Exam 21: Economic Growth in Developing and Transitional Economies

Related to the Economics in Practice on page 722: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, profits ________ and consumer prices ________.

The lack of capital in developing nations causes

Chronic food shortages, explosive population growth, and hyperinflations are problems facing

Investment in social overhead capital refers to investment in areas like education and nutrition.

Moving from socialism to capitalism as fast as possible is known as shock therapy.

Social overhead capital is basic infrastructure projects such as roads, power generation and irrigation systems.

The process of developing local industries to manufacture goods to replace imports is known as

In developing countries,

Related to the Economics in Practice on page 717: In Indonesia, children and allies of President Suharto were affiliated with many companies. When Suharto unexpectedly fell ill, the stock prices of these companies dropped significantly, suggesting that

In 2006, low-income countries had the highest infant mortality rates and lowest literacy rates in the world.

Collectively owned resources tend to be overused, as no one has an incentive to conserve them or use them optimally.

________ is (are) estimated at approximately $100 billion per year.

A World Bank study found that charging user fees for medical treatment in developing countries

In a centrally planned economy,

Which of the following statements is false?

The tragedy of commons relates to the idea that

The International Monetary Fund (IMF) makes loans to encourage economic development.

China has developed a rapid approach to development.

A frequently cited barrier to economic development is the apparent shortage of entrepreneurial activity in developing nations.

Most economists believe that import-substitution strategies have been quite successful around the world.