Question 1

An increasing share of the private capital ﬂows to DVCs in recent years has been in the form of

Accepted Answer

A)   interest-free government loans.
B)   educational and training assistance.
C)   direct foreign investment.
D)   bank loans.E) A) and D)
F) C) and D)

Question 2

Microﬁnance or microcredit can help directly support

Accepted Answer

A)   labor or workers.
B)   local governments.
C)   entrepreneurs.
D)   consumers.E) B) and D)
F) A) and B)

Question 3

One effective way that IACs can help DVCs is to lower trade barriers on products produced by
DVCs.

Accepted Answer

A) True 
 B)False

Question 4

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.E) C) and D)
F) A) and B)

Question 5

Which of the following seems to be the most acute institutional problem that needs to be resolved by many DVCs?

Accepted Answer

A)   the use of capital-saving technology
B)   development of natural resources
C)   widespread political corruption
D)   an increase in foreign aidE) A) and D)
F) B) and D)

Question 6

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

Question 7

Infrastructure is best illustrated by

Accepted Answer

A)   farm equipment.
B)   school buildings and highways.
C)   machinery and equipment for the production of consumer goods.
D)   government tax revenues.E) A) and B)
F) None of the above

Question 8

Most of the DVCs ﬁnd it diﬃcult to accumulate capital goods because

Accepted Answer

A)   the terms of trade prohibit the inﬂow of private capital from the advanced nations.
B)   it is very diﬃcult to restrict consumption and thus to free resources for capital goods production.
C)   domestic monetary policies designed to achieve price stability result in low interest rates, thereby discouraging investment.
D)   investment is interest inelastic in DVCs.E) C) and D)
F) B) and D)

Question 9

Explain the demographic transition view.

Accepted Answer

The demographic transition describes the...

Question 10

An institutional change that is needed in most developing nations is

Accepted Answer

A)   the will to develop.
B)   reduced foreign aid.
C)   birth control.
D)   land reform.E) B) and C)
F) C) and D)

Question 11

The international agency that lends money to DVCs for economic development projects is the

Accepted Answer

A)   World Bank.
B)   International Monetary Fund (IMF) .
C)   World Trade Organization (WTO) .
D)   World Credit Union.E) C) and D)
F) A) and B)

Question 12

The population growth rate in IACs (industrially advanced countries)  in 2000-2010 averaged 0.7 percent per year. This compares to what percentage growth per year in low-income DVCs
(developing countries) ?

Accepted Answer

A)   1.1 percent
B)   2.1 percent
C)   4.0 percent
D)   0.4 percentE) C) and D)
F) None of the above

Question 13

Microcredit refers to

Accepted Answer

A)   small-size stock markets with very limited capitalization.
B)   a system of providing credit to small-business owners.
C)   bond markets for governments of small nations.
D)   deposits in small banks in developing nations.E) C) and D)
F) All of the above

Question 14

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

Question 15

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 16

Developing nations tend to have a large entrepreneurial class but not suﬃcient capital investment.

Accepted Answer

A) True 
 B)False

Question 17

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 areasE) A) and B)
F) C) and D)

Question 18

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Accepted Answer

A)   Cash transfers never worked, because the recipients just wasted the money on unproductive spending.
B)   These transfers have shown positive early results; the majority of the recipients spent the money as intended.
C)   Only conditional cash transfers worked. Unconditional cash transfers never worked.
D)   These cash transfers worked only if the aid providers frequently followed up on the recipients.E) A) and C)
F) B) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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 investmentE) A) and D)
F) A) and B)

Exam 22: The Economics of Developing Countries

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

Correct Answer
verified

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

Correct Answer
verified

The international agency that lends money to DVCs for economic development projects is the

Correct Answer
verified

An institutional change that is needed in most developing nations is

Correct Answer
verified

Which of the following seems to be the most acute institutional problem that needs to be resolved by many DVCs?

Correct Answer
verified

Infrastructure is best illustrated by

Correct Answer
verified

Most economists agree that government efforts in economic development must be

Correct Answer
verified

An increasing share of the private capital ﬂows to DVCs in recent years has been in the form of

Correct Answer
verified

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

Correct Answer
verified

One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.

Correct Answer
verified

Microcredit refers to

Correct Answer
verified

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

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

Correct Answer
verified

Most of the DVCs ﬁnd it diﬃcult to accumulate capital goods because

Correct Answer
verified

Explain the demographic transition view.

Correct Answer
verified
The demographic transition describes the...
View Answer

The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7 percent per year. This compares to what percentage growth per year in low-income DVCs (developing countries) ?

Correct Answer
verified

Microﬁnance or microcredit can help directly support

Correct Answer
verified

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Correct Answer
verified

Developing nations tend to have a large entrepreneurial class but not suﬃcient capital investment.

Correct Answer
verified

Exam 22: The Economics of Developing Countries

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The international agency that lends money to DVCs for economic development projects is the

Correct AnswerverifiedShow Answer

An institutional change that is needed in most developing nations is

Correct AnswerverifiedShow Answer

Which of the following seems to be the most acute institutional problem that needs to be resolved by many DVCs?

Correct AnswerverifiedShow Answer

Infrastructure is best illustrated by

Correct AnswerverifiedShow Answer

Most economists agree that government efforts in economic development must be

Correct AnswerverifiedShow Answer

An increasing share of the private capital ﬂows to DVCs in recent years has been in the form of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.

Correct AnswerverifiedShow Answer

Microcredit refers to

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Most of the DVCs ﬁnd it diﬃcult to accumulate capital goods because

Correct AnswerverifiedShow Answer

Explain the demographic transition view.

Correct AnswerverifiedThe demographic transition describes the...View AnswerShow Answer

The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7 percent per year. This compares to what percentage growth per year in low-income DVCs (developing countries) ?

Correct AnswerverifiedShow Answer

Microﬁnance or microcredit can help directly support

Correct AnswerverifiedShow Answer

Recent efforts at providing direct cash transfers to poor individuals in DVCs have shown which of the following results?

Correct AnswerverifiedShow Answer

Developing nations tend to have a large entrepreneurial class but not suﬃcient capital investment.

Correct AnswerverifiedShow Answer

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The demographic transition describes the...
View Answer

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