Question 1

Which of the following is a cause of higher birth rates in developing countries?

Accepted Answer

A)  Children are viewed as a source of farm labor 
B)  Children are viewed as economic and social security as the parents age 
C)  Higher child mortality rates engender higher birth rates 
D)  All the answers are correct 
E)  None of the answers is correct 
A)  Children are viewed as a source of farm labor 
B)  Children are viewed as economic and social security as the parents age 
C)  Higher child mortality rates engender higher birth rates 
D)  All the answers are correct 
E)  None of the answers is correct

Question 2

Which of the following is true about GNP?

Accepted Answer

A)  includes profits earned by a Mercedes factory in Alabama 
B)  excludes profits earned by General Electric in India 
C)  measures the market value of all goods and services produced by resources supplied the home country's residents and firms,regardless of the location of the resource 
D)  stands for Generally Nice Products 
E)  used by countries to classify the World Bank 
A)  includes profits earned by a Mercedes factory in Alabama 
B)  excludes profits earned by General Electric in India 
C)  measures the market value of all goods and services produced by resources supplied the home country's residents and firms,regardless of the location of the resource 
D)  stands for Generally Nice Products 
E)  used by countries to classify the World Bank

Question 3

Differences in stages of development among countries are reflected in a number of ways besides per capita income.

Accepted Answer

A) True 
 B)False

Question 4

A firm should be transparent,meaning

Accepted Answer

A)  the windows at headquarters should be cleaned regularly 
B)  if executives lie during a stockholder meeting,people should be able to see right through them 
C)  someone should be able to look at the books and the balance sheet and tell exactly what's going on 
D)  None of the answers is correct 
E)  All of the answers are correct 
A)  the windows at headquarters should be cleaned regularly 
B)  if executives lie during a stockholder meeting,people should be able to see right through them 
C)  someone should be able to look at the books and the balance sheet and tell exactly what's going on 
D)  None of the answers is correct 
E)  All of the answers are correct

Question 5

Usually the poorest fifth of the population in a developing country receives more than 20 percent of the country's income.

Accepted Answer

A) True 
 B)False

Question 6

The average value added per U.S.farm worker is about _____ times that of farm workers in low- and middle-income countries.

Accepted Answer

A)  one half 
B)  one 
C)  ten 
D)  fifty 
E)  five hundred 
A)  one half 
B)  one 
C)  ten 
D)  fifty 
E)  five hundred

Question 7

One likely reason that the country of Appleland is poor is that it

Accepted Answer

A)  does not produce many goods and services 
B)  has highly educated and productive female workers 
C)  has a low birth rate 
D)  enjoys a low infant mortality rate 
E)  has a high literacy rate 
A)  does not produce many goods and services 
B)  has highly educated and productive female workers 
C)  has a low birth rate 
D)  enjoys a low infant mortality rate 
E)  has a high literacy rate

Question 8

If Gloria is woman in a developing country,then it is likely that

Accepted Answer

A)  she is less educated than most men in her country 
B)  her brother has dropped out of high school,but not she has graduated 
C)  she has more employment opportunities and earns higher wages than her male classmates 
D)  she and other women will not have to work long hours in agriculture 
E)  she has special access to resources such as land,capital,and technology 
A)  she is less educated than most men in her country 
B)  her brother has dropped out of high school,but not she has graduated 
C)  she has more employment opportunities and earns higher wages than her male classmates 
D)  she and other women will not have to work long hours in agriculture 
E)  she has special access to resources such as land,capital,and technology

Question 9

In high- income countries,children do not suffer from malnutrition.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following creates an obstacle to pursuing freer international trade?

Accepted Answer

A)  Consumers do not recognize their potential gains 
B)  Losses are widespread 
C)  Domestic producers do not recognize their potential losses 
D)  Government has plenty of political will and support to remove trade barriers 
E)  Consumers can easily organize to demand free trade 
A)  Consumers do not recognize their potential gains 
B)  Losses are widespread 
C)  Domestic producers do not recognize their potential losses 
D)  Government has plenty of political will and support to remove trade barriers 
E)  Consumers can easily organize to demand free trade

Question 11

A reliable system of property rights and enforceable contracts are prerequisites for creating incentives that support a healthy market economy.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not an example of foreign aid?

