Question 1

The World Bank is the organization to which DVCs turn as a "last-resort" lending agency for projects that private institutions will not fund.

Accepted Answer

A) True 
 B)False

Question 2

The fertility rates-the number of children per woman's lifetime-in many DVC (developing countries) are:

Accepted Answer

A)  Rising slowly 
B)  Rising fast 
C)  Staying constant 
D)  Declining 
A)  Rising slowly 
B)  Rising fast 
C)  Staying constant 
D)  Declining

Question 3

Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has:

Accepted Answer

A)  Increased by $25 per person 
B)  Decreased by $25 per person 
C)  Increased by $533 per person 
D)  Decreased by $533 per person 
A)  Increased by $25 per person 
B)  Decreased by $25 per person 
C)  Increased by $533 per person 
D)  Decreased by $533 per person

Question 4

The annual global revenue of Walmart in 2010 was $405 billion, which was greater than the national incomes of all but _________ nations in the world.

Accepted Answer

A)  10 
B)  23 
C)  46 
D)  35 
A)  10 
B)  23 
C)  46 
D)  35

Question 5

Which of the following is not an example of a socio-cultural impediment to economic growth?

Accepted Answer

A)  Tribal allegiances that take precedence over national unity 
B)  Religious beliefs and practices that severely limit economic activity 
C)  Migration of labor resources from agricultural to urban areas 
D)  The existence of a system for allocating jobs based on caste or tradition 
A)  Tribal allegiances that take precedence over national unity 
B)  Religious beliefs and practices that severely limit economic activity 
C)  Migration of labor resources from agricultural to urban areas 
D)  The existence of a system for allocating jobs based on caste or tradition

Question 6

If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards which are given to that person, this person is most likely expressing a:

Accepted Answer

A)  Description of the vicious cycle of poverty 
B)  Theory of exploitation and dependence 
C)  Capricious view of the universe 
D)  Rationale for neocolonialism 
A)  Description of the vicious cycle of poverty 
B)  Theory of exploitation and dependence 
C)  Capricious view of the universe 
D)  Rationale for neocolonialism

Question 7

A major complaint of DVCs about foreign aid from IACs is that it:

Accepted Answer

A)  Is allocated just to the poorest nations 
B)  Is equally borne by the donor nations 
C)  Needs to be quantitatively larger for DVCs 
D)  Takes too long a time to reach DVCs 
A)  Is allocated just to the poorest nations 
B)  Is equally borne by the donor nations 
C)  Needs to be quantitatively larger for DVCs 
D)  Takes too long a time to reach DVCs

Question 8

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Accepted Answer

A) True 
 B)False

Question 9

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will:

Accepted Answer

A)  Shift outward the production possibilities curve for a nation 
B)  Increase the demand for and decrease the supply of productive resources 
C)  Make a nation less productive because of the need to coordinate the increased quantity of resources 
D)  Lead to increased population growth that will decrease the per capita growth in a nation 
A)  Shift outward the production possibilities curve for a nation 
B)  Increase the demand for and decrease the supply of productive resources 
C)  Make a nation less productive because of the need to coordinate the increased quantity of resources 
D)  Lead to increased population growth that will decrease the per capita growth in a nation

Question 10

Which of the following countries had the highest per capita energy consumption in 2009?

Accepted Answer

A)  Brazil 
B)  China 
C)  Japan 
D)  United States 
A)  Brazil 
B)  China 
C)  Japan 
D)  United States

Question 11

Land reform (or the reform of land ownership) is a relatively minor institutional obstacle to economic growth in many developing countries.

