Question 1

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

Question 2

The "brain drain" problem in the DVCs refers to the fact that the best-educated workers:

Accepted Answer

A)   are concentrated in the public,rather than the private,sector.
B)   are concentrated in the private,rather than the public,sector.
C)   are concentrated in urban,rather than rural,areas.
D)   have emigrated from the DVCs to the IACs.E) A) and B)
F) A) and C)

Question 3

If the real outputs per capita of a rich nation and a poor nation grow at the same percentage rate,the absolute income gap between the two nations will shrink.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is typically not a problem for low-income DVCs?

Accepted Answer

A)   Capital flight.
B)   "Brain drains."
C)   High saving rates that slow aggregate demand growth.
D)   Poor infrastructure.E) All of the above
F) C) and D)

Question 5

The ability of the DVCs to use the technologies of the IACs is somewhat limited because:

Accepted Answer

A)   the IACs have patents on most of their technologies.
B)   the IACs and the DVCs have much different resource endowments.
C)   the technologies of the IACs rely heavily on unskilled labor.
D)   IAC technologies are labor-intensive,while DVC technologies are capital-intensive.E) A) and C)
F) B) and C)

Question 6

The capricious universe view is the idea that the IACs are exploiting the DVCs.

Accepted Answer

A) True 
 B)False

Question 7

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

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

Question 8

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

Accepted Answer

A)   Brazil,Australia,and South Africa.
B)   Uganda,Madagascar,and Burkina Faso.
C)   Canada,Switzerland,and France.
D)   Germany,South Korea,and Mexico.E) B) and C)
F) A) and D)

Question 9

Capital flight from the DVCs may be caused by:

Accepted Answer

A)   a fear of government privatization efforts.
B)   slow domestic inflation.
C)   low rates of domestic taxation.
D)   risks of severe fluctuations in exchange rates.E) None of the above
F) All of the above

Question 10

The very poorest low-income DVCs typically have relatively:

Accepted Answer

A)   low rates of economic growth and relatively high rates of population growth.
B)   high rates of economic growth and relatively low rates of population growth.
C)   low rates of both population growth and economic growth.
D)   high rates of both population growth and economic growth.E) None of the above
F) B) and D)

Question 11

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 capital.E) C) and D)
F) A) and D)

Question 12

Which of the following is not part of a nation's infrastructure?

Accepted Answer

A)   Communications facilities.
B)   Roads,highways,and bridges.
C)   The electrical power system.
D)   Industrial plants and equipment.E) None of the above
F) B) and C)

Question 13

The government of a DVC may purposely cause inflation because:

Accepted Answer

A)   a rapid rate of inflation attracts private foreign capital into a DVC.
B)   there is conclusive evidence that inflation discourages people from having large families.
C)   this will strengthen the nation's position in international markets.
D)   inflation works like taxation in that it may release resources from consumption so that they can be invested.E) B) and D)
F) C) and D)

Question 14

When economists refer to capital flight,they are speaking of an:

Accepted Answer

A)   outflow of financial capital from a certain country.
B)   outflow of real capital from a certain country.
C)   outflow of financial and real capital from a certain country.
D)   outflow of human capital from a certain country.E) C) and D)
F) A) and B)

Question 15

The capricious universe view indicates that:

Accepted Answer

A)   in the long run,"acts of God" have contained population growth and thus contributed to economic development.
B)   DVCs will obtain biological and chemical weapons and force the redistribution of world wealth.
C)   there is little or no correlation between one's efforts and the rewards he or she receives.
D)   international and civil wars have been the primary impediment to growth.E) A) and D)
F) None of the above

Question 16

If population is expanding at the same rate as real output:

Accepted Answer

A)   real per capita output will increase.
B)   real per capita output will decrease.
C)   real per capita output will remain unchanged.
D)   living standards will increase.E) All of the above
F) C) and D)

Question 17

Government-provided foreign aid to developing countries has:

Accepted Answer

A)   averaged about 1 percent of the IACs' GDP each year.
B)   increased sharply since 1995.
C)   dwarfed the size of foreign direct investment to the DVCs in recent years.
D)   declined in the late 1990s but increased from 2000 to 2008.E) B) and C)
F) C) and D)

Question 18

Which of the following is characteristic of DVCs?

Accepted Answer

A)   A large percentage of the labor force is in agriculture.
B)   High levels of saving and investment.
C)   High labor productivity.
D)   High levels of training.E) A) and D)
F) A) and C)

Question 19

Large agricultural subsidies for food and fiber in IACs hurt the economies of the DVCs by:

Accepted Answer

A)   causing higher prices for imported food products.
B)   lowering saving rates in the DVCs.
C)   encouraging "brain drains" from the DVCs.
D)   reducing world agricultural prices and thus export income of the DVCs.E) B) and D)
F) C) and D)

Question 20

In 2010,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)   3.5;41
C)   10;32
D)   4.5;23E) A) and C)
F) C) and D)

Exam 41: The Economics of Developing Countries

Large agricultural subsidies for food and fiber in IACs hurt the economies of the DVCs by:

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When economists refer to capital flight,they are speaking of an:

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The capricious universe view is the idea that the IACs are exploiting the DVCs.

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Which of the following is not part of a nation's infrastructure?

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The very poorest low-income DVCs typically have relatively:

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

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The ability of the DVCs to use the technologies of the IACs is somewhat limited because:

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The capricious universe view indicates that:

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Which of the following is typically not a problem for low-income DVCs?

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

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If population is expanding at the same rate as real output:

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The government of a DVC may purposely cause inflation because:

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If the real outputs per capita of a rich nation and a poor nation grow at the same percentage rate,the absolute income gap between the two nations will shrink.

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Capital flight from the DVCs may be caused by:

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In 2010,the United States had about ___ percent of the world's population and produced about ___ percent of the world output.

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Which of the following is characteristic of DVCs?

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

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Government-provided foreign aid to developing countries has:

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The "brain drain" problem in the DVCs refers to the fact that the best-educated workers:

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In 2010,the United States had about _ percent of the world's population and produced about _ percent of the world output.

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