Question 1

Refer to the table. Which of the following might reduce the per capita income gap between countries A and E?

Accepted Answer

The answer of  Refer to the table. Which of...

Question 2

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

Accepted Answer

Per capita energy consumption tends to increase with higher per capita income, as wealthier populations can afford more energy-intensive lifestyles. In contrast, mortality rates for children under five, adult illiteracy rates, and population growth rates typically decrease as per capita income increases.

Question 3

Assume the total real income of a developing country increases from $8.5 billion to $8.5 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

The total real income remains the same at $8.5 billion, but the population increases from 14 million to 15 million. The per capita income decreases because the same amount of income is now distributed among more people. The decrease is calculated as ($8.5 billion / 15 million) - ($8.5 billion / 14 million), which is approximately a decrease of $5 per person.

Question 4

Which of the given nations would be middle-income developing countries (DVCs), according to the World Bank?

Accepted Answer

The answer of  Which of the given nations would...

Question 5

Which of the given nations would be high-income countries (IACs), according to the World Bank?

Accepted Answer

The answer of  Which of the given nations would...

Question 6

If the real output of a DVC increases from $200 billion to $240 billion and its population increases from 100 to 110 million, its real per capita output will have

Accepted Answer

Initially, the real per capita output is $200 billion / 100 million = $2000. After the changes, it is $240 billion / 110 million = approximately $2182. The increase in real per capita output is therefore about $182.

Question 7

Industrially advanced countries can help developing countries by

Accepted Answer

Admitting more temporary workers from Developing Countries (DVCs) can help these countries through remittances sent back home, which boosts their economies. Increasing aid directly to government officials may not ensure the aid is used effectively due to corruption risks. Increasing control over DVCs' capital markets could hinder their economic independence and growth. Encouraging arms sales may lead to increased conflict rather than development.

Question 8

Which of the given nations would be low-income developing countries (DVCs), according to the World Bank?

Accepted Answer

The answer of  Which of the given nations would...

Question 9

Suppose that the average annual rate of population increase in Econland in recent years was about 7 percent. Based on this rate of growth, the population of Econland will double in about

Accepted Answer

The Rule of 70 is a way to estimate the number of years it takes for a quantity to double, given a constant annual growth rate. It is calculated by dividing 70 by the annual growth rate. For a 7% growth rate, 70/7 = 10 years.

Question 10

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 2 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will

Accepted Answer

The DVC's per capita output grows by 2% of $1,000, which is $20, resulting in $1,020. The IAC's per capita output grows by 2% of $20,000, which is $400, resulting in $20,400. The new gap is $20,400 - $1,020 = $19,380, which is $380 more than the original gap of $19,000.

Question 11

An IAC (industrially advanced country)had a per capita income of $28,200, while a DVC (developing country)had a per capita income of $1,200 in a given year. If both countries experience a per-capita-income growth of 2 percent, then the per-capita-income gap one year later will be

Accepted Answer

The per capita income of the IAC after a 2% increase is $28,200 * 1.02 = $28,764. The per capita income of the DVC after a 2% increase is $1,200 * 1.02 = $1,224. The gap one year later is $28,764 - $1,224 = $27,540.

Question 12

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

Accepted Answer

The richest one-fifth of the world's population receives approximately 75 percent of the world's income, highlighting significant global income inequality.

Question 13

Which of these sets of nations consists of high-income economies?

Accepted Answer

Canada, Switzerland, and France are all high-income economies according to the World Bank's classification, with a GDP per capita of over $12,535. Brazil, Thailand, and South Africa are upper-middle-income economies, while China, India, and Russia are either upper-middle-income or high-income depending on the source and methodology used. The United States and South Korea are high-income economies, but Mexico is an upper-middle-income economy.

Question 14

Refer to the table. If per capita income increases by 10 percent over five years in each of the nations shown, the per capita income gap between country C and country A

Accepted Answer

The answer of  Refer to the table. If per...

Question 15

Government can play a major positive role in the early stage of economic development by

Accepted Answer

Providing adequate infrastructure helps to create a conducive business environment that attracts investors and facilitates the movement of goods and services, thereby promoting economic growth. Establishing price controls may hinder market efficiency and discourage firms from investing in the economy. Subsidizing exports and creating marketing boards may distort market competition and result in inefficiencies.

Question 16

Assume that the real output of a developing nation increases from $50 billion to $62 billion, while its population expands from 100 to 115 million. As a result, real income per capita has increased by about

Accepted Answer

Real income per capita = Real output / Population= $62 billion / 115 million= $539 per personIncrease in real income per capita = $539 - $500 = $39 per person

Question 17

At the beginning of the year, one developing country (DVC)has a real income per capita of $1,500. In a developed country (IAC), the real income per capita is $30,000. Both countries experience a 6 percent growth rate for the year. At the end of the year, the absolute income gap between these two countries will have increased from $28,500 to

Accepted Answer

The absolute income gap increases because both countries grow at the same percentage rate, but the base amounts are different. For DVC: $1,500 * 1.06 = $1,590. For IAC: $30,000 * 1.06 = $31,800. The new gap is $31,800 - $1,590 = $30,210.

Question 18

Which of these sets of nations consists of low-income developing nations?

Accepted Answer

Burundi, Madagascar, and Sierra Leone are all low-income developing nations as classified by the World Bank. Brazil, Australia, South Africa, Canada, Switzerland, France, Germany, South Korea, and Mexico are all classified as either high-income or upper-middle-income countries.

Question 19

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

This significant reduction in the global extreme poverty rate is attributed to economic growth in populous countries like China and India, along with international efforts to address poverty.

Question 20

Approximately what percentage of the world's income is received by the poorest one-fifth of the world's population?

Accepted Answer

The poorest one-fifth of the world's population receives about 2% of the world's income. This highlights the significant income inequality present globally.

Quiz 28: The Economics of Developing Countries

Refer to the table. Which of the following might reduce the per capita income gap between countries A and E?

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

Assume the total real income of a developing country increases from $8.5 billion to $8.5 billion, while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has

Which of the given nations would be middle-income developing countries (DVCs) , according to the World Bank?

Which of the given nations would be high-income countries (IACs) , according to the World Bank?

If the real output of a DVC increases from $200 billion to $240 billion and its population increases from 100 to 110 million, its real per capita output will have

Industrially advanced countries can help developing countries by

Which of the given nations would be low-income developing countries (DVCs) , according to the World Bank?

Suppose that the average annual rate of population increase in Econland in recent years was about 7 percent. Based on this rate of growth, the population of Econland will double in about

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 2 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will

An IAC (industrially advanced country) had a per capita income of $28,200, while a DVC (developing country) had a per capita income of $1,200 in a given year. If both countries experience a per-capita-income growth of 2 percent, then the per-capita-income gap one year later will be

According to the United Nations, approximately what percentage of the world's income is received by the richest one-fifth of the world's population?

Which of these sets of nations consists of high-income economies?

Refer to the table. If per capita income increases by 10 percent over five years in each of the nations shown, the per capita income gap between country C and country A

Government can play a major positive role in the early stage of economic development by

Assume that the real output of a developing nation increases from $50 billion to $62 billion, while its population expands from 100 to 115 million. As a result, real income per capita has increased by about

Which of these sets of nations consists of low-income developing nations?

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

Approximately what percentage of the world's income is received by the poorest one-fifth of the world's population?