42) According to the international trade approach to development, a country should identify all
but which of its following assets?
A) abundant agricultural products
B) high quality manufactured goods
C) imports that it should limit
D) international consumer preferences
E) abundant mineral resources
43) The biggest problem in promoting development through the international trade alternative is
A) increased demand for many goods.
B) increased price of petroleum.
C) regional cooperation.
D) unequal distribution of resources.
E) consumer demand expanding faster than manufacturing can increase.
44) The principal benefit of the self-sufficiency approach is to promote
A) balanced growth of all economic sectors.
B) global competitiveness for local industries.
C) the maintenance of a large bureaucracy.
D) unequal distribution of resources.
E) international trade.
45) In contrast to the international trade approach, the self-sufficiency approach to development
A) begins when an elite group initiates innovative activities.
B) attempts to result in uneven resource development. and market correction indices.
C) suffers from market stagnation.
D) attempts to spread investment through all sectors of the economy.
E) attempts to identify appropriate developmental stages.
46) Traditional barriers to international trade have included
A) low taxes on imports.
B) making domestic goods more expensive.
C) eliminating quotas on imports.
D) requiring licenses for importers.
E) strong domestic and international demand.
47) The biggest problem faced by less developed countries in financing development is
A) trade negotiations with more developed countries.
B) identifying unique economic assets.
C) inability to repay loans.
D) promoting dependency.
E) currency inflation.
48) What do critics charge are some effects of Structural Adjustment Programs for refinancing
loans to LDCs?
A) more efficient civil service
B) diverting investment from weapons and training for the military to social needs such as health
and education
C) investment benefiting the poor, not just the elite
D) more dissemination of information to the public
E) workers in state enterprises losing their jobs and support for dependent citizens being cut
49) All of the following are considered more developed regions except
A) Southwest Asia and North Africa.
B) North America.
C) Australia and New Zealand.
D) Europe.
E) Western Europe.
50) The major economic asset of the Russian region is
A) Asia’s greatest levels of agricultural productivity.
B) the development of tertiary industries.
C) the production of consumer goods.
D) its oil reserves.
E) diversified industrial manufacturing.
51) Southwest Asia and North Africa may become more developed primarily because of what
characteristic?
A) abundant petroleum reserves
B) desert climate
C) Islamic religious principles
D) democratic reforms
E) dictatorships
52) Population density was traditionally low in North Africa because of
A) its wet climate.
B) its dry climate.
C) Dutch colonial activity.
D) its high arithmetic density.
E) its low fertility rates.
53) Examining the sub-national variation in development for many countries, such as Brazil,
China, or Mexico, reveals
A) development can be attributed only to outside forces.
B) cities are relatively underdeveloped compared to the agricultural lands.
C) wealth is concentrated in the cooler, mountainous regions.
D) almost no variations in wealth and development exist between different subnational regions.
E) substantial variations in development exist at subnational scales.
54) According to Rostow’s development model, the process of development begins when
A) a high percentage of national wealth is allocated to nonproductive activities.
B) an elite group initiates innovative activities.
C) take-off industries achieve technical advances.
D) workers become more skilled and specialized.
E) banking institutions are sufficiently mature.
55) If the per capita GDP in a given country is about $1,500, this indicates that it is a
A) petroleum exporting state.
B) less developed country.
C) more developed country.
D) country with a high gross domestic product.
E) country with evenly distributed wealth.
56) Which one of the following statements is INCORRECT?
A) The higher the GDP of a country, the more equal its income distribution.
B) The primary sector accounts for a larger share of GDP for LDCs than MDCs.
C) Workers in MDCs are more productive than those in LDCs.
D) The HDI is a function of economics, social, and demographic indicators.
E) Women participate in formal and informal economies even in LDCs with high levels of
gender inequality.
57) The large percentage of population involved in agriculture in China indicates that
A) the country imports most of its food.
B) few people are unemployed.
C) most people consume an inadequate amount of calories.
D) most people must produce food for their own survival.
E) factory production cannot expand.
58) The highest levels of development within Latin America are generally found in
A) Central America.
B) the Caribbean islands.
C) the interior of South America.
D) southern South America.
E) the countries on the Caribbean coast of South America.
59) Sub-Saharan Africa has seen some development because of
A) the colonial legacy, which has benefited every country in the region.
B) poor leadership.
C) the capacity of land to produce food.
D) investment in the infrastructure of port cities, despite ignoring infrastructure in many other
areas.
E) overworked agricultural land and declining output.
60) Development prospects are limited in some North African countries because of
A) the lack of colonization and trade with Europe.
B) poor leadership.
C) the great amount of petroleum controlled by OPEC.
D) their limited reserves of petroleum.
E) overworked agricultural land and declining output.
61) Which of the following is not a characteristic of the Fair Trade movement?
