Question 1

To be classified as a low-income developing country, annual per capita income in 2014 needed to be

Accepted Answer

A)  $1,045 or less.
B)  $628 or less.
C)  $2,018 or less.
D)  $925 or less.E) A) and B)
F) A) and C)

Question 2

A large portion of foreign aid from IACs to DVCs is provided on the basis of

Accepted Answer

A)  economic considerations.
B)  geographical considerations.
C)  humanitarian considerations.
D)  politico-military considerations.E) A) and D)
F) All of the above

Question 3

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

Accepted Answer

A)  24 percent
B)  38 percent
C)  60 percent
D)  75 percentE) All of the above
F) A) and B)

Question 4

Which of the following describes the vicious circle of poverty?

Accepted Answer

A)  Government spending for public goods is inflationary, and this undermines incentives to save and invest.
B)  Higher incomes increase consumption at the expense of capital accumulation, which causes income to fall.
C)  Low per capita incomes cause low levels of saving and investment, which mean low productivity and therefore low incomes.
D)  A growing national income increases the demand for money, which increases the interest rate and reduces investment.E) A) and D)
F) A) and C)

Question 5

The absolute income gap between the IACs and the DVCs has

Accepted Answer

A)  remained constant over time.
B)  increased over time.
C)  decreased over time.
D)  increased in nominal terms but decreased in real terms.E) A) and B)
F) B) and C)

Question 6

The levels of national income per capita among developing countries (DVCs)  are

Accepted Answer

A)  all within a narrow range.
B)  widely varied.
C)  all growing rapidly.
D)  about half of those of industrially advanced countries (IACs) .E) All of the above
F) C) and D)

Question 7

Which of the following countries had the worst score in the Corruption Perception Index in 2015?

Accepted Answer

A)  Italy
B)  China
C)  Mexico
D)  RussiaE) All of the above
F) A) and B)

Question 8

Which of these sets of nations consists of high-income economies?

Accepted Answer

A)  Brazil, Thailand, and South Africa
B)  China, India, and Russia
C)  Canada, Switzerland, and France
D)  United States, South Korea, and MexicoE) All of the above
F) C) and D)

Question 9

Which of the following is not a way for industrially advanced countries (IACs)  to help developing countries (DVCs)  achieve faster economic growth?

Accepted Answer

A)  expanding trade
B)  admitting more temporary workers
C)  subsidizing their own (i.e., the IACsâ€™)  agricultural sectors
D)  discouraging arms salesE) None of the above
F) A) and C)

Question 10

Which of the following would most help a developing country (DVC)  break out of the vicious circle of poverty?

Accepted Answer

A)  more consumption
B)  more food production
C)  an increase in the birth rate
D)  an increase in labor productivityE) A) and B)
F) A) and C)

Question 11

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 12

The demographic transition concept suggests that

Accepted Answer

A)  effective birth control is the primary prerequisite of DVC income growth.
B)  income growth must first occur before DVC birth rates will decline.
C)  children are economic assets in the IACs but economic liabilities in the DVCs.
D)  the IACs will have higher birth rates than the DVCs.E) B) and C)
F) A) and D)

Question 13

Population expansion can impede economic development for the following reasons except

Accepted Answer

A)  reduced saving and investment rates.
B)  reduced productivity of labor.
C)  a larger supply of labor.
D)  its contribution to urban congestion and problems.E) A) and D)
F) A) and C)

Question 14

At the beginning of the year, one developing country (DVC)  has a real income per capita of $800.In a developed country (IAC) , the real income per capita is $30,000.Both countries experience a 4 percent growth rate for the year.At the end of the year, the absolute income gap between these two countries will have increased from $29,200 to

Accepted Answer

A)  $30,368.
B)  $31,200.
C)  $30,120.
D)  $32,032.E) C) and D)
F) All of the above

Question 15

Which of the following factors contributes most to the high per capita incomes in developed nations?

