Question 1

The goal of import substitution is to:

Accepted Answer

A)   protect domestic industries until they can become price competitive in the world market.
B)   convince domestic consumers to change the types of goods they import.
C)   shift domestic production away from capital intensive industries toward more labor intensive industries.
D)   All of these are goals of important substitution.E) C) and D)
F) All of the above

Question 2

According to economist Douglass North, institutions:

Accepted Answer

A)   are the "rules of the game" in a society.
B)   are the humanly devised constraints that shape human interactions.
C)   include laws enforced by the government as well as cultural norms.
D)   All of these are true.E) A) and B)
F) A) and C)

Question 3

Every year, the United States allows 50,000 people from developing countries to permanently immigrate to the United States through:

Accepted Answer

A)   seasonal worker visas.
B)   H-1B visas.
C)   human smuggling operations.
D)   the U.S. Diversity Visa lottery.E) A) and D)
F) A) and B)

Question 4

In terms of industrial policy, clusters refer to:

Accepted Answer

A)   networks of interdependent firms, universities, and businesses that focus on production of a specific type of good.
B)   firms in an economy that are so interconnected they all fail when just one fails.
C)   groups of underperforming industries.
D)   the industries supported in a country practicing import substitution policy.E) None of the above
F) All of the above

Question 5

What is the relationship of good governance to economic growth and development?

Accepted Answer

A)   It is important to economic growth, but not to economic development.
B)   It is important to both economic growth and development.
C)   It is important to economic development, but not to economic growth.
D)   It is important neither to economic growth nor development.E) A) and B)
F) A) and C)

Question 6

In an effort to improve health care, many developing countries have implemented:

Accepted Answer

A)   A subsidies for medical school.
B)   national health insurance programs.
C)   single payer health care systems.
D)   tax incentives or companies to build healthcare infrastructure.E) A) and B)
F) A) and D)

Question 7

Which of the following statements describes the success of import substitution?

Accepted Answer

A)   Approval from the World Trade Organization is required in order for import substitution to be successful.
B)   Import substitution has been successful for the great majority of countries.
C)   Import substitution is generally unsuccessful in the real world.
D)   Import substitution is typically more successful than clustering, but less successful than export-led growth.E) B) and C)
F) None of the above

Question 8

Which of the following is a response to the "big push" theory?

Accepted Answer

A)   The funding of 13 Millennium Villages
B)   Increased U.S. foreign aid provided to trade development
C)   The 17 Sustainable Development Goals
D)   The United Nations declaring a moratorium on all foreign aidE) None of the above
F) A) and D)

Question 9

Which country has had success with export-led growth policy?

Accepted Answer

A)   Italy
B)   South Korea
C)   Russia
D)   LiberiaE) None of the above
F) A) and D)

Question 10

People who live in countries with _______ average incomes generally live _______ lives.

Accepted Answer

A)   lower; shorter
B)   lower; longer
C)   higher; shorter
D)   None of these are true.E) A) and B)
F) A) and C)

Question 11

The table shown provides economic development data for a set of countries.  Which country has the lowest economic development?

Accepted Answer

A)   Ghana
B)   Italy
C)   Brazil
D)   GermanyE) A) and C)
F) None of the above

Question 12

Since the end of the Cold War in 1991, official U.S. foreign aid:

Accepted Answer

A)   has become a much smaller part of the federal budget.
B)   has continued to be used as a political strategy to prevent communism.
C)   has continued, and is still largely dedicated toward building public goods.
D)   has focused more on developing strong institutions instead of public goods.E) A) and D)
F) B) and D)

Question 13

Import substitution:

Accepted Answer

A)   protects domestic industries until they are efficient enough to compete in the world market.
B)   incentivizes consumers to substitute imported goods for domestic goods.
C)   encourages domestic industries to ship exports to other countries.
D)   mandates that imports can only be sold if the domestic economy does not produce that good.E) A) and B)
F) All of the above

Question 14

The acronym "RCT" stands for:

Accepted Answer

A)   realistically controlled trade.
B)   required capture technology.
C)   randomized controlled trials.
D)   regressive cash transfer.E) B) and C)
F) B) and D)

Question 15

The table shown provides economic development data for a set of countries.  Which country has the lowest economic growth?

Accepted Answer

A)   Ghana
B)   Italy
C)   Brazil
D)   GermanyE) B) and C)
F) A) and C)

Question 16

Which of the following is not a task of the World Trade Organization?

Accepted Answer

A)   Monitoring trade agreements
B)   Promoting free trade internationally
C)   Enforcing trade agreements between nations
D)   Ensuring trade doesn't adversely affect the environmentE) A) and B)
F) A) and C)

Question 17

For much of the history of foreign aid, _______ has been a driving force in decisions about how much to give.

Accepted Answer

A)   the finance gap of receiving countries
B)   the opportunity cost of investing in developing nations
C)   the interest rate in the home country
D)   the age of the receiving countryE) B) and C)
F) None of the above

Question 18

Educated workers are generally:

Accepted Answer

A)   more productive.
B)   less productive.
C)   less healthy.
D)   happier.E) None of the above
F) A) and D)

Question 19

In general, each additional year of schooling is worth about _______ percent more in overall earnings over the course of one's lifetime.

Accepted Answer

A)   10
B)   5
C)   25
D)   50E) C) and D)
F) B) and D)

Question 20

Limited capabilities often affect ___________ the most.

Accepted Answer

A)   journalists
B)   the richest
C)   politicians
D)   the poorestE) A) and B)
F) B) and D)

Exam 19: Developmenteconomics

Which of the following is not a task of the World Trade Organization?

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Since the end of the Cold War in 1991, official U.S. foreign aid:

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What is the relationship of good governance to economic growth and development?

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For much of the history of foreign aid, _______ has been a driving force in decisions about how much to give.

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People who live in countries with _______ average incomes generally live _______ lives.

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In terms of industrial policy, clusters refer to:

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Which of the following statements describes the success of import substitution?

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The acronym "RCT" stands for:

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The table shown provides economic development data for a set of countries. Which country has the lowest economic development?

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Which of the following is a response to the "big push" theory?

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Every year, the United States allows 50,000 people from developing countries to permanently immigrate to the United States through:

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The goal of import substitution is to:

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Import substitution:

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According to economist Douglass North, institutions:

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Educated workers are generally:

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Limited capabilities often affect ___________ the most.

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In an effort to improve health care, many developing countries have implemented:

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Which country has had success with export-led growth policy?

Correct AnswerverifiedShow Answer

In general, each additional year of schooling is worth about _______ percent more in overall earnings over the course of one's lifetime.

Correct AnswerverifiedShow Answer

The table shown provides economic development data for a set of countries. Which country has the lowest economic growth?

Correct AnswerverifiedShow Answer

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People who live in countries with _ average incomes generally live _ lives.

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