Question 1

Which characteristic is most typical of human resources in developing nations?

Accepted Answer

A)   A small population base
B)   Low unemployment in urban areas
C)   Low unemployment in rural areas
D)   High unemployment in urban areas

Question 2

A major criticism of foreign aid to developing nations is that it:

Accepted Answer

A)   Provides incentives to reduce the role of government
B)   Is capital-using rather than capital-saving when it is spent
C)   Encourages dependency rather than self-sustained growth
D)   Leads to widespread underemployment and unemployment

Question 3

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater:

Accepted Answer

A)   Capital flight
B)   Economic growth
C)   Underemployment
D)   Unemployment

Question 4

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Accepted Answer

A) True 
 B)False

Question 5

The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.

Accepted Answer

A) True 
 B)False

Question 6

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by:

Accepted Answer

A)   Increasing the amount of military aid to strengthen the government's role in providing law and order
B)   Increasing trade barriers so that less developed nations will become more self-sufficient
C)   Reducing trade barriers and increasing the amount of private and public capital
D)   Decreasing the amounts of private capital or foreign aid to reduce the level of neocolonialism

Question 7

A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be:

Accepted Answer

A)   Cutting debt relief for DVCs
B)   Directing foreign aid to the more affluent DVCs
C)   Restricting immigration of low-skilled workers from DVCs
D)   Reducing tariffs and import quotas on labor-intensive products

Question 8

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

Question 9

Capital flight is a problem facing DVCs that involves the:

Accepted Answer

A)   Difficulty of sustaining skilled workers in the government sector of the DVC economies
B)   Transfer of private savings from DVCs to IACs
C)   Flight of agricultural workers from rural to urban areas, especially capital cities, to take advantage of better job opportunities
D)   Movement of capital goods from IACs to DVCs to avoid taxes

Question 10

An obstacle to economic growth in developing countries is:

Accepted Answer

A)   The limited demand for natural resources
B)   The limited supply of capital goods
C)   A decline in population growth
D)   The low productivity of capital

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

Which of the following countries had the worst score in the Corruption Perception Index in 2012?

Accepted Answer

A)   Italy
B)   China
C)   Mexico
D)   Russia

Question 14

Which of the following is most characteristic of most developing nations?

Accepted Answer

A)   Roughly equal distribution of income among the population
B)   High levels of labor productivity in agriculture
C)   Low propensity to consume goods and services
D)   Low levels of saving and investment

Question 15

The lack of an entrepreneurial class in developing nations tends to:

Accepted Answer

A)   Keep workers from migrating to cities from rural areas
B)   Reduce the level of capital investment
C)   Force the need for land reform
D)   Keep governments stable

Question 16

The vicious circle of poverty in the poorest DVCs can also be expressed as:

Accepted Answer

A)   The rich get richer while the poor get poorer
B)   Fate dealt the poor nations a bad hand
C)   The poor nations stay poor because they are poor
D)   Historical developments have oppressed the poor nations' incomes

Question 17

A large portion of foreign aid from IACs to DVCs is provided on the basis of:

Accepted Answer

A)   Economic considerations
B)   Geographical considerations
C)   Humanitarian considerations
D)   Politico-military considerations

Question 18

Most economists agree that government efforts in economic development must be:

Accepted Answer

A)   Employed to substitute for private efforts
B)   Designed to support private efforts
C)   The sole driver of economic development
D)   Kept at a minimum because we can always rely on markets

Question 19

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

Question 20

Industrially advanced countries can best help DVCs by:

Accepted Answer

A)   Directing requests from DVCs for aid to the World Bank
B)   Using the International Monetary Fund to determine exchange rates in DVCs
C)   Increasing management control over development projects
D)   Adopting policies that expand trade with DVCs

Exam 22: The Economics of Developing Countries

Which of the following countries had the worst score in the Corruption Perception Index in 2012?

Correct Answer
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Correct Answer
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An obstacle to economic growth in developing countries is:

Correct Answer
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Capital flight is a problem facing DVCs that involves the:

Correct Answer
verified

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

Most economists agree that government efforts in economic development must be:

Correct Answer
verified

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by:

Correct Answer
verified

Which characteristic is most typical of human resources in developing nations?

Correct Answer
verified

The vicious circle of poverty in the poorest DVCs can also be expressed as:

Correct Answer
verified

A large portion of foreign aid from IACs to DVCs is provided on the basis of:

Correct Answer
verified

Which of the following is most characteristic of most developing nations?

Correct Answer
verified

One of the major objectives of the World Bank is to:

Correct Answer
verified

A major criticism of foreign aid to developing nations is that it:

Correct Answer
verified

The lack of an entrepreneurial class in developing nations tends to:

Correct Answer
verified

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater:

Correct Answer
verified

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Correct Answer
verified

A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be:

Correct Answer
verified

The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.

Correct Answer
verified

Industrially advanced countries can best help DVCs by:

Correct Answer
verified

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

Correct Answer
verified

Exam 22: The Economics of Developing Countries

Which of the following countries had the worst score in the Corruption Perception Index in 2012?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An obstacle to economic growth in developing countries is:

Correct AnswerverifiedShow Answer

Capital flight is a problem facing DVCs that involves the:

Correct AnswerverifiedShow Answer

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

Most economists agree that government efforts in economic development must be:

Correct AnswerverifiedShow Answer

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by:

Correct AnswerverifiedShow Answer

Which characteristic is most typical of human resources in developing nations?

Correct AnswerverifiedShow Answer

The vicious circle of poverty in the poorest DVCs can also be expressed as:

Correct AnswerverifiedShow Answer

A large portion of foreign aid from IACs to DVCs is provided on the basis of:

Correct AnswerverifiedShow Answer

Which of the following is most characteristic of most developing nations?

Correct AnswerverifiedShow Answer

One of the major objectives of the World Bank is to:

Correct AnswerverifiedShow Answer

A major criticism of foreign aid to developing nations is that it:

Correct AnswerverifiedShow Answer

The lack of an entrepreneurial class in developing nations tends to:

Correct AnswerverifiedShow Answer

Studies generally show that if there is more investment in capital goods in DVCs, there will be greater:

Correct AnswerverifiedShow Answer

The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

Correct AnswerverifiedShow Answer

A suggested policy for industrially advanced countries to adopt to encourage economic growth in developing countries would be:

Correct AnswerverifiedShow Answer

The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation.

Correct AnswerverifiedShow Answer

Industrially advanced countries can best help DVCs by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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