Question 1

Which of the following statements best serves as a summary of the other statements?

Accepted Answer

A)  Low income can mean poor nutrition during the formative years,which can retard mental and physical development 
B)  Low income and low productivity may reinforce each other in a cycle of poverty 
C)  Low productivity obviously results in low income 
D)  Low income means less saving and less saving means less investment in human and physical capital 
E)  Poverty can result in less education,less capital formation,a poor diet,and little health care 
A)  Low income can mean poor nutrition during the formative years,which can retard mental and physical development 
B)  Low income and low productivity may reinforce each other in a cycle of poverty 
C)  Low productivity obviously results in low income 
D)  Low income means less saving and less saving means less investment in human and physical capital 
E)  Poverty can result in less education,less capital formation,a poor diet,and little health care

Question 2

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 3

Industrial market countries are also referred to as

Accepted Answer

A)  developing countries 
B)  low-income economies 
C)  middle-income economies 
D)  transitional economies 
E)  high-income economies 
A)  developing countries 
B)  low-income economies 
C)  middle-income economies 
D)  transitional economies 
E)  high-income economies

Question 4

The yardstick most often used to compare living standards across nations is

Accepted Answer

A)  average production cost per unit 
B)  sales revenue per month 
C)  utility per capita 
D)  output per capita 
E)  imports per year 
A)  average production cost per unit 
B)  sales revenue per month 
C)  utility per capita 
D)  output per capita 
E)  imports per year

Question 5

If the country of Heehee makes the transition from central planning to a market economy in a matter of months,it is an example of the big-bang approach.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following does the country of Fuggedaboutit not have to be concerned about?

Accepted Answer

A)  choosing a system of resource ownership 
B)  allocating resources 
C)  earning a profit for its owners 
D)  providing individual incentives 
E)  answering the three economic questions 
A)  choosing a system of resource ownership 
B)  allocating resources 
C)  earning a profit for its owners 
D)  providing individual incentives 
E)  answering the three economic questions

Question 7

The process of turning public enterprises into private enterprises is called:

Accepted Answer

A)  Nationalization 
B)  Gradualism 
C)  Capitalism 
D)  Privatization 
E)  Socialism 
A)  Nationalization 
B)  Gradualism 
C)  Capitalism 
D)  Privatization 
E)  Socialism

Question 8

Education makes people more receptive t new ideas and methods,which leads to economic development.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Which of the following is not an example of an institution (rules of the game)?

Accepted Answer

A)  formal rules of behavior 
B)  government takeover of private corporations 
C)  a constitution 
D)  informal constraints on behavior 
E)  traditions 
A)  formal rules of behavior 
B)  government takeover of private corporations 
C)  a constitution 
D)  informal constraints on behavior 
E)  traditions

Question 11

A downside to foreign aid is that

Accepted Answer

A)  developing countries have not necessarily increased their ability to become self-supporting at higher standards of living 
B)  many recipient countries are doing less of what they had done well 
C)  the agricultural sectors of recipient countries have suffered 
D)  government officials have been insulated from their own incompetence 
E)  All of the answers are correct 
A)  developing countries have not necessarily increased their ability to become self-supporting at higher standards of living 
B)  many recipient countries are doing less of what they had done well 
C)  the agricultural sectors of recipient countries have suffered 
D)  government officials have been insulated from their own incompetence 
E)  All of the answers are correct

Question 12

Social capital is

Accepted Answer

A)  the shared values and trust that promote cooperation in the economy 
B)  the buildings and equipment used to produce goods and services 
C)  a government regulation aimed at improving health and safety 
D)  the accumulated knowledge,skill,and experience of the labor force 
E)  the owner's own or borrowed money invested in a business 
A)  the shared values and trust that promote cooperation in the economy 
B)  the buildings and equipment used to produce goods and services 
C)  a government regulation aimed at improving health and safety 
D)  the accumulated knowledge,skill,and experience of the labor force 
E)  the owner's own or borrowed money invested in a business

Question 13

Export promotion has been more successful than import substitution.

