Question 1

When technological advances are of the capital-using kind, it is possible for an economy to increase its productivity without any net investment in capital goods.

Accepted Answer

A) True 
 B)False

Question 2

If population is expanding at the same rate as real output,

Accepted Answer

A)  real per capita output will increase.
B)  real per capita output will decrease.
C)  real per capita output will remain unchanged.
D)  living standards will increase.E) B) and D)
F) C) and D)

Question 3

Which of the following countries had the highest per capita energy consumption in 2013?

Accepted Answer

A)  India
B)  China
C)  Japan
D)  United StatesE) All of the above
F) A) and B)

Question 4

(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) B) and C)

Question 5

Capital flight refers to

Accepted Answer

A)  the tendency of large corporations of IACs to build new plants in the DVCs because labor is cheaper.
B)  DVC citizens accumulating or investing their savings in the IACs.
C)  the high international mobility of speculative funds caused by variations in exchange rates.
D)  the tendency of DVCs to overinvest in commercial aircraft.E) C) and D)
F) None of the above

Question 6

The populations of the developing nations are growing

Accepted Answer

A)  at about 5 percent per year.
B)  at about the same rate as those of the industrially advanced nations.
C)  slower than those of the industrially advanced nations.
D)  faster than those of the industrially advanced nations.E) A) and D)
F) All of the above

Question 7

(Last Word)  Loans offered through microcredit programs

Accepted Answer

A)  are usually spent on food.
B)  suffer from low repayment rates.
C)  have very high repayment rates.
D)  have lifted borrowers out of poverty at a faster pace than nonrecipients of loans.E) A) and B)
F) A) and C)

Question 8

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) All of the above

Question 9

Which of the following is characteristic of DVCs?

Accepted Answer

A)  A large percentage of the labor force is in agriculture.
B)  There are high levels of saving and investment.
C)  They have high labor productivity.
D)  There are high levels of training.E) B) and D)
F) None of the above

Question 10

Industrially advanced countries can best help developing countries by

Accepted Answer

A)  establishing price supports for the products produced by DVCs.
B)  increasing tariffs and quotas on products produced by DVCs.
C)  increasing the flows of private capital to DVCs.
D)  increasing control over DVCs' capital markets.E) B) and C)
F) C) and D)

Question 11

Which of the following is not inversely related to per capita income?

Accepted Answer

A)  mortality rates for children under five years of age
B)  adult illiteracy rates
C)  per capita energy consumption
D)  population growth ratesE) B) and C)
F) A) and B)

Question 12

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) None of the above
F) B) and C)

Question 13

The population growth rate of the DVCs (developing countries)  as a group in recent decades has been

Accepted Answer

A)  steady.
B)  declining.
C)  rising modestly.
D)  rising rapidly.E) None of the above
F) A) and D)

Question 14

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by

Accepted Answer

A)  increasing the amount of military aid to strengthen the government's role in providing law and order.
B)  increasing trade barriers so that less-developed nations will become more self-sufficient.
C)  reducing trade barriers and increasing the amount of private and public capital.
D)  decreasing the amounts of private capital or foreign aid to reduce the level of neocolonialism.E) None of the above
F) A) and B)

Question 15

Which of the following IACs (industrially advanced countries)  gave the largest share of its GDP to foreign aid or development assistance to DVCs (developing countries)  in 2015?

Accepted Answer

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

Question 16

Which of these sets of nations consists of low-income developing nations?

Accepted Answer

A)  Brazil, Australia, and South Africa
B)  Uganda, Madagascar, and Burkina Faso
C)  Canada, Switzerland, and France
D)  Germany, South Korea, and MexicoE) B) and D)
F) B) and C)

Question 17

A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be

Accepted Answer

A)  cutting debt relief for DVCs.
B)  directing foreign aid to the more affluent DVCs.
C)  restricting immigration of low-skilled workers from DVCs.
D)  reducing tariffs and import quotas on labor-intensive products.E) None of the above
F) B) and C)

Question 18

Which of the following IACs (industrially advanced countries)  gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries)  in 2015?

Accepted Answer

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

Question 19

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Accepted Answer

A)  will remain constant.
B)  may either widen or diminish.
C)  will diminish.
D)  will widen.E) B) and D)
F) B) and C)

Question 20

Per capita income in the United States in 2014 was about

Accepted Answer

A)  $25,300 per person.
B)  $36,300 per person.
C)  $55,200 per person.
D)  $68,800 per person.E) A) and C)
F) A) and B)

Exam 42: 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?

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Per capita income in the United States in 2014 was about

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Which of the following IACs (industrially advanced countries) gave the smallest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

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Which of the following is not inversely related to per capita income?

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A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be

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The populations of the developing nations are growing

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When technological advances are of the capital-using kind, it is possible for an economy to increase its productivity without any net investment in capital goods.

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

Which of the following IACs (industrially advanced countries) gave the largest share of its GDP to foreign aid or development assistance to DVCs (developing countries) in 2015?

Correct AnswerverifiedShow Answer

If population is expanding at the same rate as real output,

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Capital flight refers to

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Which of the following countries had the highest per capita energy consumption in 2013?

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Which of these sets of nations consists of low-income developing nations?

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(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

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Correct AnswerverifiedShow Answer

(Last Word) Loans offered through microcredit programs

Correct AnswerverifiedShow Answer

The population growth rate of the DVCs (developing countries) as a group in recent decades has been

Correct AnswerverifiedShow Answer

Industrially advanced countries can best help developing countries by

Correct AnswerverifiedShow Answer

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by

Correct AnswerverifiedShow Answer

Which of the following is characteristic of DVCs?

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