Deck 21: Economic Development

Question 1

Differences in stages of development among countries are reflected in a number of ways besides per capita income.

Answer 1

True

Question 2

Throughout the world, poverty is found to be greater among men than women.

Answer 2

False

Question 3

More than half the labor force in India is engaged in the manufacturing sector.

Answer 3

False

Question 4

Lack of education is a reason why farmers are unable to use advanced farming techniques.

Question 5

Japan has one of the most developed economies in the world because Japan is rich in natural resources.

Question 6

An aging population poses fiscal problems for any country.

Question 7

Child labor limits educational opportunities in developing countries and slows the rate of growth of technological change.

Question 8

A few diseases that can become epidemics in poor countries are well controlled in industrial countries.

Question 9

Sub-Saharan African countries fall under the category of industrial market economies.

Question 10

The practice of financing a large fraction of public outlay by printing money leads to deflation.

Question 11

Migration has no advantage for poor countries.

Question 12

Privatization is the taking over of private companies by the government.

Question 13

Unemployment is measured primarily in urban areas because in rural areas farm work is usually an outlet for labor.

Question 14

Education makes people more receptive to new ideas and methods and contributes to ready acceptance of technology.

Question 15

In 2014, high-income economies with only about one-fifth of the world's population produced more than half of the world's output.

Question 16

On average, about half the labor force in developing countries works in agriculture versus only about 3 percent in industrial market countries.

Question 17

If the country of Zorg has a birth rate of greater than 2.2 births per woman, it is likely that Zorg is an industrial market country.

Question 18

Wages are high in poor countries because businesses are run efficiently.

Question 19

Usually, the poorest fifth of the population in a developing country receives more than 20 percent of the country's income.

Question 20

Developing countries must confront industrial countries' trade restrictions, such as tariffs and quotas, which often discriminate against primary products.

Question 21

Countries with a high level of human capital can make up for other shortcomings, such as destruction caused due to war.

Question 22

Export promotion provided infant industries with a protected market in many developing countries.

Question 23

A stable macroeconomic environment and reliable financial institutions help developing economies close the development gap.

Question 24

Not much of foreign aid now flows through private channels.

Question 25

The International Monetary Fund providing assistance to a country to improve that country's balance of payments is an example of multilateral assistance.

Question 26

If developed economies want to grow faster, they can do so with their existing technologies.

Question 27

In general, it can be asserted that foreign aid promotes economic development.

Question 28

Successful development is time-consuming and gradually moves toward free markets.

Question 29

Most countries have received foreign aid for industrialization.

Question 30

Consumers easily organize themselves to support government policies on free trade as soon as they become aware of the gains from free trade.

Question 31

The United States Agency for International Development focuses on short-range plans to meet the basic needs of the poor.

Question 32

Convergence may be a long process because the roots of development go back centuries.

Question 33

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

Question 34

Studies by the World Bank have emphasized that countries that have adopted trade liberalization policies have been successful.

Question 35

When foreign aid is tied to purchases of low-priced food from the donor country, farm prices can drop in developing countries, hurting poor farmers.

Question 36

Private international borrowing and lending is freely allowed by governments of developing countries.

Question 37

Poor economies tend to have high education levels and high literacy rates.

Question 38

For the newly industrialized countries of East Asia, export promotion has been more successful than import substitution.

Question 39

The Asian Tigers that have graduated from developing economies to industrial market economies include Hong Kong, Singapore, South Korea, and Taiwan.

Question 40

Improvement in the quality of human capital is not an important requirement for technology adoption.

Question 41

​_____ was one of the first countries to experience long-term economic growth during the 19^th century.

A)New Zealand
B)India
C)Cambodia
D)Iran
E)Syria

Question 42

​_____ is one of the clearest ways of distinguishing between industrial and developing countries.

A)The interest rate
B)The birth rate
C)The enrolment rate
D)The number of skyscrapers
E)The composition of the population

Question 43

​In developing countries, farm productivity is low because _____.

A)half of the labor force is involved in industrial activities
B)half of the labor force is involved in the service sector
C)more than half of the population consists of old people
D)farming methods are generally primitive.
E)people prefer leisure over working

Question 44

​The yardstick most often used to compare living standards across nations is:

A)the average production cost per unit.
B)the sales revenue per month for all the firms in an economy.
C)utility per capita.
D)the output per capita.
E)the volume of imports per year.

Question 45

​Which of the following is not true of the World Bank?

