Question 1

Which of the following groups has the lowest life expectancy at birth?

Accepted Answer

A)  middle-income economies 
B)  low-income economies 
C)  high-income economies 
D)  sub-Saharan African economies 
E)  all the world's economies 
A)  middle-income economies 
B)  low-income economies 
C)  high-income economies 
D)  sub-Saharan African economies 
E)  all the world's economies

Question 2

Which of the following can help shape the incentive structure of the country of Gammaland?

Accepted Answer

A)  resource availability 
B)  prices 
C)  income 
D)  incentives 
E)  All of the answers are correct 
A)  resource availability 
B)  prices 
C)  income 
D)  incentives 
E)  All of the answers are correct

Question 3

When foreign aid is tied to purchases of low-priced food from the donor country,farm prices can drop in the developing countries,hurting poor farmers.

Accepted Answer

A) True 
 B)False

Question 4

Throughout the world,poverty is greater among women than men,particularly women who head households.

Accepted Answer

A) True 
 B)False

Question 5

If Eddie Li is a skilled worker employed in a low-skill job,he is

Accepted Answer

A)  underemployed 
B)  unemployed 
C)  overemployed 
D)  fully employed 
E)  All the answers are correct 
A)  underemployed 
B)  unemployed 
C)  overemployed 
D)  fully employed 
E)  All the answers are correct

Question 6

On average,more than half the labor force in developing countries works in agriculture,versus only about 3 percent in industrial market countries.

Accepted Answer

A) True 
 B)False

Question 7

When a developing country relies on export promotion,

Accepted Answer

A)  it concentrates on producing for its domestic market 
B)  it builds its technological and educational base and then can make more complex products for export 
C)  domestic producers have sufficient protection that they can afford to become inefficient 
D)  its government must intervene more in markets 
E)  None of the answers is correct 
A)  it concentrates on producing for its domestic market 
B)  it builds its technological and educational base and then can make more complex products for export 
C)  domestic producers have sufficient protection that they can afford to become inefficient 
D)  its government must intervene more in markets 
E)  None of the answers is correct

Question 8

Which of the following groups has the highest infant mortality rate?

Accepted Answer

A)  middle-income economies 
B)  low-income economies 
C)  high-income economies 
D)  Western European economies 
E)  all the world's economies 
A)  middle-income economies 
B)  low-income economies 
C)  high-income economies 
D)  Western European economies 
E)  all the world's economies

Question 9

Foreign aid can take the form of

Accepted Answer

A)  only money,capital goods,or technical assistance 
B)  only capital goods,technical assistance,or food 
C)  money,capital goods,technical assistance,or food 
D)  only money,technical assistance,or food 
E)  only technical assistance or food 
A)  only money,capital goods,or technical assistance 
B)  only capital goods,technical assistance,or food 
C)  money,capital goods,technical assistance,or food 
D)  only money,technical assistance,or food 
E)  only technical assistance or food

Question 10

The major advantage of a market economy is that

Accepted Answer

A)  it maximizes the need for resource-flow data 
B)  prices convey most of the information necessary to coordinate economic activity among firms 
C)  data are aimed at central planners 
D)  prices are essentially meaningless 
E)  All of the answers are correct 
A)  it maximizes the need for resource-flow data 
B)  prices convey most of the information necessary to coordinate economic activity among firms 
C)  data are aimed at central planners 
D)  prices are essentially meaningless 
E)  All of the answers are correct

Question 11

Lessons about the nature of economic processes will likely emerge from the analysis of transitional economies.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following does not describe the World Bank?

Accepted Answer

A)  an economic development institution 
B)  affiliated with the United Nations 
C)  offers low-fee checking accounts to anyone in the world 
D)  estimates output per capita figures 
E)  uses output per capital figures to classify economies 
A)  an economic development institution 
B)  affiliated with the United Nations 
C)  offers low-fee checking accounts to anyone in the world 
D)  estimates output per capita figures 
E)  uses output per capital figures to classify economies

Question 13

Economic systems can be classified based on

Accepted Answer

A)  the ownership of resources only 
B)  the ownership of resources,the types of crops grown,and the incentives used to motivate people 
C)  the way resources are allocated to produce goods and services and the incentives used to motivate people only 
D)  the ownership of resources,the way resources are allocated to produce goods and services,and the incentives used to motivate people 
E)  the ownership of resources,the way resources are allocated to produce goods and services,and the average education of workers 
A)  the ownership of resources only 
B)  the ownership of resources,the types of crops grown,and the incentives used to motivate people 
C)  the way resources are allocated to produce goods and services and the incentives used to motivate people only 
D)  the ownership of resources,the way resources are allocated to produce goods and services,and the incentives used to motivate people 
E)  the ownership of resources,the way resources are allocated to produce goods and services,and the average education of workers

Question 14

In 2006,high-income economies with only about one eighth of the world's population produced more than half of the world's output.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following transitional economies has become a high-income nation?

Accepted Answer

A)  Czech Republic 
B)  Kazakhstan 
C)  China 
D)  Vietnam 
E)  None of the answers is correct 
A)  Czech Republic 
B)  Kazakhstan 
C)  China 
D)  Vietnam 
E)  None of the answers is correct

Exam 20: Developing and Transitional Economies

Which of the following groups has the lowest life expectancy at birth?

Which of the following can help shape the incentive structure of the country of Gammaland?

When foreign aid is tied to purchases of low-priced food from the donor country,farm prices can drop in the developing countries,hurting poor farmers.

Throughout the world,poverty is greater among women than men,particularly women who head households.

If Eddie Li is a skilled worker employed in a low-skill job,he is

On average,more than half the labor force in developing countries works in agriculture,versus only about 3 percent in industrial market countries.

When a developing country relies on export promotion,

Which of the following groups has the highest infant mortality rate?

Foreign aid can take the form of

The major advantage of a market economy is that

Lessons about the nature of economic processes will likely emerge from the analysis of transitional economies.

Which of the following does not describe the World Bank?

Economic systems can be classified based on

In 2006,high-income economies with only about one eighth of the world's population produced more than half of the world's output.

Which of the following transitional economies has become a high-income nation?

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Productivity and Growth

Tracking the US Economy

Unemployment and Inflation

Aggregate Expenditure

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Understanding Graphs

National Income Accounts

Variable Net Exports

Variable Net Exports Revisited

The Algebra of Income and Expenditure

The Algebra of Demand-Side Equilibrium

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