Question 1

The Global South provides college educations to a large fraction of their populations.

Accepted Answer

A) True 
 B)False  False

Question 2

Human capital is an important ingredient in the economic growth of a nation.

Accepted Answer

A) True 
 B)False  True

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

A policy in which ________ actively pick(s) industries to support as a base for economic development is known as industrial policy.

Accepted Answer

A)  microfinanciers 
B)  the World Bank 
C)  the International Monetary Fund 
D)  a government 
A)  microfinanciers 
B)  the World Bank 
C)  the International Monetary Fund 
D)  a government

Question 5

A World bank study conducted in Kenya found that as the proportion of vaccinated people in a village grew, more people wanted to get vaccinated.

Accepted Answer

A) True 
 B)False

Question 6

The government's role in a developing country is important during the country's development process because building social overhead capital

Accepted Answer

A)  cannot be taken on by the private sector. 
B)  can only be financed by the private sector. 
C)  requires a joint venture between the public and private sectors. 
D)  can only be achieved in a developing country. 
A)  cannot be taken on by the private sector. 
B)  can only be financed by the private sector. 
C)  requires a joint venture between the public and private sectors. 
D)  can only be achieved in a developing country.

Question 7

Compared to traditional bank loans, microfinance loans

Accepted Answer

A)  are much larger. 
B)  require collateral. 
C)  are made more frequently to women than to men. 
D)  have repayments that begin at a much later date. 
A)  are much larger. 
B)  require collateral. 
C)  are made more frequently to women than to men. 
D)  have repayments that begin at a much later date.

Question 8

A World Bank study found that charging user fees for medical treatment in developing countries dramatically reduced treatment rates, indicating that these medical treatments have elasticities

Accepted Answer

A)  less than 1. 
B)  greater than 1. 
C)  equal to 1. 
D)  equal to zero. 
A)  less than 1. 
B)  greater than 1. 
C)  equal to 1. 
D)  equal to zero.

Question 9

Which of the following factors has been suggested as an explanation for the lack of economic growth in many poor nations?

Accepted Answer

A)  insufficient capital formation 
B)  the supply of human resources is too high 
C)  inadequate level of resources 
D)  a lack of dependence on the already developed nations 
A)  insufficient capital formation 
B)  the supply of human resources is too high 
C)  inadequate level of resources 
D)  a lack of dependence on the already developed nations

Question 10

The policy in which industrial production is oriented towards foreign consumers is called

Accepted Answer

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

Question 11

Related to the Economics in Practice on page 393: In the Kerala region of India, fishermen used cell phones to help connect buyers and sellers, reducing waste. All of the following describe ways in which technology is likely to improve information flow and increase economic efficiency except:

Accepted Answer

A)  Fax technology makes it possible to transmit signed contracts in seconds, allowing the parties to the contract to begin performing their contract duties more quickly. 
B)  High-speed Internet connections allow engineers in developing countries to collaborate with firms all around the world. 
C)  E-mail now makes criminals who commit certain kinds of fraud very difficult to identify and arrest. 
D)  Video conferencing decreases the need for expensive business travel. 
A)  Fax technology makes it possible to transmit signed contracts in seconds, allowing the parties to the contract to begin performing their contract duties more quickly. 
B)  High-speed Internet connections allow engineers in developing countries to collaborate with firms all around the world. 
C)  E-mail now makes criminals who commit certain kinds of fraud very difficult to identify and arrest. 
D)  Video conferencing decreases the need for expensive business travel.

Question 12

Policies designed to promote import substitution often encouraged labor-intensive production methods, which encouraged the creation of jobs.

Accepted Answer

A) True 
 B)False

Question 13

In the agriculture sectors in the Global South, productivity tends to be ________ because farmers work with ________.

Accepted Answer

A)  low; little capital 
B)  low; little labor 
C)  high; large amounts of capital 
D)  high; large amounts of labor 
A)  low; little capital 
B)  low; little labor 
C)  high; large amounts of capital 
D)  high; large amounts of labor

Question 14

Related to the Economics in Practice on p. 393: 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, ________ in this fishing industry was virtually eliminated.

