Question 1

The exports of the DVCs consist largely of

Accepted Answer

A)  high-technology goods.
B)  raw materials and farm products.
C)  manufactured goods.
D)  services and financial capital.E) B) and D)
F) A) and B)

Question 2

Suppose that Alpha's real output rose from $400 billion in year 1 to $428 billion in year 2.Its growth rate for this period was

Accepted Answer

A)  14 percent.
B)  12 percent.
C)  9 percent.
D)  7 percent.E) None of the above
F) C) and D)

Question 3

Small loans to entrepreneurs and small business owners in DVCs are referred to as

Accepted Answer

A)  human capital development projects.
B)  microcredit.
C)  capital flight promotion systems.
D)  incubator lending.E) B) and D)
F) B) and C)

Question 4

In the DVCs, underemployment frequently takes the form of

Accepted Answer

A)  factory workers who are working longer hours than they would prefer.
B)  workers who are employed inefficiently in small industry when they could be highly productive in agriculture.
C)  farmers whose productivity is very low.
D)  craft workers and artisans who are replaced by simple machinery and equipment.E) None of the above
F) B) and C)

Question 5

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) A) and B)
F) B) and C)

Question 6

Which of the following includes only examples of industrially advanced countries (IACs) ?

Accepted Answer

A)  the United States, Canada, and Mexico
B)  Pakistan, India, and China
C)  Japan, South Korea, and China
D)  Germany, Italy, and FranceE) A) and D)
F) A) and B)

Question 7

Development economists suggest that a key 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 growth.E) B) and C)
F) All of the above

Question 8

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

Accepted Answer

A) True 
 B)False

Question 9

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) A) and B)
F) B) and C)

Question 10

What is needed to aid capital formation in developing countries?

Accepted Answer

A)  more capital flight
B)  more oil resources
C)  more entrepreneurship
D)  higher price supports for productsE) All of the above
F) C) and D)

Question 11

The primary function of the International Finance Corporation (IFC)  is to

Accepted Answer

A)  provide U.S.surplus food to low-income countries.
B)  provide short-term loans to poor countries to finance international trade deficits.
C)  make infrastructure loans, that is, loans for highways, schools, communication facilities, and so forth.
D)  make loans to private enterprises in the DVCs.E) None of the above
F) A) and D)

Question 12

The international agency that lends money to DVCs for economic development projects is the

Accepted Answer

A)  World Bank.
B)  International Monetary Fund (IMF) .
C)  World Trade Organization (WTO) .
D)  World Credit Union.E) A) and B)
F) A) and D)

Question 13

Economic growth may hinge on whether individuals and institutions within a nation want growth badly enough to change their traditional ways of doing things.This statement refers to

Accepted Answer

A)  in-kind investment.
B)  the capricious universe view.
C)  human capital investment.
D)  the will to develop.E) B) and C)
F) A) and B)

Question 14

(Last Word)  Early experiments with unconditional cash transfers have revealed that

Accepted Answer

A)  most of these cash transfers are repaid within a very short time.
B)  although the money is usually spent on education and capital, cultural obstacles generally prevent this spending from translating into long-term earnings gains.
C)  a majority of recipients use the money for training and equipment that results in a higher long-term income.
D)  most recipients spend the money on current consumption and realize no long-term gain in earning power.E) A) and C)
F) B) and C)

Question 15

The vast majority of the labor forces of the low-income DVCs are engaged in agriculture.

Accepted Answer

A) True 
 B)False

Question 16

The traditional view regarding population and growth in DVCs is that

Accepted Answer

A)  the most important factor affecting population growth in DVCs is per capita consumption of energy.
B)  unemployment and underemployment are the major sources of population growth in DVCs.
C)  reduced birth rates must come first in DVCs, and then higher per capita incomes will follow.
D)  higher per capita incomes must come first in DVCs, and then reduced birth rates will follow.E) A) and B)
F) A) and C)

Question 17

The industrially advanced countries (IACs)  had an average per capita income in 2014 of around

Accepted Answer

A)  $50,000 per person.
B)  $27,000 per person.
C)  $38,000 per person.
D)  $61,000 per person.E) None of the above
F) B) and D)

Question 18

The low per capita outputs of the DVCs are explained by

Accepted Answer

A)  insufficient saving and investment.
B)  overinvestment in human capital.
C)  slow population growth.
D)  excessively rapid technological advance.E) A) and C)
F) A) and D)

Question 19

Per capita income in the United States in 2014 was how many times greater than that in China?

Accepted Answer

A)  3 times
B)  12 times
C)  7.5 times
D)  17 timesE) C) and D)
F) A) and B)

Question 20

The international organization, with 188 member nations, whose major objective is to help DVCs achieve economic growth is the

Accepted Answer

A)  World Trade Organization.
B)  World Bank.
C)  G8 Nations.
D)  United Nations.E) A) and C)
F) A) and D)

Exam 42: The Economics of Developing Countries

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

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The international organization, with 188 member nations, whose major objective is to help DVCs achieve economic growth is the

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Small loans to entrepreneurs and small business owners in DVCs are referred to as

Correct AnswerverifiedShow Answer

Economic growth may hinge on whether individuals and institutions within a nation want growth badly enough to change their traditional ways of doing things.This statement refers to

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The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

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The exports of the DVCs consist largely of

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What is needed to aid capital formation in developing countries?

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The traditional view regarding population and growth in DVCs is that

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The international agency that lends money to DVCs for economic development projects is the

Correct AnswerverifiedShow Answer

The industrially advanced countries (IACs) had an average per capita income in 2014 of around

Correct AnswerverifiedShow Answer

(Last Word) Early experiments with unconditional cash transfers have revealed that

Correct AnswerverifiedShow Answer

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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The low per capita outputs of the DVCs are explained by

Correct AnswerverifiedShow Answer

The primary function of the International Finance Corporation (IFC) is to

Correct AnswerverifiedShow Answer

The vast majority of the labor forces of the low-income DVCs are engaged in agriculture.

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Suppose that Alpha's real output rose from $400 billion in year 1 to $428 billion in year 2.Its growth rate for this period was

Correct AnswerverifiedShow Answer

Which of the following includes only examples of industrially advanced countries (IACs) ?

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Per capita income in the United States in 2014 was how many times greater than that in China?

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

Correct AnswerverifiedShow Answer

In the DVCs, underemployment frequently takes the form of

Correct AnswerverifiedShow Answer

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