Accepted Answer

A) True 
 B)False

Question 14

Sub-Saharan African nations are the poorest in the world and have the fastest growing populations.

Accepted Answer

A) True 
 B)False

Question 15

Laws,customs,conventions,and other institutional elements that sustain an economy fall under the category of

Accepted Answer

A)  rules of the game 
B)  human capital 
C)  natural resources 
D)  financial institutions 
E)  capital infrastructure 
A)  rules of the game 
B)  human capital 
C)  natural resources 
D)  financial institutions 
E)  capital infrastructure

Question 16

Which of the following is not a country or region most likely to be among industrial market countries?

Accepted Answer

A)  Western Europe 
B)  North American 
C)  Australia 
D)  South Asia 
E)  Japan 
A)  Western Europe 
B)  North American 
C)  Australia 
D)  South Asia 
E)  Japan

Question 17

The World Bank sorts countries into the following three major groups:

Accepted Answer

A)  high-income economies,middle-income economies,low-spending economies 
B)  high-spending economies,middle-spending economies,low-spending economies 
C)  super-high-income economies,middle-income economies,low-income economies 
D)  high-income economies,middle-income economies,zero-income economies 
E)  high-income economies,middle-income economies,low-income economies 
A)  high-income economies,middle-income economies,low-spending economies 
B)  high-spending economies,middle-spending economies,low-spending economies 
C)  super-high-income economies,middle-income economies,low-income economies 
D)  high-income economies,middle-income economies,zero-income economies 
E)  high-income economies,middle-income economies,low-income economies

Question 18

At the end of the production chain that a typical economy moves up along is

Accepted Answer

A)  raw material 
B)  agriculture 
C)  hunting and gathering 
D)  services 
E)  manufacturing 
A)  raw material 
B)  agriculture 
C)  hunting and gathering 
D)  services 
E)  manufacturing

Question 19

In recent years in Russia,the most popular tax system has been

Accepted Answer

A)  graduated rates topping at 13 percent 
B)  a flat rate of 60 percent 
C)  graduated rates topping at 40 percent 
D)  graduated rates topping at 30 percent 
E)  a flat rate of 13 percent 
A)  graduated rates topping at 13 percent 
B)  a flat rate of 60 percent 
C)  graduated rates topping at 40 percent 
D)  graduated rates topping at 30 percent 
E)  a flat rate of 13 percent

Question 20

Poor countries are poor because of all of the following except:

Accepted Answer

A)  Do not produce many goods and services 
B)  Have reliable rules of the game 
C)  Have low labor productivity 
D)  Have low education levels 
E)  Have serious deficiencies in the physical infrastructure 
A)  Do not produce many goods and services 
B)  Have reliable rules of the game 
C)  Have low labor productivity 
D)  Have low education levels 
E)  Have serious deficiencies in the physical infrastructure

Exam 21: Developing and Transitional Economies

Which of the following statements best serves as a summary of the other statements?

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

Industrial market countries are also referred to as

The yardstick most often used to compare living standards across nations is

If the country of Heehee makes the transition from central planning to a market economy in a matter of months,it is an example of the big-bang approach.

Which of the following does the country of Fuggedaboutit not have to be concerned about?

The process of turning public enterprises into private enterprises is called:

Education makes people more receptive t new ideas and methods,which leads to economic development.

Which of the following does not describe the World Bank?

Which of the following is not an example of an institution (rules of the game)?

A downside to foreign aid is that

Social capital is

Export promotion has been more successful than import substitution.

Sub-Saharan African nations are the poorest in the world and have the fastest growing populations.

Laws,customs,conventions,and other institutional elements that sustain an economy fall under the category of

Which of the following is not a country or region most likely to be among industrial market countries?

The World Bank sorts countries into the following three major groups:

At the end of the production chain that a typical economy moves up along is

In recent years in Russia,the most popular tax system has been

Poor countries are poor because of all of the following except:

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand, supply, and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Amonopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, interest, and Corporate Finance

Transaction Costs, imperfect Information, and Market Behavior

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

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