Question 1

Which of these cases is an example of worsening terms of trade for a less developed country?

Accepted Answer

A) El Salvador signs a free-trade agreement with the United States that allows the United States to keep some tariffs on Salvadoran goods. 
B) A group of foreign investors removes its money from Kenya because the government does not grant the group special concessions. 
C) The price of Chilean copper decreases while the price of Japanese cars increases. 
D) The amount of oil Nigeria can export decreases while the number of imported cars increases. 
A) El Salvador signs a free-trade agreement with the United States that allows the United States to keep some tariffs on Salvadoran goods. 
B) A group of foreign investors removes its money from Kenya because the government does not grant the group special concessions. 
C) The price of Chilean copper decreases while the price of Japanese cars increases. 
D) The amount of oil Nigeria can export decreases while the number of imported cars increases.

Question 2

Which of the following represents a situation where there exists conflict between rich and poor countries' interests?

Accepted Answer

A) Citicorp makes several large loans to Turkey during a currency crisis. 
B) International copper companies use cutting-edge technology to build mines in Chile. 
C) El Salvador signs a free-trade agreement with the United States. 
D) Ford does not increase worker training in Argentina because wages will increase. 
A) Citicorp makes several large loans to Turkey during a currency crisis. 
B) International copper companies use cutting-edge technology to build mines in Chile. 
C) El Salvador signs a free-trade agreement with the United States. 
D) Ford does not increase worker training in Argentina because wages will increase.

Question 3

The majority of the world's population lives in:

Accepted Answer

A) wealthy countries. 
B) moderately wealthy countries. 
C) poor countries. 
D) countries that are located in Africa and South America. 
A) wealthy countries. 
B) moderately wealthy countries. 
C) poor countries. 
D) countries that are located in Africa and South America.

Question 4

How did the economic policies of poor countries change after 1914?

Accepted Answer

A) Poor countries changed from principally exporting primary products to encouraging industrialization. 
B) Poor countries reduced previously high levels of trade protection and encouraged imports. 
C) Poor countries began borrowing more money from international investors. 
D) Poor countries reduced the level of government involvement in their economies in order to spur innovation. 
A) Poor countries changed from principally exporting primary products to encouraging industrialization. 
B) Poor countries reduced previously high levels of trade protection and encouraged imports. 
C) Poor countries began borrowing more money from international investors. 
D) Poor countries reduced the level of government involvement in their economies in order to spur innovation.

Question 5

Why are governments sometimes unable or unwilling to implement policies that create favorable conditions for economic growth?

Accepted Answer

In some countries,there are actors with

Question 6

How has geography affected the economic development of poor countries?

Accepted Answer

Geography explains some patterns of deve

Question 7

Which of the following explains why the developed world became relatively uninterested in developing regions after 1914?

Accepted Answer

A) Two world wars and the Great Depression kept developed countries preoccupied at home. 
B) Developed countries were threatened by the economic growth of developing countries. 
C) Developing countries began to trade exclusively with other developing countries after 1914. 
D) The developing world began jointly raising the prices of primary goods,which became too expensive for the developed world. 
A) Two world wars and the Great Depression kept developed countries preoccupied at home. 
B) Developed countries were threatened by the economic growth of developing countries. 
C) Developing countries began to trade exclusively with other developing countries after 1914. 
D) The developing world began jointly raising the prices of primary goods,which became too expensive for the developed world.

Question 8

What is import-substituting industrialization (ISI)?

Accepted Answer

A) A policy of importing goods that are necessary for promoting industrialization 
B) A policy of promoting industrialization to replace foreign goods with domestically produced goods 
C) A policy of encouraging free trade as a means of industrializing quickly 
D) A government policy of obtaining foreign technology as a means of encouraging industrialization 
A) A policy of importing goods that are necessary for promoting industrialization 
B) A policy of promoting industrialization to replace foreign goods with domestically produced goods 
C) A policy of encouraging free trade as a means of industrializing quickly 
D) A government policy of obtaining foreign technology as a means of encouraging industrialization

Question 9

Why do most industrialized countries subsidize and protect their farmers?

Accepted Answer

A) Farmers are a politically important domestic interest group. 
B) More developed countries want to hurt the economies of less developed countries. 
C) Economic theory supports the idea that food should be protected. 
D) The countries need lower-priced food to sustain industrialization. 
A) Farmers are a politically important domestic interest group. 
B) More developed countries want to hurt the economies of less developed countries. 
C) Economic theory supports the idea that food should be protected. 
D) The countries need lower-priced food to sustain industrialization.

Question 10

Explain Raúl Prebisch's theory about the terms of trade for less developed countries and their effect on the development policies implemented by poor countries.

