Question 1

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) C) and D)
F) A) and C)

Question 2

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) C) and D)

Question 3

Which of the following countries had the highest population growth rate in 2016-2017?

Accepted Answer

A)  United States
B)  Kenya
C)  China
D)  VenezuelaE) None of the above
F) B) and D)

Question 4

What is capital flight?

Accepted Answer

Capital flight is the transfer of saving...

Question 5

Underemployment occurs

Accepted Answer

A)  when workers do not have jobs.
B)  when farm workers become more productive.
C)  when workers are working fewer hours than they desire or when they are working less productively than they are capable of.
D)  in IACs but not in the DVCs.E) C) and D)
F) All of the above

Question 6

Which of the following is generally not an effective strategy to promote DVC growth?

Accepted Answer

A)  microlending
B)  human capital development
C)  fighting wars against neighbors to obtain resources and stimulate aggregate demand through arms spending
D)  controlling inflationE) B) and D)
F) B) and C)

Question 7

The World Bank has found that even households living in extreme poverty can provide for basic human needs like safe water and sturdy shelter.

Accepted Answer

A) True 
 B)False

Question 8

A recommended policy for developing countries to stimulate economic growth would be

Accepted Answer

A)  abolishing central banks.
B)  more central planning by government.
C)  encouraging more direct foreign investment.
D)  expanding employment in state industries.E) A) and C)
F) B) and C)

Question 9

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

Question 10

A major criticism of foreign aid to developing nations is that it

Accepted Answer

A)  is capital saving rather than capital intensive.
B)  provides incentives for a brain drain.
C)  encourages corruption and misuse of funds.
D)  gives too much power and control to the International Monetary Fund.E) A) and C)
F) A) and D)

Question 11

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Accepted Answer

A) True 
 B)False

Question 12

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Accepted Answer

A)  imports of the finished products of foreign industries.
B)  food.
C)  infrastructure.
D)  industrial development.E) A) and D)
F) A) and B)

Question 13

A recommended policy for DVCs to implement that promotes economic growth is

Accepted Answer

A)  establishing realistic policies for exchange rates.
B)  obtaining more low-interest loans from the U.S. government.
C)  encouraging more tariffs and quotas to protect DVC businesses.
D)  discouraging direct foreign investment to make DVCs more self-sufficient.E) A) and D)
F) B) and C)

Question 14

Which of the following countries had the highest per capita income (on a purchasing power parity basis) in 2017?

Accepted Answer

A)  China
B)  United States
C)  Japan
D)  BrazilE) A) and D)
F) None of the above

Question 15

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) None of the above
F) All of the above

Question 16

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 D)
F) C) and D)

Question 17

Development experts are less enthusiastic than they used to be about three decades ago about the positive role of DVC governments in promoting economic growth in their less-developed nations because of the

Accepted Answer

A)  corruption in government.
B)  availability of foreign aid.
C)  need for a greater tax collection.
D)  need for more public capital goods.E) C) and D)
F) A) and B)

Question 18

Assume the total real income of a developing country increases from $8.5 billion to $8.5 billion, while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has

Accepted Answer

A)  decreased by about $5 per person.
B)  increased by about $1 per person.
C)  decreased by about $46 per person.
D)  increased by about $500 per person.E) All of the above
F) A) and B)

Question 19

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) A) and B)
F) A) and D)

Question 20

All developing countries suffer from a critical shortage of

Accepted Answer

A)  land.
B)  population.
C)  capital goods.
D)  government regulation.E) A) and B)
F) A) and C)

Exam 28: The Economics of Developing Countries

A major criticism of foreign aid to developing nations is that it

Correct Answer
verified

What is capital flight?

Correct Answer
verified
Capital flight is the transfer of saving...
View 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 Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A recommended policy for DVCs to implement that promotes economic growth is

Correct Answer
verified

All developing countries suffer from a critical shortage of

Correct Answer
verified

The World Bank has found that even households living in extreme poverty can provide for basic human needs like safe water and sturdy shelter.

Correct Answer
verified

A recommended policy for developing countries to stimulate economic growth would be

Correct Answer
verified

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 Answer
verified

Which of the following countries had the highest population growth rate in 2016-2017?

Correct Answer
verified

Correct Answer
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Development experts are less enthusiastic than they used to be about three decades ago about the positive role of DVC governments in promoting economic growth in their less-developed nations because of the

Correct Answer
verified

Which of the following is generally not an effective strategy to promote DVC growth?

Correct Answer
verified

The exports of the DVCs consist largely of

Correct Answer
verified

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Correct Answer
verified

Assume the total real income of a developing country increases from $8.5 billion to $8.5 billion, while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has

Correct Answer
verified

Which of the following countries had the highest per capita income (on a purchasing power parity basis) in 2017?

Correct Answer
verified

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Correct Answer
verified

Underemployment occurs

Correct Answer
verified

Exam 28: The Economics of Developing Countries

A major criticism of foreign aid to developing nations is that it

Correct AnswerverifiedShow Answer

What is capital flight?

Correct AnswerverifiedCapital flight is the transfer of saving...View AnswerShow 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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A recommended policy for DVCs to implement that promotes economic growth is

Correct AnswerverifiedShow Answer

All developing countries suffer from a critical shortage of

Correct AnswerverifiedShow Answer

The World Bank has found that even households living in extreme poverty can provide for basic human needs like safe water and sturdy shelter.

Correct AnswerverifiedShow Answer

A recommended policy for developing countries to stimulate economic growth would be

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 countries had the highest population growth rate in 2016-2017?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Development experts are less enthusiastic than they used to be about three decades ago about the positive role of DVC governments in promoting economic growth in their less-developed nations because of the

Correct AnswerverifiedShow Answer

Which of the following is generally not an effective strategy to promote DVC growth?

Correct AnswerverifiedShow Answer

The exports of the DVCs consist largely of

Correct AnswerverifiedShow Answer

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Correct AnswerverifiedShow Answer

Assume the total real income of a developing country increases from $8.5 billion to $8.5 billion, while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has

Correct AnswerverifiedShow Answer

Which of the following countries had the highest per capita income (on a purchasing power parity basis) in 2017?

Correct AnswerverifiedShow Answer

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Correct AnswerverifiedShow Answer

Underemployment occurs

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
Capital flight is the transfer of saving...
View Answer

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