Question 1

One of the essential paths to economic growth is

Accepted Answer

A)   increasing population growth.
B)   expanding the role of government.
C)   using existing resources more efficiently.
D)   expanding tax credits for business investment.E) C) and D)
F) None of the above

Question 2

The basic role of the International Finance Corporation is to

Accepted Answer

A)   make loans to governments in developing nations.
B)   invest in private enterprises in developing nations.
C)   finance exports from the United States to developing nations.
D)   make loans to the World Bank, which in turn makes loans to governments in developing nations.E) A) and B)
F) None of the above

Question 3

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and Japan) and the DVCs of Africa, Latin America, and Asia have been narrowing significantly over the decades.

Accepted Answer

A) True 
 B)False

Question 4

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 5

(Last Word)  Loans offered through microcredit programs

Accepted Answer

A)   are usually spent on food.
B)   suffer from low repayment rates.
C)   have very high repayment rates.
D)   have lifted borrowers out of poverty at a faster pace than nonrecipients of loans.E) A) and D)
F) A) and C)

Question 6

Underemployment occurs

Accepted Answer

A)   when workers do not have jobs.
B)   when farm workers become more productive.
C)   when workers are working fewer hours than they desire or when they are working less productively than they are capable of.
D)   in IACs but not in the DVCs.E) A) and B)
F) A) and C)

Question 7

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) All of the above
F) None of the above

Question 8

One recommended policy that IACs could adopt to help DVCs is to recruit and hire skilled workers from DVCs for businesses in IACs.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)   are reluctant to become entrepreneurs.
B)   are concentrated in rural areas where their skills are underutilized.
C)   often immigrate to industrialized countries.
D)   are reluctant to work in the public sector.E) B) and C)
F) A) and C)

Question 10

Population expansion can impede economic development for the following reasons except

Accepted Answer

A)   reduced saving and investment rates.
B)   reduced productivity of labor.
C)   a larger supply of labor.
D)   its contribution to urban congestion and problems.E) B) and D)
F) A) and B)

Question 11

Avenues for the government to foster economic growth and development include the following, except

Accepted Answer

A)   nationalization and protection of domestic industries.
B)   establishing the rule of law and protection of property rights.
C)   building infrastructure and technological support.
D)   building human capital and entrepreneurship.E) B) and D)
F) B) and C)

Question 12

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 13

Which attitude or custom is the most conducive to long-term economic growth?

Accepted Answer

A)   a focus on group contentment rather than individual achievement
B)   the belief that there is little or no correlation between an individual's economic actions and her or his economic fortunes
C)   the belief that there is a direct connection between individual efforts (including educational efforts)  and economic rewards
D)   the use of the majority of resources for religious structures and ceremoniesE) A) and D)
F) C) and D)

Question 14

One policy recommended by most economists for promoting economic growth in DVCs is the nationalization and protection of domestic industries.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following includes only examples of industrially advanced countries (IACs) ?

Accepted Answer

A)   the United States, Canada, and Mexico
B)   Pakistan, India, and China
C)   Japan, South Korea, and China
D)   Germany, Italy, and FranceE) C) and D)
F) B) and C)

Question 16

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 17

Development assistance as a percentage of GDP is greatest for which of the following industrialized nations (as of 2015) ?

Accepted Answer

A)   the United States
B)   Norway
C)   Sweden
D)   NetherlandsE) A) and B)
F) All of the above

Question 18

The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth.

Accepted Answer

A) True 
 B)False

Question 19

China is close to catching up with the United States in its standard of living as measured by per capita income.

Accepted Answer

A) True 
 B)False

Question 20

Rapid population growth can be an obstacle to economic development

Accepted Answer

A)   because it can translate a relatively large increase in real output into a small increase in real output per capita.
B)   because more investment will be required to simply maintain the quantity of capital goods per person.
C)   because it may lead to the overutilization and therefore ecological degradation of farmland.
D)   for all of these reasons.E) A) and B)
F) A) and C)

Exam 28: The Economics of Developing Countries

Development assistance as a percentage of GDP is greatest for which of the following industrialized nations (as of 2015) ?

Correct AnswerverifiedShow Answer

The basic role of the International Finance Corporation is to

Correct AnswerverifiedShow Answer

One of the essential paths to economic growth is

Correct AnswerverifiedShow Answer

Which attitude or custom is the most conducive to long-term economic growth?

Correct AnswerverifiedShow Answer

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

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

The gap in the standards of living between the IACs (like the U.S., countries of Western Europe, and Japan) and the DVCs of Africa, Latin America, and Asia have been narrowing significantly over the decades.

Correct AnswerverifiedShow Answer

Population expansion can impede economic development for the following reasons except

Correct AnswerverifiedShow Answer

The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth.

Correct AnswerverifiedShow Answer

(Last Word) Loans offered through microcredit programs

Correct AnswerverifiedShow Answer

Rapid population growth can be an obstacle to economic development

Correct AnswerverifiedShow Answer

One recommended policy that IACs could adopt to help DVCs is to recruit and hire skilled workers from DVCs for businesses in IACs.

Correct AnswerverifiedShow Answer

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

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

Underemployment occurs

Correct AnswerverifiedShow Answer

Which of the following includes only examples of industrially advanced countries (IACs) ?

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

One policy recommended by most economists for promoting economic growth in DVCs is the nationalization and protection of domestic industries.

Correct AnswerverifiedShow Answer

China is close to catching up with the United States in its standard of living as measured by per capita income.

Correct AnswerverifiedShow Answer

Avenues for the government to foster economic growth and development include the following, except

Correct AnswerverifiedShow Answer

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