Question 1

Refer to the table.Which of the following might reduce the per capita income gap between countries A and E?

Accepted Answer

A)  faster population growth in country A than in country E
B)  greater investment relative to GDP in country E than in country A
C)  more rapid improvement in literacy and education in country A than in country E
D)  increased capital flight from country A relative to that from country EE) A) and B)
F) A) and C)

Question 2

Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

Accepted Answer

A) True 
 B)False

Question 3

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 that are given to that person, this leader 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.E) A) and C)
F) B) and C)

Question 4

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.E) B) and D)
F) None of the above

Question 5

One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.

Accepted Answer

A) True 
 B)False

Question 6

(Last Word)  Providing poor families with grants if they send their children to school and get proper medical care is known as

Accepted Answer

A)  microcredit.
B)  in-kind transfers.
C)  unconditional cash transfers.
D)  conditional cash transfers.E) A) and B)
F) B) and C)

Question 7

Which of the following is not part of a nation's infrastructure?

Accepted Answer

A)  communications facilities
B)  roads, highways, and bridges
C)  the electrical power system
D)  industrial plants and equipmentE) None of the above
F) B) and D)

Question 8

Developing countries (DVCs)  can be subdivided into the following groups except

Accepted Answer

A)  low-income economies.
B)  high-income economies.
C)  lower-middle-income economies.
D)  upper-middle-income economies.E) None of the above
F) B) and D)

Question 9

Which of the following is not inversely related to per capita income?

Accepted Answer

A)  mortality rates for children under five years of age
B)  adult illiteracy rates
C)  per capita energy consumption
D)  population growth ratesE) None of the above
F) A) and C)

Question 10

Which of the following IACs (industrially advanced countries)  was the leading provider of development assistance to DVCs (developing countries)  in 2015, in terms of absolute dollar amounts?

Accepted Answer

A)  United States
B)  Japan
C)  Canada
D)  GermanyE) C) and D)
F) A) and B)

Question 11

In 2014, the GDP of the United States was approximately

Accepted Answer

A)  $8 trillion less than the GDP of the 135 DVCs in that year.
B)  $8 trillion more than the GDP of the 135 DVCs in that year.
C)  twice the GDP of the 135 DVCs in that year.
D)  the same as the GDP of 135 DVCs in that year.E) All of the above
F) A) and B)

Question 12

DVCs tend to have permanent shortages of farm labor.

Accepted Answer

A) True 
 B)False

Question 13

The population growth rate in IACs (industrially advanced countries)  in 2000-2010 averaged 0.7 percent per year.This compares to what percentage growth per year in low- income DVCs (developing countries) ?

Accepted Answer

A)  1.1 percent
B)  2.1 percent
C)  4.0 percent
D)  0.4 percentE) A) and D)
F) B) and D)

Question 14

All of the following contribute to low investment spending in DVCs except

Accepted Answer

A)  low rates of saving.
B)  inadequacy of public capital goods (infrastructure) .
C)  political instability.
D)  expensive labor.E) C) and D)
F) None of the above

Question 15

In recent years, U.S.foreign aid has been

Accepted Answer

A)  less than one-quarter of 1 percent of its output.
B)  about 1 percent of its output.
C)  about 3 percent of its output.
D)  about 5 percent of its output.E) B) and D)
F) A) and B)

Question 16

Which of the following DVC policies is not likely to increase DVC economic growth?

Accepted Answer

A)  privatizing state industries
B)  controlling population growth
C)  restricting direct foreign investment from abroad
D)  building human capitalE) C) and D)
F) B) and C)

Question 17

If population is expanding at the same rate as real output,

Accepted Answer

A)  real per capita output will increase.
B)  real per capita output will decrease.
C)  real per capita output will remain unchanged.
D)  living standards will increase.E) A) and D)
F) A) and C)

Question 18

Rapid population growth can be an obstacle to economic development

Accepted Answer

A)  because it can translate a relatively large increase in real output into a small increase in real output per capita.
B)  because more investment will be required to simply maintain the quantity of capital goods per person.
C)  because it may lead to the overutilization and therefore ecological degradation of farmland.
D)  for all of these reasons.E) C) and D)
F) None of the above

Question 19

Which of the given nations would be high-income countries (IACs) , according to the World Bank?

Accepted Answer

A)  country C only
B)  countries B, C, and D
C)  countries B, C, D, and E
D)  countries B and CE) None of the above
F) All of the above

Question 20

Most nations of the world are now IACs, not middle- and low-income DVCs.

Accepted Answer

A) True 
 B)False

Exam 19: The Economics of Developing Countries

Which of the given nations would be high-income countries (IACs) , according to the World Bank?

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Rapid population growth can be an obstacle to economic development

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

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Which of the following IACs (industrially advanced countries) was the leading provider of development assistance to DVCs (developing countries) in 2015, in terms of absolute dollar amounts?

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Which of the following is not inversely related to per capita income?

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Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

Correct AnswerverifiedShow Answer

The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7 percent per year.This compares to what percentage growth per year in low- income DVCs (developing countries) ?

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Most nations of the world are now IACs, not middle- and low-income DVCs.

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(Last Word) Providing poor families with grants if they send their children to school and get proper medical care is known as

Correct AnswerverifiedShow Answer

All of the following contribute to low investment spending in DVCs except

Correct AnswerverifiedShow Answer

Which of the following DVC policies is not likely to increase DVC economic growth?

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In 2014, the GDP of the United States was approximately

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DVCs tend to have permanent shortages of farm labor.

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If population is expanding at the same rate as real output,

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Refer to the table.Which of the following might reduce the per capita income gap between countries A and E?

Correct AnswerverifiedShow Answer

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 that are given to that person, this leader is most likely expressing a

Correct AnswerverifiedShow Answer

One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.

Correct AnswerverifiedShow Answer

Which of the following is not part of a nation's infrastructure?

Correct AnswerverifiedShow Answer

Developing countries (DVCs) can be subdivided into the following groups except

Correct AnswerverifiedShow Answer

In recent years, U.S.foreign aid has been

Correct AnswerverifiedShow Answer

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