Question 1

What is the immigration problem for DVCs?

Accepted Answer

A)  Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers.
B)  Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers.
C)  Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers.
D)  Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers.E) A) and C)
F) A) and B)

Question 2

The presence of large and fast-growing populations in developing countries contributes to lower per capita incomes.

Accepted Answer

A) True 
 B)False

Question 3

The very poorest low-income DVCs typically have relatively

Accepted Answer

A)  low rates of economic growth and relatively high rates of population growth.
B)  high rates of economic growth and relatively low rates of population growth.
C)  low rates of both population growth and economic growth.
D)  high rates of both population growth and economic growth.E) B) and D)
F) None of the above

Question 4

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 D)
F) All of the above

Question 5

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 6

Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.

Accepted Answer

A) True 
 B)False

Question 7

In recent years, the industrially advanced nations as a group have provided foreign aid amounting to about what percentage of their aggregate outputs?

Accepted Answer

A)  0.25 percent
B)  0.7 percent
C)  1 percent
D)  2 percentE) A) and D)
F) B) and C)

Question 8

A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is

Accepted Answer

A)  capital using.
B)  capital saving.
C)  capital intensive.
D)  an in-kind investment.E) B) and C)
F) B) and D)

Question 9

Which of the following countries had the worst score in the Corruption Perception Index in 2015?

Accepted Answer

A)  Italy
B)  China
C)  Mexico
D)  RussiaE) B) and D)
F) A) and D)

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 D)
F) A) and C)

Question 11

Which of the following would most help a developing country (DVC)  break out of the vicious circle of poverty?

Accepted Answer

A)  more consumption
B)  more food production
C)  an increase in the birth rate
D)  an increase in labor productivityE) None of the above
F) All of the above

Question 12

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

Question 13

The World Bank

Accepted Answer

A)  is also known as the International Monetary Fund (IMF) .
B)  lends money to developing nations for basic infrastructure projects such as dams, irrigation, health and sanitation, communications, and transportation.
C)  is an affiliate of the World Trade Organization (WTO) .
D)  provides subsidies to private firms so they can improve their wages and working conditions.E) A) and D)
F) A) and B)

Question 14

Most of the flow of foreign aid goes to

Accepted Answer

A)  the poorest of developing countries (DVCs) .
B)  the most affluent of the developing country populations.
C)  the smallest developing countries.
D)  about 70 percent of the world's poorest people.E) None of the above
F) All of the above

Question 15

The World Bank seeks to

Accepted Answer

A)  provide financial backing for the work of the International Monetary Fund.
B)  maintain stable exchange rates in the currencies of developing countries.
C)  assist developing countries in achieving economic growth.
D)  maximize its profits for its worldwide shareholders.E) A) and B)
F) A) and C)

Question 16

The World Bank

Accepted Answer

A)  provides military assistance to those nations interested in improving national defense.
B)  makes and guarantees loans for basic development projects such as the construction of dams, roads, and schools.
C)  provides gold for DVCs that want to go on the gold standard.
D)  provides short-term loans to DVCs that are incurring balance of payments deficits.E) None of the above
F) B) and C)

Question 17

In recent years, a greater proportion of private capital flows to DVCs has been direct foreign investment rather than loans to DVC governments.

Accepted Answer

A) True 
 B)False

Question 18

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC.If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will

Accepted Answer

A)  remain unchanged at $19,000.
B)  increase by $760.
C)  decrease by $1,000.
D)  increase by $19,760.E) None of the above
F) All of the above

Question 19

Which of the given nations would be middle-income developing countries (DVCs) , according to the World Bank?

Accepted Answer

A)  country E only
B)  countries A, D, and E
C)  countries D and E
D)  country D onlyE) None of the above
F) B) and D)

Question 20

Economic growth in the DVCs might increase if IACs

Accepted Answer

A)  reduce their tariffs and import quotas.
B)  encourage more immigration of highly skilled DVC workers.
C)  outlaw direct private investment abroad by IAC corporations.
D)  discourage capital flight to the DVCs.E) All of the above
F) None of the above

Exam 19: The Economics of Developing Countries

In recent years, a greater proportion of private capital flows to DVCs has been direct foreign investment rather than loans to DVC governments.

Correct Answer
verified

The very poorest low-income DVCs typically have relatively

Correct Answer
verified

Which of the given nations would be middle-income developing countries (DVCs) , according to the World Bank?

Correct Answer
verified

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

Correct Answer
verified

The presence of large and fast-growing populations in developing countries contributes to lower per capita incomes.

Correct Answer
verified

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

Correct Answer
verified

The World Bank

Correct Answer
verified

The World Bank seeks to

Correct Answer
verified

What is the immigration problem for DVCs?

Correct Answer
verified

Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.

Correct Answer
verified

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC.If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will

Correct Answer
verified

A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is

Correct Answer
verified

Economic growth in the DVCs might increase if IACs

Correct Answer
verified

Correct Answer
verified

Which of the following countries had the worst score in the Corruption Perception Index in 2015?

Correct Answer
verified

The World Bank

Correct Answer
verified

In recent years, the industrially advanced nations as a group have provided foreign aid amounting to about what percentage of their aggregate outputs?

Correct Answer
verified

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Correct Answer
verified

Most of the flow of foreign aid goes to

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

Exam 19: The Economics of Developing Countries

In recent years, a greater proportion of private capital flows to DVCs has been direct foreign investment rather than loans to DVC governments.

Correct AnswerverifiedShow Answer

The very poorest low-income DVCs typically have relatively

Correct AnswerverifiedShow Answer

Which of the given nations would be middle-income developing countries (DVCs) , according to the World Bank?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The presence of large and fast-growing populations in developing countries contributes to lower per capita incomes.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The World Bank

Correct AnswerverifiedShow Answer

The World Bank seeks to

Correct AnswerverifiedShow Answer

What is the immigration problem for DVCs?

Correct AnswerverifiedShow Answer

Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.

Correct AnswerverifiedShow Answer

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC.If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will

Correct AnswerverifiedShow Answer

A new fertilizer that is better suited to a nation's topography and climate is an example of a technological advance that is

Correct AnswerverifiedShow Answer

Economic growth in the DVCs might increase if IACs

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following countries had the worst score in the Corruption Perception Index in 2015?

Correct AnswerverifiedShow Answer

The World Bank

Correct AnswerverifiedShow Answer

In recent years, the industrially advanced nations as a group have provided foreign aid amounting to about what percentage of their aggregate outputs?

Correct AnswerverifiedShow Answer

Which of the following would most help a developing country (DVC) break out of the vicious circle of poverty?

Correct AnswerverifiedShow Answer

Most of the flow of foreign aid goes to

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

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