978-1259723223 Test Bank TBChap042 Part 4

160. All developing countries suffer from a critical shortage of

161. An obstacle to economic growth in developing countries is

162. A reason for placing special emphasis on capital accumulation in developing countries

is the high

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C.

marginal benefits of capital goods.

D. level of import quotas and tariffs.

163. Studies generally show that if there is more investment in capital goods in DVCs,

there will be greater

164. One of the major investment obstacles in less-developed nations is

165. Which of the following is a major obstacle to economic growth in DVCs?

166. Which of the following is a factor limiting saving in DVCs?

167. A factor that limits the amount of saving in developing countries is the fact that

168. What is needed to aid capital formation in developing countries?

169. What is the problem with saving in DVCs, even when saving as a percentage of

domestic output is the same as in industrially advanced countries?

170. Capital flight is a problem facing DVCs that involves the

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Blooms: Remember

Di f f i c ul t y :

01 Easy

Learning Objective: 42-02 List some of the obstacles to economic development.

Test Bank: II

Topic:

Obstacles to Economic Development

171. Infrastructure is best illustrated by

172. A new fertilizer that is better suited to a nation’s topography and climate is an example

of a technological advance that is

173. If it is cheaper in the long run to use a new metal plow that lasts a long time than an

inferior wooden plow that needs to be replaced often, then this is an example of

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174. The diversion of surplus labor in agriculture to the production of schools or roads in

developing countries is described as

175. Which of the following is not an example of a sociocultural impediment to economic

growth?

176. If a local leader in a developing nation claims that there is little or no correlation

between a person’s efforts and the economic rewards that are given to that person, this

leader is most likely expressing a

177. Which of the following is most characteristic of most developing nations?

178. An institutional change that is needed in most developing nations is

179. Which of the following seems to be the most acute institutional problem that needs to

be resolved by many DVCs?

180. Which of the following statements is correct?

181. The vicious circle of poverty in the poorest DVCs can also be expressed as,

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Learning Objective: 42-03 Explain the vicious circle of poverty that afflicts low-income nations.

Test Bank: II

Topic:

The Vicious Circle

182. The “vicious circle of poverty” for developing nations can best be described by

183. Which of the following would most help a developing country (DVC) break out of the

vicious circle of poverty?

184. Many economists believe that the key to breaking the vicious circle of poverty is to

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D.

increase the rate of capital accumulation in poor nations.

185. Most economists agree that government efforts in economic development must be

186. Avenues for the government to foster economic growth and development include the

following, except

187. Government can play a major positive role in the early stage of economic

development by

188. Which of the following is not a reason why government may play a key role in the

early stage of economic development in developing nations?

189. The role of government in fostering economic growth in DVCs has been criticized

because

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Blooms: Understand

Di f f i c u l t y :

02 Medium

Learning Objective: 42-04 Discuss the role of government in promoting economic development

within low-income nations.

Test Bank: II

Topi c:

The Role of Government

190. Development experts are less enthusiastic than they used to be about three decades

ago about the positive role of DVC governments in promoting economic growth in their

less- developed nations because of the

191. Microcredit refers to

192. Microfinance or microcredit can help directly support

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B. local governments.

C.

entrepreneurs.

D. consumers.

193. Which of the following countries had the worst score in the Corruption Perception

Index in 2015?

194. Which of the following countries had the best score in the Corruption Perception

Index in 2015?

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Test Bank: II

Topi c:

The Role of Government

195. Economists would most likely suggest that advanced nations can best assist in the

economic development of developing nations by

196. Industrially advanced countries can best help developing countries by

197. In recent years, many DVCs have come to realize that

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growth.

198. Which of the following is not a way for industrially advanced countries (IACs) to help

developing countries (DVCs) achieve faster economic growth?

199. Industrially advanced countries can best help DVCs by

200. Which organization primarily makes and guarantees loans to developing nations for

basic development projects such as the construction of dams, roads, and schools?

201. The World Bank seeks to

202. One of the major objectives of the World Bank is to

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Learning Objective: 42-05 Describe how industrial nations attempt to aid low-income

countries.

Test Bank: II

Topic:

The Role of Advanced Nations

203. The World Bank operates primarily as a

204. Many of the major projects of the World Bank have been for

205. A large portion of foreign aid from IACs to DVCs is provided on the basis of

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AACSB: Knowledge Application

Ac c e s s i b i l i t y :

Keyboard Navigation

Blooms: Understand

Di ffi c u l t y :

02 Medium

Learning Objective: 42-05 Describe how industrial nations attempt to aid low-income

countries.

Test Bank: II

Topic:

The Role of Advanced Nations

206. Most of the flow of foreign aid goes to

207. Which of the following IACs (industrially advanced countries) was the leading

provider of development assistance to DVCs (developing countries) in 2015, in terms of

absolute dollar amounts?

208. Which of the following IACs (industrially advanced countries) gave the smallest share