Question 1

Infrastructure is best illustrated by:

Accepted Answer

A)   Business equipment and factories
B)   Agricultural machinery and tools
C)   Financial institutions
D)   Roads and bridgesE) B) and C)
F) A) and C)

Question 2

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 goodsE) C) and D)
F) All of the above

Question 3

In recent years, many DVCs have come to realize that:

Accepted Answer

A)   Expanded international trade is harmful to DVCs
B)   Private capital investment is essential for economic growth in DVCs
C)   The International Monetary Fund is the major institutional barrier to economic growth
D)   Government involvement in economic development is the only avenue for economic growthE) A) and B)
F) B) and D)

Question 4

The basic role of the International Finance Corporation is to:

Accepted Answer

A)   Make loans to governments in developing nations
B)   Invest in private enterprises in developing nations
C)   Finance exports from the United States to developing nations
D)   Make loans to the World Bank which in turn makes loans to governments in developing nationsE) A) and B)
F) None of the above

Question 5

Which of the following is considered to be one of the more ill-advised public policies that has contributed to Africa's famine?

Accepted Answer

A)   Maintenance of high prices for agricultural commodities
B)   Rejection of foreign aid and technical assistance
C)   Neglected investment of resources in agriculture
D)   Acceptance of foreign aid and technical assistanceE) A) and B)
F) B) and D)

Question 6

The World Bank operates primarily as a:

Accepted Answer

A)   Deposit institution for nations' gold supplies
B)   Coordinator for private banks in major nations
C)   Lender of last resort to less developed nations
D)   U.S. government agency that supervises banks worldwideE) All of the above
F) A) and D)

Question 7

What measure of economic development is used most often to classify nations as industrially advanced or as developing?

Accepted Answer

A)   Per capita income
B)   Life expectancy at birth
C)   Per capita energy consumption
D)   Daily per capita calorie supplyE) A) and C)
F) None of the above

Question 8

An IAC (industrially advanced country)  had a per capita income of $28,200 while a DVC (developing country)  had a per capita income of $1,200. If both countries experience a per-capita-income growth of 2 percent, then their respective per-capita income levels will become:

Accepted Answer

A)   $33,840 and $1,440
B)   $28,764 and $1,224
C)   $33,840 and $1,224
D)   $28,764 and $1,440E) A) and B)
F) A) and D)

Question 9

The industrially advanced nations had an average per capita income in 2010 of around:

Accepted Answer

A)   $50,000 per person
B)   $27,000 per person
C)   $39,000 per person
D)   $61,000 per personE) A) and B)
F) None of the above

Question 10

Most of the flow of foreign aid goes to:

Accepted Answer

A)   The poorest of developing countries (DVCs) 
B)   The most affluent of the developing country populations
C)   The smallest developing countries
D)   About 70% of the world's poorest peopleE) None of the above
F) All of the above

Question 11

Trade barriers that restrict imports from developing countries tend to be:

Accepted Answer

A)   Highest in the capital goods and technology sectors of those economies
B)   Lowest in the labor-intensive manufacturing sectors of those economies
C)   Lowest for those products in which DVCs have a comparative advantage
D)   Highest for those products in which DVCs have a comparative advantageE) C) and D)
F) A) and C)

Question 12

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

Question 13

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)   Expansion of employment in state industriesE) None of the above
F) A) and B)

Question 14

Which of the following is considered a factor contributing to famine in Africa?

Accepted Answer

A)   Environmental regulations
B)   A slow rate of population growth
C)   Investment in industrial development over agriculture
D)   Policies that price agricultural products at low levelsE) A) and B)
F) A) and C)

Question 15

In 2010, the IACs (industrially advanced countries) had an average per capital income that was about 67 times as high as that of the low-income nations.

Accepted Answer

A) True 
 B)False

Exam 22: The Economics of Developing Countries

Which of the following is considered a factor contributing to famine in Africa?

Correct Answer
verified

The World Bank operates primarily as a:

Correct Answer
verified

An IAC (industrially advanced country) had a per capita income of $28,200 while a DVC (developing country) had a per capita income of $1,200. If both countries experience a per-capita-income growth of 2 percent, then their respective per-capita income levels will become:

Correct Answer
verified

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

In 2010, the IACs (industrially advanced countries) had an average per capital income that was about 67 times as high as that of the low-income nations.

Correct Answer
verified

Trade barriers that restrict imports from developing countries tend to be:

Correct Answer
verified

Which of the following is considered to be one of the more ill-advised public policies that has contributed to Africa's famine?

Correct Answer
verified

Most of the flow of foreign aid goes to:

Correct Answer
verified

The industrially advanced nations had an average per capita income in 2010 of around:

Correct Answer
verified

The basic role of the International Finance Corporation is to:

Correct Answer
verified

Infrastructure is best illustrated by:

Correct Answer
verified

In recent years, many DVCs have come to realize that:

Correct Answer
verified

Industrially advanced countries can best help developing countries by:

Correct Answer
verified

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

Correct Answer
verified

What measure of economic development is used most often to classify nations as industrially advanced or as developing?

Correct Answer
verified

Exam 22: The Economics of Developing Countries

Which of the following is considered a factor contributing to famine in Africa?

Correct AnswerverifiedShow Answer

The World Bank operates primarily as a:

Correct AnswerverifiedShow Answer

An IAC (industrially advanced country) had a per capita income of $28,200 while a DVC (developing country) had a per capita income of $1,200. If both countries experience a per-capita-income growth of 2 percent, then their respective per-capita income levels will become:

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

In 2010, the IACs (industrially advanced countries) had an average per capital income that was about 67 times as high as that of the low-income nations.

Correct AnswerverifiedShow Answer

Trade barriers that restrict imports from developing countries tend to be:

Correct AnswerverifiedShow Answer

Which of the following is considered to be one of the more ill-advised public policies that has contributed to Africa's famine?

Correct AnswerverifiedShow Answer

Most of the flow of foreign aid goes to:

Correct AnswerverifiedShow Answer

The industrially advanced nations had an average per capita income in 2010 of around:

Correct AnswerverifiedShow Answer

The basic role of the International Finance Corporation is to:

Correct AnswerverifiedShow Answer

Infrastructure is best illustrated by:

Correct AnswerverifiedShow Answer

In recent years, many DVCs have come to realize that:

Correct AnswerverifiedShow Answer

Industrially advanced countries can best help developing countries by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What measure of economic development is used most often to classify nations as industrially advanced or as developing?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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