Question 1

A large portion of government-provided foreign aid to developing countries

Accepted Answer

A)  has averaged about 1 percent of the IACs' GDP each year.
B)  has increased sharply and steadily since 1995.
C)  has dwarfed the size of foreign direct investment to the DVCs in recent years.
D)  is distributed on the basis of political and military considerations.E) B) and D)
F) All of the above

Question 2

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Accepted Answer

A)  more consumption
B)  more food production
C)  an increase in the birth rate
D)  an increase in labor productivityE) None of the above
F) All of the above

Question 3

The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.

Accepted Answer

A) True 
 B)False

Question 4

In recent years, the industrially advanced nations as a group have provided foreign aid amounting to about what percentage of their aggregate outputs?

Accepted Answer

A)  0.25 percent
B)  0.7 percent
C)  1 percent
D)  2 percentE) None of the above
F) C) and D)

Question 5

A highly active role by government may be needed to promote economic growth in low-income DVCs because of

Accepted Answer

A)  a lack of infrastructure.
B)  rigid law enforcement in the country.
C)  excessive local entrepreneurship.
D)  all these reasons.E) C) and D)
F) B) and D)

Question 6

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

Accepted Answer

A)  rising slowly.
B)  rising quickly.
C)  staying constant.
D)  declining.E) A) and D)
F) None of the above

Question 7

Industrially advanced countries can best help DVCs by

Accepted Answer

A)  directing requests from DVCs for aid to the World Bank.
B)  using the International Monetary Fund to determine exchange rates in DVCs.
C)  increasing management control over development projects.
D)  adopting policies that expand trade with DVCs.E) None of the above
F) A) and D)

Question 8

Which of the following is a major obstacle to economic growth in DVCs?

Accepted Answer

A)  a fall in population growth
B)  a decline in demographic transition
C)  the low demand for natural resources
D)  the low supply of savingE) A) and C)
F) A) and B)

Question 9

Over the next 15 years, roughly what percentage of the increase in world population will come from DVCs?

Accepted Answer

A)  25 percent
B)  50 percent
C)  70 percent
D)  90 percentE) C) and D)
F) All of the above

Question 10

What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?

Accepted Answer

A)  The interest rate paid on money kept in a bank in DVCs is not as high as the interest rate on money kept in a bank in an IAC.
B)  Capital flight reduces investment opportunities and the need for saving in DVCs.
C)  There is a continual brain drain that removes skilled labor from the work force and reduces labor productivity and the need for saving.
D)  The domestic output of DVCs is so low that the absolute volume of saving is small.E) All of the above
F) None of the above

Question 11

Avenues for the government to foster economic growth and development include the following, except

Accepted Answer

A)  nationalization and protection of domestic industries.
B)  establishing the rule of law and protection of property rights.
C)  building infrastructure and technological support.
D)  building human capital and promoting entrepreneurship.E) C) and D)
F) All of the above

Question 12

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Accepted Answer

A) True 
 B)False

Question 13

At the beginning of the year, one developing country (DVC) has a real income per capita of $1,500. In a developed country (IAC) , the real income per capita is $30,000. Both countries experience a 6 percent growth rate for the year. At the end of the year, the absolute income gap between these two countries will have increased from $28,500 to

Accepted Answer

A)  $30,210.
B)  $31,800.
C)  $30,180.
D)  $33,390.E) B) and D)
F) B) and C)

Question 14

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and Japan)and the DVCs of Africa, Latin America, and Asia have been narrowing significantly over the decades.

Accepted Answer

A) True 
 B)False

Question 15

The World Bank

Accepted Answer

A)  provides military assistance to those nations interested in improving national defense.
B)  makes and guarantees loans for basic development projects such as the construction of dams, roads, and schools.
C)  provides gold for DVCs that want to go on the gold standard.
D)  provides short-term loans to DVCs that are incurring balance of payments deficits.E) None of the above
F) A) and B)

Question 16

Which of the following factors contributes most to the high per capita incomes in developed nations?

