Question 1

Which of the following groups has the highest infant mortality rate?

Accepted Answer

A)   middle-income economies
B)   low-income economies
C)   high-income economies
D)   Western European economies
E)   all the world's economiesF) A) and B)
G) C) and E) B

Question 2

Which of the following groups has the lowest life expectancy at birth?

Accepted Answer

A)   middle-income economies
B)   low-income economies
C)   high-income economies
D)   sub-Saharan African economies
E)   all the world's economiesF) C) and E)
G) A) and D) D

Question 3

According to the convergence theory,

Accepted Answer

A)   less-developed countries should grow faster than advanced ones because of the ability to copy new technology
B)   the growth rates of all countries converge because in the long run, all resources are alike
C)   human capital differences can never be made up
D)   GDP and productivity growth rates should converge over time
E)   the impact of basic and applied research should converge over timeF) B) and D)
G) All of the above

Question 4

Compared to industrial market countries, developing countries usually have

Accepted Answer

A)   exports consisting mostly of agricultural products and raw materials
B)   faster population growth
C)   higher unemployment
D)   higher rates of illiteracy
E)   All of the answers are correctF) A) and C)
G) C) and E)

Question 5

Privatization is the process of turning government enterprises into private enterprises in transitional economies.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following transitional economies has become a high-income nation?

Accepted Answer

A)   Czech Republic
B)   Kazakhstan
C)   China
D)   Vietnam
E)   None of the answers is correctF) B) and D)
G) C) and D)

Question 7

How many countries in the world have failed to come up with the rules of the game that lead to sustained economic growth?

Accepted Answer

A)   none
B)   most
C)   half
D)   one
E)   There is not enough data to answer this questionF) B) and C)
G) A) and B)

Question 8

A requirement for development is

Accepted Answer

A)   an unreliable system of financial institutions
B)   a lack of saving by households and firms
C)   low confidence in domestic currency
D)   low and predictable inflation that encourages saving
E)   None of the answers is correctF) A) and E)
G) A) and B)

Question 9

The economic theory that states that as time passes, economic systems become much more similar, with common rates of growth, common employment levels and common rates of inflation is known as

Accepted Answer

A)   divergence theory
B)   parallel path theory
C)   convergence theory
D)   non-competing economic systems theory
E)   static state theoryF) B) and E)
G) A) and B)

Question 10

Which of the following does not describe the World Bank?

Accepted Answer

A)   an economic development institution
B)   affiliated with the United Nations
C)   offers low-fee checking accounts to anyone in the world
D)   estimates output per capita figures
E)   uses output per capital figures to classify economiesF) A) and D)
G) None of the above

Question 11

One possible reason that the country of Whatsis is trapped in poverty is

Accepted Answer

A)   a lack of mineral wealth
B)   an honest and functional government
C)   laws and regulations to help detect fiscal fraud
D)   a free press
E)   a civil warF) B) and D)
G) B) and C)

Question 12

The bulk of exports from non-industrial countries are

Accepted Answer

A)   manufactured goods
B)   primary products
C)   agricultural goods
D)   natural resources
E)   raw sugar productsF) B) and E)
G) B) and C)

Question 13

Export promotion has been more successful than import substitution.

Accepted Answer

A) True 
 B)False

Question 14

A trend in developing countries is that

Accepted Answer

A)   the birth rate during a typical woman's lifetime has increased from three to six children
B)   attitudes toward family size are changing
C)   when women have employment opportunities outside the home, fertility rates increase
D)   as women become better educated, they earn less
E)   as women become less educated, they tend to have fewer childrenF) A) and B)
G) A) and C)

Question 15

The country of Bananaland has an abundant supply of banana trees and therefore must be a modern industrial economy.

Accepted Answer

A) True 
 B)False  False

Question 16

Privatization is the

Accepted Answer

A)   process of turning private enterprises into public enterprises
B)   the same as nationalization
C)   process of turning public enterprises into private enterprises
D)   process of turning state-owned enterprises into public enterprises
E)   process of turning sole proprietor enterprises into corporate enterprisesF) B) and D)
G) B) and C)

Question 17

Social capital is

Accepted Answer

A)   the shared values and trust that promote cooperation in the economy
B)   the buildings and equipment used to produce goods and services
C)   a government regulation aimed at improving health and safety
D)   the accumulated knowledge, skill, and experience of the labor force
E)   the owner's own or borrowed money invested in a businessF) C) and D)
G) A) and D)

Question 18

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?

Accepted Answer

A)   middle-income economies
B)   low-income economies
C)   high-income economies
D)   sub-Saharan African economies
E)   all the world's economiesF) A) and B)
G) A) and C)

Question 19

Foreign aid often becomes a source of discretionary funds that benefit poor people in developing countries and not the countries' leaders.

Accepted Answer

A) True 
 B)False

Question 20

One likely reason that the country of Appleland is poor is that it

Accepted Answer

A)   does not produce many goods and services
B)   has highly educated and productive female workers
C)   has a low birth rate
D)   enjoys a low infant mortality rate
E)   has a high literacy rateF) A) and E)
G) A) and B)

Exam 21: Economic Development

Which of the following groups has the highest infant mortality rate?

Correct AnswerverifiedB

Which of the following groups has the lowest life expectancy at birth?

Correct AnswerverifiedD

According to the convergence theory,

Correct AnswerverifiedShow Answer

Compared to industrial market countries, developing countries usually have

Correct AnswerverifiedShow Answer

Privatization is the process of turning government enterprises into private enterprises in transitional economies.

Correct AnswerverifiedShow Answer

Which of the following transitional economies has become a high-income nation?

Correct AnswerverifiedShow Answer

How many countries in the world have failed to come up with the rules of the game that lead to sustained economic growth?

Correct AnswerverifiedShow Answer

A requirement for development is

Correct AnswerverifiedShow Answer

The economic theory that states that as time passes, economic systems become much more similar, with common rates of growth, common employment levels and common rates of inflation is known as

Correct AnswerverifiedShow Answer

Which of the following does not describe the World Bank?

Correct AnswerverifiedShow Answer

One possible reason that the country of Whatsis is trapped in poverty is

Correct AnswerverifiedShow Answer

The bulk of exports from non-industrial countries are

Correct AnswerverifiedShow Answer

Export promotion has been more successful than import substitution.

Correct AnswerverifiedShow Answer

A trend in developing countries is that

Correct AnswerverifiedShow Answer

The country of Bananaland has an abundant supply of banana trees and therefore must be a modern industrial economy.

Correct AnswerverifiedFalse

Privatization is the

Correct AnswerverifiedShow Answer

Social capital is

Correct AnswerverifiedShow Answer

Which of the following groups has the lowest malnutrition rate among children less than 5 years of age?

Correct AnswerverifiedShow Answer

Foreign aid often becomes a source of discretionary funds that benefit poor people in developing countries and not the countries' leaders.

Correct AnswerverifiedShow Answer

One likely reason that the country of Appleland is poor is that it

Correct AnswerverifiedShow Answer

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False

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