Accepted Answer

Prebisch claimed that,in principle,trade

Question 11

Which of the following is an example of the impact of the "resource curse" on economic development?

Accepted Answer

A) Botswana's diamond wealth provided the government with important revenue to focus on the provision of public goods,like economic infrastructure. 
B) Zambia's copper wealth gave the government little incentive to focus on the productive capacity of the populace,including improving education and public health. 
C) Revenue from petroleum exports in Kuwait has spurred international conflict. 
D) Democratic institutions in Namibia encouraged the equitable distribution of diamond revenues in society. 
A) Botswana's diamond wealth provided the government with important revenue to focus on the provision of public goods,like economic infrastructure. 
B) Zambia's copper wealth gave the government little incentive to focus on the productive capacity of the populace,including improving education and public health. 
C) Revenue from petroleum exports in Kuwait has spurred international conflict. 
D) Democratic institutions in Namibia encouraged the equitable distribution of diamond revenues in society.

Question 12

What explains why developing countries abandoned ISI?

Accepted Answer

A) Other countries saw how fast Latin American countries had grown by encouraging exports and decided to adopt the same policies. 
B) The "Asian Tigers" were devastated by the debt crisis and had to make significant reforms to recover. 
C) The International Monetary Fund convinced indebted countries that the Washington Consensus had been wrong to advocate ISI policies. 
D) International institutions,like the International Monetary Fund,pressured indebted countries to reduce trade protection and to privatize government enterprises. 
A) Other countries saw how fast Latin American countries had grown by encouraging exports and decided to adopt the same policies. 
B) The "Asian Tigers" were devastated by the debt crisis and had to make significant reforms to recover. 
C) The International Monetary Fund convinced indebted countries that the Washington Consensus had been wrong to advocate ISI policies. 
D) International institutions,like the International Monetary Fund,pressured indebted countries to reduce trade protection and to privatize government enterprises.

Question 13

Why did governments in less developed countries implement policies that benefited the urban elite,even when these policies hurt the agricultural sector?

Accepted Answer

Governments in less developed countries,

Question 14

Which of the following countries would have the best geographical factors for economic development?

Accepted Answer

A) A country with no coastline 
B) A country in a tropical region 
C) A country in a temperate climatic region 
D) A country where malaria is present 
A) A country with no coastline 
B) A country in a tropical region 
C) A country in a temperate climatic region 
D) A country where malaria is present

Question 15

All of the following are primary goods EXCEPT:

Accepted Answer

A) coffee. 
B) automobiles. 
C) copper. 
D) oil. 
A) coffee. 
B) automobiles. 
C) copper. 
D) oil.

Question 16

Which of the following countries adopted export-oriented industrialization policies?

Accepted Answer

A) Mexico 
B) Zambia 
C) Singapore 
D) Philippines 
A) Mexico 
B) Zambia 
C) Singapore 
D) Philippines

Question 17

Which of the following best describes the impact of European settlers on economic growth in former colonies?

Accepted Answer

A) Europeans settled in colonies where they could live easily,and they set up institutions that were conducive to economic growth. 
B) By settling in colonies,Europeans were able to engage in predation and extract resources,without setting up institutions conducive to economic growth. 
C) European settlement created resentment and political unrest in colonies,hindering economic growth. 
D) European settlement discouraged colonial governments from setting up institutions necessary for economic growth. 
A) Europeans settled in colonies where they could live easily,and they set up institutions that were conducive to economic growth. 
B) By settling in colonies,Europeans were able to engage in predation and extract resources,without setting up institutions conducive to economic growth. 
C) European settlement created resentment and political unrest in colonies,hindering economic growth. 
D) European settlement discouraged colonial governments from setting up institutions necessary for economic growth.

Question 18

Which of the following would be consistent with the demands of the New International Economic Order?

Accepted Answer

A) Reducing U.S.tariffs on European automobiles 
B) Allowing Zambia to join the United Nations 
C) Reducing tariffs on Brazilian soybean exports to Europe 
D) Improving the security of foreign direct investment in Botswana 
A) Reducing U.S.tariffs on European automobiles 
B) Allowing Zambia to join the United Nations 
C) Reducing tariffs on Brazilian soybean exports to Europe 
D) Improving the security of foreign direct investment in Botswana

Question 19

What was one of the primary differences between North and South America that helped determine the difference in development?

Accepted Answer

A) North America was colonized by mostly European nations,while South America was not. 
B) South America was more prone to democratic institutions that make decisions about development more difficult. 
C) The countries that colonized North America were generally militarily more powerful than those that colonized South America. 
D) The political institutions in North America tended to be more democratic than those
In South America. 
A) North America was colonized by mostly European nations,while South America was not. 
B) South America was more prone to democratic institutions that make decisions about development more difficult. 
C) The countries that colonized North America were generally militarily more powerful than those that colonized South America. 
D) The political institutions in North America tended to be more democratic than those
In South America.

