Question 1

Government can play a major positive role in the early stage of economic development by

Accepted Answer

A)  providing an adequate infrastructure.
B)  establishing price controls for products.
C)  promoting exports by subsidizing them.
D)  creating marketing boards for export products.E) C) and D)
F) B) and C)

Question 2

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

Question 3

One major path that leads to growth in both developing nations (DVCs)  as well industrially advanced nations (IACs)  is that productive resources must be

Accepted Answer

A)  owned and managed by the public sector.
B)  distributed more equitably across business sectors.
C)  reallocated to export industries.
D)  used more efficiently.E) B) and C)
F) A) and C)

Question 4

The ability of the DVCs to use the technologies of the IACs is somewhat limited because

Accepted Answer

A)  the IACs have patents on most of their technologies.
B)  the IACs and the DVCs have much different resource endowments.
C)  the technologies of the IACs rely heavily on unskilled labor.
D)  IAC technologies are labor-intensive, while DVC technologies are capital-intensive.E) A) and D)
F) All of the above

Question 5

One of the major objectives of the World Bank is to

Accepted Answer

A)  provide financial backing for the United Nations.
B)  maximize its profits for its worldwide shareholders.
C)  provide technical assistance to DVCs.
D)  maintain stable exchange rates in IACs and DVCs.E) All of the above
F) A) and B)

Question 6

Capital flight is a problem facing DVCs that involves the

Accepted Answer

A)  difficulty of sustaining skilled workers in the government sector of the DVC economies.
B)  transfer of private savings from DVCs to IACs.
C)  flight of agricultural workers from rural to urban areas, especially capital cities, to take advantage of better job opportunities.
D)  movement of capital goods from IACs to DVCs to avoid taxes.E) A) and C)
F) None of the above

Question 7

The primary function of the International Finance Corporation (IFC)  is to

Accepted Answer

A)  provide U.S.surplus food to low-income countries.
B)  provide short-term loans to poor countries to finance international trade deficits.
C)  make infrastructure loans, that is, loans for highways, schools, communication facilities, and so forth.
D)  make loans to private enterprises in the DVCs.E) B) and D)
F) A) and B)

Question 8

China is close to catching up with the United States in its standard of living as measured by per capita income.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Capital flight from the DVCs may be caused by

Accepted Answer

A)  a fear of government privatization efforts.
B)  slow domestic inflation.
C)  low rates of domestic taxation.
D)  risks of severe fluctuations in exchange rates.E) None of the above
F) A) and D)

Question 11

Many countries remain poor because they currently are poor.This statement summarizes the

Accepted Answer

A)  infrastructure problem.
B)  vicious circle of poverty.
C)  demographic transition problem.
D)  problem of capital flight.E) A) and D)
F) A) and C)

Question 12

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) All of the above
F) None of the above

Question 13

In recent decades,

Accepted Answer

A)  all countries classified as DVCs have had little or no economic growth.
B)  some nations classified as DVCs have grown rapidly, while others have grown very slowly or not at all.
C)  all countries classified as DVCs have experienced rapid economic growth and rising living standards.
D)  all countries classified as low-income DVCs have had declining per capita GDPs.E) None of the above
F) B) and D)

Question 14

The capricious universe view is the idea that the IACs are exploiting the DVCs.

Accepted Answer

A) True 
 B)False

Exam 19: The Economics of Developing Countries

China is close to catching up with the United States in its standard of living as measured by per capita income.

Correct Answer
verified

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

Correct Answer
verified

Capital flight from the DVCs may be caused by

Correct Answer
verified

Many countries remain poor because they currently are poor.This statement summarizes the

Correct Answer
verified

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

Correct Answer
verified

Government can play a major positive role in the early stage of economic development by

Correct Answer
verified

One major path that leads to growth in both developing nations (DVCs) as well industrially advanced nations (IACs) is that productive resources must be

Correct Answer
verified

One of the major objectives of the World Bank is to

Correct Answer
verified

The ability of the DVCs to use the technologies of the IACs is somewhat limited because

Correct Answer
verified

Capital flight is a problem facing DVCs that involves the

Correct Answer
verified

In recent decades,

Correct Answer
verified

The capricious universe view is the idea that the IACs are exploiting the DVCs.

Correct Answer
verified

The primary function of the International Finance Corporation (IFC) is to

Correct Answer
verified

The traditional view regarding population and growth in DVCs is that

Correct Answer
verified

Exam 19: The Economics of Developing Countries

China is close to catching up with the United States in its standard of living as measured by per capita income.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Capital flight from the DVCs may be caused by

Correct AnswerverifiedShow Answer

Many countries remain poor because they currently are poor.This statement summarizes the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Government can play a major positive role in the early stage of economic development by

Correct AnswerverifiedShow Answer

One major path that leads to growth in both developing nations (DVCs) as well industrially advanced nations (IACs) is that productive resources must be

Correct AnswerverifiedShow Answer

One of the major objectives of the World Bank is to

Correct AnswerverifiedShow Answer

The ability of the DVCs to use the technologies of the IACs is somewhat limited because

Correct AnswerverifiedShow Answer

Capital flight is a problem facing DVCs that involves the

Correct AnswerverifiedShow Answer

In recent decades,

Correct AnswerverifiedShow Answer

The capricious universe view is the idea that the IACs are exploiting the DVCs.

Correct AnswerverifiedShow Answer

The primary function of the International Finance Corporation (IFC) is to

Correct AnswerverifiedShow Answer

The traditional view regarding population and growth in DVCs is that

Correct AnswerverifiedShow Answer

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