Question 1

Income inequality is usually lower in developing countries than in more industrialized countries.

Accepted Answer

A) True 
 B)False

Question 2

The newly industrializing economies of the Pacific Rim that have experienced rapid economic growth include

Accepted Answer

A)  North Korea, Burma, Vietnam, and Cambodia.
B)  Japan, Thailand, Laos, and New Zealand.
C)  Malaysia, Philippines, Indonesia, and China.
D)  South Korea, Taiwan, Singapore, and Hong Kong.E) A) and B)
F) B) and C)

Question 3

Figure 19-1
 
-Refer to Figure 19-1.Based on the Lorenz curves, which of the two countries do you believe fits better the definition of development?

Accepted Answer

A)  Cote d'Ivoire, because its low-income households have a higher per capita real GDP than low income households in Guinea.
B)  Guinea, because there are more high-income households in Guinea than in Cote d'Ivoire.
C)  Cote d'Ivoire, because its income distribution is comparatively more equal than Guinea's which suggests that Cote d'Ivoire is coming closer to generating widely shared gains in per capita real GDP.
D)  Guinea, because its income distribution is comparatively more equal than Cote d'Ivoire's which suggests that Guinea is coming closer to generating widely shared gains in per capita real GDP.E) A) and B)
F) None of the above

Question 4

One reason why low-income countries lack physical capital is that poor countries have a hard time generating much domestic savings, since living standards are so low.

Accepted Answer

A) True 
 B)False

Question 5

The Kuznets hypothesis, discussed in the Case in Point titled "(Growth and Development) or (Growth or Development) ," argued that at low levels of per capita income, increases in income would likely

Accepted Answer

A)  increase income inequality in developing countries.
B)  reduce income inequality in developing countries.
C)  increase the rate of structural change in developing countries.
D)  reduce the rate of structural change in developing countries.E) A) and B)
F) All of the above

Question 6

According to the World Bank's classification of countries' levels of per capita gross national income, in 2007 the majority of the world's population lived

Accepted Answer

A)  in middle-income countries.
B)  in low-income countries.
C)  below the international poverty line of $1.25 a day.
D)  in the African continent.E) A) and B)
F) A) and C)

Question 7

In recent years, the United Nations has constructed measures incorporating dimensions of economic development that go beyond the level of per capita GDP.These measures include
I.Gender Development Index.
II.International Standard of Living Index.
III.Human Development Index.
IV.Human Poverty Index.

Accepted Answer

A)  all of the above
B)  I, II, and IV only
C)  I, III, and IV only
D)  II, III, and IV onlyE) B) and C)
F) A) and D)

Question 8

All of the following contributes to economic development except

Accepted Answer

A)  high saving and investment rates.
B)  low population growth rate.
C)  the existence of a market economy.
D)  abundant exportable natural resources.E) B) and C)
F) A) and D)

Question 9

Economic systems that have achieved the highest levels of development have been

Accepted Answer

A)  market systems.
B)  centrally planned systems.
C)  socialist systems.
D)  command economies.E) All of the above
F) C) and D)

Question 10

The demographic transition refers to a shift from a period of

Accepted Answer

A)  declining food output per worker to a period of rising food output per worker due to advancements in agricultural technology.
B)  rising population caused by falling death rates to a period of stable population caused by a matching reduction in birth rates.
C)  rising infant mortality rate to a period of rising infant mortality rate caused by improved nutrition.
D)  rising population in the agricultural sector to a period of falling population in the agricultural sector caused by rural-urban migration.E) B) and C)
F) None of the above

Question 11

Demographic transition is a process in which population growth initially rises with a fall in death rates and then falls with a reduction in birth rates.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true about the process of demographic transition?

Accepted Answer

A)  Demographic transition is complete in the world's low-income countries.
B)  Demographic transition is complete in high-income countries.
C)  Demographic transition is not complete in high-income countries.
D)  Demographic transition is complete in high-income European countries but not in high- income Asian countries.E) A) and C)
F) A) and B)

Question 13

A substantial increase in a nation's per capita income can be expected to slow its rate of population growth.