Accepted Answer

A)  high rates of population growth
B)  high rates of economic growth
C)  low rates of investment
D)  low rates of savingE) None of the above
F) A) and B)

Question 17

Developing countries (DVCs) can be subdivided into the following groups except

Accepted Answer

A)  low-income economies.
B)  high-income economies.
C)  lower-middle-income economies.
D)  upper-middle-income economies.E) A) and D)
F) All of the above

Question 18

Which of the following seems to be the most acute institutional problem that needs to be resolved by many DVCs?

Accepted Answer

A)  the use of capital-saving technology
B)  development of natural resources
C)  widespread political corruption
D)  an increase in foreign aidE) B) and C)
F) A) and B)

Question 19

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 20

In 2017, the GDP of the United States was approximately

Accepted Answer

A)  $9 trillion less than the GDP of the 135 DVCs in that year.
B)  $9 trillion more than the GDP of the 135 DVCs in that year.
C)  twice the GDP of the 135 DVCs in that year.
D)  the same as the GDP of 135 DVCs in that year.E) A) and B)
F) A) and C)

Exam 28: The Economics of Developing Countries

In 2017, the GDP of the United States was approximately

Correct Answer
verified

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

Correct Answer
verified

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Correct Answer
verified

A highly active role by government may be needed to promote economic growth in low-income DVCs because of

Correct Answer
verified

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Correct Answer
verified

Which of the following factors contributes most to the high per capita incomes in developed nations?

Correct Answer
verified

Which of the following is a major obstacle to economic growth in DVCs?

Correct Answer
verified

Avenues for the government to foster economic growth and development include the following, except

Correct Answer
verified

What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?

Correct Answer
verified

Which of the following seems to be the most acute institutional problem that needs to be resolved by many DVCs?

Correct Answer
verified

The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.

Correct Answer
verified

A large portion of government-provided foreign aid to developing countries

Correct Answer
verified

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and Japan)and the DVCs of Africa, Latin America, and Asia have been narrowing significantly over the decades.

Correct Answer
verified

In recent years, the industrially advanced nations as a group have provided foreign aid amounting to about what percentage of their aggregate outputs?

Correct Answer
verified

The World Bank

Correct Answer
verified

Correct Answer
verified

Industrially advanced countries can best help DVCs by

Correct Answer
verified

Developing countries (DVCs) can be subdivided into the following groups except

Correct Answer
verified

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

Correct Answer
verified

Over the next 15 years, roughly what percentage of the increase in world population will come from DVCs?

Correct Answer
verified

Exam 28: The Economics of Developing Countries

In 2017, the GDP of the United States was approximately

Correct AnswerverifiedShow Answer

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

Correct AnswerverifiedShow Answer

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Correct AnswerverifiedShow Answer

A highly active role by government may be needed to promote economic growth in low-income DVCs because of

Correct AnswerverifiedShow Answer

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Correct AnswerverifiedShow Answer

Which of the following factors contributes most to the high per capita incomes in developed nations?

Correct AnswerverifiedShow Answer

Which of the following is a major obstacle to economic growth in DVCs?

Correct AnswerverifiedShow Answer

Avenues for the government to foster economic growth and development include the following, except

Correct AnswerverifiedShow Answer

What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?

Correct AnswerverifiedShow Answer

Which of the following seems to be the most acute institutional problem that needs to be resolved by many DVCs?

Correct AnswerverifiedShow Answer

The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.

Correct AnswerverifiedShow Answer

A large portion of government-provided foreign aid to developing countries

Correct AnswerverifiedShow Answer

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and Japan)and the DVCs of Africa, Latin America, and Asia have been narrowing significantly over the decades.

Correct AnswerverifiedShow Answer

In recent years, the industrially advanced nations as a group have provided foreign aid amounting to about what percentage of their aggregate outputs?

Correct AnswerverifiedShow Answer

The World Bank

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Industrially advanced countries can best help DVCs by

Correct AnswerverifiedShow Answer

Developing countries (DVCs) can be subdivided into the following groups except

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

Over the next 15 years, roughly what percentage of the increase in world population will come from DVCs?

Correct AnswerverifiedShow Answer

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