Question 1

If the country of Deficitland is experiencing trade deficits, they are more likely to cut imports of

Accepted Answer

A)   beef
B)   cocoa
C)   coffee
D)   capital goods
E)   soybeansF) All of the above
G) A) and D)

Question 2

At the end of the production chain that a typical economy moves up along is

Accepted Answer

A)   raw material
B)   agriculture
C)   hunting and gathering
D)   services
E)   manufacturingF) A) and E)
G) A) and D)

Question 3

A requirement for development is

Accepted Answer

A)   an unreliable system of financial institutions
B)   a lack of saving by households and firms
C)   low confidence in domestic currency
D)   low and predictable inflation that encourages saving
E)   None of the answers is correctF) A) and E)
G) None of the above

Question 4

If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result.

Accepted Answer

A) True 
 B)False

Question 5

One example of gradualism is taking place in

Accepted Answer

A)   China
B)   the United Nations
C)   New Zealand
D)   Japan
E)   FranceF) A) and D)
G) All of the above A

Question 6

One thing that did not happen in the former Soviet Union was

Accepted Answer

A)   widespread corruption
B)   a lack of faith in formal institutions
C)   workers bribing officials to get good jobs
D)   consumers paying fair market prices to get desired products
E)   prices not being allowed to allocate resources efficientlyF) A) and B)
G) A) and C)

Question 7

A trend in developing countries is that

Accepted Answer

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)   when women have employment opportunities outside the home, fertility rates increase
D)   as women become better educated, they earn less
E)   as women become less educated, they tend to have fewer childrenF) C) and E)
G) A) and E) B

Question 8

Any international transfer made on concessional terms for the purposes of promoting economic development is

Accepted Answer

A)   foreign aid
B)   first aid
C)   immigration
D)   private investment
E)   remittancesF) B) and E)
G) B) and C)

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following creates an obstacle to pursuing freer international trade?

Accepted Answer

A)   Consumers do not recognize their potential gains
B)   Losses are widespread
C)   Domestic producers do not recognize their potential losses
D)   Government has plenty of political will and support to remove trade barriers
E)   Consumers can easily organize to demand free tradeF) A) and D)
G) B) and D)

Question 11

Compared to industrial market countries, developing countries usually have

Accepted Answer

A)   exports consisting mostly of agricultural products and raw materials
B)   faster population growth
C)   higher unemployment
D)   higher rates of illiteracy
E)   All of the answers are correctF) C) and D)
G) C) and E) E

Question 12

Privatization is the process of turning government enterprises into private enterprises in transitional economies.

Accepted Answer

A) True 
 B)False

Question 13

If there is a great deal of violence and uncertainty in the country of Crazico, people will be less willing to invest in their own future or in the future of Crazico.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following can help shape the incentive structure of the country of Gammaland?

Accepted Answer

A)   resource availability
B)   prices
C)   income
D)   incentives
E)   All of the answers are correctF) A) and B)
G) None of the above

Question 15

Production and exchange depend on an reliable infrastructure of

Accepted Answer

A)   transportation
B)   communication
C)   sanitation
D)   electricity
E)   All of the answers are correctF) C) and D)
G) A) and D)

Question 16

Successful management of resource wealth is a poverty trap

Accepted Answer

A) True 
 B)False

Question 17

A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because

Accepted Answer

A)   crop supply changes very little despite the weather
B)   crop supply fluctuates with the weather
C)   weather never varies
D)   crops go in and out of fashion as new diets are developed
E)   crop demand fluctuates with the weatherF) B) and D)
G) A) and D)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The average value added per U.S. farm worker is about __________ times that of farm workers in low- and middle-income countries.

Accepted Answer

A)   one half
B)   one
C)   ten
D)   seventy-five
E)   five hundredF) A) and B)
G) A) and C)

Question 20

The country of Yipi can raise its productivity by investing more in

Accepted Answer

A)   both human and physical capital
B)   human capital only
C)   physical capital only
D)   stable foreign economies
E)   stocks and bondsF) C) and E)
G) B) and E)

Exam 21: Economic Development

If the country of Deficitland is experiencing trade deficits, they are more likely to cut imports of

Correct AnswerverifiedShow Answer

At the end of the production chain that a typical economy moves up along is

Correct AnswerverifiedShow Answer

A requirement for development is

Correct AnswerverifiedShow Answer

If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result.

Correct AnswerverifiedShow Answer

One example of gradualism is taking place in

Correct AnswerverifiedA

One thing that did not happen in the former Soviet Union was

Correct AnswerverifiedShow Answer

A trend in developing countries is that

Correct AnswerverifiedB

Any international transfer made on concessional terms for the purposes of promoting economic development is

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following creates an obstacle to pursuing freer international trade?

Correct AnswerverifiedShow Answer

Compared to industrial market countries, developing countries usually have

Correct AnswerverifiedE

Privatization is the process of turning government enterprises into private enterprises in transitional economies.

Correct AnswerverifiedShow Answer

If there is a great deal of violence and uncertainty in the country of Crazico, people will be less willing to invest in their own future or in the future of Crazico.

Correct AnswerverifiedShow Answer

Which of the following can help shape the incentive structure of the country of Gammaland?

Correct AnswerverifiedShow Answer

Production and exchange depend on an reliable infrastructure of

Correct AnswerverifiedShow Answer

Successful management of resource wealth is a poverty trap

Correct AnswerverifiedShow Answer

A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The average value added per U.S. farm worker is about __________ times that of farm workers in low- and middle-income countries.

Correct AnswerverifiedShow Answer

The country of Yipi can raise its productivity by investing more in

Correct AnswerverifiedShow Answer

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E

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