Question 1

Which of the following countries had the highest population growth rate in 2016-2017?

Accepted Answer

According to the World Bank, Kenya had a population growth rate of 2.46% in 2016-2017, which was the highest among the given countries. The population growth rates for the other countries were: United States - 0.71%, China - 0.47%, and Venezuela - negative growth rate.

Question 2

The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7 percent per year. This compares to what percentage growth per year in low-income DVCs
(developing countries)?

Accepted Answer

The population growth rate in low-income developing countries (DVCs) tends to be higher than in industrially advanced countries (IACs) due to factors such as higher birth rates and lower levels of access to family planning. A growth rate of 2.1 percent per year for DVCs is realistic and aligns with historical data, indicating a significant difference from the 0.7 percent growth rate in IACs.

Question 3

One common measure of the "standard of living" in a nation is

Accepted Answer

Real income per capita is a widely accepted measure of the standard of living in a nation because it represents the amount of goods and services that the average person can afford to purchase. This takes into account changes in prices and adjusts for inflation, providing a more accurate representation of the purchasing power of an individual's income. Unemployment rate and population size do not necessarily reflect the quality of life or level of economic prosperity within a nation, while real GDP can be influenced by factors such as population growth and inflation.

Question 4

Suppose that the average annual rate of population increase in Econland in recent years was about 2 percent. Based on this rate of growth, the population of Econland will double in about

Accepted Answer

The doubling time can be estimated using the Rule of 70, which states that the time it takes for a quantity to double is approximately 70 divided by the annual growth rate (in percent). For Econland, with a 2 percent growth rate, the doubling time is 70 / 2 = 35 years.

Question 5

The fertility rates-the number of children per woman's lifetime-in most DVCs (developing countries) are

Accepted Answer

The fertility rates in most developing countries are declining. This is due to factors such as increased access to education, greater availability of family planning services, and economic development that has resulted in fewer children being necessary to provide for parents in old age.

Question 6

One major path that leads to growth in both developing nations (DVCs) as well industrially advanced nations (IACs) is that productive resources must be

Accepted Answer

In both developing nations and industrially advanced nations, growth can be achieved by using resources in a more efficient manner. This means ensuring they are being used effectively and not wastefully, increasing productivity and efficiency, and reducing costs. By doing so, businesses can increase their output and competitiveness, leading to economic growth. The other options (A, B, and C) are not necessarily indicative of growth and may not always be appropriate in every situation.

Question 7

Assume that the real output of a developing nation increases from $120 billion to $140 billion, while its population expands from 100 to 110 million. As a result, real income per capita has increased by
About

Accepted Answer

Real income per capita is equal to real output divided by population.

Initially, real income per capita was $120 billion / 100 million people = $1,200 per person.

After the increase in real output and population, real income per capita is $140 billion / 110 million people = $1,272.73 per person.

The increase is $1,272.73 - $1,200 = $72.73 per person. Therefore, the best choice is C, $72 per person.

Question 8

Per capita income in the United States in 2017 was about

Accepted Answer

According to data from the Bureau of Economic Analysis, per capita personal income in the United States in 2017 was approximately $60,200.

Question 9

Most developing countries (DVCs) exhibit a low level of

Accepted Answer

Most developing countries exhibit a low level of life expectancy due to factors such as inadequate healthcare, poor nutrition, and higher rates of diseases.

Question 10

Which of the following is not a characteristic of human resources in the poorest DVCs?

Accepted Answer

The statement "population growth is low" is not a characteristic of human resources in the poorest DVCs. The other options (A, B, and D) are all common characteristics of human resources in the poorest DVCs.

Question 11

The two paths to economic development, which are the same for both developing countries and industrially advanced economies, are

Accepted Answer

Using existing resources more efficiently, such as improving infrastructure and technology, can lead to increased productivity, while expanding available resources through investments in education and natural resource development can also spur economic growth. B, C, and D may have negative effects on economic development, such as crowding out private investment or discouraging innovation.

Question 12

Assume the total real income of a developing country increases from $8 billion to $8.2 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 initial per capita income is $8 billion / 14 million = $571.43. The new per capita income is $8.2 billion / 15 million = $546.67. The decrease in per capita income is $571.43 - $546.67 = $24.76, which rounds to $25 per person.

Question 13

Which of the following factors contributes most to the high per capita incomes in developed nations?

Accepted Answer

High rates of economic growth are the most significant factor in contributing to high per capita incomes in developed nations. This growth often arises from advances in technology, productivity, innovation, and trade that boost the productivity and competitiveness of an economy. High rates of population growth, low rates of investment, and low rates of saving can limit economic growth and reduce per capita incomes.

Question 14

Which of the following countries had the highest population density (population per square km) in 2017?

Accepted Answer

India had a population density of 416 people per square km in 2017, while the United States had 35 people per square km, China had 148 people per square km, and Venezuela had 33 people per square km.

Question 15

Which of the following factors contributes to the weak economic growth in DVCs?

Accepted Answer

A decrease in the prices of DVC natural resources would lead to a decrease in revenue for the countries, thus resulting in weaker economic growth. The other options listed would contribute to stronger economic growth.

Question 16

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will

Accepted Answer

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will increase the productive capacity of a nation. This means that the nation will be able to produce more goods and services with the same amount of resources, which will shift the production possibilities curve for the nation outward. As a result, the nation will be able to produce more and achieve a higher level of economic growth.

Question 17

Over the next 15 years, roughly what percentage of the increase in world population will come from DVCs?

Accepted Answer

Over the next 15 years, approximately 90 percent of the increase in world population is expected to come from developing countries (DVCs), reflecting higher birth rates and younger populations in these regions compared to developed countries.

Question 18

One of the essential paths to economic growth is

Accepted Answer

Using existing resources more efficiently is an essential path to economic growth because it allows for increased productivity without the need for additional resources. This can lead to increased output, decreased costs, and higher profits, all of which contribute to economic growth. Increasing population growth can strain resources and may not necessarily lead to economic growth, while expanding the role of government and expanding tax credits for business investment may have mixed impacts on economic growth depending on how they are implemented.

Question 19

Which of the following countries had the highest per capita energy consumption in 2015?

Accepted Answer

The United States had the highest per capita energy consumption in 2015, with an average of 7,548 kilogram of oil equivalent (kgoe) per person. India had the lowest per capita energy consumption, with only 566 kgoe per person. China and Japan were in the middle, with per capita energy consumption of 3,629 kgoe and 3,181 kgoe respectively.

Question 20

Per capita income in the United States in 2017 was about how many times greater than that in China?

Accepted Answer

In 2017, the per capita income in the United States was significantly higher than in China, but not to the extent of the highest options provided. The correct ratio, approximately 3.5 times, reflects the economic disparity between the two countries at that time, considering the United States' more developed economy and higher standard of living compared to China's rapidly growing but still developing economy.

Quiz 22: The Economics of Developing Countries