Question 1

The tragedy of commons relates to the idea that

Accepted Answer

A) central planning sets all production targets. 
B) all wages,prices,and interest rates are controlled by government. 
C) common owned resources tend to be overused. 
D) central planning sets all distribution targets. 
A) central planning sets all production targets. 
B) all wages,prices,and interest rates are controlled by government. 
C) common owned resources tend to be overused. 
D) central planning sets all distribution targets.

Question 2

One of the most successful countries in implementing export promotion policies is

Accepted Answer

A) the United States. 
B) Germany. 
C) China. 
D) Japan. 
A) the United States. 
B) Germany. 
C) China. 
D) Japan.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which agency lends money to countries to help them stabilize their exchange rates?

Accepted Answer

A) the International Monetary Fund 
B) the World Bank 
C) the Federal Reserve 
D) the Bureau de Change 
A) the International Monetary Fund 
B) the World Bank 
C) the Federal Reserve 
D) the Bureau de Change

Question 5

Related to the Economics in Practice on p.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

Accepted Answer

A) these companies thrived under President Suharto despite their connection with Suharto's allies and relatives. 
B) later regimes in Indonesia will be more concerned about economic efficiency and less corrupt. 
C) President Suharto's removal from power was based not only on illness but also on concern over corruption. 
D) investor opinion of many of these firms was based on their connections with President Suharto and not the economic efficiency of those companies. 
A) these companies thrived under President Suharto despite their connection with Suharto's allies and relatives. 
B) later regimes in Indonesia will be more concerned about economic efficiency and less corrupt. 
C) President Suharto's removal from power was based not only on illness but also on concern over corruption. 
D) investor opinion of many of these firms was based on their connections with President Suharto and not the economic efficiency of those companies.

Question 6

In 2006,the largest population group (2.4 billion people)belonged to countries classified as

Accepted Answer

A) low-income. 
B) lower middle-income. 
C) upper middle-income. 
D) high-income. 
A) low-income. 
B) lower middle-income. 
C) upper middle-income. 
D) high-income.

Question 7

In the distribution of world income,the poorest one-fifth of the world's population earns about ________ of the world income.

Accepted Answer

A) 0.5% 
B) 2% 
C) 5% 
D) 12% 
A) 0.5% 
B) 2% 
C) 5% 
D) 12%

Question 8

The immediate and total deregulation of prices,liberalization of trade,privatization,and development of financial institutions represent

Accepted Answer

A) the gradualism transition approach from socialism to a market economy. 
B) a cooperative socialist model. 
C) the shock therapy transition approach from socialism to a market economy. 
D) an authoritarian socialist model. 
A) the gradualism transition approach from socialism to a market economy. 
B) a cooperative socialist model. 
C) the shock therapy transition approach from socialism to a market economy. 
D) an authoritarian socialist model.

Question 9

The Russian transition to a market economy with free labor markets and uncontrolled prices means that

Accepted Answer

A) prices will still be controlled by government. 
B) full employment and low prices can be maintained. 
C) wages will still be determined by government. 
D) unemployment and higher prices are inevitable. 
A) prices will still be controlled by government. 
B) full employment and low prices can be maintained. 
C) wages will still be determined by government. 
D) unemployment and higher prices are inevitable.

Question 10

Throughout the developing world,________ is a problem that affects education.

Accepted Answer

A) student absenteeism 
B) teacher absenteeism 
C) an excess supply of classrooms 
D) Both A and B are correct. 
A) student absenteeism 
B) teacher absenteeism 
C) an excess supply of classrooms 
D) Both A and B are correct.

Question 11

With ________,outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.

Accepted Answer

A) natural experiments 
B) random experiments 
C) manipulated experiments 
D) predetermined experiments 
A) natural experiments 
B) random experiments 
C) manipulated experiments 
D) predetermined experiments

Question 12

Which of the following statements is FALSE?

