Question 1

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Economic growth,economic development

Accepted Answer

Economic Growth and Economic Development are two important concepts in economics that are often used interchangeably, but they have distinct meanings and implications.

1. Economic Growth:
Economic growth refers to the increase in the production of goods and services in an economy over a period of time. It is usually measured by the increase in a country's Gross Domestic Product (GDP) or Gross National Product (GNP). Economic growth is a quantitative measure that indicates how much an economy has grown in terms of production and output. It is often seen as a sign of a healthy and prosperous economy, as it suggests that businesses are doing well and that there is an increase in jobs and income.

Significance: Economic growth is significant because it can lead to higher living standards, improved employment opportunities, and increased tax revenues for governments, which can be used to invest in infrastructure, education, and healthcare. It is also associated with technological advancement and increased productivity.

2. Economic Development:
Economic development, on the other hand, is a broader concept that encompasses economic growth but also includes improvements in the quality of life and living standards of a population. It involves not only the expansion of the economy but also social and economic progress, such as better education, healthcare, and equality. Economic development is concerned with the well-being of the citizens, poverty reduction, and the creation of a more equitable society.

Significance: Economic development is significant because it reflects the overall health and sustainability of an economy. It is not just about increasing production but also about ensuring that the benefits of growth are distributed fairly across society. It aims to provide a better quality of life for everyone, including access to basic services, a clean environment, and opportunities for personal and social advancement.

Relationship between Economic Growth and Economic Development:
The relationship between economic growth and economic development is intertwined. Economic growth can lead to economic development when the increased wealth from the growth is invested in social programs, education, health, and infrastructure, which in turn can improve the quality of life for the population. However, it is possible to have economic growth without development if the gains from growth are not distributed equitably or invested in improving the living conditions of the population.

In summary, while economic growth is a necessary condition for economic development, it is not sufficient on its own. For true economic development to occur, the benefits of growth need to be used in a way that leads to the overall improvement of society and the well-being of its citizens.

Question 2

Among the nations of the developing world,new technologies have primarily been responsible for:
A) eliminating the need for travel.
B) an obesity epidemic among children under 18.
C) increased electrical and energy problems.
D) creating jobs.

Accepted Answer

New technologies have created job opportunities in the developing world, particularly in industries such as IT, telecommunications, and manufacturing. While there may be challenges in adapting to and implementing new technologies, overall, they have had a positive impact on employment in many developing countries. The other choices (A, B, and C) are not accurate descriptions of the impact of new technologies on developing nations.

Question 3

All of the following reasons have contributed to the enhancement of economic development among the developing nations of the world EXCEPT for:
A) the information revolution.
B) the globalization of culture.
C) lower transport costs.
D) the spread of democracy.

Accepted Answer

The globalization of culture does not directly contribute to economic development, unlike the other factors listed.

Question 4

For a country where income per capita is growing by 2 percent per year,how many years will it take for average incomes to double?
A) 35 years
B) 96 years
C) 14 years
D) 180 years

Accepted Answer

This can be calculated using the Rule of 70, which states that the time it takes for an amount to double at a particular growth rate is approximately 70 divided by the growth rate. So, 70 divided by 2 percent per year equals 35 years.

Question 5

Viktor and Yulia's country comes from which of the following groups of countries?
A) South
B) sub-Saharan Africa
C) transitional
D) third world

Accepted Answer

The term "transitional" is a more accurate and appropriate term to describe Viktor and Yulia's country, as it refers to countries that are moving from a centrally planned economy to a market-based economy. The terms "South," "sub-Saharan Africa," and "third world" are all outdated and have negative connotations.

Question 6

By the World Bank's classification system,Malaysia,Iran,and Brazil are:
A) low-income countries.
B) upper-middle-income countries.
C) industrial economies.
D) backward economies.

Accepted Answer

Malaysia, Iran, and Brazil are all classified as upper-middle-income countries by the World Bank. This means they have a gross national income (GNI) per capita between $4,046 and $12,535. They are not low-income countries (GNI per capita below $1,036) or high-income countries (GNI per capita above $12,535). They are also not classified as industrial economies, which typically refers to countries with a high degree of industrialization and a high level of economic development. The term "backward economies" is not a World Bank classification and is not a relevant term in this context.

Question 7

According to Simon Kuznets,the key characteristic of the epoch of modern economic growth is:
A) expansion of heavy industry.
B) a rapid decline in population growth rates.
C) high rates of saving and investment.
D) the application of science to problems of economic production.

Accepted Answer

According to Simon Kuznets, the key characteristic of the epoch of modern economic growth is the application of science to problems of economic production. This means that scientific advancement played a crucial role in driving economic growth during this period. While other factors such as expansion of heavy industry and high rates of saving and investment were important, they were not considered the key characteristic by Kuznets. The rapid decline in population growth rates was also not mentioned as a significant factor in the epoch of modern economic growth.

Question 8

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Modern economic growth,modernization

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 9

The primary economic activities for three-quarters of Ethiopians are:
A) tending livestock and building computer chips.
B) growing crops and tending livestock.
C) telemarketing and trade.
D) none of the above.

Accepted Answer

Agriculture is the main source of livelihood for about 75% of Ethiopians, specifically growing crops and tending livestock. The other options, such as building computer chips and telemarketing, are not major economic activities in Ethiopia.

