Question 1

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 120 million, its real per capita output will have

Accepted Answer

A)  remained unchanged.
B)  increased by about $167.
C)  increased by about $55.
D)  decreased by about $20.E) B) and D)
F) None of the above

Question 2

The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth.

Accepted Answer

A) True 
 B)False

Question 3

An institutional change that is needed in most developing nations is

Accepted Answer

A)  the will to develop.
B)  reduced foreign aid.
C)  birth control.
D)  land reform.E) C) and D)
F) A) and D)

Question 4

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

Question 5

An advantage of direct foreign investment (compared to foreign loans) is that management skill and technological knowledge often accompany such capital flows.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a characteristic of human resources in the poorest DVCs?

Accepted Answer

A)  Populations are large.
B)  Unemployment and underemployment are widespread.
C)  Population growth is low.
D)  Labor productivity is low.E) None of the above
F) All of the above

Question 7

Population expansion can impede economic development for the following reasons except

Accepted Answer

A)  reduced saving and investment rates.
B)  reduced productivity of labor.
C)  a larger supply of labor.
D)  its contribution to urban congestion and problems.E) All of the above
F) B) and D)

Question 8

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Accepted Answer

A) True 
 B)False

Question 9

More than 75 percent of the world's income is earned by what percentage of the world's population?

Accepted Answer

A)  5 percent
B)  10 percent
C)  20 percent
D)  40 percentE) All of the above
F) C) and D)

Question 10

Which characteristic is most typical of human resources in developing nations?

Accepted Answer

A)  a small population base
B)  low unemployment in urban areas
C)  low unemployment in rural areas
D)  high unemployment in urban areasE) A) and B)
F) A) and C)

Question 11

One of the essential paths to economic growth is

Accepted Answer

A)  increasing population growth.
B)  expanding the role of government.
C)  using existing resources more efficiently.
D)  expanding tax credits for business investment.E) None of the above
F) A) and D)

Question 12

Infrastructure is best illustrated by

Accepted Answer

A)  farm equipment.
B)  school buildings and highways.
C)  machinery and equipment for the production of consumer goods.
D)  government tax revenues.E) None of the above
F) All of the above

Question 13

A factor that limits the amount of saving in developing countries is the fact that

Accepted Answer

A)  the banking system does not encourage saving.
B)  there is too much foreign aid, so savings is not needed.
C)  the level of aggregate domestic output is low.
D)  the government controls financial institutions and makes it difficult for people to save.E) A) and D)
F) A) and C)

Question 14

Which of the following countries had the highest population density (population per square km)  in 2014?

Accepted Answer

A)  United States
B)  India
C)  China
D)  VenezuelaE) A) and B)
F) B) and D)

Question 15

An increasing share of the private capital flows to DVCs in recent years has been in the form of

Accepted Answer

A)  interest-free government loans.
B)  educational and training assistance.
C)  direct foreign investment.
D)  bank loans.E) None of the above
F) B) and C)

Question 16

The low per capita outputs of the DVCs are explained by

Accepted Answer

A)  insufficient saving and investment.
B)  overinvestment in human capital.
C)  slow population growth.
D)  excessively rapid technological advance.E) C) and D)
F) B) and D)

Question 17

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 D)
F) A) and C)

Question 18

Without an abundant endowment of natural resources, a nation cannot achieve rapid economic growth.

Accepted Answer

A) True 
 B)False

Question 19

Which of these sets of nations consists of high-income economies?

Accepted Answer

A)  Brazil, Thailand, and South Africa
B)  China, India, and Russia
C)  Canada, Switzerland, and France
D)  United States, South Korea, and MexicoE) C) and D)
F) All of the above

Question 20

Land reform (or the reform of land ownership) is a relatively minor institutional obstacle to economic growth in many developing countries.

Accepted Answer

A) True 
 B)False

Exam 19: The Economics of Developing Countries

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

Correct AnswerverifiedShow Answer

Which of these sets of nations consists of high-income economies?

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Population expansion can impede economic development for the following reasons except

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A factor that limits the amount of saving in developing countries is the fact that

Correct AnswerverifiedShow Answer

The low per capita outputs of the DVCs are explained by

Correct AnswerverifiedShow Answer

An institutional change that is needed in most developing nations is

Correct AnswerverifiedShow Answer

Which characteristic is most typical of human resources in developing nations?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Land reform (or the reform of land ownership) is a relatively minor institutional obstacle to economic growth in many developing countries.

Correct AnswerverifiedShow Answer

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Correct AnswerverifiedShow Answer

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 120 million, its real per capita output will have

Correct AnswerverifiedShow Answer

The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth.

Correct AnswerverifiedShow Answer

Which of the following countries had the highest population density (population per square km) in 2014?

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Which of the following is not a characteristic of human resources in the poorest DVCs?

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Infrastructure is best illustrated by

Correct AnswerverifiedShow Answer

One of the essential paths to economic growth is

Correct AnswerverifiedShow Answer

An advantage of direct foreign investment (compared to foreign loans) is that management skill and technological knowledge often accompany such capital flows.

Correct AnswerverifiedShow Answer

Without an abundant endowment of natural resources, a nation cannot achieve rapid economic growth.

Correct AnswerverifiedShow Answer

More than 75 percent of the world's income is earned by what percentage of the world's population?

Correct AnswerverifiedShow Answer

An increasing share of the private capital flows to DVCs in recent years has been in the form of

Correct AnswerverifiedShow Answer

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