A)It is an economic development institution
B)It is affiliated with the United Nations
C)It offers low-fee checking accounts to anyone in the world
D)It estimates output per capita figures
E)It uses output per capita figures to classify economies

Question 46

​A trend in developing countries is that:

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)fertility rates increase when women have employment opportunities outside the home.
D)women earn less as they become better educated.
E)women tend to have fewer children if they are less educated.

Question 47

The World Bank classifies countries into the three following major groups:​

A)high-income economies, middle-income economies, and low-spending economies.
B)high-spending economies, middle-spending economies, and low-spending economies.
C)super-high-income economies, middle-income economies, and low-income economies.
D)high-income economies, middle-income economies, and zero-income economies.
E)high-income economies, middle-income economies, and low-income economies.

Question 48

​The WHO cites _____ as the biggest single threat to the world's public health.

A)malnutrition
B)female genocide
C)nuclear radiation
D)yellow fever
E)the H1N1 virus

Question 49

​Which of the following groups of countries has the highest incidence of HIV/AIDS?

A)Continental European countries
B)The Baltic countries
C)The Nordic countries
D)Sub-Saharan African countries
E)Middle Eastern countries

Question 50

​Which of the following is likely to be a characteristic of a developing economy?

A)A high rate of illiteracy
B)A low rate of growth of population
C)A high rate of economic growth
D)The export of manufactured goods
E)The efficient use of labor

Question 51

​The World Bank estimates GNI per capita and then adjusts figures across countries based on _____.

A)the population rate in each country
B)the unemployment rate in each country
C)the purchasing power of the income in each country
D)the inflation rate in each country
E)the consumer price index in each country

Question 52

​Developing countries have higher birth rates because:

A)families with more children have higher levels of income.
B)children are viewed as economic and social security as parents age.
C)the opportunity cost of leisure for people in developing countries is less.
D)there are special government programs that encourage more children per family.
E)the infant mortality rate is low in developing countries.

Question 53

​In some developing countries, the standard of living, as measured by per capita income, has declined because:

A)the population growth rate has exceeded the growth rate in total production.
B)the growth rate in total production has exceeded the population growth rate.
C)the infant mortality rate has exceeded the total growth rate.
D)the inflation rate has exceeded the total growth in production.
E)the growth rate in total production is not as high as the targeted growth rate.

Question 54

​The primary factor that contributes to more than half of the deaths of children under the age of 5 in low-income countries is _____.

A)female genocide
B)nuclear radiation
C)malnutrition
D)yellow fever
E)the H1N1 virus

Question 55

Which of the following regions has the lowest life expectancy at birth?​

A)Continental European countries
B)The Baltic countries
C)The Nordic countries
D)Sub-Saharan African countries
E)Middle Eastern countries

Question 56

​Developing countries consist of:

A)only low-income countries.
B)only middle-income countries.
C)both low-income and middle-income countries.
D)all industrial countries.
E)both industrial and middle-income countries.

Question 57

​Industrial market countries are also referred to as:

A)developing countries.
B)low-income economies.
C)middle-income economies.
D)transitional economies.
E)high-income economies.

Question 58

​Compared to industrial market countries, developing countries usually have:

A)exports consisting mostly of agricultural products and raw materials.
B)slower population growth.
C)lower unemployment rates.
D)low rates of illiteracy.
E)high standard of living.

Question 59

​Which of the following countries has the highest infant mortality rate?

A)Japan
B)The Congo
C)The United States
D)Norway
E)Germany

Question 60

​Which of the following is true about the GNI of the United States?

A)It includes profits earned by a Mercedes factory in Alabama.
B)It excludes profits earned by General Electric in India.
C)It includes profits earned by a Ford factory set up in Chennai.
D)It stands for General Native Income.
E)It is the difference between the value of U.S. exports and imports.

Question 61

​The country of Yipi can raise its productivity by investing more in:

A)both human and physical capital.
B)human capital only.
C)physical capital only.
D)stable foreign economies.
E)stocks and bonds rather than physical assets.

Question 62

​Which of the following is true?

A)In low-income countries, less than 5 percent of those 15 and older were illiterate in 2007.
B)In middle-income countries, 17 percent of those 15 and older were illiterate in 2007.
C)In high-income countries, 38 percent of those 15 and older were illiterate in 2007.
D)Education bears little relationship to economic development in high-income countries.
E)Education is more important to the economic development of low-income countries than it is to high-income countries.

