Question 1

Many of the major projects of the World Bank have been for:

Accepted Answer

A)   Making loans to private citizens
B)   Building infrastructure in a nation
C)   Supervising the banking system in DVCs
D)   Establishing new tax systems for governments in DVCsE) All of the above
F) C) and D)

Question 2

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 3

Which of the following IACs (industrially advanced countries)  was the leading provider of development assistance to DVCs (developing countries)  in 2012, in terms of absolute dollar amounts?

Accepted Answer

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

Question 4

Which of the following is not a reason why government may play a key role in the early stage of economic development in developing nations?

Accepted Answer

A)   The infrastructure provided by government
B)   The abundance of entrepreneurs who need to be regulated
C)   The need to encourage saving and investment in the economy
D)   The provision of law and order so that commerce can flourishE) C) and D)
F) B) and C)

Question 5

Surplus agricultural labor in a developing nation usually means that there is:

Accepted Answer

A)   A caste system
B)   Widespread under-employment
C)   Immobility of labor resources
D)   Increased investment in agricultureE) All of the above
F) A) and B) B

Question 6

A reason for placing special emphasis on capital accumulation in developing countries is the high:

Accepted Answer

A)   Level of adult illiteracy
B)   Productivity of workers in DVCs
C)   Marginal benefits of capital goods
D)   Level of import quotas and tariffsE) B) and C)
F) A) and B)

Question 7

The richest 20% of the world's population receives more than 80% of the world's income while the poorest 20% receives less than 2% of the world's income.

Accepted Answer

A) True 
 B)False  True

Question 8

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

Accepted Answer

A)   Per capita real income
B)   Unemployment rate
C)   Real GDP
D)   Population sizeE) A) and B)
F) A) and C)

Question 9

Birth- and population-control efforts in many DVCs (developing countries)  face the following obstacles, except:

Accepted Answer

A)   Low literacy rates
B)   Religious reasons
C)   Peasant agriculture view about children
D)   Government authoritiesE) B) and C)
F) A) and D)

Question 10

Which of the following is a major obstacle to economic growth in DVCs?

Accepted Answer

A)   A fall in population growth
B)   A decline in demographic transition
C)   The low demand for natural resources
D)   The low supply of savingE) B) and D)
F) A) and B)

Question 11

Which of the following countries had the highest per capita income in 2010?

Accepted Answer

A)   China
B)   United States
C)   Japan
D)   GermanyE) All of the above
F) A) and B)

Question 12

Development economists suggest that the best strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their:

Accepted Answer

A)   Population growth for a greater labor supply
B)   Output and slow down their population growth
C)   Birth rates to expand their available resources
D)   Mortality rates to slow down their population growthE) B) and C)
F) A) and C)

Question 13

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 economiesE) B) and D)
F) None of the above

Question 14

Income gains in the poorest DVCs may increase population growth initially, at least for a while, due to the following reasons, except:

Accepted Answer

A)   Declining death rates
B)   Increasing birth rates
C)   Reduced infant mortality
D)   Decreasing life expectancyE) A) and B)
F) C) and D) D

Question 15

Per capita income in the United States in 2010 was about:

Accepted Answer

A)   $25,300 per person
B)   $36,300 per person
C)   $47,300 per person
D)   $59,300 per personE) B) and C)
F) C) and D)

Question 16

A factor that limits the amount of saving in developing countries is the fact that:

Accepted Answer

A)   The banking system does not encourage saving
B)   There is too much foreign aid so savings is not needed
C)   The level of aggregate domestic output is low
D)   The government controls financial institutions and makes it difficult for people to saveE) A) and C)
F) All of the above

Question 17

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

Accepted Answer

A)   Russia
B)   Japan
C)   Canada
D)   AustraliaE) A) and B)
F) All of the above

Question 18

To stimulate economic growth, it would be best if developing countries adopted policies to:

Accepted Answer

A)   Discourage foreign investment
B)   Subsidize state industries
C)   Build more human capital
D)   Increase population growthE) A) and B)
F) None of the above

Question 19

One of the major investment obstacles in less developed nations is:

Accepted Answer

A)   An accumulation of savings with no place to invest the funds
B)   A poor public infrastructure that hurts returns on private investment
C)   A progressive tax system that is efficient in collecting taxes on investment
D)   A low unemployment rate that makes it difficult to find the needed workers for businessesE) B) and C)
F) A) and B)

Question 20

The demographic transition view of population growth believes that slower population growth will lead to rising incomes.

Accepted Answer

A) True 
 B)False

Exam 22: The Economics of Developing Countries

Many of the major projects of the World Bank have been for:

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 IACs (industrially advanced countries) was the leading provider of development assistance to DVCs (developing countries) in 2012, in terms of absolute dollar amounts?

Correct AnswerverifiedShow Answer

Which of the following is not a reason why government may play a key role in the early stage of economic development in developing nations?

Correct AnswerverifiedShow Answer

Surplus agricultural labor in a developing nation usually means that there is:

Correct AnswerverifiedB

A reason for placing special emphasis on capital accumulation in developing countries is the high:

Correct AnswerverifiedShow Answer

The richest 20% of the world's population receives more than 80% of the world's income while the poorest 20% receives less than 2% of the world's income.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Birth- and population-control efforts in many DVCs (developing countries) face the following obstacles, except:

Correct AnswerverifiedShow Answer

Which of the following is a major obstacle to economic growth in DVCs?

Correct AnswerverifiedShow Answer

Which of the following countries had the highest per capita income in 2010?

Correct AnswerverifiedShow Answer

Development economists suggest that the best strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Income gains in the poorest DVCs may increase population growth initially, at least for a while, due to the following reasons, except:

Correct AnswerverifiedD

Per capita income in the United States in 2010 was about:

Correct AnswerverifiedShow Answer

A factor that limits the amount of saving in developing countries is the fact that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To stimulate economic growth, it would be best if developing countries adopted policies to:

Correct AnswerverifiedShow Answer

One of the major investment obstacles in less developed nations is:

Correct AnswerverifiedShow Answer

The demographic transition view of population growth believes that slower population growth will lead to rising incomes.

Correct AnswerverifiedShow Answer

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B

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True

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D

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