Accepted Answer

A) True 
 B)False

Question 14

The common traits shared by the newly industrializing economies of the Pacific Rim that have experienced rapid economic growth include

Accepted Answer

A)  export-oriented strategies and subsidized private production of most goods and services.
B)  agriculture-oriented growth strategies and government production of most goods and services.
C)  export-oriented growth strategies and limited the role of governments mainly to infrastructure and institutional development and enforcement of laws.
D)  emphasis on the quantity of output rather than the quality and a large public sector.E) A) and D)
F) A) and B)

Question 15

Malthus' predictions do not match the experience of Western societies because his An Essay on the Principle of Population failed to take into account

Accepted Answer

A)  gains in output that could be achieved through increased use of capital.
B)  the more accurate relationship between population growth and income, which is that higher incomes tend to reduce the rate of population growth.
C)  dramatic decreases in productivity over time as labor moved out of the agricultural sector.
D)  increases in the supply of labor.E) A) and D)
F) B) and C)

Question 16

Figure 19-1
 
-Refer to Figure 19-1.The 20% of households with the lowest incomes in Cote d'Ivoire have

Accepted Answer

A)  the same share of their country's total income as the poorest 20% of households in Guinea have.
B)  a larger share of their country's total income than the poorest 20% of households in Guinea have.
C)  a smaller share of their country's total income than the poorest 20% of households in Guinea have.
D)  a larger share of their country's total income than the richest 20% of households in Guinea have.E) None of the above
F) B) and C)

Question 17

Dependency theory posits that

Accepted Answer

A)  the lack of free trade between developed countries and poor countries has hurt the poor countries.
B)  the cause of the low levels of development in poor countries is caused by their reliance and dependence on developed countries.
C)  all countries follow the same predetermined paths to development, starting from import substitution strategy to export-led growth.
D)  rich nations that are not endowed with natural resources are dependent on poor resource-rich countries for the former's consumption goods.E) A) and B)
F) A) and C)

Question 18

The United Nations' Human Development Index does not include

Accepted Answer

A)  life expectancy.
B)  educational attainment.
C)  purchasing-power-adjusted per capita real GDP.
D)  an adjustment for gender inequality.E) B) and C)
F) C) and D)

Question 19

A developing country, sometimes referred to as a third-world country, is a country

Accepted Answer

A)  that is a low- or middle-income country.
B)  that is a low-income country but not a middle-income country.
C)  where at least 40% of its population live below the international poverty line.
D)  characterized by a higher rate of population growth.E) B) and D)
F) B) and C)

Question 20

One reason why low-income countries lack physical capital is

Accepted Answer

A)  due to the lack of financial institutions where savers can deposit funds and earn interest on their funds.
B)  that poor countries have a hard time generating much domestic savings, since living standards are so low.
C)  because the bulk of savings is invested in military equipment to fight political unrest.
D)  because of the high rate of corruption in government.E) B) and D)
F) None of the above

Exam 33: Economic Development

Figure 19-1 -Refer to Figure 19-1.The 20% of households with the lowest incomes in Cote d'Ivoire have

Correct AnswerverifiedShow Answer

One reason why low-income countries lack physical capital is that poor countries have a hard time generating much domestic savings, since living standards are so low.

Correct AnswerverifiedShow Answer

A substantial increase in a nation's per capita income can be expected to slow its rate of population growth.

Correct AnswerverifiedShow Answer

Income inequality is usually lower in developing countries than in more industrialized countries.

Correct AnswerverifiedShow Answer

Dependency theory posits that

Correct AnswerverifiedShow Answer

According to the World Bank's classification of countries' levels of per capita gross national income, in 2007 the majority of the world's population lived

Correct AnswerverifiedShow Answer

The newly industrializing economies of the Pacific Rim that have experienced rapid economic growth include

Correct AnswerverifiedShow Answer

Demographic transition is a process in which population growth initially rises with a fall in death rates and then falls with a reduction in birth rates.

Correct AnswerverifiedShow Answer

The United Nations' Human Development Index does not include

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Figure 19-1 -Refer to Figure 19-1.Based on the Lorenz curves, which of the two countries do you believe fits better the definition of development?

Correct AnswerverifiedShow Answer

One reason why low-income countries lack physical capital is

Correct AnswerverifiedShow Answer

In recent years, the United Nations has constructed measures incorporating dimensions of economic development that go beyond the level of per capita GDP.These measures include I.Gender Development Index. II.International Standard of Living Index. III.Human Development Index. IV.Human Poverty Index.

Correct AnswerverifiedShow Answer

The common traits shared by the newly industrializing economies of the Pacific Rim that have experienced rapid economic growth include

Correct AnswerverifiedShow Answer

The demographic transition refers to a shift from a period of

Correct AnswerverifiedShow Answer

Economic systems that have achieved the highest levels of development have been

Correct AnswerverifiedShow Answer

The Kuznets hypothesis, discussed in the Case in Point titled "(Growth and Development) or (Growth or Development) ," argued that at low levels of per capita income, increases in income would likely

Correct AnswerverifiedShow Answer

All of the following contributes to economic development except

Correct AnswerverifiedShow Answer

Which of the following statements is true about the process of demographic transition?

Correct AnswerverifiedShow Answer

Malthus' predictions do not match the experience of Western societies because his An Essay on the Principle of Population failed to take into account

Correct AnswerverifiedShow Answer

A developing country, sometimes referred to as a third-world country, is a country

Correct AnswerverifiedShow Answer

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