Question 1

The richest 20 percent of the world's population receives more than 75 percent of the world's income, while the poorest 20 percent receives less than 2 percent of the world's income.

Accepted Answer

A) True 
 B)False

Question 2

One of the major investment obstacles in less-developed nations is

Accepted Answer

A)  an accumulation of savings with no place to invest the funds.
B)  a poor public infrastructure that hurts returns on private investment.
C)  a progressive tax system that is efficient in collecting taxes on investment.
D)  a low unemployment rate that makes it difficult to find the needed workers for businesses.E) All of the above
F) C) and D)

Question 3

Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

Accepted Answer

A) True 
 B)False

Question 4

Large agricultural subsidies for food and fiber in IACs hurt the economies of the DVCs by

Accepted Answer

A)  causing higher prices for imported food products.
B)  lowering saving rates in the DVCs.
C)  encouraging "brain drains" from the DVCs.
D)  reducing world agricultural prices and thus export income of the DVCs.E) All of the above
F) C) and D)

Question 5

Which of the following countries had the highest population density (population per square km)  in 2014?

Accepted Answer

A)  United States
B)  India
C)  China
D)  VenezuelaE) B) and C)
F) B) and D)

Question 6

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

Question 7

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

Question 8

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries)  are

Accepted Answer

A)  rising slowly.
B)  rising quickly.
C)  staying constant.
D)  declining.E) All of the above
F) C) and D)

Question 9

Which of the following is not inversely related to per capita income?

Accepted Answer

A)  mortality rates for children under five years of age
B)  adult illiteracy rates
C)  per capita energy consumption
D)  population growth ratesE) None of the above
F) B) and C)

Question 10

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 11

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 12

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

Question 13

Assume the total real output of a developing country increases from $8 billion to $8.2 billion, while its population expands from 14 to 15 million people from one year to the next.Over the year, per capita income has

Accepted Answer

A)  increased by $25 per person.
B)  decreased by $25 per person.
C)  increased by $533 per person.
D)  decreased by $533 per person.E) C) and D)
F) B) and D)

Question 14

Assume that the real output of a developing nation increases from $120 billion to $140 billion, while its population expands from 100 to 110 million.As a result, real income per capita has increased by about

Accepted Answer

A)  $56 per person.
B)  $64 per person.
C)  $72 per person.
D)  $88 per person.E) B) and C)
F) A) and B)

Question 15

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 C)
F) All of the above

Question 16

Which of the following factors contributes to the weak economic growth in DVCs?

Accepted Answer

A)  an increase in labor productivity in DVCs
B)  a decrease in international debts of DVCs
C)  an increase in the rate of saving in a DVC
D)  a decrease in the prices of DVC natural resourcesE) A) and D)
F) B) and D)

Question 17

Per capita income in the United States in 2014 was how many times greater than that in China?

Accepted Answer

A)  3 times
B)  12 times
C)  7.5 times
D)  17 timesE) B) and C)
F) A) and D)

Question 18

If a technological advance expands output and requires a smaller investment in capital goods, this technological advance

Accepted Answer

A)  is capital-using.
B)  must involve nonfinancial investment.
C)  is capital-saving.
D)  must pertain to the infrastructure.E) All of the above
F) C) and D)

Question 19

What is needed to aid capital formation in developing countries?

Accepted Answer

A)  more capital flight
B)  more oil resources
C)  more entrepreneurship
D)  higher price supports for productsE) None of the above
F) All of the above

Question 20

The "vicious circle of poverty" for developing nations can best be described by

Accepted Answer

A)  low levels of international trade that reduce exports and increase the dependence on imports.
B)  low incomes that inhibit saving and the accumulation of real and human capital, making it difficult to increase productivity and income.
C)  a large government sector, which reduces the availability of private investment spending but increases macroeconomic stability.
D)  a lack of entrepreneurial talent that limits the formation of businesses and the development of private businesses.E) B) and C)
F) A) and B)

Exam 22: The Economics of Developing Countries

Which of the following countries had the highest population density (population per square km) in 2014?

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

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Which of the following is not inversely related to per capita income?

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The "vicious circle of poverty" for developing nations can best be described by

Correct AnswerverifiedShow Answer

Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).

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

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

Correct AnswerverifiedShow Answer

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

Correct AnswerverifiedShow Answer

The richest 20 percent of the world's population receives more than 75 percent of the world's income, while the poorest 20 percent receives less than 2 percent of the world's income.

Correct AnswerverifiedShow Answer

Which of the following factors contributes to the weak economic growth in DVCs?

Correct AnswerverifiedShow Answer

Large agricultural subsidies for food and fiber in IACs hurt the economies of the DVCs by

Correct AnswerverifiedShow Answer

If a technological advance expands output and requires a smaller investment in capital goods, this technological advance

Correct AnswerverifiedShow Answer

What is needed to aid capital formation in developing countries?

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

Assume that the real output of a developing nation increases from $120 billion to $140 billion, while its population expands from 100 to 110 million.As a result, real income per capita has increased by about

Correct AnswerverifiedShow Answer

Assume the total real output of a developing country increases from $8 billion to $8.2 billion, while its population expands from 14 to 15 million people from one year to the next.Over the year, per capita income has

Correct AnswerverifiedShow Answer

One of the major investment obstacles in less-developed nations is

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

Per capita income in the United States in 2014 was how many times greater than that in China?

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

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