Accepted Answer

A) Low productivity in the agricultural sector in developing countries means that farm output per person is barely sufficient to feed a farmer's own family. 
B) Income tends to be more equally distributed in developing countries than in developed countries. 
C) The percentage of the labor force employed in urban areas is greater in developed nations than in developing nations. 
D) Developed nations account for only about one-quarter of the world's population,but they consume about three-quarters of the world's output. 
A) Low productivity in the agricultural sector in developing countries means that farm output per person is barely sufficient to feed a farmer's own family. 
B) Income tends to be more equally distributed in developing countries than in developed countries. 
C) The percentage of the labor force employed in urban areas is greater in developed nations than in developing nations. 
D) Developed nations account for only about one-quarter of the world's population,but they consume about three-quarters of the world's output.

Question 13

Which of the following statements is FALSE?

Accepted Answer

A) Developing countries have a lower per capita income compared to developed countries. 
B) Developing countries have a lower infant mortality rate compared to developed countries. 
C) Developing countries have lower life expectancy compared to developed countries. 
D) A smaller percentage of the population live in urban areas in developing countries compared to developed countries. 
A) Developing countries have a lower per capita income compared to developed countries. 
B) Developing countries have a lower infant mortality rate compared to developed countries. 
C) Developing countries have lower life expectancy compared to developed countries. 
D) A smaller percentage of the population live in urban areas in developing countries compared to developed countries.

Question 14

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

Accepted Answer

A) export promotion. 
B) import substitution. 
C) export favoritism. 
D) import promotion. 
A) export promotion. 
B) import substitution. 
C) export favoritism. 
D) import promotion.

Question 15

Compared to traditional bank loans,microfinance loans have all of the following characteristics EXCEPT

Accepted Answer

A) they are much smaller. 
B) they require no collateral. 
C) they are made more frequently to women than to men. 
D) they have repayments that begin at a much later date. 
A) they are much smaller. 
B) they require no collateral. 
C) they are made more frequently to women than to men. 
D) they have repayments that begin at a much later date.

Question 16

Developing countries are characterized by low population growth rates.

Accepted Answer

A) True 
 B)False

Question 17

GDP growth leads development.

Accepted Answer

A) True 
 B)False

Question 18

In 2006,the literacy rate of people over the age of 15 was 60.8% for people in countries classified as

Accepted Answer

A) low-income. 
B) lower middle-income. 
C) upper middle-income. 
D) high-income. 
A) low-income. 
B) lower middle-income. 
C) upper middle-income. 
D) high-income.

Question 19

Which of the following characteristics is generally representative of developed countries relative to developing countries?

Accepted Answer

A) a larger percentage of the labor force in rural areas 
B) a lower infant mortality rate 
C) lower productivity in the agriculture sector 
D) a lower rate of literacy 
A) a larger percentage of the labor force in rural areas 
B) a lower infant mortality rate 
C) lower productivity in the agriculture sector 
D) a lower rate of literacy

Question 20

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

Accepted Answer

A) industrial countries. 
B) first world countries. 
C) developing countries. 
D) developed countries. 
A) industrial countries. 
B) first world countries. 
C) developing countries. 
D) developed countries.

Exam 21: Economic Growth in Developing and Transitional Economies

The tragedy of commons relates to the idea that

One of the most successful countries in implementing export promotion policies is

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

Which agency lends money to countries to help them stabilize their exchange rates?

Related to the Economics in Practice on p.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,the largest population group (2.4 billion people)belonged to countries classified as

In the distribution of world income,the poorest one-fifth of the world's population earns about ________ of the world income.

The immediate and total deregulation of prices,liberalization of trade,privatization,and development of financial institutions represent

The Russian transition to a market economy with free labor markets and uncontrolled prices means that

Throughout the developing world,________ is a problem that affects education.

With ________,outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.

Which of the following statements is FALSE?

Which of the following statements is FALSE?

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

Compared to traditional bank loans,microfinance loans have all of the following characteristics EXCEPT

Developing countries are characterized by low population growth rates.

GDP growth leads development.

In 2006,the literacy rate of people over the age of 15 was 60.8% for people in countries classified as

Which of the following characteristics is generally representative of developed countries relative to developing countries?

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

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade,comparative Advantage,and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Filters