Question 1

Which of these sets of nations consists of low-income developing nations?

Accepted Answer

A) Brazil, Australia, and South Africa 
B) Burundi, Madagascar, and Sierra Leone 
C) Canada, Switzerland, and France 
D) Germany, South Korea, and Mexico 
A) Brazil, Australia, and South Africa 
B) Burundi, Madagascar, and Sierra Leone 
C) Canada, Switzerland, and France 
D) Germany, South Korea, and Mexico B

Question 2

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. D

Question 3

The creation of adequate infrastructure in a nation is primarily the responsibility of the public sector.

Accepted Answer

A) True 
 B)False  True

Question 4

To be classified as a low-income developing country, annual per capita income in 2017 needed to be

Accepted Answer

A) $995 or less. 
B) $628 or less. 
C) $2,018 or less. 
D) $800 or less. 
A) $995 or less. 
B) $628 or less. 
C) $2,018 or less. 
D) $800 or less.

Question 5

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 6

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 7

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

Accepted Answer

A) population growth for a greater labor supply. 
B) output and slow down their population growth. 
C) birth rates to expand their available resources. 
D) mortality rates to slow down their population growth. 
A) population growth for a greater labor supply. 
B) output and slow down their population growth. 
C) birth rates to expand their available resources. 
D) mortality rates to slow down their population growth.

Question 8

A reason for placing emphasis on capital accumulation in developing countries is the high

Accepted Answer

A) level of adult illiteracy. 
B) productivity of workers in DVCs. 
C) need for investment in infrastructure. 
D) level of import quotas and tariffs. 
A) level of adult illiteracy. 
B) productivity of workers in DVCs. 
C) need for investment in infrastructure. 
D) level of import quotas and tariffs.

Question 9

DVCs tend to have permanent shortages of farm labor.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The presence of large and fast-growing populations in developing countries contributes to lower per capita incomes.

Accepted Answer

A) True 
 B)False

Question 12

What measure of economic development is used most often to classify nations as industrially advanced or as developing?

Accepted Answer

A) per capita income 
B) life expectancy at birth 
C) per capita energy consumption 
D) daily per capita calorie supply 
A) per capita income 
B) life expectancy at birth 
C) per capita energy consumption 
D) daily per capita calorie supply

Question 13

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

Accepted Answer

Capital-using technology refers to an im

Question 14

Which of the following includes only examples of industrially advanced countries (IACs)?

Accepted Answer

A) the United States, Canada, and Mexico 
B) Pakistan, India, and China 
C) Japan, South Korea, and China 
D) Canada, Australia, and New Zealand 
A) the United States, Canada, and Mexico 
B) Pakistan, India, and China 
C) Japan, South Korea, and China 
D) Canada, Australia, and New Zealand

Question 15

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 16

The traditional view regarding population and growth in DVCs is that

Accepted Answer

A) the most important factor affecting population growth in DVCs is per capita consumption of energy. 
B) unemployment and underemployment are the major sources of population growth in DVCs. 
C) reduced birth rates must come first in DVCs, and then higher per capita incomes will follow. 
D) higher per capita incomes must come first in DVCs, and then reduced birth rates will follow. 
A) the most important factor affecting population growth in DVCs is per capita consumption of energy. 
B) unemployment and underemployment are the major sources of population growth in DVCs. 
C) reduced birth rates must come first in DVCs, and then higher per capita incomes will follow. 
D) higher per capita incomes must come first in DVCs, and then reduced birth rates will follow.

Question 17

Examples of low-income developing countries are

Accepted Answer

A) Switzerland, New Zealand, and Australia. 
B) Germany, Austria, and Italy. 
C) Chad, Bangladesh, and Democratic Republic of the Congo. 
D) Mexico, South Korea, and Brazil. 
A) Switzerland, New Zealand, and Australia. 
B) Germany, Austria, and Italy. 
C) Chad, Bangladesh, and Democratic Republic of the Congo. 
D) Mexico, South Korea, and Brazil.

Question 18

The idea that a person's productive efforts and his or her economic rewards are unrelated

Accepted Answer

A) is the neocolonialism view of economic development. 
B) describes the vicious circle of poverty. 
C) is the surplus labor theory of economic development. 
D) is the capricious universe view. 
A) is the neocolonialism view of economic development. 
B) describes the vicious circle of poverty. 
C) is the surplus labor theory of economic development. 
D) is the capricious universe view.

Question 19

Small loans to entrepreneurs and small business owners in DVCs are referred to as

Accepted Answer

A) human capital development projects. 
B) microcredit. 
C) capital flight promotion systems. 
D) incubator lending. 
A) human capital development projects. 
B) microcredit. 
C) capital flight promotion systems. 
D) incubator lending.

Question 20

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

Exam 28: The Economics of Developing Countries

Which of these sets of nations consists of low-income developing nations?

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

The creation of adequate infrastructure in a nation is primarily the responsibility of the public sector.

To be classified as a low-income developing country, annual per capita income in 2017 needed to be

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

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

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

A reason for placing emphasis on capital accumulation in developing countries is the high

DVCs tend to have permanent shortages of farm labor.

Loans offered through microcredit programs

The presence of large and fast-growing populations in developing countries contributes to lower per capita incomes.

What measure of economic development is used most often to classify nations as industrially advanced or as developing?

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

Which of the following includes only examples of industrially advanced countries (IACs)?

The absolute income gap between the IACs and the DVCs has

The traditional view regarding population and growth in DVCs is that

Examples of low-income developing countries are

The idea that a person's productive efforts and his or her economic rewards are unrelated

Small loans to entrepreneurs and small business owners in DVCs are referred to as

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

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