Question 1

A necessary condition for successful economic development is democracy.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is true? According to the World Bank,

Accepted Answer

A)  in 2005 about 1.4 billion people, about a quarter of the population of developing countries was poor, defined as living on less than $1.25 a day, the international poverty line.
B)  between 1980 and 2005, the number of people living below the international poverty line, defined as living on less than $1.25 a day, has decreased significantly.
C)  poverty reduction in sub-Saharan Africa has been phenomenal over the last 25 years.
D)  the majority of the world's poor are in the Indian sub-continent and in China.E) C) and D)
F) B) and C)

Question 3

Simon Kuznets hypothesized that at low levels of per capita income, increases in income would lead to increases in income inequality because

Accepted Answer

A)  in less developed countries, the rich are able to save and invest and therefore enrich themselves, while the poor remain at essentially the same economic level.
B)  structural changes that often accompany early growth, such as rural-urban migration, occupational changes, and environmental degradation, disproportionately hurt poorer people.
C)  growth enhancing policies tend to favor middle-income and high-income households rather than poor households.
D)  development processes tend to be concentrated in the manufacturing sector and not in work in the agricultural sector which employs mostly low-income people.E) A) and B)
F) A) and C)

Question 4

A point at which the world is no longer able to meet food requirements is called the Marxian Trap.

Accepted Answer

A) True 
 B)False

Question 5

In which of the following regions has poverty reduction been minimal in over the past 25 years?

Accepted Answer

A)  East Asia
B)  sub-Saharan Africa
C)  Latin America
D)  North China and TibetE) C) and D)
F) None of the above

Question 6

Which of the following statements is true about an international dollar?

Accepted Answer

A)  It has the same purchasing power as does a rupee in India.
B)  One international dollar has a greater purchasing power in the United States than in India.
C)  One international dollar has a lower purchasing power in the United States than in India.
D)  It is not possible to compare the purchasing power of one international dollar without information on the prices of goods and services in different countries.E) A) and B)
F) None of the above

Question 7

All of the following are obstacles in a country's ability to rely on a general strategy of import substitution in its development efforts except

Accepted Answer

A)  a shortage of managerial talent and skilled labor.
B)  a corrupt bureaucracy.
C)  a lack of capital goods.
D)  a lack of natural resources.E) C) and D)
F) A) and D)

Question 8

All of the following are consequences of China's "one-child family" policy except

Accepted Answer

A)  Local officials in charge of monitoring births may have an incentive to underreport the number of births to avoid punishment by the government.
B)  China's cultural preference for sons has led to a large number of incidences of female infanticide.
C)  China's policy succeeded in lowering its birth rate and, despite the absolute size of its total population, led to a net decrease of its population.
D)  There were political consequences: the United States, as well as many other countries, have publicly expressed their disapproval with Chinese leaders for their sterilization policies.E) A) and B)
F) A) and C)

Question 9

Less developed countries tend to have substantial numbers of poor people.

Accepted Answer

A) True 
 B)False  True

Question 10

Compared to middle- and high- income countries, low-income countries are often characterized by

Accepted Answer

A)  higher rates of population growth.
B)  greater government control by large, relatively poor groups.
C)  a smaller share of income used for consumption.
D)  a smaller proportion of the labor force in agriculture.E) B) and C)
F) A) and B)

Question 11

Market economies with legal systems that provide for the reliable protection of property rights and enforcement of contracts tend to promote economic growth.

Accepted Answer

A) True 
 B)False

Question 12

Compared to the Lorenz curve for high-income countries, the Lorenz curve for developing countries generally

Accepted Answer

A)  is about the same.
B)  lies closer to the axes.
C)  lies closer to the 45-degree line.
D)  crosses the 45-degree line.E) B) and C)
F) None of the above

Question 13

Comparing incomes across countries based on per capita GNP figures that have been converted to dollars using the exchange rate

Accepted Answer

A)  is considered to be the best way to compare living standards across countries.
B)  is a method of comparison that takes into account unequal distribution of income in a country.
C)  accurately reflects differences in purchasing power across countries.
D)  may not accurately reflect differences in purchasing power across countries.E) None of the above
F) A) and D)

Question 14

In 2000, the international community adopted and concretely specified developments goals, the progresses of which are to be monitored by the World Bank.Of the goals included here, which goal is least likely to be achieved by their target dates, mostly 2015?

