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Chapter 22W - The Economics of Developing Countries
53. Infrastructure is best illustrated by:
54. Investment in kind refers to the possibility that:
55. Suppose that surplus labor in a Pakistani village is used to build a medical clinic and dig
several wells. This is an illustration of:
Chapter 22W - The Economics of Developing Countries
56. If a technological advance expands output and requires a smaller investment in capital
goods, this technological advance:
57. The ability of the DVCs to use the technologies of the IACs is somewhat limited because:
58. It is sometimes difficult to transfer the advanced technologies of the industrialized nations
to the DVCs because:
Chapter 22W - The Economics of Developing Countries
59. The low per capita outputs of the DVCs are explained by:
60. An economy's infrastructure refers to its:
61. The "brain drain" problem in the DVCs refers to the fact the best-educated workers:
Chapter 22W - The Economics of Developing Countries
62. The capricious universe view indicates that:
63. Economic growth may hinge on whether individuals and institutions within a nation want
growth badly enough to change their traditional ways of doing things. This statement refers
to:
64. The idea that a person's productive efforts and his or her economic rewards are unrelated:
Chapter 22W - The Economics of Developing Countries
65. Which of the following describes the vicious circle of poverty?
66. Many countries remain poor because they currently are poor. This statement summarizes
the:
67. The government of a DVC may force the economy to save by deliberately causing
inflation. This policy is undesirable because inflation may:
Chapter 22W - The Economics of Developing Countries
68. Which of these sets of countries have the greatest degree of internal corruption, according
to Transparency International?
69. A highly active role by government may be needed to promote economic growth in low-
income DVCs because of:
70. The government of a DVC may purposely cause inflation because:
Chapter 22W - The Economics of Developing Countries
71. Small loans to entrepreneurs and small business owners in DVCs are referred to as:
72. Which of the following is generally not an effective strategy to promote DVC growth?
73. Successful foreign aid programs:
Chapter 22W - The Economics of Developing Countries
74. The international agency that lends money to DVCs for economic development projects is
the:
75. The World Bank:
76. The World Bank:
Chapter 22W - The Economics of Developing Countries
77. The primary function of the International Finance Corporation (IFC) is to:
78. In recent years the industrially advanced nations as a group have provided foreign aid
amounting to about what percentage of their aggregate outputs?
79. Government-provided foreign aid to developing countries has:
Chapter 22W - The Economics of Developing Countries
80. In the 1990s:
81. Development assistance as a percentage of GDP is greatest for which of the following
industrialized nations (as of 2008)?
82. In recent years U.S. foreign aid has been:
Chapter 22W - The Economics of Developing Countries
83. Foreign aid to the DVCs has been criticized:
84. An increasing share of the private capital flows to DVCs in recent years has been in the
form of:
85. An example of direct foreign investment is:
Chapter 22W - The Economics of Developing Countries
86. Which of the following is a true statement?
87. Which of the following is not a DVC policy likely to increase DVC economic growth?
88. Which of the following is not a DVC policy likely to increase DVC economic growth?
Chapter 22W - The Economics of Developing Countries
89. State industries are notoriously poor 'incubators' for the development of profit-focused,
entrepreneurial persons who may leave the firm to set up their own businesses. This statement
is an argument in favor of:
90. Economic growth in the DVCs might increase if IACs:
91. Large agricultural subsidies for food and fiber in IACs hurt the economies of the DVCs
by:
Chapter 22W - The Economics of Developing Countries
92. In recent years, the governments of the IACs have:
93. (Last Word) Famines in sub-Saharan Africa:
94. (Last Word) In many of the sub-Saharan African nations:
Chapter 22W - The Economics of Developing Countries
95. The vast majority of the labor forces of the low-income DVCs are engaged in agriculture.
96. Most of the DVCs of the world are located in Western Europe.
97. DVCs tend to have permanent shortages of farm labor.
98. Most nations of the world are now IACs, not middle- and low-income DVCs.
Chapter 22W - The Economics of Developing Countries
99. The most important growth obstacle common to all DVCs is the lack of desire to increase
their standards of living.
100. Saving is low in many DVCs primarily because income is very equally distributed.
101. The differences in the per capita incomes of the IACs and the DVCs have diminished
sharply since the Second World War because of U.S. aid programs.
102. If the real outputs per capita of a rich nation and a poor nation grow at the same
percentage rate, the absolute income gap between the two nations will shrink.
Chapter 22W - The Economics of Developing Countries
103. Capital flight refers to the fact that many DVCs must use their export earnings to pay
interest on their outstanding external debts.
104. Because families can afford to have more children, population growth is greater in the
IACs than in the DVCs.
105. The capricious universe view is the idea that the IACs are exploiting the DVCs.
106. An advantage of direct foreign investment (compared to foreign loans) is that
management skill and technological knowledge often accompany such capital flows.
Chapter 22W - The Economics of Developing Countries
107. Reduction of tariff barriers against DVC imports would benefit both the DVCs and the
IACs.
