Deck 14: Development and Underdevelopment in the Developing World

Question 1

What does GDP fail to measure?

A) value of goods (such as mining ores)
B) value of low-skill services (such as data entry)
C) value of high-skill services (such as banking and accounting)
D) barter, subsistence production, and household domestic labor
E) It fails to measure all of the above.

Answer 1

D

Question 2

What is the best description of activities of the tertiary sector?

A) assembling raw materials and manufacturing
B) extraction of materials from the earth
C) provision of services, including wholesaling and retailing, and transportation
D) management of information
E) none of the above

Answer 2

C

Question 3

In what area of the world did capitalism originate,and when?

A) East Asia, 10th Century
B) Europe, late 15th and early 16th Centuries
C) Middle East, 17th and early 18th Centuries
D) South Asia, 4th through 7th Centuries
E) Sub-Saharan Africa, late 12th Century

Answer 3

B

Question 4

What is the literacy rate?

A) the proportion of people in a society who can read and write
B) the rate of government spending on education (including libraries)
C) an indicator of cultural commitment to all-around learning (including mathematics)
D) the percentage of people who are students in the educational system
E) none of the above

Question 5

Which of the following is NOT TRUE?

A) There is a large economic divide between wealthy countries and poor countries.
B) The United States belongs in the wealthy group of countries.
C) For a country to develop, economic growth must occur (GDP increases).
D) In the past, a variety of terms was used to describe underdeveloped countries.
E) Most of the wealthy countries in the world are in the northern hemisphere.

Question 6

What is the primary reason the text states for certain countries being underdeveloped?

A) lack of investment and international trade with other countries, especially rich ones
B) lack of resources and local human capital to compensate for that situation
C) misuse of resources, even if they are abundant
D) imperialism, which set up the inequality between rich and poor countries
E) geographical location, particularly access to a coastline

Question 7

In India,which segment of the population benefitted the most from the Green Revolution?

A) environmentalists
B) merchants, particularly those who owned their own fleet of trucks
C) poor farmers in the drier parts of the country
D) poor farmers who had access to water
E) wealthy farmers who owned large tracts of land

Question 8

What is the best description of activities of the secondary sector?

A) assembling raw materials and manufacturing
B) extraction of materials from the earth
C) provision of services, including wholesaling and retailing, and transportation
D) management of information
E) none of the above

Question 9

What region has the highest percentage of the labor force in agriculture?

A) Asia (China, India)
B) Europe (France, Germany)
C) former Soviet Union (Russia and its Near Abroad)
D) North America (Canada, United States)
E) South America (Argentine, Brazil, Chile)

Question 10

What does GDP per capita measure?

A) the sum of domestic goods, after the Gini coefficient is taken into account
B) the projected level of development multiplied by the current wealth of a country
C) the monetary value of the people, resources, and industrial output of a country
D) total of the value of goods and services produced by a national economy divided by its population
E) the amount of international trade that takes place for a country in a given year

Question 11

In less developed countries,a large share of the labor force works in which sector? In certain African nations,India,and China,more than 75% of the workers are in this sector.

A) primary sector
B) secondary sector
C) tertiary sector
D) quarternary sector
E) quinary sector

Question 12

Underdevelopment as a condition for some countries in the world economy is

A) inherent and inevitable.
B) a passive state of being.
C) naturally occurring.
D) an active process.
E) all of the above.

Question 13

What is NOT a major school of thought on world economic development?

A) anti-modernization theory
B) modernization theory
C) dependency theory
D) world-systems theory
E) none of the above are related to theories about world economic development

Question 14

What is/are the primary reason(s)the world is divided into wealthier and poorer groups?

A) conspiracy among the currently wealthy countries to create this division
B) the outcome of a systemic process by which the world's economy functions
C) luck and chance
D) topography
E) seafaring cultures and inherent curiosity regarding the world outside a local region

Question 15

What is the best description of activities of the primary sector?

A) assembling raw materials and manufacturing
B) extraction of materials from the earth
C) provision of services, including wholesaling and retailing, and transportation
D) management of information
E) none of the above

Question 16

Which of the following is TRUE?

A) GDP is the best measure of income distribution in a given country.
B) Per capita purchasing power is a more meaningful measure of income than GDP.
C) Latin America is one of the world's wealthiest regions.
D) In the last 20 years, poverty has been eliminated from the world.
E) Australia ranks among the world's poorest countries.

Question 17

Many measures of development incorporate income.What are other measures of development?

A) nutrition
B) health
C) infant mortality
D) civil liberties
E) All of the above are other measures of development.

Question 18

Which of the following is considered an "underdeveloped" country?

A) Australia
B) Germany
C) Japan
D) United States
E) none of the above

Question 19

Which of the following is TRUE?

