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interest on their outstanding external debts.
106. Because families can afford to have more children, population growth is greater in the
IACs than in the DVCs.
107. The capricious universe view is the idea that the IACs are exploiting the DVCs.
108. An advantage of direct foreign investment (compared to foreign loans) is that
management skill and technological knowledge often accompany such capital flows.
42-42
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written consent of McGraw-Hill Education.
Blooms: Understand
Di f f i c u l t y :
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
109. Reduction of tariff barriers against DVC imports would benefit both the DVCs and the
IACs.
110. The poorest 20 percent of the world's population receive what percentage of world
income?
111. More than 75 percent of the world's income is earned by what percentage of the
world's population?
42-43
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written consent of McGraw-Hill Education.
D. 40 percent
112. What measure of economic development is used most often to classify nations as
industrially advanced or as developing?
113. The levels of national income per capita among developing countries (DVCs) are
114. Brazil, Mexico, and Thailand are referred to as
115. Developing countries (DVCs) can be subdivided into the following groups except
116. The industrially advanced countries (IACs) had an average per capita income in 2014
of around
42-45
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 42-01 Describe how the World Bank distinguishes between industrially
advanced countries and developing countries.
Test Bank: II
Topic:
The Rich and the Poor
117. The average per capita income in 2014 for low-income developing nations was about
118. Which of the following nations is not considered an industrially advanced country?
119. The United States in 2014 had about
42-46
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written consent of McGraw-Hill Education.
output.
D. 10 percent of the world's population and generated about 30 percent of the world's
output.
120. In 2014, Wal-Mart’s annual revenues were greater than the national incomes of
121. Low-income developing countries generally have the following characteristics except
122. If the per capita incomes of DVCs (developing countries) grew at the same annual rate
as those of IACs (industrially advanced countries), then the absolute income gap between
rich and poor nations over the years would
123. An IAC (industrially advanced country) had a per capita income of $28,200, while a
DVC (developing country) had a per capita income of $1,200 in a given year. If both
countries experience a per-capita-income growth of 2 percent, then their respective per-
capita-income levels one year later will become
124. At the beginning of the year, one developing country (DVC) has a real income per
capita of $800. In a developed country (IAC), the real income per capita is $30,000. Both
countries experience a 4 percent growth rate for the year. At the end of the year, the
absolute income gap between these two countries will have increased from $29,200 to
42-48
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
B. $31,200.
C. $30,120.
D. $32,032.
125. Which of the following countries had the highest per capita income (on a purchasing
power parity basis) in 2014?
126. Per capita income in the United States in 2014 was about
42-49
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Topic:
The Rich and the Poor
127. Per capita income in the United States in 2014 was how many times greater than that
in China?
128. Most developing countries (DVCs) exhibit a low level of
129. Which of the following countries had the highest per capita energy consumption in
2013?
42-50
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ac c e s s i b ili t y :
Keyboard Navigation
Blooms: Understand
Di f f i c u l t y :
02 Medium
Learning Objective: 42-01 Describe how the World Bank distinguishes between industrially
advanced countries and developing countries.
Test Bank: II
Topic:
The Rich and the Poor
130. The two paths to economic development, which are the same for both developing
countries and industrially advanced economies, are
131. Expanding the supplies of raw materials, capital equipment, effective labor, and
technological knowledge will
132. Which of the following factors contributes most to the high per capita incomes in
developed nations?
42-51
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written consent of McGraw-Hill Education.
A. high rates of population growth
B.
high rates of economic growth
C. low rates of investment
D. low rates of saving
133. One of the essential paths to economic growth is
134. One major path that leads to growth in both developing nations (DVCs) as well
industrially advanced nations (IACs) is that productive resources must be
135. Which of the following factors contributes to the weak economic growth in DVCs?
136. Which of the following is not a characteristic of human resources in the poorest
DVCs?
137. One common measure of the "standard of living" in a nation is
42-53
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Topic:
Obstacles to Economic Development
138. 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
139. Assume the total real output 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
140. Over the next 15 years, roughly what percentage of the increase in world population
will come from DVCs?
42-54
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
Ac c e s s i b ili t y :
Keyboard Navigation
Blooms: Remember
Di f f i c ulty:
01 Easy
Learning Objective: 42-02 List some of the obstacles to economic development.
Test Bank: II
Topic:
Obstacles to Economic Development
141. Which of the following countries had the highest population density (population per
square km) in 2014?
142. Which of the following countries had the highest population growth rate in 2013–
2014?
143. 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
42-55
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written consent of McGraw-Hill Education.
A. 7 years.
B. 11 years.
C.
35 years.
D. 46 years.
144. The fertility rates—the number of children per woman's lifetime—in most DVCs
(developing countries) are
145. 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)?
42-56
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written consent of McGraw-Hill Education.
Topic:
Obstacles to Economic Development
146. A developing nation may not experience an increase in the average standard of living
even if it increases its output of goods and services because of
147. Birth- and population-control efforts in many DVCs (developing countries) face the
following obstacles except
148. The traditional view regarding population and growth in DVCs is that
149. The demographic transition view of population and growth in DVCs is that
150. A study concludes that in DVCs, rising incomes must first be achieved and only then
will there be slower population growth. What view of DVC population growth would this
study be supporting?
151. Income gains in the poorest DVCs may increase population growth initially, at least
for a while, due to the following reasons except
152. Population expansion can impede economic development for the following reasons
except
153. Development economists suggest that a key strategy for the poorest DVCs to break out
of their poverty is to implement policies that boost their
42-59
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written consent of McGraw-Hill Education.
Di ffi c ulty :
01 Easy
Learning Objective: 42-02 List some of the obstacles to economic development.
Test Bank: II
Topic:
Obstacles to Economic Development
154. Based on population and economic development trends, the world population is
expected to in the last part of this century.
155. The population growth rate of the DVCs (developing countries) as a group in recent
decades has been
156. Which characteristic is most typical of human resources in developing nations?
42-60
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
Ac c e s s i b i l i t y :
Keyboard Navigation
Blooms: Remember
Di f f i c ulty:
01 Easy
Learning Objective: 42-02 List some of the obstacles to economic development.
Test Bank: II
Topic:
Obstacles to Economic Development
157. Which of the following is most characteristic of developing nations?
158. Surplus agricultural labor in a developing nation usually means that there is
159. The lack of an entrepreneurial class in developing nations tends to