Question 20

How likely is it that foreign aid will solve the problems of development for poor countries?

Accepted Answer

A) Foreign aid is unlikely to solve poor countries' problems,since poor countries have been rejecting foreign donations. 
B) It is unlikely that foreign aid will solve development problems,because rich countries have ended most of their foreign aid programs. 
C) Foreign aid is likely to help spur economic growth,since the United States and Europe are significantly increasing the amount of donations to poor countries. 
D) Foreign aid is unlikely to alleviate development problems,because much aid is misused by recipient governments. 
A) Foreign aid is unlikely to solve poor countries' problems,since poor countries have been rejecting foreign donations. 
B) It is unlikely that foreign aid will solve development problems,because rich countries have ended most of their foreign aid programs. 
C) Foreign aid is likely to help spur economic growth,since the United States and Europe are significantly increasing the amount of donations to poor countries. 
D) Foreign aid is unlikely to alleviate development problems,because much aid is misused by recipient governments.

Which of these cases is an example of worsening terms of trade for a less developed country?

Which of the following represents a situation where there exists conflict between rich and poor countries' interests?

The majority of the world's population lives in:

How did the economic policies of poor countries change after 1914?

Why are governments sometimes unable or unwilling to implement policies that create favorable conditions for economic growth?

How has geography affected the economic development of poor countries?

Which of the following explains why the developed world became relatively uninterested in developing regions after 1914?

What is import-substituting industrialization (ISI)?

Why do most industrialized countries subsidize and protect their farmers?

Explain Raúl Prebisch's theory about the terms of trade for less developed countries and their effect on the development policies implemented by poor countries.

Which of the following is an example of the impact of the "resource curse" on economic development?

What explains why developing countries abandoned ISI?

Why did governments in less developed countries implement policies that benefited the urban elite,even when these policies hurt the agricultural sector?

Which of the following countries would have the best geographical factors for economic development?

All of the following are primary goods EXCEPT:

Which of the following countries adopted export-oriented industrialization policies?

Which of the following best describes the impact of European settlers on economic growth in former colonies?

Which of the following would be consistent with the demands of the New International Economic Order?

What was one of the primary differences between North and South America that helped determine the difference in development?

How likely is it that foreign aid will solve the problems of development for poor countries?

What Shaped Our World

Understanding Interests, interactions, and Institutions

Why Are There Wars

Domestic Politics and War

International Institutions and War

Violence by Nonstate Actors: Civil War and Terrorism

International Trade

International Financial Relations

International Monetary Relations

International Law and Norms

Human Rights

The Global Environment

The Future of International Politics

Introduction

Foundations, War, and Peace

International Political Economy, Transnational Politics, and Looking Ahead

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Exam 10: Development: Causes of the Wealth and Poverty of Nations

Which of these cases is an example of worsening terms of trade for a less developed country?

Which of the following represents a situation where there exists conflict between rich and poor countries' interests?

The majority of the world's population lives in:

How did the economic policies of poor countries change after 1914?

Why are governments sometimes unable or unwilling to implement policies that create favorable conditions for economic growth?

How has geography affected the economic development of poor countries?

Which of the following explains why the developed world became relatively uninterested in developing regions after 1914?

What is import-substituting industrialization (ISI)?

Why do most industrialized countries subsidize and protect their farmers?

Explain Raúl Prebisch's theory about the terms of trade for less developed countries and their effect on the development policies implemented by poor countries.

Which of the following is an example of the impact of the "resource curse" on economic development?

What explains why developing countries abandoned ISI?

Why did governments in less developed countries implement policies that benefited the urban elite,even when these policies hurt the agricultural sector?

Which of the following countries would have the best geographical factors for economic development?

All of the following are primary goods EXCEPT:

Which of the following countries adopted export-oriented industrialization policies?

Which of the following best describes the impact of European settlers on economic growth in former colonies?

Which of the following would be consistent with the demands of the New International Economic Order?

What was one of the primary differences between North and South America that helped determine the difference in development?

How likely is it that foreign aid will solve the problems of development for poor countries?

What Shaped Our World

Understanding Interests, interactions, and Institutions

Why Are There Wars

Domestic Politics and War

International Institutions and War

Violence by Nonstate Actors: Civil War and Terrorism

International Trade

International Financial Relations

International Monetary Relations

International Law and Norms

Human Rights

The Global Environment

The Future of International Politics

Introduction

Foundations, War, and Peace

International Political Economy, Transnational Politics, and Looking Ahead

Filters