A) Richer countries in the First World generally have high student-teacher ratios.
B) Many developing countries have no budget for the military and channel all available funds into education.
C) Literacy rates in Africa are roughly comparable to literacy rates in Europe.
D) There are typically vast gender differences in literacy within developing countries.
E) None of the above is true.

Question 20

Among the five countries/regions below,which has relatively inexpensive goods and services,particularly housing? (In other words,which of the wealthy countries below has the highest per capital purchasing power?)

A) Germany
B) Japan
C) Scandinavia (Norway, Sweden, Denmark)
D) Switzerland
E) United States

Question 21

Which of the following is NOT TRUE regarding urbanization?

A) Cities in the developing world are growing slower than those in Europe, Japan, and North America.
B) The majority of humanity lives in urban areas (more than 50% of the world population is urban).
C) In the industrialized West, urbanization occurred along with industrialization.
D) The proportion of each country's people that lives in cities varies around the globe.
E) Urbanization in less developed countries is primarily due to rural-to-urban migration.

Question 22

What region of the world receives the highest amount of remittance income?

A) Australia
B) Europe (especially western Europe)
C) Latin America
D) North America
E) Sub-Saharan Africa

Question 23

What disease has the likeliest potential to depopulate large parts of the world in the 21ˢᵗ century?

A) AIDS
B) bubonic plague (Black Death)
C) H1N1 (subtype of Influenza A virus, sometimes called swine flu)
D) H5N1 (bird flu)
E) smallpox

Question 24

What is the world's largest urban area,with approximately 36 million people?

A) Chicago, U.S.
B) Moscow, Russia
C) Paris, France
D) Seoul, South Korea
E) Tokyo, Japan

Question 25

In the developing world,what area of the city is typically dominated by housing for the poor? This is especially typical in Latin America.

A) the city center
B) the most expensive land
C) the periphery (edges of the city)
D) All of the above areas are dominated by housing for the poor.
E) None of the above areas is dominated by housing for the poor.

Question 26

What underdeveloped world region has enjoyed the most rapid rate of economic growth in the world since World War II?

A) East Asia (excluding Japan)
B) Latin America
C) Middle East and North Africa
D) South Asia
E) none of the above regions rely on these exports

Question 27

In Economic Geography,what does the term "North-South split" refer to?

A) the division of the world into developed countries and underdeveloped countries
B) countries that have good growing conditions (soil, climate) and those that do not
C) countries that are democracies versus those that are dictatorships
D) areas in the global north were settled by Britain, areas in the global south were not
E) the physical geographic divisions of the globe

Question 28

Which is NOT TRUE?

A) Measures of health in general are higher in developed nations than in less developed countries.
B) Worldwide, today there are more obese people than malnourished ones.
C) People in developed nations have better access to doctors, hospitals, and health care providers.
D) Infants and children are the most vulnerable members of any society.
E) All of the above are true.

Question 29

How is Latin America distinct from other regions of the underdeveloped world?

A) It has a greater proportion of dictatorships.
B) It has a higher level of urbanization.
C) It has the lowest levels of literacy.
D) It has squatter settlements.
E) It has laws against remittances.

Question 30

What are remittances?

A) zones of a city that are dominated by the wealthy elite (more typical in the less developed world)
B) programs that seek to equalize literacy rates in the less developed world
C) measures of economic health and potential
D) measures of a country's well-being that take many non-economic factors into account
E) transfers of migrant workers' wages to their families back home

Question 31

What is the average life expectancy of people living in economically advanced countries?

A) 75 years and above
B) 65 to 74 years
C) 55 to 64 years
D) 45 to 54 years
E) less than 45 years

Question 32

What is a criticism of remittances?

A) They drain resources in the developed world.
B) They are often used for conspicuous consumption.
C) Municipal governments often tax them at exorbitant rates.
D) They spread global inequality.
E) They hinder rural-to-urban migration.

Question 33

In addition to many different native languages,what are the main languages of Latin America?

A) English and German
B) Flemish and Walloon
C) French and Dutch
D) Italian and Greek
E) Spanish and Portuguese

Question 34

Which region experiences the highest rates of infant mortality?

A) Africa
B) Asia
C) Europe
D) South America
E) North America

Question 35

Today,the vast bulk of the world's urban growth is in

A) the developed world.
B) the developed world, especially Europe.
C) the developed world, especially North America.
D) the developing world.
E) the developing world, especially in island countries.

Question 36

What is the most populous country of Southeast Asia,with 240 million people?

A) Cambodia
B) Indonesia
C) Myanmar
D) Philippines
E) Singapore

Question 37

What is the largest urban area in the United States? It is the second-largest urban area in the world with approximately 19 million people.