Accepted Answer

A) True 
 B)False

Question 12

All developing countries suffer from a critical shortage of:

Accepted Answer

A)  Land 
B)  Population 
C)  Capital goods 
D)  Government regulation 
A)  Land 
B)  Population 
C)  Capital goods 
D)  Government regulation

Question 13

A major criticism of foreign aid to developing nations is that it:

Accepted Answer

A)  Is capital saving rather than capital intensive 
B)  Provides incentives for a brain drain 
C)  Encourages corruption and misuse of funds 
D)  Gives too much power and control to the International Monetary Fund 
A)  Is capital saving rather than capital intensive 
B)  Provides incentives for a brain drain 
C)  Encourages corruption and misuse of funds 
D)  Gives too much power and control to the International Monetary Fund

Question 14

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

Accepted Answer

A)  Low trade barriers 
B)  Large international debts 
C)  An increase in the rate of saving 
D)  A slowing of the population growth 
A)  Low trade barriers 
B)  Large international debts 
C)  An increase in the rate of saving 
D)  A slowing of the population growth

Question 15

Government can play a major positive role in the early stage of economic development by:

Accepted Answer

A)  Providing an adequate infrastructure 
B)  Establishing price controls for products 
C)  Promoting exports by subsidizing them 
D)  Creating marketing boards for export products 
A)  Providing an adequate infrastructure 
B)  Establishing price controls for products 
C)  Promoting exports by subsidizing them 
D)  Creating marketing boards for export products

Question 16

China is very close to catching up with the United States in its standard of living as measured by per capita income.

Accepted Answer

A) True 
 B)False

Question 17

Many economists believe that the key to breaking the vicious circle of poverty is to:

Accepted Answer

A)  Cut down the mortality rates in poor nations 
B)  Reduce the birth rates in poor nations 
C)  Increase the mobility of labor and migration 
D)  Increase the rate of capital accumulation in poor nations 
A)  Cut down the mortality rates in poor nations 
B)  Reduce the birth rates in poor nations 
C)  Increase the mobility of labor and migration 
D)  Increase the rate of capital accumulation in poor nations

Question 18

The vicious circle of poverty is based on the connections between low income, low saving, low investment, and low productivity.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is correct?

Accepted Answer

A)  Saving is high in less developed nations because the opportunities for consumption are limited 
B)  For developing nations, the annual rate of population increase is about 5 percent 
C)  Most of the labor forces of developing nations are engaged in light industrial production 
D)  Investment is low in developing nations, making it difficult to increase productivity and incomes 
A)  Saving is high in less developed nations because the opportunities for consumption are limited 
B)  For developing nations, the annual rate of population increase is about 5 percent 
C)  Most of the labor forces of developing nations are engaged in light industrial production 
D)  Investment is low in developing nations, making it difficult to increase productivity and incomes

Question 20

The demographic transition view of population and growth in DVCs is that:

Accepted Answer

A)  The most important factor affecting population growth in DVCs are demographic changes among the elderly 
B)  Slower population growth is neither desirable nor productive for DVCs given the state of the economies in these nations 
C)  Reduced birthrates must come first in DVCs, and then higher per capita incomes will follow 
D)  Higher per capita incomes must come first in DVCs, and then reduced birth rates will follow 
A)  The most important factor affecting population growth in DVCs are demographic changes among the elderly 
B)  Slower population growth is neither desirable nor productive for DVCs given the state of the economies in these nations 
C)  Reduced birthrates must come first in DVCs, and then higher per capita incomes will follow 
D)  Higher per capita incomes must come first in DVCs, and then reduced birth rates will follow

Exam 22: The Economics of Developing Countries

The World Bank is the organization to which DVCs turn as a "last-resort" lending agency for projects that private institutions will not fund.

The fertility rates-the number of children per woman's lifetime-in many DVC (developing countries) are:

Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has:

The annual global revenue of Walmart in 2010 was $405 billion, which was greater than the national incomes of all but _________ nations in the world.

Which of the following is not an example of a socio-cultural impediment to economic growth?

If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards which are given to that person, this person is most likely expressing a:

A major complaint of DVCs about foreign aid from IACs is that it:

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will:

Which of the following countries had the highest per capita energy consumption in 2009?

Land reform (or the reform of land ownership) is a relatively minor institutional obstacle to economic growth in many developing countries.

All developing countries suffer from a critical shortage of:

A major criticism of foreign aid to developing nations is that it:

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

Government can play a major positive role in the early stage of economic development by:

China is very close to catching up with the United States in its standard of living as measured by per capita income.

Many economists believe that the key to breaking the vicious circle of poverty is to:

The vicious circle of poverty is based on the connections between low income, low saving, low investment, and low productivity.

Which of the following statements is correct?

The demographic transition view of population and growth in DVCs is that:

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

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