Question 1

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

Question 2

Infrastructure is best illustrated by

Accepted Answer

A)  business equipment and factories.
B)  agricultural machinery and tools.
C)  financial institutions.
D)  roads and bridges.E) All of the above
F) B) and D)

Question 3

The absolute income gap between the IACs and the DVCs has

Accepted Answer

A)  remained constant over time.
B)  increased over time.
C)  decreased over time.
D)  increased in nominal terms but decreased in real terms.E) A) and B)
F) A) and C)

Question 4

Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a major obstacle to economic growth in DVCs?

Accepted Answer

A)  a fall in population growth
B)  a decline in demographic transition
C)  the low demand for natural resources
D)  the low supply of savingE) A) and B)
F) A) and C)

Question 6

(Last Word)  Early experience with conditional cash transfers has revealed that

Accepted Answer

A)  most of these cash transfers available go unused because parents don't want to fulfill the requirements.
B)  there is no significant improvement in nutrition and health compared to nonrecipients.
C)  they encourage school enrollment, but poor-quality schools limit the ability to lift people out of poverty.
D)  the resulting improvements in education and health give the recipients a significant earnings advantage over nonrecipients.E) None of the above
F) All of the above

Question 7

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

Question 8

Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig several wells.This is an illustration of

Accepted Answer

A)  foreign aid.
B)  capital-saving investment.
C)  in-kind investment.
D)  technological advance.E) B) and C)
F) A) and C)

Question 9

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following countries had the highest population growth rate in 2013-2014?

Accepted Answer

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

Question 11

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

Accepted Answer

A)  population growth for a greater labor supply.
B)  output and slow down their population growth.
C)  birth rates to expand their available resources.
D)  mortality rates to slow down their population growth.E) B) and C)
F) A) and B)

Question 12

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

Question 13

In 2014, Wal-Mart's annual revenues were greater than the national incomes of

Accepted Answer

A)  the United States.
B)  Germany.
C)  all but 26 nations.
D)  all nations except for the 5 largest ones.E) B) and C)
F) A) and D)

Question 14

Which of the following is a true statement?

Accepted Answer

A)  Direct foreign investment to DVCs is increasingly provided by commercial banks.
B)  Direct foreign investment to DVCs has dwindled to near zero in recent years.
C)  Approximately 5 percent of the GDP of IACs goes to foreign aid.
D)  Foreign aid from the IACs to the DVCs has greatly expanded in the past several years.E) All of the above
F) B) and D)

Exam 22: The Economics of Developing Countries

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

Correct Answer
verified

Which of the following is a major obstacle to economic growth in DVCs?

Correct Answer
verified

Which of the following is a true statement?

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

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Correct Answer
verified

In 2014, Wal-Mart's annual revenues were greater than the national incomes of

Correct Answer
verified

Which of the following countries had the highest population growth rate in 2013-2014?

Correct Answer
verified

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

Correct Answer
verified

(Last Word) Early experience with conditional cash transfers has revealed that

Correct Answer
verified

Infrastructure is best illustrated by

Correct Answer
verified

The absolute income gap between the IACs and the DVCs has

Correct Answer
verified

Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig several wells.This is an illustration of

Correct Answer
verified

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

Correct Answer
verified

Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.

Correct Answer
verified

Exam 22: The Economics of Developing Countries

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

Correct AnswerverifiedShow Answer

Which of the following is a major obstacle to economic growth in DVCs?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

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

Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.

Correct AnswerverifiedShow Answer

In 2014, Wal-Mart's annual revenues were greater than the national incomes of

Correct AnswerverifiedShow Answer

Which of the following countries had the highest population growth rate in 2013-2014?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

(Last Word) Early experience with conditional cash transfers has revealed that

Correct AnswerverifiedShow Answer

Infrastructure is best illustrated by

Correct AnswerverifiedShow Answer

The absolute income gap between the IACs and the DVCs has

Correct AnswerverifiedShow Answer

Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig several wells.This is an illustration of

Correct AnswerverifiedShow Answer

Development economists suggest that a key strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their

Correct AnswerverifiedShow Answer

Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.

Correct AnswerverifiedShow Answer

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