Accepted Answer

A)  high rates of population growth
B)  high rates of economic growth
C)  low rates of investment
D)  low rates of savingE) A) and D)
F) A) and B)

Question 16

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Accepted Answer

A) True 
 B)False

Question 17

In 2014, the IACs (industrially advanced countries) had an average per capita income that was about 60 times as high as that of the low-income nations.

Accepted Answer

A) True 
 B)False

Question 18

What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?

Accepted Answer

A)  The interest rate paid on money kept in a bank in DVCs is not as high as the interest rate on money kept in a bank in an IAC.
B)  Capital flight reduces investment opportunities and the need for saving in DVCs.
C)  There is a continual brain drain that removes skilled labor from the work force and reduces labor productivity and the need for saving.
D)  The domestic output of DVCs is so low that the absolute volume of saving is small.E) All of the above
F) A) and D)

Question 19

Avenues for the government to foster economic growth and development include the following, except

Accepted Answer

A)  nationalization and protection of domestic industries.
B)  establishing the rule of law and protection of property rights.
C)  building infrastructure and technological support.
D)  building human capital and entrepreneurship.E) B) and C)
F) A) and B)

Question 20

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

Accepted Answer

A)  encouraging direct foreign investment
B)  opening economics to world trade
C)  establishing independent central banks
D)  encouraging emigration of highly skilled workersE) B) and C)
F) A) and C)

Exam 42: The Economics of Developing Countries

Correct Answer
verified

Which of these sets of nations consists of high-income economies?

Correct Answer
verified

Which of the following describes the vicious circle of poverty?

Correct Answer
verified

The demographic transition concept suggests that

Correct Answer
verified

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Correct Answer
verified

Population expansion can impede economic development for the following reasons except

Correct Answer
verified

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

Correct Answer
verified

The levels of national income per capita among developing countries (DVCs) are

Correct Answer
verified

Avenues for the government to foster economic growth and development include the following, except

Correct Answer
verified

In 2014, the IACs (industrially advanced countries) had an average per capita income that was about 60 times as high as that of the low-income nations.

Correct Answer
verified

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

Correct Answer
verified

A large portion of foreign aid from IACs to DVCs is provided on the basis of

Correct Answer
verified

To be classified as a low-income developing country, annual per capita income in 2014 needed to be

Correct Answer
verified

What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?

Correct Answer
verified

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

Correct Answer
verified

The absolute income gap between the IACs and the DVCs has

Correct Answer
verified

Which of the following countries had the worst score in the Corruption Perception Index in 2015?

Correct Answer
verified

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

Correct Answer
verified

Which of the following factors contributes most to the high per capita incomes in developed nations?

Correct Answer
verified

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Correct Answer
verified

Exam 42: The Economics of Developing Countries

Correct AnswerverifiedShow Answer

Which of these sets of nations consists of high-income economies?

Correct AnswerverifiedShow Answer

Which of the following describes the vicious circle of poverty?

Correct AnswerverifiedShow Answer

The demographic transition concept suggests that

Correct AnswerverifiedShow Answer

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Correct AnswerverifiedShow Answer

Population expansion can impede economic development for the following reasons except

Correct AnswerverifiedShow Answer

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

Correct AnswerverifiedShow Answer

The levels of national income per capita among developing countries (DVCs) are

Correct AnswerverifiedShow Answer

Avenues for the government to foster economic growth and development include the following, except

Correct AnswerverifiedShow Answer

In 2014, the IACs (industrially advanced countries) had an average per capita income that was about 60 times as high as that of the low-income nations.

Correct AnswerverifiedShow Answer

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

Correct AnswerverifiedShow Answer

A large portion of foreign aid from IACs to DVCs is provided on the basis of

Correct AnswerverifiedShow Answer

To be classified as a low-income developing country, annual per capita income in 2014 needed to be

Correct AnswerverifiedShow Answer

What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The absolute income gap between the IACs and the DVCs has

Correct AnswerverifiedShow Answer

Which of the following countries had the worst score in the Corruption Perception Index in 2015?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following factors contributes most to the high per capita incomes in developed nations?

Correct AnswerverifiedShow Answer

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Correct AnswerverifiedShow Answer

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