Accepted Answer

A)  human capital 
B)  profit 
C)  competition 
D)  waste 
A)  human capital 
B)  profit 
C)  competition 
D)  waste

Question 15

Related to the Economics in Practice on page 384: Of the children under 5 years of age in the world who are characterized as extremely short due to malnutrition, one half are in

Accepted Answer

A)  Africa. 
B)  Asia. 
C)  South America. 
D)  Eastern Europe. 
A)  Africa. 
B)  Asia. 
C)  South America. 
D)  Eastern Europe.

Question 16

Remittances sent from developed countries are estimated at approximately ________ per year.

Accepted Answer

A)  $2 million 
B)  $50 million 
C)  $100 billion 
D)  $5 trillion 
A)  $2 million 
B)  $50 million 
C)  $100 billion 
D)  $5 trillion

Question 17

Teacher absenteeism is a problem facing education in the developing world.

Accepted Answer

A) True 
 B)False

Question 18

Health and education are two of the lynch pins of economic development.

Accepted Answer

A) True 
 B)False

Question 19

China and India both have rapidly developing economies. Which of the following characteristics is shared by India and China?

Accepted Answer

A)  Both have embraced free-market economies. 
B)  Property rights are well established in both countries. 
C)  Both are democratic countries. 
D)  Both have high literacy rates. 
A)  Both have embraced free-market economies. 
B)  Property rights are well established in both countries. 
C)  Both are democratic countries. 
D)  Both have high literacy rates.

Question 20

Most of the world's nations

Accepted Answer

A)  belong to the developing world. 
B)  belong to the developed world. 
C)  have transitioned from the Global North to the Global South. 
D)  have transitioned from the Global South to the Global North. 
A)  belong to the developing world. 
B)  belong to the developed world. 
C)  have transitioned from the Global North to the Global South. 
D)  have transitioned from the Global South to the Global North.

Exam 20: Economic Growth in Developing Economies

The Global South provides college educations to a large fraction of their populations.

Human capital is an important ingredient in the economic growth of a nation.

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

A policy in which ________ actively pick(s) industries to support as a base for economic development is known as industrial policy.

A World bank study conducted in Kenya found that as the proportion of vaccinated people in a village grew, more people wanted to get vaccinated.

The government's role in a developing country is important during the country's development process because building social overhead capital

Compared to traditional bank loans, microfinance loans

A World Bank study found that charging user fees for medical treatment in developing countries dramatically reduced treatment rates, indicating that these medical treatments have elasticities

Which of the following factors has been suggested as an explanation for the lack of economic growth in many poor nations?

The policy in which industrial production is oriented towards foreign consumers is called

Related to the Economics in Practice on page 393: In the Kerala region of India, fishermen used cell phones to help connect buyers and sellers, reducing waste. All of the following describe ways in which technology is likely to improve information flow and increase economic efficiency except:

Policies designed to promote import substitution often encouraged labor-intensive production methods, which encouraged the creation of jobs.

In the agriculture sectors in the Global South, productivity tends to be ________ because farmers work with ________.

Related to the Economics in Practice on p. 393: 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, ________ in this fishing industry was virtually eliminated.

Related to the Economics in Practice on page 384: Of the children under 5 years of age in the world who are characterized as extremely short due to malnutrition, one half are in

Remittances sent from developed countries are estimated at approximately ________ per year.

Teacher absenteeism is a problem facing education in the developing world.

Health and education are two of the lynch pins of economic development.

China and India both have rapidly developing economies. Which of the following characteristics is shared by India and China?

Most of the world's nations

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

Money, the Federal Reserve, and the Interest Rate

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

Policy Effects and Cost 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

Critical Thinking About Research

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In the agriculture sectors in the Global South, productivity tends to be because farmers work with .