Question 1

Which of the following is not a reason why government may play a key role in the early stage of economic development in developing nations?

Accepted Answer

A)   the infrastructure provided by government
B)   the abundance of entrepreneurs who need to be regulated
C)   the need to encourage saving and investment in the economy
D)   the provision of law and order so that commerce can ﬂourishE) B) and C)
F) A) and D)

Question 2

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will
always remain poor.

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

Economic growth may hinge on whether individuals and institutions within a nation want growth badly enough to change their traditional ways of doing things. This statement refers to

Accepted Answer

A)   in-kind investment.
B)   the capricious universe view.
C)   human capital investment.
D)   the will to develop.E) C) and D)
F) A) and C)

Question 5

The demographic transition view of population and growth in DVCs is that

Accepted Answer

A)   the most important factor affecting population growth in DVCs is demographic changes among the elderly.
B)   slower population growth is neither desirable nor productive for DVCs given the state of the economies in these nations.
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) A) and C)
F) All of the above

Question 6

One major path that leads to growth in both developing nations (DVCs)  as well industrially advanced nations (IACs)  is that productive resources must be

Accepted Answer

A)   owned and managed by the public sector.
B)   distributed more equitably across business sectors.
C)   reallocated to export industries.
D)   used more eﬃciently.E) A) and D)
F) A) and C)

Question 7

In contrast to international development efforts in most of the 20th century, more recent projects like microﬁnance, microcredit, and cash transfers in the last few decades represent a major shift.
That is because these recent projects are

Accepted Answer

A)   all sponsored by local governments.
B)   done through the United Nations.
C)   launched by universities and colleges.
D)   focused on giving direct aid to poor individuals.E) A) and C)
F) B) and C)

Question 8

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

Question 9

Which of the following is not inversely related to per capita income?

Accepted Answer

A)   mortality rates for children under ﬁve years of age
B)   adult illiteracy rates
C)   per capita energy consumption
D)   population growth ratesE) A) and C)
F) All of the above

Question 10

An example of direct foreign investment would be the building of a motorcycle factory in China by
Honda Motors.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not an example of a sociocultural impediment to economic growth?

Accepted Answer

A)   tribal allegiances that take precedence over national unity
B)   religious beliefs and practices that severely limit economic activity
C)   migration of labor resources from agricultural to urban areas
D)   a system for allocating jobs based on caste or traditionE) B) and D)
F) B) and C)

Question 12

What are the two divisions of the World Bank? What do they do?

Accepted Answer

The two divisions of the World Bank are ...

Question 13

Approximately what percentage of the world's income is received by the poorest one-ﬁfth of the world's population?

Accepted Answer

A)   2
B)   5
C)   7
D)   10E) B) and C)
F) B) and D)

Question 14

Successful foreign aid programs

Accepted Answer

A)   enhance a DVC's resources and therefore shift its production possibilities curve to the left.
B)   enhance a DVC's resources and therefore shift its production possibilities curve to the right.
C)   move the DVC from a high-investment-low-consumption position to a low-investment-high- consumption position on its stable production possibilities curve.
D)   cause a DVC's exchange rate to depreciate.E) C) and D)
F) None of the above

Question 15

Country  Per Capita Income, 2017A$621B14,894C31,555D3,498E2,005\begin{array} { | c | c | } \hline 	ext { Country } & 	ext { Per Capita Income, } 2017 \\hline A & \$ 621 \\hline B & 14,894 \\hline C & 31,555 \\hline D & 3,498 \\hline E & 2,005 \\hline\end{array} Country ABCDE​ Per Capita Income, 2017$62114,89431,5553,4982,005​​  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 C E) A) and B)
F) A) and C)

Question 16

Most nations of the world are now IACs, not middle- and low-income DVCs.

