978-1259723223 Test Bank TBChap042 Part 2

subject Type Homework Help
subject Pages 14
subject Words 5709
subject Authors Campbell McConnell, Sean Flynn, Stanley Brue

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Test Bank: I
52. Which of the following is not part of a nation's infrastructure?
53. Infrastructure is best illustrated by
54. Investment in-kind refers to the possibility that
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42-22
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Remember
Diff ic ul ty:
01 Easy
Learning Objective: 42-02 List some of the obstacles to economic development.
Test Bank: I
To p i c :
Obstacles to Economic Development
55. Suppose that surplus labor in a Pakistani village is used to build a medical clinic and
dig several wells. This is an illustration of
56. If a technological advance expands output and requires a smaller investment in capital
goods, this technological advance
57. The ability of the DVCs to use the technologies of the IACs is somewhat limited
because
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written consent of McGraw-Hill Education.
D. IAC technologies are labor-intensive, while DVC technologies are capital-intensive.
58. It is sometimes difficult to transfer the advanced technologies of the industrialized
nations to the DVCs because
59. The low per capita outputs of the DVCs are explained by
60. An economy's infrastructure refers to its
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61. The "brain drain" problem in the DVCs refers to the fact the best-educated workers
62. The capricious universe view indicates that
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42-25
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
To p ic :
Obstacles to Economic Development
63. Economic growth may hinge on whether individuals and institutions within a nation
want growth badly enough to change their traditional ways of doing things. This statement
refers to
64. The idea that a person's productive efforts and his or her economic rewards are
unrelated
65. Which of the following describes the vicious circle of poverty?
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written consent of McGraw-Hill Education.
interest rate and reduces investment.
66. Many countries remain poor because they currently are poor. This statement
summarizes the
67. The government of a DVC may force the economy to save by deliberately causing
inflation. This policy is undesirable because inflation may
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68. Which of these sets of countries has the greatest degree of internal corruption as of
2015, according to Transparency International?
69. A highly active role by government may be needed to promote economic growth in
low-income DVCs because of
70. The government of a DVC may purposely cause inflation because
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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ac c es s i b i l i t y :
Keyboard Navigation
Blooms: Understand
Di f fic u l ty:
02 Medium
Learning Objective: 42-04 Discuss the role of government in promoting economic development
within low-income nations.
Test Bank: I
To p i c :
The Role of Government
71. Small loans to entrepreneurs and small business owners in DVCs are referred to as
72. Which of the following is generally not an effective strategy to promote DVC growth?
73. Successful foreign aid programs
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42-29
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
left.
B.
enhance a DVC's resources and therefore shift its production possibilities curve to the
right.
C. move the DVC from a high-investment-low-consumption position to a low-investment-
high-consumption position on its stable production possibilities curve.
D. cause a DVC's exchange rate to depreciate.
74. The international agency that lends money to DVCs for economic development projects
is the
75. The World Bank
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42-30
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Di f fic u l ty:
02 Medium
Learning Objective: 42-05 Describe how industrial nations attempt to aid low-income
countries.
Test Bank: I
To p i c :
The Role of Advanced Nations
76. The World Bank
77. The primary function of the International Finance Corporation (IFC) is to
78. In recent years, the industrially advanced nations as a group have provided foreign aid
amounting to about what percentage of their aggregate outputs?
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written consent of McGraw-Hill Education.
A.
0.25 percent
B. 0.7 percent
C. 1 percent
D. 2 percent
79. Government-provided foreign aid to developing countries
80. In the 1990s,
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42-32
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Di f fic u l ty:
02 Medium
Learning Objective: 42-05 Describe how industrial nations attempt to aid low-income
countries.
Test Bank: I
To p i c :
The Role of Advanced Nations
81. Development assistance as a percentage of GDP is greatest for which of the following
industrialized nations (as of 2015)?
82. In recent years, U.S. foreign aid has been
83. Foreign aid to the DVCs has been criticized
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written consent of McGraw-Hill Education.
D.
for all of these reasons.
84. An increasing share of the private capital flows to DVCs in recent years has been in the
form of
85. An example of direct foreign investment is
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written consent of McGraw-Hill Education.
86. Which of the following is a true statement?
A. Direct foreign investment to DVCs is increasingly provided by commercial banks.
B. Direct foreign investment to DVCs has dwindled to near zero in recent years.
C. Approximately 5 percent of the GDP of IACs goes to foreign aid.
D.
Foreign aid from the IACs to the DVCs has greatly expanded in the past several years.
87. Which of the following is not a DVC policy likely to increase DVC economic growth?
88. Which of the following DVC policies is not likely to increase DVC economic growth?
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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
within low-income nations.
Test Bank: I
To p ic :
The Role of Government
89. State industries are notoriously poor "incubators" for the development of profit-
focused, entrepreneurial persons who may leave the firm to set up their own businesses.
This statement is an argument in favor of
90. Economic growth in the DVCs might increase if IACs
91. Large agricultural subsidies for food and fiber in IACs hurt the economies of the DVCs
by
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written consent of McGraw-Hill Education.
A. causing higher prices for imported food products.
B. lowering saving rates in the DVCs.
C. encouraging "brain drains" from the DVCs.
D.
reducing world agricultural prices and thus export income of the DVCs.
92. In recent years, the governments of the IACs have
93. (Last Word) Loans offered through microcredit programs
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42-37
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ac c es s i b i l i t y :
Keyboard Navigation
Blooms: Remember
Di ffi c ul t y:
01 Easy
Learning Objective: 42-02 List some of the obstacles to economic development.
Test Bank: I
To p ic :
Obstacles to Economic Development
94. (Last Word) Providing poor families with grants if they send their children to school
and get proper medical care is known as
95. (Last Word) Early experiments with unconditional cash transfers have revealed that
96. (Last Word) Early experience with conditional cash transfers has revealed that
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written consent of McGraw-Hill Education.
requirements.
B. there is no significant improvement in nutrition and health compared to nonrecipients.
C.
they encourage school enrollment, but poor-quality schools limit the ability to lift
people out of poverty.
D. the resulting improvements in education and health give the recipients a significant
earnings advantage over nonrecipients.
97. The vast majority of the labor forces of the low-income DVCs are engaged in
agriculture.
98. Most of the DVCs of the world are located in Western Europe.
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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
To p i c :
The Rich and the Poor
99. DVCs tend to have permanent shortages of farm labor.
100. Most nations of the world are now IACs, not middle- and low-income DVCs.
101. The most important growth obstacle common to all DVCs is the lack of desire to
increase their standards of living.
102. Saving is low in many DVCs primarily because income is very equally distributed.
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103. The differences in the per capita incomes of the IACs and the DVCs have diminished
sharply since the Second World War because of U.S. aid programs.
104. If the real outputs per capita of a rich nation and a poor nation grow at the same
percentage rate, the absolute income gap between the two nations will shrink.
105. Capital flight refers to the fact that many DVCs must use their export earnings to pay

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