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


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) political strategy

E) A) and B)
F) A) and C)

Correct Answer

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Health care improvements often don't happen because:


A) they are too expensive to implement.
B) doctors overprescribe and drive the cost of health care too high.
C) health care facilities don't exist in some parts of the world.
D) they are too expensive to have any significant impact.

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

Correct Answer

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Wealthy countries increasingly feel that trade:


A) is sometimes acting as a barrier to poorer countries' development.
B) is an effective political tool to use against poorer countries.
C) can sometimes be a more powerful lever than aid to help poorer countries develop.
D) can help poorer countries development, but hurt their overall growth.

E) None of the above
F) All of the above

Correct Answer

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One of the largest challenges with foreign aid today is:


A) finding ways to ensure it is going to the best uses possible.
B) raising enough of it to have any significant impact on the market.
C) countries' overreliance on it removing incentives to better themselves.
D) severely diminishes some nations' ability to help their own citizens.

E) C) and D)
F) B) and D)

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Those living in the poorest quartile of countries would like to emigrate because:


A) earnings are higher for the same skill level in richer countries.
B) the opportunities to gain more education are higher in richer countries.
C) the cost of living is lower in richer countries.
D) All of these statements are true.

E) All of the above
F) C) and D)

Correct Answer

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A financing gap is:


A) the difference between the savings rate within an economy and the amount of investment needed to achieve sustainable growth.
B) the extra savings a country has beyond that needed to achieve sustainable growth.
C) the difference in the amount of investment dollars coming in to a country and the amount of investment dollars going out of a country.
D) the extra investment developing countries need in foreign aid to sustain their current rate of growth.

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

Correct Answer

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The institution that monitors and enforces trade agreements and promotes free trade is:


A) the World Bank.
B) UNICEF.
C) the World Trade Organization.
D) the National Alliance Trade Organization.

E) All of the above
F) C) and D)

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Between 1999 and 2015, throughout the world more children attended school:


A) only in those countries with strong economic growth.
B) only in those countries with free college education.
C) even in countries that did not experience strong economic growth.
D) which contributed to the drop in family cohesiveness in developing countries.

E) None of the above
F) A) and C)

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National health insurance programs:


A) can increase use of health clinics versus traditional village doctors, who often have no medical training.
B) are usually too costly for developing nations to implement.
C) have solved the problem of providing high-quality care in places like India.
D) are always less efficient than privatized programs.

E) A) and B)
F) None of the above

Correct Answer

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In general, educating workers:


A) makes them more productive.
B) does not affect overall economic growth.
C) contributes little to other capabilities.
D) All of these statements are true.

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

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Most economists agree that while there are a seemingly endless number of ways to promote economic development:


A) there are just as many ways to measure effectiveness.
B) there are few ways to measure their effectiveness.
C) there is no way to determine which ways are the best.
D) there is no need to measure effectiveness.

E) A) and B)
F) A) and C)

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Randomized controlled trials cannot:


A) evaluate the impact of all programs or policies on development.
B) help explain why a particular program succeeded.
C) provide strong support that a program proven effective in one place can be duplicated in another or that its effectiveness would be maintained over time.
D) All of these statements are true.

E) A) and B)
F) A) and C)

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In general, educating workers:


A) does not make them more productive.
B) increases overall economic growth.
C) contributes little to other capabilities.
D) forces them to leave their native country.

E) A) and B)
F) All of the above

Correct Answer

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Which of the following would NOT be considered a capability in the capabilities approach?


A) To be able to find secure and meaningful work
B) To be able to afford to travel freely
C) To live free of the fear of violence
D) All of these are considered capabilities

E) B) and C)
F) B) and D)

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Impact investors are willing to be more patient, take greater risks, and sometimes accept lower financial returns as long as they're convinced that their money:


A) is being used to create social change.
B) will have a better financial return in the long run.
C) is gaining more worth than it would in domestic investments.
D) None of these statements is true.

E) None of the above
F) All of the above

Correct Answer

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Rwanda is a clear example of a country that has:


A) achieved economic growth only after a democratic regime was in place.
B) achieved economic growth without a democratic regime.
C) failed to achieve economic growth without a democratic regime.
D) failed to achieve economic growth, despite having a democratic regime.

E) All of the above
F) None of the above

Correct Answer

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Every year, the U.S. allows 500,000 people from developing countries to immigrate to the U.S. permanently, which means:


A) it has a lower rate of acceptance than admission rates to the most competitive U.S. colleges.
B) there is a severe surplus, since 13.6 million apply to enter the U.S.
C) many people resort to immigrating illegally.
D) All of these statements are true.

E) None of the above
F) B) and D)

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The "Asian miracle" refers to the:


A) success countries like Japan, South Korea, and Taiwan have had with export-led growth policy.
B) success countries like Japan, South Korea, and Taiwan have had with import substitution policy.
C) fact that countries like Japan and South Korea have had consistent growth despite their failing industrial policies.
D) high growth in countries like Japan and South Korea despite the absence of a democratic government.

E) None of the above
F) A) and B)

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One of the challenges for development economists working in health care is to figure out a way to:


A) give doctors the right incentives to practice good medicine.
B) force families to make better health care choices.
C) influence markets in order to keep the costs of healthcare lower.
D) alter the educational system in order to mandate that a certain number of students go into healthcare fields.

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

Correct Answer

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Which of the following helps explain why more people don't immigrate to rich countries?


A) It's difficult due to the immigration restrictions of rich countries.
B) The language barrier is too great.
C) Educational degrees are not recognized.
D) The strain of leaving some family behind is too stressful.

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

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