Accepted Answer

A) True 
 B)False

Question 17

The demographic transition concept suggests that

Accepted Answer

A)   effective birth control is the primary prerequisite of DVC income growth.
B)   income growth must ﬁrst occur before DVC birth rates will decline.
C)   children are economic assets in the IACs but economic liabilities in the DVCs.
D)   the IACs will have higher birth rates than the DVCs.E) C) and D)
F) All of the above

Question 18

The basic role of the International Finance Corporation is to

Accepted Answer

A)   make loans to governments in developing nations.
B)   invest in private enterprises in developing nations.
C)   ﬁnance exports from the United States to developing nations.
D)   make loans to the World Bank, which in turn makes loans to governments in developing nations.E) All of the above
F) A) and B)

Question 19

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)

Question 20

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 C)
F) C) and D)

Exam 22: The Economics of Developing Countries

Most nations of the world are now IACs, not middle- and low-income DVCs.

Correct Answer
verified

Which of the following is not an example of a sociocultural impediment to economic growth?

Correct Answer
verified

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

Correct Answer
verified

The demographic transition view of population and growth in DVCs is that

Correct Answer
verified

An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.

Correct Answer
verified

In contrast to international development efforts in most of the 20th century, more recent projects like microﬁnance, microcredit, and cash transfers in the last few decades represent a major shift. That is because these recent projects are

Correct Answer
verified

The demographic transition concept suggests that

Correct Answer
verified

What are the two divisions of the World Bank? What do they do?

Correct Answer
verified
The two divisions of the World Bank are ...
View Answer

Successful foreign aid programs

Correct Answer
verified

Which of the following is not a reason why government may play a key role in the early stage of economic development in developing nations?

Correct Answer
verified

Economic growth may hinge on whether individuals and institutions within a nation want growth badly enough to change their traditional ways of doing things. This statement refers to

Correct Answer
verified

Which of the following is not inversely related to per capita income?

Correct Answer
verified

One major path that leads to growth in both developing nations (DVCs) as well industrially advanced nations (IACs) is that productive resources must be

Correct Answer
verified

In 2017, the GDP of the United States was approximately

Correct Answer
verified

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

Correct Answer
verified

Approximately what percentage of the world's income is received by the poorest one-ﬁfth of the world's population?

Correct Answer
verified

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

Correct Answer
verified

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

Correct Answer
verified

The basic role of the International Finance Corporation is to

Correct Answer
verified

Correct Answer
verified

Exam 22: The Economics of Developing Countries

Most nations of the world are now IACs, not middle- and low-income DVCs.

Correct AnswerverifiedShow Answer

Which of the following is not an example of a sociocultural impediment to economic growth?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The demographic transition view of population and growth in DVCs is that

Correct AnswerverifiedShow Answer

An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.

Correct AnswerverifiedShow Answer

In contrast to international development efforts in most of the 20th century, more recent projects like microﬁnance, microcredit, and cash transfers in the last few decades represent a major shift. That is because these recent projects are

Correct AnswerverifiedShow Answer

The demographic transition concept suggests that

Correct AnswerverifiedShow Answer

What are the two divisions of the World Bank? What do they do?

Correct AnswerverifiedThe two divisions of the World Bank are ...View AnswerShow Answer

Successful foreign aid programs

Correct AnswerverifiedShow Answer

Which of the following is not a reason why government may play a key role in the early stage of economic development in developing nations?

Correct AnswerverifiedShow Answer

Economic growth may hinge on whether individuals and institutions within a nation want growth badly enough to change their traditional ways of doing things. This statement refers to

Correct AnswerverifiedShow Answer

Which of the following is not inversely related to per capita income?

Correct AnswerverifiedShow Answer

One major path that leads to growth in both developing nations (DVCs) as well industrially advanced nations (IACs) is that productive resources must be

Correct AnswerverifiedShow Answer

In 2017, the GDP of the United States was approximately

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Approximately what percentage of the world's income is received by the poorest one-ﬁfth of the world's population?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.

Correct AnswerverifiedShow Answer

The basic role of the International Finance Corporation is to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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The two divisions of the World Bank are ...
View Answer

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