Question 1

All developing countries suffer from a critical shortage of

Accepted Answer

A)  land.
B)  population.
C)  capital goods.
D)  government regulation.E) All of the above
F) A) and B)

Question 2

The diversion of surplus labor in agriculture to the production of schools or roads in developing countries is described as

Accepted Answer

A)  land reform.
B)  the brain drain.
C)  in-kind investment.
D)  a capital-using technological advance.E) None of the above
F) A) and D) C

Question 3

Population growth remains high in most DVCs

Accepted Answer

A)  because religious and sociocultural considerations favor large families.
B)  because children may provide economic security for aging parents.
C)  because children provide agricultural labor in rural areas.
D)  for all of these reasons.E) A) and D)
F) A) and C)

Question 4

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) A) and D)

Question 5

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

Question 6

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) None of the above
F) All of the above

Question 7

The government of a DVC may force the economy to save by deliberately causing inflation.This policy is undesirable because inflation may

Accepted Answer

A)  distort investment away from productive facilities and toward luxury housing and precious metals.
B)  increase voluntary saving because the value of money is depreciating.
C)  contribute to a balance of trade surplus.
D)  entail all of these problems.E) B) and C)
F) A) and D) A

Question 8

Which of these sets of countries has the greatest degree of internal corruption as of 2015, according to Transparency International?

Accepted Answer

A)  Somalia, Afghanistan, and North Korea
B)  Finland, Denmark, and New Zealand
C)  Spain, Greece, and Italy
D)  Mexico, China, and RussiaE) B) and D)
F) C) and D)

Question 9

The creation of an adequate infrastructure in a nation is primarily the responsibility of the public sector.

Accepted Answer

A) True 
 B)False

Question 10

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

Question 11

Which of the following DVC policies is not likely to increase DVC economic growth?

Accepted Answer

A)  privatizing state industries
B)  controlling population growth
C)  restricting direct foreign investment from abroad
D)  building human capitalE) C) and D)
F) All of the above

Question 12

The demographic transition concept suggests that

Accepted Answer

A)  effective birth control is the primary prerequisite of DVC income growth.
B)  income growth must first occur before DVC birth rates will decline.
C)  children are economic assets in the IACs but economic liabilities in the DVCs.
D)  the IACs will have higher birth rates than the DVCs.E) All of the above
F) A) and B)

Question 13

The very poorest low-income DVCs typically have relatively

Accepted Answer

A)  low rates of economic growth and relatively high rates of population growth.
B)  high rates of economic growth and relatively low rates of population growth.
C)  low rates of both population growth and economic growth.
D)  high rates of both population growth and economic growth.E) A) and C)
F) None of the above

Question 14

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

Question 15

A major complaint of DVCs about foreign aid from IACs is that it

Accepted Answer

A)  is allocated just to the poorest nations.
B)  is equally borne by the donor nations.
C)  needs to be quantitatively larger for DVCs.
D)  takes too long a time to reach DVCs.E) A) and D)
F) B) and D)

Question 16

Most of the DVCs of the world are located in Western Europe.

Accepted Answer

A) True 
 B)False

Question 17

(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 B)
F) C) and D)

Question 18

One way through which industrially advanced economies can help DVCs is known as "official development assistance (ODA) ," or more simply,

Accepted Answer

A)  foreign investment.
B)  international capital.
C)  foreign aid.
D)  international trade.E) B) and D)
F) A) and B)

Question 19

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

Question 20

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

Exam 22: The Economics of Developing Countries

All developing countries suffer from a critical shortage of

Correct Answer
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The diversion of surplus labor in agriculture to the production of schools or roads in developing countries is described as

Correct Answer
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C

Population growth remains high in most DVCs

Correct Answer
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The exports of the DVCs consist largely of

Correct Answer
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Correct Answer
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A

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

Correct Answer
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The government of a DVC may force the economy to save by deliberately causing inflation.This policy is undesirable because inflation may

Correct Answer
verified
A

Which of these sets of countries has the greatest degree of internal corruption as of 2015, according to Transparency International?

Correct Answer
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The creation of an adequate infrastructure in a nation is primarily the responsibility of the public sector.

Correct Answer
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Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Correct Answer
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Which of the following DVC policies is not likely to increase DVC economic growth?

Correct Answer
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The demographic transition concept suggests that

Correct Answer
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The very poorest low-income DVCs typically have relatively

Correct Answer
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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

Correct Answer
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A major complaint of DVCs about foreign aid from IACs is that it

Correct Answer
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Most of the DVCs of the world are located in Western Europe.

Correct Answer
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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 Answer
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One way through which industrially advanced economies can help DVCs is known as "official development assistance (ODA) ," or more simply,

Correct Answer
verified

The traditional view regarding population and growth in DVCs is that

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

Correct Answer
verified

Exam 22: The Economics of Developing Countries

All developing countries suffer from a critical shortage of

Correct AnswerverifiedShow Answer

The diversion of surplus labor in agriculture to the production of schools or roads in developing countries is described as

Correct AnswerverifiedC

Population growth remains high in most DVCs

Correct AnswerverifiedShow Answer

The exports of the DVCs consist largely of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

The government of a DVC may force the economy to save by deliberately causing inflation.This policy is undesirable because inflation may

Correct AnswerverifiedA

Which of these sets of countries has the greatest degree of internal corruption as of 2015, according to Transparency International?

Correct AnswerverifiedShow Answer

The creation of an adequate infrastructure in a nation is primarily the responsibility of the public sector.

Correct AnswerverifiedShow Answer

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

Correct AnswerverifiedShow Answer

Which of the following DVC policies is not likely to increase DVC economic growth?

Correct AnswerverifiedShow Answer

The demographic transition concept suggests that

Correct AnswerverifiedShow Answer

The very poorest low-income DVCs typically have relatively

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

Correct AnswerverifiedShow Answer

A major complaint of DVCs about foreign aid from IACs is that it

Correct AnswerverifiedShow Answer

Most of the DVCs of the world are located in Western Europe.

Correct AnswerverifiedShow Answer

(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

One way through which industrially advanced economies can help DVCs is known as "official development assistance (ODA) ," or more simply,

Correct AnswerverifiedShow Answer

The traditional view regarding population and growth in DVCs is that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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C

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A

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A

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