A) Standards intending to protect workers are instituted in LDCs.
B) Fair Trade coffee has become available in most North American cities.
C) Cooperatives intend to benefit local farmers and artisans, rather than absentee corporate
owners.
D) Employers must pay fair wages and comply with environmental and safety standards.
E) Protection of workers’ rights is already a high priority for multinational corporations.
62) GDP per capita is the only economic indicator that can reliably determine the level of
development for a country.
63) The share of GDP in the secondary sector is now larger in LDCs than MDCs.
64) Gross domestic product (GDP) measures the distribution of wealth in a country.
65) Development is a completely understood process involving concrete yet difficult steps.
66) Less developed countries can be distinguished from more developed countries according to
social and demographic characteristics, as well as economic ones.
67) GDP per capita is a more meaningful measure of development than gross domestic product
alone.
68) Raising the GDP of a country means an automatically higher standard of living for workers.
69) The three large relatively developed regions in the world are North America, Western
Europe, and Eastern Europe.
70) One element of development in Southwest Asia & North Africa has been the loss of
distinctive cultural characteristics.
71) Gender inequality exists in every country of the world.
72) Developing countries are increasingly pursuing the international trade approach to
development.
73) India and China are examples of countries which had pursued the self-sufficiency alternative
to development.
74) One advantage of a large percentage of labor force in agriculture is the ability to generate a
surplus of food for export.
75) Southwest Asia & North Africa and Latin America are the less developed regions with the
most favorable balance between population and resources.
76) Many countries are clustered at the median of the development continuum.
77) The availability of energy and other resources is linked to the level of development.
78) Name and define two of the social indicators of a country’s level of development.
79) A ________ developed country is likely to have a lower infant mortality rate.
80) Explain why the crude death rate is not an indicator of the level of a country’s development.
81) What is the principal difference between less developed and more developed countries with
regard to the percentages of primary, secondary, and tertiary sector workers?
82) Why is the percentage of a country’s labor force engaged in agriculture an important
indicator of the level of development?
83) Name and define two of the economic indicators that typically describe a country’s level of
development.
84) Is a more developed country likely to have a higher or lower level of GDP per capita?
85) Is a less developed country likely to have higher or lower levels of illiteracy and people
engaged in agriculture?
86) Is a more developed country likely to have higher or lower percentages of telephones per
capita?
87) What is the Gender Inequality Index (GII)?
88) Imagine that you live in a country with large reserves of fossil fuels but few other natural
resources. To what extent would development be a continuum or a bipolar distribution for your
(imaginary) country? Why? (Attempt to account for a future reduction in fossil fuels.)
89) Determine which are the main sources of electricity that your local community currently uses
(e.g., coal-fired, hydroelectric, nuclear?), and discuss the advantages and disadvantages of those
types of electrical generation.
90) Assess which two alternative sources of electricity would be most economically and
politically viable for your local community, and propose a plan for making these the main
sources of electricity in your area. Discuss where and why you would install these alternative
sources of energy.
91) Imagine that your city’s (or town’s) leaders have decided that alternative power sources
should replace fossil fuels and nuclear power in your area. Assess and discuss the more likely
kinds of resistance such a plan might encounter in the community in the next 5 years. What
specific recommendations might you give for overcoming that resistance through democratic
processes?
92) Much of the discussion of alternative energy sources continues to focus on large-scale
projects, such as windmill “farms” and hydroelectric power plants. Propose two or three different
kinds of small-scale energy generation that you could envision building or attaching to your own
dwelling—that is, your own home, apartment building, or block. Provide details on the locations,
sizes, and types of additions you would propose, but do not be concerned with precise
measurements (you need not produce blueprints or construction schematics).
93) Look around your own home, apartment, or student dormitory. On a small scale (within your
own living space), what kinds of energy waste seem to be occurring, apart from inefficient types
of insulation in the walls or ceilings? Besides heat insulation, what kinds of energy “recycling”
and repurposing could you imagine creating or installing if you had sufficient money and
engineering ability to make these changes happen in the near future?
94) Image you lead a country which has significant amounts of petroleum. Which, according to
standard economical approaches, is the more logical of the two approaches to development for
your country? Why? What advantages might this approach offer over the other approach, at least
in the short term?
95) Using NAFTA as an example, discuss “free trade” and the international trade model of
development.
96) Considering the challenges provided by NAFTA, discuss the Fair Trade variation of the
international trade model of development.
97) What is the most significant financial problem faced by less developed countries in
attempting to fund their development plans? Provide an example to illustrate this difficulty.
98) How is development measured? Why do we use more than one indicator?
99) Imagine that you lead a country with limited amounts of fossil fuels and few other goods in
demand on world markets. Which standard economic approach to development would you be
more likely to advocate for your country, and why? How would the shortcomings of this
economic model affect your plans?