978-1259723223 Test Bank TBChap042 Part 3

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.

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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?

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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

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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

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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

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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

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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?

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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?

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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

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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?

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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

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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)?

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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

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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?

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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