A) Chicago
B) Los Angeles
C) Miami
D) New York City
E) Philadelphia

Question 38

What is the informal economy?

A) export-oriented jobs
B) factory jobs that are geared for domestic consumption
C) government-sector jobs that are secure employment
D) jobs that are created when foreigners invest in the developing world
E) variety of jobs that tend to be low-paying, like day laborers

Question 39

What is the epicenter of the AIDS epidemic?

A) Sub-Saharan Africa
B) East Asia
C) Eastern Europe
D) South America
E) North America

Question 40

What underdeveloped world region has economies that rely on low-priced primary-sector goods for export,such as coffee,bananas,orange juice,beef,soybeans,and mineral ores?

A) East Asia (excluding Japan)
B) Latin America
C) Middle East and North Africa
D) South Asia
E) none of the above regions rely on these exports

Question 41

Which underdeveloped world region lacks a substantial agricultural base,which means many food products must be imported?

A) East Asia (excluding Japan)
B) Latin America
C) Middle East and North Africa
D) South Asia
E) none of the above regions rely on food imports

Question 42

What country has 1.3 billion people,is the largest recipient of foreign direct investment in the world,and has made shifts from a communist country to a market economy?

A) Brazil
B) China
C) India
D) Japan
E) Nigeria

Question 43

What factor would Thomas Malthus,as well as those who are Malthusians,believe to be most important in explaining problems in less developed countries?

A) rapid population growth
B) poor terms of trade
C) low labor productivity
D) foreign debt
E) unequal land distribution

Question 44

Which is NOT TRUE?

A) Most less developed countries suffer from a lack of capital.
B) Increasing the amount of arable land is a strategy for development.
C) Barriers to saving and investing are often high in less developed countries.
D) Many less developed countries suffer from capital flight.
E) Less developed countries lack investment opportunities comparable to those opportunities in developed countries.

Question 45

What is the predominant religion in Pakistan?

A) Buddhism
B) Confucianism
C) Hinduism
D) Islam
E) Taoism

Question 46

Of the East Asian countries below,which is the poorest?

A) China
B) North Korea
C) South Korea
D) Taiwan
E) all of the above are equally impoverished

Question 47

What is the only region of the world that has become poorer since World War II?

A) East Asia (excluding Japan)
B) Latin America
C) Middle East and North Africa
D) South Asia
E) Sub-Saharan Africa

Question 48

What is land reform?

A) using better agricultural technology
B) redistribution of land from the wealthy few to the masses
C) government subsidies of basic foodstuffs (rice, wheat, oats, etc.)
D) attracting foreign capital to invest in large-scale agricultural enterprises
E) assigning parcels of land to former members of the military in order to increase employment

Question 49

What is a major reason for the low level of development in the Middle East?

A) lack of resources
B) low oil prices
C) religious diversity
D) wars and conflicts
E) all of the above are major reasons for the low level of development in the Middle East

Question 50

What are terms of trade?

A) the series of international agreements that a country agrees to abide to in the world economy
B) the relative values of its exports and imports
C) the network of functions that connect a country to the international economy
D) laws that a country must skirt if it is to make a profit
E) the surplus items that a country has available for export

Question 51

What is "capital flight" as it relates to the underdeveloped world?

A) Imperfect flows of information hinder investment opportunities in the underdeveloped world.
B) Banks in the underdeveloped world are inadequately connected to the developed world.
C) Wealthy individuals and firms invest and deposit monies in developed countries.
D) Educated people migrate to developed countries.
E) Investments are made in airports to improve transportation infrastructure

Question 52

What are investments in human capital?

A) improving the infrastructure of an area, with improvements such as sewer installation and electrification
B) financial expenditures that result in people being able to save money for household expenses
C) education, health, and other social services
D) creation of jobs
E) migration movements

Question 53

What is underemployment?

A) government (artificial) employment
B) people who want to work cannot find jobs
C) people are not adequately trained for advanced jobs
D) people work less than they would like and that skills are underutilized
E) employment that exists because worker output is not maximized, for example three people sweep a street when it would only take one

Question 54

Which of the following is TRUE about China?

A) It has no large cities.
B) Great poverty remains in the interior.
C) Economic growth has been stagnant since World War II.
D) It has always been a capitalist country.
E) It receives virtually no foreign investment.

Question 55

What is the most populous country of South Asia?

A) Bangladesh
B) Bhutan
C) India
D) Nepal
E) Pakistan

Question 56

What is NOT a characteristic problem of less developed countries?

A) unemployment and underemployment
B) inadequate and insufficient technology
C) poor terms of trade
D) foreign debt
E) All of the above are characteristic problems.

Question 57

What is NOT a characteristic problem of less developed countries?