Accepted Answer

A)  U.S.discount department stores purchasing toys from Chinese manufacturers 
B)  The International Monetary Fund extending loans to countries that have trouble with their balance of payments 
C)  The World Bank providing loans and grants to support health and education programs 
D)  The U.S.government paying to build an electricity plant in Albania 
E)  The Australian government paying to repair highways in Tonga 
A)  U.S.discount department stores purchasing toys from Chinese manufacturers 
B)  The International Monetary Fund extending loans to countries that have trouble with their balance of payments 
C)  The World Bank providing loans and grants to support health and education programs 
D)  The U.S.government paying to build an electricity plant in Albania 
E)  The Australian government paying to repair highways in Tonga

Question 13

Production and exchange depend on an reliable infrastructure of

Accepted Answer

A)  transportation 
B)  communication 
C)  sanitation 
D)  electricity 
E)  All of the answers are correct 
A)  transportation 
B)  communication 
C)  sanitation 
D)  electricity 
E)  All of the answers are correct

Question 14

A soft budget constraint applies when enterprises that earn profits distribute those profits to their private owners.

Accepted Answer

A) True 
 B)False

Question 15

GDP (gross domestic product) measures the market value of all goods and services produced by resources supplied by the countries' residents and firms,regardless of the location of the resource.

Accepted Answer

A) True 
 B)False

Question 16

The World Bank provides a grant to Bulgaria to build a modern school.This example of foreign aid is called bilateral assistance.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following occurs when there was a shortage of supply in a centrally planned economy?

Accepted Answer

A)  Central planners reduced the amount supplied to each sector 
B)  Shoppers waited in long lines at retail stores 
C)  Store shelves were empty 
D)  Shop operators expected "tips" or bribes for supplying scarce consumer goods 
E)  All of the answers are correct 
A)  Central planners reduced the amount supplied to each sector 
B)  Shoppers waited in long lines at retail stores 
C)  Store shelves were empty 
D)  Shop operators expected "tips" or bribes for supplying scarce consumer goods 
E)  All of the answers are correct

Question 18

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?

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 19

Around the world,once-socialist countries have replaced central plans with

Accepted Answer

A)  foreign aid 
B)  budgets 
C)  special interests 
D)  markets 
E)  capital equipment 
A)  foreign aid 
B)  budgets 
C)  special interests 
D)  markets 
E)  capital equipment

Question 20

In developing nations,the combined rate of urban and rural unemployment or underemployment is about

Accepted Answer

A)  1 percent 
B)  10 percent 
C)  20 percent 
D)  30 percent 
E)  80 percent 
A)  1 percent 
B)  10 percent 
C)  20 percent 
D)  30 percent 
E)  80 percent

Exam 21: Developing and Transitional Economies

Which of the following is a cause of higher birth rates in developing countries?

Which of the following is true about GNP?

Differences in stages of development among countries are reflected in a number of ways besides per capita income.

A firm should be transparent,meaning

Usually the poorest fifth of the population in a developing country receives more than 20 percent of the country's income.

The average value added per U.S.farm worker is about _____ times that of farm workers in low- and middle-income countries.

One likely reason that the country of Appleland is poor is that it

If Gloria is woman in a developing country,then it is likely that

In high- income countries,children do not suffer from malnutrition.

Which of the following creates an obstacle to pursuing freer international trade?

A reliable system of property rights and enforceable contracts are prerequisites for creating incentives that support a healthy market economy.

Which of the following is not an example of foreign aid?

Production and exchange depend on an reliable infrastructure of

A soft budget constraint applies when enterprises that earn profits distribute those profits to their private owners.

GDP (gross domestic product) measures the market value of all goods and services produced by resources supplied by the countries' residents and firms,regardless of the location of the resource.

The World Bank provides a grant to Bulgaria to build a modern school.This example of foreign aid is called bilateral assistance.

Which of the following occurs when there was a shortage of supply in a centrally planned economy?

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?

Around the world,once-socialist countries have replaced central plans with

In developing nations,the combined rate of urban and rural unemployment or underemployment is about

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