660. Progressives argue that the national surplus in less developed countries is
a. used primarily for large infrastructure projects such as roads and hydroelectric dams.
b. absorbed by the local elite for entrepreneurial activities in the domestic economy.
c. absorbed by the local elite for nonproductive purposes such as conspicuous consumption.
d. used by foreign corporations to develop industries and provide employment for the local
population.
661. Conservatives argue that underdevelopment is caused primarily by
a. the misguided policies of international organizations such as the International Monetary
Fund and the World Bank.
b. irresponsible actions of transnational corporations.
c. corrupt and inept actions taken by the governments of less developed countries.
d. lack of sufficient population growth.
662. A crucial problem for some less developed countries is debt consisting of
a. loans by international organizations such as the United Nations and the International
Monetary Fund to governments of less developed countries.
b. loans by banks in advanced countries to governments of less developed countries.
c. increasing credit card and other short term debt among consumers in less developed
countries.
d. loans by governments of advanced countries to governments of less developed countries.
663. In the 60 years since the end of World War II, the gap between average incomes in less
developed countries and average income in the advanced countries has
a. remained about the same.
b. increased.
c. decreased.
d. disappeared.
664. Real GDP per capita has been criticized as an indicator of economic development because
a. it does not account for size of population.
b. it does not account for income distribution.
c. it does not account for consumer spending.
d. it does not account for inflation.