Question 1

All developing countries suffer from a critical shortage of

Accepted Answer

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

Question 2

One reason why foreign aid is viewed as harmful is that it promotes dependency.

Accepted Answer

A) True 
 B)False

Question 3

Because families can afford to have more children, population growth is greater in the IACs than in the DVCs.

Accepted Answer

A) True 
 B)False

Question 4

The population growth rate of the DVCs (developing countries)  as a group in recent decades has been

Accepted Answer

A)  steady.
B)  declining.
C)  rising modestly.
D)  rising rapidly.E) A) and D)
F) A) and B)

Question 5

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 C)
F) B) and D)

Question 6

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

Accepted Answer

A)  low trade barriers
B)  large international debts
C)  an increase in the rate of saving
D)  a slowing of population growthE) A) and B)
F) A) and C)

Question 7

Which of the following countries had the best score in the Corruption Perception Index in 2015?

Accepted Answer

A)  Japan
B)  China
C)  United States
D)  CanadaE) A) and B)
F) None of the above

Question 8

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 nations.E) A) and B)
F) C) and D)

Question 9

Suppose that the average annual rate of population increase in Econland in recent years was about 2 percent.Based on this rate of growth, the population of Econland will double in about

Accepted Answer

A)  7 years.
B)  11 years.
C)  35 years.
D)  46 years.E) All of the above
F) A) and C)

Question 10

To be classified as a low-income developing country, annual per capita income in 2014 needed to be

Accepted Answer

A)  $1,045 or less.
B)  $628 or less.
C)  $2,018 or less.
D)  $925 or less.E) A) and D)
F) None of the above

Question 11

The vast majority of the labor forces of the low-income DVCs are engaged in agriculture.

Accepted Answer

A) True 
 B)False

Question 12

(Last Word)  Loans offered through microcredit programs

Accepted Answer

A)  are usually spent on food.
B)  suffer from low repayment rates.
C)  have very high repayment rates.
D)  have lifted borrowers out of poverty at a faster pace than nonrecipients of loans.E) A) and D)
F) C) and D)

Question 13

Which attitude or custom is the most conducive to long-term economic growth?

Accepted Answer

A)  a focus on group contentment rather than individual achievement
B)  the belief that there is little or no correlation between an individual's economic actions and her or his economic fortunes
C)  the belief that there is a direct connection between individual efforts (including educational efforts)  and economic rewards
D)  the use of the majority of resources for religious structures and ceremoniesE) B) and C)
F) None of the above

Question 14

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

Question 15

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 C)
F) A) and B)

Question 16

The absolute income gap between the IACs and the DVCs has

Accepted Answer

A)  remained constant over time.
B)  increased over time.
C)  decreased over time.
D)  increased in nominal terms but decreased in real terms.E) A) and B)
F) None of the above

Question 17

The demographic transition view alleges that

Accepted Answer

A)  the DVCs must first accept the use of birth control techniques to increase their standards of living.
B)  population growth will decline only if mortality rates exceed birth rates.
C)  if incomes first rise, population growth will then decline.
D)  population growth has no bearing on a nation's per capita income.E) A) and B)
F) A) and C)

Question 18

In 2014, the United States had about percent of the world's population and produced about percent of the world output.

Accepted Answer

A)  20; 30
B)  3.6; 31
C)  10; 28
D)  4.4; 22E) A) and B)
F) A) and C)

Question 19

Which of the following countries had the highest per capita energy consumption in 2013?

Accepted Answer

A)  India
B)  China
C)  Japan
D)  United StatesE) A) and C)
F) All of the above

Question 20

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth.What view of DVC population growth would this study be supporting?

Accepted Answer

A)  traditional view
B)  peasant agriculture view
C)  the will-to-develop view
D)  demographic transition viewE) None of the above
F) B) and C)

Exam 19: The Economics of Developing Countries

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth.What view of DVC population growth would this study be supporting?

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

Correct AnswerverifiedShow Answer

The population growth rate of the DVCs (developing countries) as a group in recent decades has been

Correct AnswerverifiedShow Answer

(Last Word) Loans offered through microcredit programs

Correct AnswerverifiedShow Answer

All developing countries suffer from a critical shortage of

Correct AnswerverifiedShow Answer

The basic role of the International Finance Corporation is to

Correct AnswerverifiedShow Answer

Because families can afford to have more children, population growth is greater in the IACs than in the DVCs.

Correct AnswerverifiedShow Answer

Suppose that the average annual rate of population increase in Econland in recent years was about 2 percent.Based on this rate of growth, the population of Econland will double in about

Correct AnswerverifiedShow Answer

To be classified as a low-income developing country, annual per capita income in 2014 needed to be

Correct AnswerverifiedShow Answer

Which of the following countries had the best score in the Corruption Perception Index in 2015?

Correct AnswerverifiedShow Answer

The absolute income gap between the IACs and the DVCs has

Correct AnswerverifiedShow Answer

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

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

One reason why foreign aid is viewed as harmful is that it promotes dependency.

Correct AnswerverifiedShow Answer

The demographic transition view alleges that

Correct AnswerverifiedShow Answer

Which of the following countries had the highest per capita energy consumption in 2013?

Correct AnswerverifiedShow Answer

The vast majority of the labor forces of the low-income DVCs are engaged in agriculture.

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 attitude or custom is the most conducive to long-term economic growth?

Correct AnswerverifiedShow Answer

In 2014, the United States had about percent of the world's population and produced about percent of the world output.

Correct AnswerverifiedShow Answer

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