A) lack of natural resources
B) rapid population growth
C) low labor productivity
D) lack of capital and investment
E) lack of capital and investment

Question 58

What country colonized South Asia?

A) Britain
B) France
C) Germany
D) Spain
E) Russia

Question 59

How does "brain drain" impact the underdeveloped countries?

A) Talented people (doctors, engineers, scientists) move to the developed world.
B) Inadequate nutrition during childhood prevents the young from being healthy.
C) Schools are often unfunded, which means talents are not fully developed.
D) Investments in infrastructure are often poorly made and do not complement one another (an area might have running water but no electricity).
E) None of the above are impacts of "brain drain."

Question 60

Capital-intensive production techniques in the developed world save labor and increase output.In less developed countries,what is the main impact of capital intensification?

A) Governments are less responsive to the needs of the people.
B) Workers are displaced, eliminating critically needed jobs.
C) More of the budget is devoted to military spending.
D) Standards of living are higher.
E) Human capital increases.

Question 61

Capitalism began in the Middle East in the 15th Century.

Question 62

For a country,what is an ideal situation for terms of trade?

A) exporting low-valued commodities and importing high-valued ones
B) exporting low-valued commodities and importing low-valued ones
C) exporting high-valued commodities and importing high-valued ones
D) exporting high-valued commodities and importing low-valued ones
E) no exports and importing several commodities

Question 63

Which is NOT TRUE regarding foreign debt?

A) Much of the developing world is deeply in debt to foreign governments and banks.
B) The origins of the debt crisis lie in the 1910s and 1920s.
C) Debts raise concerns about the stability of the international monetary system.
D) Debt repayment can be difficult for developing countries.
E) All of the above are false.

Question 64

To restructure a developing world country's debt,the International Monetary Fund (IMF)typically wants "structural adjustment" in that country.What does this term mean?

A) completely exchanging the domestic currency for U.S. dollars, Euros, or Japanese Yen
B) a renewed focus on agriculture and limiting the size of cities
C) increases in government spending on health care, education, and care for the elderly
D) reductions in government subsidies to the poor and devaluations of currencies
E) mandating the total turnover of domestic banking to banks in the developed world, which often means a complete loss of savings for citizens of that country

Question 65

When a developing world country carries "private debt," to whom is that money owed?

A) its own citizens
B) transnational corporations who are not directly involved in banking
C) private banks
D) foreign governments
E) No money is actually owed, as no one expects the loans to ever be repaid.

Question 66

Worldwide,today there are more obese people than malnourished ones.

Question 67

The most common measure of wealth and poverty internationally is Gross Domestic Product.

Question 68

When a developing world country carries "public debt," to whom is that money owed?

A) its own citizens
B) transnational corporations who are not directly involved in banking
C) private banks outside that developing world country
D) private banks inside that developing world country
E) foreign governments

Question 69

The percentage of people employed in the primary sector is highest in emerging markets.

Question 70

What country is the largest debtor in the world measured by absolute external debt? This debt of this country is valued at $10 trillion.

A) Brazil
B) China
C) India
D) Russia
E) United States

Question 71

Countries that are beginning to make the transition from an agrarian society to an industrial society are known as underdeveloped.

Question 72

Per capita purchasing power is a more meaningful measure of income than GDP.

Question 73

When measured by absolute external debt,which countries/regions below have the largest debts?

A) Africa (both North Africa and Sub-Saharan Africa)
B) Australia, United States, Western Europe
C) Middle East
D) South America
E) South Asia

Question 74

In what area(s)are women not very economically active outside the home because of religious prohibitions?

A) Baha'i areas
B) Hindu areas
C) Muslim areas
D) Northern America (Canada and United States)
E) tropical zones (roughly 20 degrees north and south of the equator)

Question 75

GDP fails to measure barter,subsistence production,and household domestic labor.

Question 76

For many of the less developed countries,what is the situation for their terms of trade?

A) exporting low-valued commodities and importing high-valued ones
B) exporting low-valued commodities and importing low-valued ones
C) exporting high-valued commodities and importing high-valued ones
D) exporting high-valued commodities and importing low-valued ones
E) several exports and no imports

Question 77

The secondary sector of the economy is involved in natural or culturally improved resources,such as agriculture,livestock raising,forestry,fishing,and mining.

Question 78

In what region/country are the wages of women equal to those of men? (Where is there no gender gap?)

A) Australia
B) Latin America
C) Sub-Saharan Africa
D) United States
E) the wages of women are lower in all of the above

Question 79

The most populous country of Southeast Asia,with 240 million people is China.

Question 80

In the developing world,what government institution is often the most well-funded and organized?

A) agricultural department
B) educational system
C) military
D) ministry of trade
E) social services network (foster care, homes for the elderly, etc.)