Accepted Answer

A)  reducing the absolute poverty rate by half
B)  increasing primary school enrolment
C)  promoting gender equality
D)  reducing deaths from measles and AIDSE) C) and D)
F) A) and B)

Question 15

A primary source of growth in wealthy countries has been a shift out of agriculture into more productive sectors.

Accepted Answer

A) True 
 B)False

Question 16

The United Nations has constructed a measure of economic development that goes beyond per capita GDP called the

Accepted Answer

A)  United Nations Standard of Living Index.
B)  Human and Real Growth Index.
C)  Human Development Index.
D)  UN Growth and Development Index.E) B) and D)
F) None of the above

Question 17

All of the following contributes to economic development except

Accepted Answer

A)  high saving and investment rates.
B)  low population growth rate.
C)  the existence of a socialist economic system to ensure that a country's output is fairly distributed.
D)  investment in infrastructure.E) B) and C)
F) None of the above

Question 18

According to most economists,

Accepted Answer

A)  the demand for political freedom increases as incomes rise, making the creation of democratic institutions a product of economic growth, not a cause of it.
B)  the lack of political freedom hinders economic growth in poor countries because it gives rise to bureaucratic corruption.
C)  economic development is impossible without democracy.
D)  democracy and economic development are incompatible at least in the initial stages of development; evidence shows that authoritarian regimes are better able to reap the benefits of economic development than democratic regimes.E) A) and D)
F) A) and C)

Question 19

Evidence shows that countries that have endorsed a policy of import substitution have been successful in its development efforts.

Accepted Answer

A) True 
 B)False  False

Question 20

If political freedom is a normal good,

Accepted Answer

A)  the demand for political freedom increases as its opportunity cost falls.
B)  the demand for political freedom increases as its opportunity cost rises.
C)  the demand for political freedom increases as incomes rise.
D)  the demand for political freedom decreases as incomes rise.E) All of the above
F) None of the above C

Exam 33: Economic Development

A necessary condition for successful economic development is democracy.

Correct AnswerverifiedShow Answer

Which of the following statements is true? According to the World Bank,

Correct AnswerverifiedShow Answer

Simon Kuznets hypothesized that at low levels of per capita income, increases in income would lead to increases in income inequality because

Correct AnswerverifiedShow Answer

A point at which the world is no longer able to meet food requirements is called the Marxian Trap.

Correct AnswerverifiedShow Answer

In which of the following regions has poverty reduction been minimal in over the past 25 years?

Correct AnswerverifiedShow Answer

Which of the following statements is true about an international dollar?

Correct AnswerverifiedShow Answer

All of the following are obstacles in a country's ability to rely on a general strategy of import substitution in its development efforts except

Correct AnswerverifiedShow Answer

All of the following are consequences of China's "one-child family" policy except

Correct AnswerverifiedShow Answer

Less developed countries tend to have substantial numbers of poor people.

Correct AnswerverifiedTrue

Compared to middle- and high- income countries, low-income countries are often characterized by

Correct AnswerverifiedShow Answer

Market economies with legal systems that provide for the reliable protection of property rights and enforcement of contracts tend to promote economic growth.

Correct AnswerverifiedShow Answer

Compared to the Lorenz curve for high-income countries, the Lorenz curve for developing countries generally

Correct AnswerverifiedShow Answer

Comparing incomes across countries based on per capita GNP figures that have been converted to dollars using the exchange rate

Correct AnswerverifiedShow Answer

In 2000, the international community adopted and concretely specified developments goals, the progresses of which are to be monitored by the World Bank.Of the goals included here, which goal is least likely to be achieved by their target dates, mostly 2015?

Correct AnswerverifiedShow Answer

A primary source of growth in wealthy countries has been a shift out of agriculture into more productive sectors.

Correct AnswerverifiedShow Answer

The United Nations has constructed a measure of economic development that goes beyond per capita GDP called the

Correct AnswerverifiedShow Answer

All of the following contributes to economic development except

Correct AnswerverifiedShow Answer

According to most economists,

Correct AnswerverifiedShow Answer

Evidence shows that countries that have endorsed a policy of import substitution have been successful in its development efforts.

Correct AnswerverifiedFalse

If political freedom is a normal good,

Correct AnswerverifiedC

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True

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False

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C