Question 1

If the per capita incomes of DVCs (developing countries)  grew at the same annual rate as those of IACs (industrially advanced countries) , then the absolute income gap between rich and poor nations over the years would

Accepted Answer

A)   narrow.
B)   widen.
C)   stay the same.
D)   reverse.E) A) and B)
F) None of the above

Question 2

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 B)
F) A) and D)

Question 3

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 4

The average per capita income in 2014 for low-income developing nations was about

Accepted Answer

A)   $630.
B)   $2,100.
C)   $1,240.
D)   $4,600.E) B) and D)
F) B) and C)

Question 5

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Accepted Answer

A) True 
 B)False

Question 6

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 B)
F) B) and D)

Question 7

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 D)
F) All of the above

Question 8

The demographic transition view of population growth argues that, on average (and as perceived by parents) , the marginal

Accepted Answer

A)   benefits of extra children are larger in IACs than in DVCs.
B)   costs of extra children are lower in IACs than in DVCs.
C)   costs of extra children are larger in IACs than in DVCs.
D)   benefits of extra children are the same in DVCs and IACs.E) C) and D)
F) A) and B)

Question 9

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater

Accepted Answer

A)   capital flight.
B)   economic growth.
C)   underemployment.
D)   unemployment.E) None of the above
F) A) and C)

Question 10

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses. This statement is an argument in favor of

Accepted Answer

A)   free immigration and emigration.
B)   privatizing state industries.
C)   central planning.
D)   free trade.E) None of the above
F) B) and C)

Question 11

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 12

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries)  are

Accepted Answer

A)   rising slowly.
B)   rising quickly.
C)   staying constant.
D)   declining.E) B) and C)
F) A) and B)

Question 13

Brazil, Mexico, and Thailand are referred to as

Accepted Answer

A)   industrially advanced countries.
B)   upper-middle-income developing countries.
C)   low-income developing countries.
D)   command economies.E) A) and B)
F) B) and C)

Question 14

The levels of national income per capita among developing countries (DVCs)  are

Accepted Answer

A)   all within a narrow range.
B)   widely varied.
C)   all growing rapidly.
D)   about half of those of industrially advanced countries (IACs) .E) A) and B)
F) A) and C)

Question 15

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Accepted Answer

A)   land reform.
B)   population growth.
C)   underemployment and disguised unemployment.
D)   capital-saving technology.E) All of the above
F) None of the above

Question 16

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 DVCs.E) A) and C)
F) C) and D)

Question 17

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

Question 18

What is the immigration problem for DVCs?

Accepted Answer

A)   Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers.
B)   Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers.
C)   Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers.
D)   Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers.E) A) and B)
F) B) and C)

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 businesses.E) All of the above
F) A) and C)

Question 20

Most economists agree that government efforts in economic development must be

Accepted Answer

A)   employed to substitute for private efforts.
B)   designed to support private efforts.
C)   the sole driver of economic development.
D)   kept at a minimum because we can always rely on markets.E) B) and D)
F) B) and C)

Exam 28: The Economics of Developing Countries

If the per capita incomes of DVCs (developing countries) grew at the same annual rate as those of IACs (industrially advanced countries) , then the absolute income gap between rich and poor nations over the years would

Correct AnswerverifiedShow Answer

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses. This statement is an argument in favor of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Most economists agree that government efforts in economic development must be

Correct AnswerverifiedShow Answer

Brazil, Mexico, and Thailand are referred to as

Correct AnswerverifiedShow Answer

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

Correct AnswerverifiedShow Answer

Industrially advanced countries can best help developing countries by

Correct AnswerverifiedShow Answer

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater

Correct AnswerverifiedShow Answer

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The average per capita income in 2014 for low-income developing nations was about

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The demographic transition view of population growth argues that, on average (and as perceived by parents) , the marginal

Correct AnswerverifiedShow Answer

The traditional view regarding population and growth in DVCs is that

Correct AnswerverifiedShow Answer

An obstacle to economic growth in developing countries is

Correct AnswerverifiedShow Answer

The levels of national income per capita among developing countries (DVCs) are

Correct AnswerverifiedShow Answer

What is the immigration problem for DVCs?

Correct AnswerverifiedShow Answer

Developing nations tend to have a large entrepreneurial class but not sufficient capital investment.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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