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# Economics Study Set 8

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## Quiz 38 : Macro Policy in Developing Countries

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

True

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:
Free
Multiple Choice

C

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

False

A regime change occurs when a government changes one aspect of its actions.
True False
Infant mortality rates in developing countries:
Multiple Choice
If a currency is convertible for the current account, then it is fully convertible.
True False
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
The purchasing power parity (PPP)consists of a method of comparing the:
Multiple Choice
Developing countries tend to focus more on the goal of economic growth than developed countries.
True False
Some economists and international organizations use the PPP method in order to compare the:
Multiple Choice
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
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
Educational policy in most developing countries focuses too much on primary and secondary education and not enough on higher education.
True False
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
In contrast to development, growth refers to an increase in:
Multiple Choice
Most of the world's population lives in developed, rather than developing, countries.
True False
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: