Question 1

Which of the following factors contributes to the weak economic growth in DVCs?

Accepted Answer

A)   an increase in labor productivity in DVCs
B)   a decrease in international debts of DVCs
C)   an increase in the rate of saving in a DVC
D)   a decrease in the prices of DVC natural resourcesE) A) and C)
F) B) and D)

Question 2

At the beginning of the year, one developing country (DVC)  has a real income per capita of $800. In a developed country (IAC) , the real income per capita is $30,000. Both countries experience a 4
Percent growth rate for the year. At the end of the year, the absolute income gap between these
Two countries will have increased from $29,200 to

Accepted Answer

A)   $30,368.
B)   $31,200.
C)   $30,120.
D)   $32,032.E) A) and B)
F) A) and C)

Question 3

(Consider This)  Between 1990 and 2015, the poverty rate

Accepted Answer

A)   increased from 736 million to 1.9 billion.
B)   stayed constant at 1.9 billion.
C)   increased to 736 million.
D)   decreased from 1.9 billion to 736 million.E) A) and D)
F) A) and C)

Question 4

The most important growth obstacle common to all DVCs is the lack of desire to increase their
standards of living.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

The two paths to economic development, which are the same for both developing countries and industrially advanced economies, are

Accepted Answer

A)   use existing resources more eﬃciently and expand the available resources.
B)   expand the government sector and preserve all available resources.
C)   enhance regulation and taxation, and redistribute income to reduce income disparity.
D)   expand the money supply and eliminate budget deﬁcits.E) C) and D)
F) A) and C)

Question 7

Which of the following countries had the highest population growth rate in 2016-2017?

Accepted Answer

A)   United States
B)   Kenya
C)   China
D)   VenezuelaE) C) and D)
F) B) and D)

Question 8

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Accepted Answer

A)   imports of the ﬁnished products of foreign industries.
B)   food.
C)   infrastructure.
D)   industrial development.E) A) and B)
F) A) and C)

Question 9

(Consider This) From the years, 1990 to 2015, the extreme poverty rate for the world's population
declined from 35.9 percent to 10.0 percent.

Accepted Answer

A) True 
 B)False

Question 10

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​​  Refer to the table. If per capita income increases by 10 percent over ?ve years in each of the nations shown, the per capita income gap between country C and country A

Accepted Answer

A)   will remain the same.
B)   will rise from $30,934 to $34,027.
C)   may rise or fall depending on the rate of population growth.
D)   will rise from $31,555 to $34,710. E) None of the above
F) A) and D)

Question 11

Surplus agricultural labor in a developing nation usually means that there is

Accepted Answer

A)   a caste system.
B)   widespread underemployment.
C)   immobility of labor resources.
D)   increased investment in agriculture.E) B) and D)
F) None of the above

Question 12

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

Question 13

According to the United Nations, approximately what percentage of the world's income is received by the richest one-ﬁfth of the world's population?

Accepted Answer

A)   24 percent
B)   38 percent
C)   60 percent
D)   75 percentE) A) and D)
F) All of the above

Question 14

Population growth remains high in most DVCs

Accepted Answer

A)   because religious and sociocultural considerations favor large families.
B)   because children may provide economic security for aging parents.
C)   because children provide agricultural labor in rural areas.
D)   for all of these reasons.E) A) and D)
F) A) and C)

Question 15

The primary function of the International Finance Corporation (IFC)  is to

Accepted Answer

A)   provide U.S. surplus food to low-income countries.
B)   provide short-term loans to poor countries to ﬁnance international trade deﬁcits.
C)   make infrastructure loans, that is, loans for highways, schools, communication facilities, and so forth.
D)   make loans to private enterprises in the DVCs.E) B) and D)
F) C) and D)

Question 16

Government can play a major positive role in the early stage of economic development by

Accepted Answer

A)   providing adequate infrastructure.
B)   establishing price controls for products.
C)   promoting exports by subsidizing them.
D)   creating marketing boards for export products.E) All of the above
F) A) and B)

Question 17

Capital ﬂight refers to

Accepted Answer

A)   the tendency of large corporations of IACs to build new plants in the DVCs because labor is cheaper.
B)   DVC citizens accumulating or investing their savings in the IACs.
C)   the high international mobility of speculative funds caused by variations in exchange rates.
D)   the tendency of DVCs to overinvest in commercial aircraft.E) B) and D)
F) B) and C)

Question 18

The United States in 2017 had about

Accepted Answer

A)   1.8 percent of the world's population and generated about 10 percent of the world's output.
B)   2.4 percent of the world's population and generated about 20 percent of the world's output.
C)   4.4 percent of the world's population and generated about 24 percent of the world's output.
D)   10 percent of the world's population and generated about 30 percent of the world's output.E) None of the above
F) C) and D)

Question 19

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 20

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Accepted Answer

A)   land reform.
B)   population growth.
C)   underemployment and disguised unemployment.
D)   capital-saving technology.E) B) and C)
F) A) and C)

Exam 22: The Economics of Developing Countries

Which of the following factors contributes to the weak economic growth in DVCs?

Correct Answer
verified

Surplus agricultural labor in a developing nation usually means that there is

Correct Answer
verified

Population growth remains high in most DVCs

Correct Answer
verified

According to the United Nations, approximately what percentage of the world's income is received by the richest one-ﬁfth of the world's population?

Correct Answer
verified

(Consider This) Between 1990 and 2015, the poverty rate

Correct Answer
verified

Government can play a major positive role in the early stage of economic development by

Correct Answer
verified

The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

Correct Answer
verified

Capital ﬂight refers to

Correct Answer
verified

Correct Answer
verified

The United States in 2017 had about

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

The primary function of the International Finance Corporation (IFC) is to

Correct Answer
verified

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

Correct Answer
verified

Which of the following countries had the highest population growth rate in 2016-2017?

Correct Answer
verified

The two paths to economic development, which are the same for both developing countries and industrially advanced economies, are

Correct Answer
verified

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Correct Answer
verified

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Correct Answer
verified

Correct Answer
verified

An economy's infrastructure refers to its

Correct Answer
verified

(Consider This) From the years, 1990 to 2015, the extreme poverty rate for the world's population declined from 35.9 percent to 10.0 percent.

Correct Answer
verified

Exam 22: The Economics of Developing Countries

Which of the following factors contributes to the weak economic growth in DVCs?

Correct AnswerverifiedShow Answer

Surplus agricultural labor in a developing nation usually means that there is

Correct AnswerverifiedShow Answer

Population growth remains high in most DVCs

Correct AnswerverifiedShow Answer

According to the United Nations, approximately what percentage of the world's income is received by the richest one-ﬁfth of the world's population?

Correct AnswerverifiedShow Answer

(Consider This) Between 1990 and 2015, the poverty rate

Correct AnswerverifiedShow Answer

Government can play a major positive role in the early stage of economic development by

Correct AnswerverifiedShow Answer

The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

Correct AnswerverifiedShow Answer

Capital ﬂight refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The United States in 2017 had about

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

The primary function of the International Finance Corporation (IFC) is to

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 countries had the highest population growth rate in 2016-2017?

Correct AnswerverifiedShow Answer

The two paths to economic development, which are the same for both developing countries and industrially advanced economies, are

Correct AnswerverifiedShow Answer

At the present time, the largest percentage of the national incomes of the low-income DVCs is used for

Correct AnswerverifiedShow Answer

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An economy's infrastructure refers to its

Correct AnswerverifiedShow Answer

(Consider This) From the years, 1990 to 2015, the extreme poverty rate for the world's population declined from 35.9 percent to 10.0 percent.

Correct AnswerverifiedShow Answer

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