Deck 19: Economic Development

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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 7

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

Question 8

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

Question 9

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 10

An aging population poses fiscal problems for any country.​

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

Migration has no advantage for poor countries.​

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

Most countries have received foreign aid for industrialization.​

Question 34

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

Question 35

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

Question 36

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

Question 37

Not much of foreign aid now flows through private channels.​

Question 38

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

Question 39

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

Question 40

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

Question 41

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 42

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 43

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 44

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 45

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 46

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 47

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 48

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 49

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 50

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 51

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 52

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 53

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 54

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 55

_____ 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 56

_____ 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 57

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 58

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 59

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 60

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 61

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 62

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 63

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 64

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 65

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 66

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 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

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 69

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 70

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.

Question 71

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 72

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 73

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 74

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 75

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 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

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 78

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 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

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.