Ch.22 Quiz

Instructions
Please read the questions carefully.

This assessment is worth 100 points.

  1. Approximately what percentage of the world's income does the richest one-fifth of the world's population receive?   (4 points)

    a.  
    b.  
    c.  
    d.  

  2. Examples of low-income developing countries are:   (4 points)

    a.  
    b.  
    c.  
    d.  

  3. The exports of the DVCs consist largely of:   (4 points)

    a.  
    b.  
    c.  
    d.  

  4. The DVCs are:   (4 points)

    a.  
    b.  
    c.  
    d.  

  5. If nation X has a larger real per capita output than nation Y, then equal rates of growth of per capita output will:   (4 points)

    a.  
    b.  
    c.  
    d.  

  6. Assume a DVC has a real per capita output of $1000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, the absolute real per capita output gap will:   (4 points)

    a.  
    b.  
    c.  
    d.  

  7. In recent decades:   (4 points)

    a.  
    b.  
    c.  
    d.  

  8. If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 120 million, its real per capita output will have:   (4 points)

    a.  
    b.  
    c.  
    d.  

  9. Underemployment occurs:   (4 points)

    a.  
    b.  
    c.  
    d.  

  10. "For DVC per capita incomes to rise, birth rates must first be reduced." This statement describes the:   (4 points)

    a.  
    b.  
    c.  
    d.  

  11. Capital flight from the DVCs may be is caused by:   (4 points)

    a.  
    b.  
    c.  
    d.  

  12. Capital flight refers to:   (4 points)

    a.  
    b.  
    c.  
    d.  

  13. Investment in kind refers to the possibility that:   (4 points)

    a.  
    b.  
    c.  
    d.  

  14. An economy's infrastructure refers to its:   (4 points)

    a.  
    b.  
    c.  
    d.  

  15. Which of the following describes the vicious circle of poverty?   (4 points)

    a.  
    b.  
    c.  
    d.  

  16. "Many countries remain poor because they currently are poor." This statement summarizes the:   (4 points)

    a.  
    b.  
    c.  
    d.  

  17. The idea that a person's productive efforts and his or her economic rewards are unrelated:   (4 points)

    a.  
    b.  
    c.  
    d.  

  18. The government of a DVC may force the economy to save by deliberately causing inflation. This policy is undesirable because inflation may:   (4 points)

    a.  
    b.  
    c.  
    d.  

  19. Which of the following is not a DVC policy that might increase DVC economic growth?   (4 points)

    a.  
    b.  
    c.  
    d.  

  20. "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:   (4 points)

    a.  
    b.  
    c.  
    d.  

  21. Economic growth in the DVCs might increase if IACs:   (4 points)

    a.  
    b.  
    c.  
    d.  

  22. (Last Word) In many of the sub-Saharan African nations:   (4 points)

    a.  
    b.  
    c.  
    d.  

  23. Most of the DVCs of the world are located in Western Europe.   (4 points)

    a.  
    b.  

  24. Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.   (4 points)

    a.  
    b.  

  25. Most nations of the world are now IACs, not middle- and low-income DVCs.   (4 points)

    a.  
    b.  



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