Question 1

If the real GDP of a DVC increases from $600 billion to $630 billion and its population increases from 200 million to 216 million, its real per capita GDP will

Accepted Answer

A)  increase by about $83.
B)  decrease by about $83.
C)  remained unchanged.
D)  decrease by about $19.E) A) and C)
F) B) and D)

Question 2

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

Question 3

One of the major objectives of the World Bank is to

Accepted Answer

A)  provide financial backing for the United Nations.
B)  maximize its profits for its worldwide shareholders.
C)  provide technical assistance to DVCs.
D)  maintain stable exchange rates in IACs and DVCs.E) B) and C)
F) A) and D)

Question 4

China is close to catching up with the United States in its standard of living as measured by per capita income.

Accepted Answer

A) True 
 B)False

Question 5

One way through which industrially advanced economies can help DVCs is known as "official development assistance (ODA) ," or more simply,

Accepted Answer

A)  foreign investment.
B)  international capital.
C)  foreign aid.
D)  international trade.E) B) and D)
F) A) and B)

Question 6

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth. What view of DVC population growth would this study be supporting?

Accepted Answer

A)  traditional view
B)  peasant agriculture view
C)  the will-to-develop view
D)  demographic transition viewE) A) and D)
F) A) and C)

Question 7

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 B)
F) C) and D)

Question 8

Per capita income in the United States in 2017 was about how many times greater than that in China?

Accepted Answer

A)  8.5 times
B)  12 times
C)  3.5 times
D)  17 timesE) A) and B)
F) A) and C)

Question 9

Suppose that the average annual rate of population increase in Econland in recent years was about 7 percent. Based on this rate of growth, the population of Econland will double in about

Accepted Answer

A)  10 years.
B)  14 years.
C)  7 years.
D)  24 years.E) None of the above
F) All of the above

Question 10

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) A) and D)

Question 11

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

Question 12

In recent years, the governments of the IACs have

Accepted Answer

A)  forgiven a portion of the debt owed by some low-income DVCs.
B)  substantially reduced foreign aid to the DVCs.
C)  substantially reduced their contributions to the World Bank.
D)  discouraged skilled DVC workers from emigrating to the IACs.E) A) and B)
F) B) and D)

Question 13

If the per capita incomes of DVCs (developing countries) grew at the same annual rate as those of IACs (industrially advanced countries) , then the absolute income gap between rich and poor nations over the years would

Accepted Answer

A)  narrow.
B)  widen.
C)  stay the same.
D)  reverse.E) A) and B)
F) B) and C)

Question 14

Income gains in the poorest DVCs may increase population growth initially, at least for a while, due to the following reasons except

Accepted Answer

A)  declining death rates.
B)  increasing birth rates.
C)  reduced infant mortality.
D)  decreasing life expectancy.E) A) and B)
F) A) and C)

Question 15

Which of the following does not correlate positively with economic growth?

Accepted Answer

A)  output per capita
B)  life expectancy
C)  the percentage of the population engaged in agriculture
D)  the literacy rateE) A) and D)
F) A) and C)

Question 16

Industrially advanced countries can help developing countries by

Accepted Answer

A)  admitting more temporary workers from the DVCs.
B)  increasing the amount of aid given directly to government officials.
C)  increasing control over DVCs' capital markets.
D)  encouraging arms sales to DVCs so they can protect themselves.E) C) and D)
F) A) and D)

Question 17

Capital flight from DVCs (developing countries)tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

Accepted Answer

A) True 
 B)False

Question 18

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Accepted Answer

A)  United Nations.
B)  International Finance Corporation.
C)  New Global Compact.
D)  International Development Association.E) B) and D)
F) B) and C)

Question 19

An IAC (industrially advanced country) had a per capita income of $28,200, while a DVC (developing country) had a per capita income of $1,200 in a given year. If both countries experience a per-capita-income growth of 2 percent, then their respective per-capita-income levels one year later will become

Accepted Answer

A)  $33,840 and $1,440.
B)  $28,764 and $1,224.
C)  $33,840 and $1,224.
D)  $28,764 and $1,440.E) A) and D)
F) B) and D)

Question 20

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Accepted Answer

A)  will remain constant.
B)  may either widen or diminish.
C)  will diminish.
D)  will widen.E) None of the above
F) A) and D)

Exam 28: The Economics of Developing Countries

The capricious universe view indicates that

Correct Answer
verified

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Correct Answer
verified

Industrially advanced countries can help developing countries by

Correct Answer
verified

Which of the following does not correlate positively with economic growth?

Correct Answer
verified

One way through which industrially advanced economies can help DVCs is known as "official development assistance (ODA) ," or more simply,

Correct Answer
verified

Capital flight from DVCs (developing countries)tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

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

If the per capita incomes of DVCs (developing countries) grew at the same annual rate as those of IACs (industrially advanced countries) , then the absolute income gap between rich and poor nations over the years would

Correct Answer
verified

Income gains in the poorest DVCs may increase population growth initially, at least for a while, due to the following reasons except

Correct Answer
verified

Suppose that the average annual rate of population increase in Econland in recent years was about 7 percent. Based on this rate of growth, the population of Econland will double in about

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

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth. What view of DVC population growth would this study be supporting?

Correct Answer
verified

If the real GDP of a DVC increases from $600 billion to $630 billion and its population increases from 200 million to 216 million, its real per capita GDP will

Correct Answer
verified

China is close to catching up with the United States in its standard of living as measured by per capita income.

Correct Answer
verified

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

Correct Answer
verified

One of the major objectives of the World Bank is to

Correct Answer
verified

Per capita income in the United States in 2017 was about how many times greater than that in China?

Correct Answer
verified

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Correct Answer
verified

Correct Answer
verified

In recent years, the governments of the IACs have

Correct Answer
verified

Exam 28: The Economics of Developing Countries

The capricious universe view indicates that

Correct AnswerverifiedShow Answer

Making "soft loans"-loans that may not be self-liquidating-to the very poorest of the developing countries on relatively liberal terms is the primary function of the

Correct AnswerverifiedShow Answer

Industrially advanced countries can help developing countries by

Correct AnswerverifiedShow Answer

Which of the following does not correlate positively with economic growth?

Correct AnswerverifiedShow Answer

One way through which industrially advanced economies can help DVCs is known as "official development assistance (ODA) ," or more simply,

Correct AnswerverifiedShow Answer

Capital flight from DVCs (developing countries)tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

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

If the per capita incomes of DVCs (developing countries) grew at the same annual rate as those of IACs (industrially advanced countries) , then the absolute income gap between rich and poor nations over the years would

Correct AnswerverifiedShow Answer

Income gains in the poorest DVCs may increase population growth initially, at least for a while, due to the following reasons except

Correct AnswerverifiedShow Answer

Suppose that the average annual rate of population increase in Econland in recent years was about 7 percent. Based on this rate of growth, the population of Econland will double in about

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

A study concludes that in DVCs, rising incomes must first be achieved and only then will there be slower population growth. What view of DVC population growth would this study be supporting?

Correct AnswerverifiedShow Answer

If the real GDP of a DVC increases from $600 billion to $630 billion and its population increases from 200 million to 216 million, its real per capita GDP will

Correct AnswerverifiedShow Answer

China is close to catching up with the United States in its standard of living as measured by per capita income.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One of the major objectives of the World Bank is to

Correct AnswerverifiedShow Answer

Per capita income in the United States in 2017 was about how many times greater than that in China?

Correct AnswerverifiedShow Answer

If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In recent years, the governments of the IACs have

Correct AnswerverifiedShow Answer

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