Question 1

The industrially advanced countries (IACs) had an average per capita income in 2017 of around

Accepted Answer

A)  $82,000 per person.
B)  $27,000 per person.
C)  $40,000 per person.
D)  $61,000 per person.E) B) and C)
F) A) and D)

Question 2

Which of the following DVC policies is not likely to increase DVC economic growth?

Accepted Answer

A)  privatizing state industries
B)  controlling population growth
C)  restricting direct foreign investment from abroad
D)  building human capitalE) A) and D)
F) B) and C)

Question 3

Providing poor families with grants if they send their children to school and get proper medical care is known as

Accepted Answer

A)  microcredit.
B)  in-kind transfers.
C)  unconditional cash transfers.
D)  conditional cash transfers.E) All of the above
F) B) and D)

Question 4

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

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 C)
F) A) and B)

Question 5

The vicious circle of poverty in the poorest DVCs can also be expressed as,

Accepted Answer

A)  "The rich get richer, while the poor get poorer."
B)  "Fate dealt the poor nations a bad hand."
C)  "The poor nations stay poor because they are poor."
D)  "Historical developments have oppressed the poor nations' incomes."E) B) and C)
F) B) and D)

Question 6

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

Question 7

An economy's infrastructure refers to its

Accepted Answer

A)  public capital goods, such as roads, schools, and power facilities.
B)  financial and banking institutions.
C)  land and natural resources.
D)  surplus supplies of unskilled labor.E) A) and D)
F) A) and B)

Question 8

Which of the given nations would be high-income countries (IACs) , according to the World Bank?

Accepted Answer

A)  country C only
B)  countries B, C, and D
C)  countries B, C, D, and E
D)  countries B and CE) None of the above
F) All of the above

Question 9

Which of the following describes the vicious circle of poverty?

Accepted Answer

A)  Government spending for public goods is inflationary, and this undermines incentives to save and invest.
B)  Higher incomes increase consumption at the expense of capital accumulation, which causes income to fall.
C)  Low per capita incomes cause low levels of saving and investment, which mean low productivity and therefore low incomes.
D)  A growing national income increases the demand for money, which increases the interest rate and reduces investment.E) B) and C)
F) A) and B)

Question 10

Many economists believe that the key to breaking the vicious circle of poverty is to

Accepted Answer

A)  cut down the mortality rates in poor nations.
B)  reduce the birth rates in poor nations.
C)  increase the mobility of labor and migration.
D)  increase the rate of capital accumulation in poor nations.E) None of the above
F) All of the above

Question 11

Describe the main characteristics of direct foreign aid from IACs to DVCs.

Accepted Answer

The United States and other IACs have as...

Question 12

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater

Accepted Answer

A)  capital flight.
B)  economic growth.
C)  underemployment.
D)  unemployment.E) B) and C)
F) A) and B)

Question 13

List the three major human resource problems in developing nations.

Accepted Answer

The three major human resource problems ...

Question 14

If a technological advance expands output and requires a smaller investment in capital goods, this technological advance

Accepted Answer

A)  is capital-using.
B)  must involve nonfinancial investment.
C)  is capital-saving.
D)  must pertain to the infrastructure.E) A) and D)
F) None of the above

Question 15

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 16

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

Accepted Answer

A)  Japan and Spain
B)  China and Russia
C)  United States and Canada
D)  Denmark and SingaporeE) None of the above
F) A) and D)

Question 17

For DVC per capita incomes to rise, birth rates must first be reduced. This statement describes the

Accepted Answer

A)  human capital view of population growth.
B)  traditional view of population growth.
C)  capricious universe view.
D)  demographic transition view of population growth.E) None of the above
F) A) and C)

Question 18

Trade barriers that restrict imports from developing countries tend to be

Accepted Answer

A)  highest in the capital goods and technology sectors of those economies.
B)  lowest in the labor-intensive manufacturing sectors of those economies.
C)  lowest for those products in which DVCs have a comparative advantage.
D)  highest for those products in which DVCs have a comparative advantage.E) B) and C)
F) None of the above

Question 19

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) A) and B)

Question 20

The demographic transition view of population growth believes that slower population growth will lead to rising incomes.

Accepted Answer

A) True 
 B)False

Exam 28: The Economics of Developing Countries

Which of the given nations would be high-income countries (IACs) , according to the World Bank?

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Studies generally show that if there is more investment in capital goods in DVCs, there will be greater

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

Correct AnswerverifiedShow Answer

Many economists believe that the key to breaking the vicious circle of poverty is to

Correct AnswerverifiedShow Answer

Which of the following DVC policies is not likely to increase DVC economic growth?

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For DVC per capita incomes to rise, birth rates must first be reduced. This statement describes the

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The industrially advanced countries (IACs) had an average per capita income in 2017 of around

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An economy's infrastructure refers to its

Correct AnswerverifiedShow Answer

If a technological advance expands output and requires a smaller investment in capital goods, this technological advance

Correct AnswerverifiedShow Answer

The vicious circle of poverty in the poorest DVCs can also be expressed as,

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Trade barriers that restrict imports from developing countries tend to be

Correct AnswerverifiedShow Answer

The demographic transition view of population growth believes that slower population growth will lead to rising incomes.

Correct AnswerverifiedShow Answer

Providing poor families with grants if they send their children to school and get proper medical care is known as

Correct AnswerverifiedShow Answer

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

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Describe the main characteristics of direct foreign aid from IACs to DVCs.

Correct AnswerverifiedThe United States and other IACs have as...View AnswerShow Answer

List the three major human resource problems in developing nations.

Correct AnswerverifiedThe three major human resource problems ...View AnswerShow Answer

Which of the following describes the vicious circle of poverty?

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

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In recent decades,

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

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The United States and other IACs have as...
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The three major human resource problems ...
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