Question 10

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Low-income countries,middle-income countries

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 11

Which indicator is inversely related (meaning that it falls as per capita income rises)to per capita income?
A) adult illiteracy rate
B) infant mortality rate
C) share of the population living in rural areas
D) all of the above

Accepted Answer

All the listed indicators (adult illiteracy rate, infant mortality rate, and share of the population living in rural areas) tend to decrease as per capita income increases, indicating an inverse relationship. Higher income levels often correlate with better access to education, healthcare, and urbanization, which contribute to improvements in these indicators.

Question 12

________ has experienced unprecedented rates of economic growth,which has dramatically changed the lives of its population.
A) Paraguay
B) Malaysia
C) Mongolia
D) North Korea

Accepted Answer

Malaysia has experienced significant and sustained economic growth over the past few decades, with an average annual growth rate of 6.5% between 1960 and 2015. This growth has been fueled by industrialization, as well as investments in education and infrastructure. As a result, Malaysia has transformed from a low-income, agriculture-based economy to a diversified, middle-income economy, and has seen significant improvements in living standards for its population.

Question 13

Which of the following statements is true about globalization?
A) It is a term used by different people to mean different things.
B) It covers more than just economics.
C) It is not a new phenomenon.
D) All of the above.

Accepted Answer

All three statements are true. Globalization is a term that is used in different ways by different people, covering a range of economic, social, and political processes. It is not a new phenomenon and has been occurring in some form for centuries.

Question 14

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-North,South

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 15

The poorest nations in the world,representing 12 percent of humanity,are primarily located in:
A) Southeast Asia.
B) Eastern Europe.
C) sub-Saharan Africa.
D) Latin America.

Accepted Answer

Sub-Saharan Africa is known to have the highest levels of poverty in the world, with a poverty rate of around 40 percent. Many countries in this region struggle with economic instability, political instability, disease outbreaks, and natural disasters, all of which contribute to the high poverty levels. While poverty exists in other regions as well, sub-Saharan Africa stands out as having the highest concentration of the world's poorest countries.

Question 16

What method in the 1970s failed to gain popularity as a key to development?
A) income redistribution
B) labor-intensive techniques
C) providing basic human needs to the poor
D) decreased sales tax

Accepted Answer

Income redistribution, labor-intensive techniques, and providing basic human needs to the poor were all key ideas in development in the 1970s. However, decreased sales tax was not a widely promoted method in development during this time period.

Question 17

Which of the following empirical statements about low-income countries is NOT a valid generalization about changes since 1990?
A) Infant mortality rates have fallen substantially.
B) Rapid population growth has more than offset GNP growth.
C) Manufacturing has increased as a share of total output.
D) Primary school enrollment rates have risen sharply.

Accepted Answer

Rapid population growth has been a challenge in low-income countries for decades, but it is not a valid generalization to say that it has more than offset GNP growth since 1990. In fact, many low-income countries have experienced significant economic growth in this period, although the benefits have not always been evenly distributed. The other statements are valid generalizations as they reflect major trends in health, education, and economic development that have been observed in low-income countries since 1990.

Question 18

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Newly industrializing economy,transitional economy

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 19

If a country achieves a rapid increase in per capita income by discovering new oil reserves,it is experiencing:
A) growth but not development.
B) development but not growth.
C) both growth and development.
D) neither growth nor development.

Accepted Answer

Discovering new oil reserves and achieving a rapid increase in per capita income can lead to economic growth but it may not necessarily result in overall development, as it may not lead to improvements in social indicators such as education, healthcare, and infrastructure. Therefore, option A is the best choice.

Question 20

While working in the Japanese electronics factory in Penang,Rachmina Abdullah:
A) saved money to provide herself with a better future.
B) became a wealthy urbanite who sought after the better amenities of life.
C) decided to permanently settle in Japan and become a citizen of that country.
D) grew accustomed to spending most of her wages on cosmetics and luxury items.

Accepted Answer

The passage mentions that Rachmina Abdullah saved money while working in the Japanese electronics factory in Penang. This suggests that she was focused on providing herself with a better future, rather than spending her wages on luxury items or seeking a more comfortable lifestyle.

Quiz 1: Patterns of Development

Among the nations of the developing world,new technologies have primarily been responsible for:

All of the following reasons have contributed to the enhancement of economic development among the developing nations of the world EXCEPT for:

For a country where income per capita is growing by 2 percent per year,how many years will it take for average incomes to double?

Viktor and Yulia's country comes from which of the following groups of countries?

By the World Bank's classification system,Malaysia,Iran,and Brazil are:

According to Simon Kuznets,the key characteristic of the epoch of modern economic growth is:

The primary economic activities for three-quarters of Ethiopians are:

Which indicator is inversely related (meaning that it falls as per capita income rises) to per capita income?

________ has experienced unprecedented rates of economic growth,which has dramatically changed the lives of its population.

Which of the following statements is true about globalization?

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -North,South

The poorest nations in the world,representing 12 percent of humanity,are primarily located in:

What method in the 1970s failed to gain popularity as a key to development?

Which of the following empirical statements about low-income countries is NOT a valid generalization about changes since 1990?

If a country achieves a rapid increase in per capita income by discovering new oil reserves,it is experiencing:

While working in the Japanese electronics factory in Penang,Rachmina Abdullah: