Question 1

To be classified as a low-income developing country, annual per capita income in 2017 needed to be

Accepted Answer

A)  $995 or less.
B)  $628 or less.
C)  $2,018 or less.
D)  $800 or less.E) A) and D)
F) All of the above

Question 2

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

Question 3

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 B)
F) A) and C)

Question 4

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

Question 5

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

Question 6

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

Question 7

What is the difference between capital-using and capital-saving technological advances? Give an example.

Accepted Answer

Capital-using technology refers to an im...

Question 8

Which of these sets of nations consists of low-income developing nations?

Accepted Answer

A)  Brazil, Australia, and South Africa
B)  Burundi, Madagascar, and Sierra Leone
C)  Canada, Switzerland, and France
D)  Germany, South Korea, and MexicoE) None of the above
F) B) and D) B

Question 9

A reason for placing emphasis on capital accumulation in developing countries is the high

Accepted Answer

A)  level of adult illiteracy.
B)  productivity of workers in DVCs.
C)  need for investment in infrastructure.
D)  level of import quotas and tariffs.E) A) and C)
F) A) and D)

Question 10

Small loans to entrepreneurs and small business owners in DVCs are referred to as

Accepted Answer

A)  human capital development projects.
B)  microcredit.
C)  capital flight promotion systems.
D)  incubator lending.E) B) and D)
F) A) and D)

Question 11

Which of the following includes only examples of industrially advanced countries (IACs) ?

Accepted Answer

A)  the United States, Canada, and Mexico
B)  Pakistan, India, and China
C)  Japan, South Korea, and China
D)  Canada, Australia, and New ZealandE) B) and D)
F) B) and C)

Question 12

The idea that a person's productive efforts and his or her economic rewards are unrelated

Accepted Answer

A)  is the neocolonialism view of economic development.
B)  describes the vicious circle of poverty.
C)  is the surplus labor theory of economic development.
D)  is the capricious universe view.E) B) and C)
F) A) and D)

Question 13

Examples of low-income developing countries are

Accepted Answer

A)  Switzerland, New Zealand, and Australia.
B)  Germany, Austria, and Italy.
C)  Chad, Bangladesh, and Democratic Republic of the Congo.
D)  Mexico, South Korea, and Brazil.E) None of the above
F) All of the above

Question 14

The presence of large and fast-growing populations in developing countries contributes to lower per capita incomes.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

Accepted Answer

A)  population growth for a greater labor supply.
B)  output and slow down their population growth.
C)  birth rates to expand their available resources.
D)  mortality rates to slow down their population growth.E) A) and C)
F) A) and B)

Question 17

DVCs tend to have permanent shortages of farm labor.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False  True

Question 19

Which of the following countries had the highest per capita energy consumption in 2015?

Accepted Answer

A)  India
B)  China
C)  Japan
D)  United StatesE) B) and C)
F) C) and D)

Question 20

Which of the following factors contributes to the weak economic growth in DVCs?

Accepted Answer

A)  an increase in labor productivity in DVCs
B)  a decrease in international debts of DVCs
C)  an increase in the rate of saving in a DVC
D)  a decrease in the prices of DVC natural resourcesE) B) and C)
F) A) and D)

Exam 28: The Economics of Developing Countries

To be classified as a low-income developing country, annual per capita income in 2017 needed to be

Correct AnswerverifiedShow Answer

The absolute income gap between the IACs and the DVCs has

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Loans offered through microcredit programs

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

What is the difference between capital-using and capital-saving technological advances? Give an example.

Correct AnswerverifiedCapital-using technology refers to an im...View AnswerShow Answer

Which of these sets of nations consists of low-income developing nations?

Correct AnswerverifiedB

A reason for placing emphasis on capital accumulation in developing countries is the high

Correct AnswerverifiedShow Answer

Small loans to entrepreneurs and small business owners in DVCs are referred to as

Correct AnswerverifiedShow Answer

Which of the following includes only examples of industrially advanced countries (IACs) ?

Correct AnswerverifiedShow Answer

The idea that a person's productive efforts and his or her economic rewards are unrelated

Correct AnswerverifiedShow Answer

Examples of low-income developing countries are

Correct AnswerverifiedShow Answer

The presence of large and fast-growing populations in developing countries contributes to lower per capita incomes.

Correct AnswerverifiedShow Answer

The traditional view regarding population and growth in DVCs is that

Correct AnswerverifiedShow Answer

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

Correct AnswerverifiedShow Answer

DVCs tend to have permanent shortages of farm labor.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

Which of the following countries had the highest per capita energy consumption in 2015?

Correct AnswerverifiedShow Answer

Which of the following factors contributes to the weak economic growth in DVCs?

Correct AnswerverifiedShow Answer

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D

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Capital-using technology refers to an im...
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B

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True

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