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Economics Study Set 8

Business

Quiz 38 :

Macro Policy in Developing Countries

Quiz 38 :

Macro Policy in Developing Countries

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Communal property rights and tradition, rather than market institutions, determine economic relationships in many developing countries.
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True False
Answer:

Answer:

True

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Countries such as China and South Korea have increased not only the size of their labor force but also the quality of their labor force over time. Workers in these countries have higher levels of education and skill that promote increases in the productivity per worker. If this is the case, these countries have experienced:
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Multiple Choice
Answer:

Answer:

C

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Developing countries, like many developed countries, have a dual economy.
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True False
Answer:

Answer:

False

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A regime change occurs when a government changes one aspect of its actions.
True False
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Infant mortality rates in developing countries:
Multiple Choice
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If a currency is convertible for the current account, then it is fully convertible.
True False
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The central banks of many developing countries choose to pursue policies that generate high levels of inflation, because the benefits of doing so seem to exceed the costs.
True False
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The purchasing power parity (PPP)consists of a method of comparing the:
Multiple Choice
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Developing countries tend to focus more on the goal of economic growth than developed countries.
True False
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Some economists and international organizations use the PPP method in order to compare the:
Multiple Choice
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Suppose that a typical basket of goods costs 400 pesos in Mexico and 25 pounds in Britain: the market exchange rate is 25 pesos per pound. Using purchasing power parity, the appropriate exchange rate for comparing the incomes of the two countries is:
Multiple Choice
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The United Nations, in its annual publication of the Human Development Report, computes what it calls the human development index. If the purpose of this index is to measure development rather than growth, which of the following factors is most likely to be included in it?
Multiple Choice
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Educational policy in most developing countries focuses too much on primary and secondary education and not enough on higher education.
True False
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Using exchange rates based on purchasing power parity to compare per capita incomes in developing and developed countries might lead one to conclude that people in developing countries:
Multiple Choice
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In contrast to development, growth refers to an increase in:
Multiple Choice
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Most of the world's population lives in developed, rather than developing, countries.
True False
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If political instability and corruption could be eliminated, economic growth would increase in most developing countries.
True False
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Ecuador's GDP per capita in 2017, based on market exchange rates, was $5,600. In that same year, Ecuador's GDP per capita based on purchasing power parity was $11,100. The difference between these two measures of GDP per capita is most likely explained by:
Multiple Choice
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Development refers to an increase in:
Multiple Choice
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When income comparisons are made using purchasing power parity rather than market exchange rates, the gap in per capita income between developed and developing countries becomes smaller.
True False
Answer:
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