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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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written consent of McGraw-Hill Education.
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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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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 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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written consent of McGraw-Hill Education.
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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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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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: 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
