Question 1

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.E) A) and D)
F) B) and D)

Question 2

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real
Per capita output gap will

Accepted Answer

A)   remain unchanged at $19,000.
B)   increase by $760.
C)   decrease by $1,000.
D)   increase by $19,760.E) A) and D)
F) A) and C)

Question 3

Per capita incomes must ﬁrst grow for birth rates to decline. This statement describes the

Accepted Answer

A)   human capital view of population growth.
B)   traditional view of population growth.
C)   capricious universe view.
D)   demographic transition view of population growth.E) B) and C)
F) A) and D)

Question 4

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Accepted Answer

A)   "The rich get richer, while the poor get poorer."
B)   "Fate dealt the poor nations a bad hand."
C)   "The poor nations stay poor because they are poor."
D)   "Historical developments have oppressed the poor nations' incomes."E) A) and D)
F) None of the above

Question 5

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Accepted Answer

A)   United Nations.
B)   International Finance Corporation.
C)   New Global Compact.
D)   International Development Association.E) A) and C)
F) A) and B)

Question 6

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 IACs?)  agricultural sectors
D)   discouraging arms salesE) A) and D)
F) All of the above

Question 7

One suggested policy that industrially advanced nations could adopt to foster economic growth in less-developed nations would be to

Accepted Answer

A)   leave the responsibility to the World Bank.
B)   direct foreign aid to the poorest DVCs.
C)   recruit more skilled workers from DVCs.
D)   target the banking sector for the most help.E) A) and B)
F) C) and D)

Question 8

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) B) and D)
F) B) and C)

Question 9

Per capita income in the United States in 2017 was about how many times greater than that in China?

Accepted Answer

A)   8.5 times
B)   12 times
C)   3.5 times
D)   17 timesE) A) and B)
F) A) and C)

Question 10

Suppose that the average annual rate of population increase in Econland in recent years was about 2 percent. Based on this rate of growth, the population of Econland will double in about

Accepted Answer

A)   7 years.
B)   11 years.
C)   35 years.
D)   46 years.E) B) and C)
F) None of the above

Question 11

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Accepted Answer

A)   the World Bank
B)   the New Economic Order
C)   the Federal Reserve System
D)   the Committee on Economic DevelopmentE) A) and B)
F) B) and D)

Question 12

Most of the world's population lives in

Accepted Answer

A)   North America.
B)   the DVCs.
C)   Western Europe.
D)   the IACs.E) A) and B)
F) B) and C)

Question 13

What is the natural resource problem in DVCs?

Accepted Answer

The distribution of natural resources is...

Question 14

(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 D)
F) A) and C)

Question 15

An obstacle to economic growth in developing countries is

Accepted Answer

A)   the limited demand for natural resources.
B)   the limited supply of capital goods.
C)   a decline in population growth.
D)   the low productivity of capital.E) C) and D)
F) B) and C)

Question 16

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 population growthE) B) and C)
F) A) and C)

Question 17

Which of the following nations is not considered an industrially advanced country?

Accepted Answer

A)   Brazil
B)   Japan
C)   Canada
D)   AustraliaE) None of the above
F) A) and B)

Question 18

Which of the following countries had the highest population density (population per square km)  in 2017?

Accepted Answer

A)   United States
B)   India
C)   China
D)   VenezuelaE) B) and D)
F) B) and C)

Question 19

One common measure of the "standard of living" in a nation is

Accepted Answer

A)   real income per capita.
B)   unemployment rate.
C)   real GDP.
D)   population size.E) A) and C)
F) B) and D)

Question 20

The lack of an entrepreneurial class in developing nations tends to

Accepted Answer

A)   keep workers from migrating to cities from rural areas.
B)   reduce the level of capital investment.
C)   force the need for land reform.
D)   keep governments stable.E) None of the above
F) A) and C)

Exam 22: The Economics of Developing Countries

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Correct AnswerverifiedShow Answer

The lack of an entrepreneurial class in developing nations tends to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose that the average annual rate of population increase in Econland in recent years was about 2 percent. Based on this rate of growth, the population of Econland will double in about

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Per capita income in the United States in 2017 was about how many times greater than that in China?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

(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

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real Per capita output gap will

Correct AnswerverifiedShow Answer

Which of the following nations is not considered an industrially advanced country?

Correct AnswerverifiedShow Answer

An obstacle to economic growth in developing countries is

Correct AnswerverifiedShow Answer

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Correct AnswerverifiedShow Answer

Most of the world's population lives in

Correct AnswerverifiedShow Answer

What is the natural resource problem in DVCs?

Correct AnswerverifiedThe distribution of natural resources is...View AnswerShow Answer

One common measure of the "standard of living" in a nation is

Correct AnswerverifiedShow Answer

Per capita incomes must ﬁrst grow for birth rates to decline. This statement describes the

Correct AnswerverifiedShow Answer

Which of the following countries had the highest population density (population per square km) in 2017?

Correct AnswerverifiedShow Answer

The vicious circle of poverty in the poorest DVCs can also be expressed as,

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

One suggested policy that industrially advanced nations could adopt to foster economic growth in less-developed nations would be to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The distribution of natural resources is...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified