rate of capital accumulation in poor nations.

Question 9

Which of the following factors contributes to the weak economic growth in DVCs?

Accepted Answer

A)  an increase in labor productivity in DVCs 
B)  a decrease in international debts of DVCs 
C)  an increase in the rate of saving in a DVC 
D)  a decrease in the prices of DVC natural resources 
A)  an increase in labor productivity in DVCs 
B)  a decrease in international debts of DVCs 
C)  an increase in the rate of saving in a DVC 
D)  a decrease in the prices of DVC natural resources

Question 10

Government can play a major positive role in the early stage of economic development by

Accepted Answer

A)  providing adequate infrastructure. 
B)  establishing price controls for products. 
C)  promoting exports by subsidizing them. 
D)  creating marketing boards for export products. 
A)  providing adequate infrastructure. 
B)  establishing price controls for products. 
C)  promoting exports by subsidizing them. 
D)  creating marketing boards for export products.

Question 11

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Accepted Answer

A)  imports of the ﬁnished products of foreign industries. 
B)  food. 
C)  infrastructure. 
D)  industrial development. 
A)  imports of the ﬁnished products of foreign industries. 
B)  food. 
C)  infrastructure. 
D)  industrial development.

Question 12

The primary function of the International Finance Corporation (IFC) is to

Accepted Answer

A)  provide U.S. surplus food to low-income countries. 
B)  provide short-term loans to poor countries to ﬁnance international trade deﬁcits. 
C)  make infrastructure loans, that is, loans for highways, schools, communication facilities, and so forth. 
D)  make loans to private enterprises in the DVCs. 
A)  provide U.S. surplus food to low-income countries. 
B)  provide short-term loans to poor countries to ﬁnance international trade deﬁcits. 
C)  make infrastructure loans, that is, loans for highways, schools, communication facilities, and so forth. 
D)  make loans to private enterprises in the DVCs.

Question 13

The most important growth obstacle common to all DVCs is the lack of desire to increase their
standards of living.

Accepted Answer

A) True 
 B)False

Question 14

(Consider This) From the years, 1990 to 2015, the extreme poverty rate for the world's population
declined from 35.9 percent to 10.0 percent.

Accepted Answer

A) True 
 B)False

Question 15

Capital ﬂight refers to

Accepted Answer

A)  the tendency of large corporations of IACs to build new plants in the DVCs because labor is cheaper. 
B)  DVC citizens accumulating or investing their savings in the IACs. 
C)  the high international mobility of speculative funds caused by variations in exchange rates. 
D)  the tendency of DVCs to overinvest in commercial aircraft. 
A)  the tendency of large corporations of IACs to build new plants in the DVCs because labor is cheaper. 
B)  DVC citizens accumulating or investing their savings in the IACs. 
C)  the high international mobility of speculative funds caused by variations in exchange rates. 
D)  the tendency of DVCs to overinvest in commercial aircraft.

Question 16

(Consider This) Between 1990 and 2015, the poverty rate

Accepted Answer

A)  increased from 736 million to 1.9 billion. 
B)  stayed constant at 1.9 billion. 
C)  increased to 736 million. 
D)  decreased from 1.9 billion to 736 million. 
A)  increased from 736 million to 1.9 billion. 
B)  stayed constant at 1.9 billion. 
C)  increased to 736 million. 
D)  decreased from 1.9 billion to 736 million.

Question 17

Japan is a nation that achieved a high standard of living despite having a very limited supply of
natural resources.

Accepted Answer

A) True 
 B)False

Question 18

At the beginning of the year, one developing country (DVC) has a real income per capita of $800. In a developed country (IAC), the real income per capita is $30,000. Both countries experience a 4
Percent growth rate for the year. At the end of the year, the absolute income gap between these
Two countries will have increased from $29,200 to

Accepted Answer

A)  $30,368. 
B)  $31,200. 
C)  $30,120. 
D)  $32,032. 
A)  $30,368. 
B)  $31,200. 
C)  $30,120. 
D)  $32,032.

Question 19

Population growth remains high in most DVCs

Accepted Answer

A)  because religious and sociocultural considerations favor large families. 
B)  because children may provide economic security for aging parents. 
C)  because children provide agricultural labor in rural areas. 
D)  for all of these reasons. 
A)  because religious and sociocultural considerations favor large families. 
B)  because children may provide economic security for aging parents. 
C)  because children provide agricultural labor in rural areas. 
D)  for all of these reasons.

Question 20

Surplus agricultural labor in a developing nation usually means that there is

Accepted Answer

A)  a caste system. 
B)  widespread underemployment. 
C)  immobility of labor resources. 
D)  increased investment in agriculture. 
A)  a caste system. 
B)  widespread underemployment. 
C)  immobility of labor resources. 
D)  increased investment in agriculture.

An economy's infrastructure refers to its

The two paths to economic development, which are the same for both developing countries and industrially advanced economies, are

The United States in 2017 had about

Country Per Capita Income, 2017 A \ 621 B 14,894 C 31,555 D 3,498 E 2,005 Refer to the table. If per capita income increases by 10 percent over ?ve years in each of the nations shown, the per capita income gap between country C and country A

Which of the following countries had the highest population growth rate in 2016-2017?

According to the United Nations, approximately what percentage of the world's income is received by the richest one-ﬁfth of the world's population?

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Many economists believe that the key to breaking the vicious circle of poverty is to

Which of the following factors contributes to the weak economic growth in DVCs?

Government can play a major positive role in the early stage of economic development by

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

The primary function of the International Finance Corporation (IFC) is to

The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

(Consider This) From the years, 1990 to 2015, the extreme poverty rate for the world's population declined from 35.9 percent to 10.0 percent.

Capital ﬂight refers to

(Consider This) Between 1990 and 2015, the poverty rate

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Population growth remains high in most DVCs

Surplus agricultural labor in a developing nation usually means that there is

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

Filters

Exam 22: The Economics of Developing Countries

An economy's infrastructure refers to its

The two paths to economic development, which are the same for both developing countries and industrially advanced economies, are

The United States in 2017 had about

Country Per Capita Income, 2017 A \ 621 B 14,894 C 31,555 D 3,498 E 2,005 Refer to the table. If per capita income increases by 10 percent over ?ve years in each of the nations shown, the per capita income gap between country C and country A

Which of the following countries had the highest population growth rate in 2016-2017?

According to the United Nations, approximately what percentage of the world's income is received by the richest one-ﬁfth of the world's population?

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Many economists believe that the key to breaking the vicious circle of poverty is to

Which of the following factors contributes to the weak economic growth in DVCs?

Government can play a major positive role in the early stage of economic development by

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

The primary function of the International Finance Corporation (IFC) is to

The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

(Consider This) From the years, 1990 to 2015, the extreme poverty rate for the world's population declined from 35.9 percent to 10.0 percent.

Capital ﬂight refers to

(Consider This) Between 1990 and 2015, the poverty rate

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Population growth remains high in most DVCs

Surplus agricultural labor in a developing nation usually means that there is

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

Filters