Question 63

​Gloria, who lives in a developing country, is likely to:

A)be less educated than most men in her country.
B)be a graduate and her brother is likely to be a school dropout.
C)have more employment opportunities and earn higher wages than her male classmates.
D)work long hours on her farmland.
E)have special access to resources such as land, capital, and technology.

Question 64

​One likely reason that the country of Arctura is poor is that it:

A)does not produce many goods and services.
B)has a low unemployment rate.
C)has a low birth rate.
D)enjoys a low infant mortality rate.
E)has a high literacy rate.

Question 65

​Labor productivity depends on:

A)the quality of labor.
B)the volume of imports.
C)the size of an economy.
D)the volume of exports.
E)the proportion of the labor force that is unionized.

Question 66

​Labor productivity depends on:

A)the effectiveness of government.
B)the size of the economy.
C)the proportion of the labor force that is unionized.
D)the amount of natural resources.
E)the risks taken by an entrepreneur.

Question 67

​People can make better use of resources if they _____.

A)have inherited family wealth
B)are living in developed countries
C)are a part of the government
D)are educated
E)have invested in stocks and bonds in other nations

Question 68

​Poverty can impose a special hardship on women because:

A)they contribute more to GDP than men.
B)they have more employment opportunities compared to men.
C)they are generally more educated than men.
D)they have to work in their homes as well as in the labor market.
E)they have a higher productivity than men.

Question 69

​The average value added per U.S. farm worker is about _____ times that of farm workers in low- and middle-income countries.

A)two
B)fifteen
C)ten
D)seventy-five
E)five

Question 70

​If Eddie Li is a skilled worker employed in a low-skill job, he is:

A)underemployed.
B)unemployed.
C)overemployed.
D)fully employed.
E)a discouraged worker.

Question 71

​Unemployment occurs when _____.

A)people do not work because they are not happy with the work environment
B)people are unwilling to work at the prevailing market wage rate.
C)people prefer leisure over work
D)people do not work because they are physically unable to work
E)people are willing and are able to work, but cannot find jobs

Question 72

​Labor productivity depends on:

A)the effectiveness of government.
B)the amount of capital available in an economy.
C)the proportion of the labor force that is unionized.
D)the size of an economy.
E)the size of the labor force in an economy.

Question 73

​Workers are less productive in poor countries because:

A)the wealthy minority invests in stable foreign economies.
B)the government invests in stocks and bonds.
C)more than half of the population consists of people above 65 years of age.
D)they prefer leisure over work.
E)the government provides for unemployment benefits that make workers less willing to work.

Question 74

​Which of the following leads to an inefficient use of labor?

A)Underemployment
B)A high rate of economic growth
C)Overemployment
D)A high rate of growth of income​
E)A high rate of inflation

Question 75

​Evidence from developing countries suggests that fertility rates decline when _____.

A)households are headed by women
B)the composition of children in the population exceeds the young adults
C)households are headed by men
D)literacy among women declines
E)women have employment opportunities outside their home.

Question 76

​Which of the following is true of the agricultural sector in developing countries?

A)A very small percentage of labor force is employed in agriculture. ​
B)Farm productivity is usually very low.
C)It relies heavily on technology.
D)It does not contribute to the exports of the countries.
E)It accounts for a high percentage of the national income.

Question 77

​Which of the following is a consequence of low income?

A)More hard work and lower labor productivity
B)More investment in human capital
C)More savings and less consumption
D)More hard work and higher labor productivity
E)Less savings and less investment

Question 78

​Which of the following is true of the poorest countries of the world?

A)Children make up less than one-fifth of the population.
B)There are more people over the age of 65 than under the age of 15.
C)Children under the age of 15 make up nearly half the population.
D)Fertility rates are very low compared to industrial countries.
E)The growth rate in total production generally exceeds the population growth rate.

Question 79

​Underemployment occurs:

A)when skilled workers are employed in low-skill jobs.
B)when workers willing and able to work cannot find a job.
C)when workers drop out of the labor force in frustration.
D)only when a country adopts an export-promotion strategy.
E)only when a country adopts an import-substitution strategy.

Question 80

​Japan's remarkable economic growth in the 20^th century was a result of _____.

A)heavy imports of primary products from South Asian countries.
B)a growth in education, leading to a ready acceptance of technology.
C)a rise in the price of oil as Japan is an oil-rich country
D)migration of workers from Japan.
E)an increase in employment in the agricultural sector.