Question 1

An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.

Accepted Answer

A) True 
 B)False

Question 2

List the nine positive roles that DVC governments can play in promoting economic development.

Accepted Answer

The nine positive roles listed for DVC g...

Question 3

Why do developing nations often have low labor productivity? Are the workers just lazy?

Accepted Answer

No, the workers are not just lazy. The l...

Question 4

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

Question 5

From the years, 1990 to 2015, the extreme poverty rate for the world's population declined from 35.9 percent to 10.0 percent.

Accepted Answer

A) True 
 B)False

Question 6

Saving is low in many DVCs primarily because income is very equally distributed.

Accepted Answer

A) True 
 B)False

Question 7

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) C) and D)

Question 8

One reason why foreign aid is viewed as harmful is that it promotes dependency.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Infrastructure is best illustrated by

Accepted Answer

A)  business equipment and factories.
B)  agricultural machinery and tools.
C)  financial institutions.
D)  roads and bridges.E) All of the above
F) C) and D)

Question 11

Which of the following IACs (industrially advanced countries) was the leading provider of development assistance to DVCs (developing countries) in 2017, in terms of absolute dollar amounts?

Accepted Answer

A)  United States
B)  Japan
C)  Canada
D)  GermanyE) A) and B)
F) A) and C)

Question 12

Most nations of the world are now IACs, not middle- and low-income DVCs.

Accepted Answer

A) True 
 B)False

Question 13

Many countries remain poor because they currently are poor. This statement summarizes the

Accepted Answer

A)  infrastructure problem.
B)  vicious circle of poverty.
C)  demographic transition problem.
D)  problem of capital flight.E) B) and C)
F) A) and D)

Question 14

The levels of national income per capita among developing countries (DVCs) are

Accepted Answer

A)  all within a narrow range.
B)  widely varied.
C)  all growing rapidly.
D)  about half of those of industrially advanced countries (IACs) .E) C) and D)
F) A) and B)

Question 15

The demographic transition view alleges that

Accepted Answer

A)  the DVCs must first accept the use of birth control techniques to increase their standards of living.
B)  population growth will decline only if mortality rates exceed birth rates.
C)  if incomes first rise, population growth will then decline.
D)  population growth has no bearing on a nation's per capita income.E) None of the above
F) All of the above

Question 16

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

Accepted Answer

A)  expanding trade
B)  admitting more temporary workers
C)  subsidizing their own (i.e., the IACs') agricultural sectors
D)  discouraging arms salesE) C) and D)
F) A) and D)

Question 17

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Accepted Answer

A)  land reform.
B)  population growth.
C)  underemployment and disguised unemployment.
D)  capital-saving technology.E) B) and D)
F) B) and C)

Question 18

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

Question 19

Most of the DVCs of the world are located in Western Europe.

Accepted Answer

A) True 
 B)False

Question 20

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 B)
F) All of the above

Exam 28: The Economics of Developing Countries

Many countries remain poor because they currently are poor. This statement summarizes the

Correct AnswerverifiedShow Answer

From the years, 1990 to 2015, the extreme poverty rate for the world's population declined from 35.9 percent to 10.0 percent.

Correct AnswerverifiedShow Answer

Which of the following is not a way for industrially advanced countries (IACs) to help developing countries (DVCs) achieve faster economic growth?

Correct AnswerverifiedShow Answer

Economic growth in the DVCs might increase if IACs

Correct AnswerverifiedShow Answer

The very poorest low-income DVCs typically have relatively

Correct AnswerverifiedShow Answer

A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because of

Correct AnswerverifiedShow Answer

An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.

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

Most nations of the world are now IACs, not middle- and low-income DVCs.

Correct AnswerverifiedShow Answer

Which of the following IACs (industrially advanced countries) was the leading provider of development assistance to DVCs (developing countries) in 2017, in terms of absolute dollar amounts?

Correct AnswerverifiedShow Answer

Most of the DVCs of the world are located in Western Europe.

Correct AnswerverifiedShow Answer

Saving is low in many DVCs primarily because income is very equally distributed.

Correct AnswerverifiedShow Answer

Why do developing nations often have low labor productivity? Are the workers just lazy?

Correct AnswerverifiedNo, the workers are not just lazy. The l...View AnswerShow Answer

The levels of national income per capita among developing countries (DVCs) are

Correct AnswerverifiedShow Answer

The demographic transition view alleges that

Correct AnswerverifiedShow Answer

Infrastructure is best illustrated by

Correct AnswerverifiedShow Answer

List the nine positive roles that DVC governments can play in promoting economic development.

Correct AnswerverifiedThe nine positive roles listed for DVC g...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

One reason why foreign aid is viewed as harmful is that it promotes dependency.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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No, the workers are not just lazy. The l...
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The nine positive roles listed for DVC g...
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