Question 1

Low-income developing countries generally have the following characteristics, except:

Accepted Answer

Low-income developing countries often have high population growth rates due to limited access to family planning and lack of education on birth control. This is contrary to choice A which states "Low population growth rates."

Question 2

More than 80 percent of the world's income is earned by what percentage of the world's population?

Accepted Answer

20 percent of the world's population earns more than 80 percent of the world's income, highlighting significant global income inequality.

Question 3

Which of the following countries had the highest per capita energy consumption in 2009?

Accepted Answer

According to the International Energy Agency, the United States had the highest per capita energy consumption in 2009, with an average of 3121.8 kilograms of oil equivalent (kgoe) per person. Brazil had an average of 566.5 kgoe per person, China had 1356.1 kgoe per person, and Japan had 2703.8 kgoe per person.

Question 4

Which of the following nations is not considered an industrially advanced country?

Accepted Answer

Russia has significant industrial activity, but it is not considered an industrially advanced country compared to nations like Japan, Canada, and Australia.

Question 5

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will:

Accepted Answer

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will shift outward the production possibilities curve for a nation, indicating an increase in the economy's production capacity. This means that a nation can produce more goods and services with the same amount of resources or produce the same amount of goods and services with fewer resources.

Question 6

An IAC (industrially advanced country) had a per capita income of $28,200 while a DVC (developing country) had a per capita income of $1,200. If both countries experience a per-capita-income growth of 2 percent, then their respective per-capita income levels will become:

Accepted Answer

To calculate the new per capita income levels:
- For the IAC: $28,200 x 0.02 = $564 (growth amount) $28,200 + $564 = $28,764
- For the DVC: $1,200 x 0.02 = $24 (growth amount) $1,200 + $24 = $1,224

Therefore, the correct answer is B: $28,764 and $1,224.

Question 7

The average per capita income in 2010 for low-income developing nations was:

Accepted Answer

In 2010, the average per capita income for low-income developing nations was approximately $580, reflecting the economic challenges faced by these countries.

Question 8

Most developing countries (DVCs) exhibit a low level of:

Accepted Answer

Most developing countries typically have a low level of life expectancy due to factors such as inadequate healthcare, poor nutrition, and higher rates of infectious diseases.

Question 9

Per capita income in the United States in 2010 was about:

Accepted Answer

According to the World Bank, per capita income in the United States in 2010 was approximately $47,300 per person.

Question 10

The industrially advanced nations had an average per capita income in 2010 of around:

Accepted Answer

In 2010, the average per capita income for industrially advanced nations was approximately $39,000 per person.

Question 11

The annual global revenue of Walmart in 2010 was $405 billion, which was greater than the national incomes of all but _________ nations in the world.

Accepted Answer

In 2010, Walmart's revenue was greater than the GDP of all but 23 countries, meaning only 23 countries had a GDP higher than Walmart's revenue.

Question 12

Developing countries (DVCs) can be subdivided into the following groups, except:

Accepted Answer

The option that does not fit is "High-income economies," as this refers to developed countries rather than developing ones. The other options all refer to different levels of income within developing countries.

Question 13

Brazil, Russia, and Thailand are referred to as:

Accepted Answer

Brazil, Russia, and Thailand are classified as middle-income developing countries because while they have experienced economic growth and development, they still face challenges such as income inequality and lack of infrastructure. They have not yet reached the status of industrially advanced countries, and they are not considered low-income developing countries. Command economies refer to economic systems where central authorities make all decisions related to production and consumption, which is not applicable to these countries.

Question 14

The poorest 20 percent of the world's population receive what percentage of world income?

Accepted Answer

According to World Bank data, the poorest 20 percent of the world's population receives less than 2 percent of world income.

Question 15

What measure of economic development is used most often to classify nations as industrially advanced or as developing?

Accepted Answer

Per capita income is the most commonly used measure of economic development as it reflects a nation's production, distribution, and consumption of goods and services. It is easy to measure and compare across countries and is a good indicator of a nation's standard of living. Life expectancy at birth, per capita energy consumption, and daily per capita calorie supply are all important indicators of development, but are not as commonly used as per capita income.

Question 16

If the per capita incomes of DVCs (developing countries) grew at the same annual rate as those of IACs (industrially advanced countries), then the absolute income gap between rich and poor nations over the years will:

Accepted Answer

If both DVCs and IACs grow at the same rate, the absolute income gap will widen because the IACs start from a higher base, so their absolute income increase will be larger.

Question 17

Which of the following countries had the highest per capita income in 2010?

Accepted Answer

According to the World Bank data, in 2010, the United States had the highest per capita income among the given countries, which was $47,140. Japan had a per capita income of $42,120, Germany had $40,600, and China had $4,470.

Question 18

At the beginning of the year, one developing country (DVC) has a real income per capita of $800. In a developed country (IAC), the real income per capita is $30,000. Both countries experience a 4 percent growth rate for the year. At the end of the year, the absolute income gap between these two countries will have increased from $29,200 to:

Accepted Answer

The absolute income gap increases because both countries grow at the same percentage rate, but the base amounts are vastly different. For the DVC, a 4% increase on $800 is $32, making its new income $832. For the IAC, a 4% increase on $30,000 is $1,200, making its new income $31,200. The new gap is $31,200 - $832 = $30,368, which is an increase from the original $29,200 gap.

Question 19

Per capita income in the United States in 2010 was how many times greater than that in China?

Accepted Answer

In 2010, the per capita income in the United States was approximately 11 times greater than that in China, reflecting the significant economic disparity between the two countries at that time.

Question 20

The levels of national income per capita among developing countries (DVCs) are:

Accepted Answer

Developing countries are a diverse group with different levels of economic development and income per capita. The levels of national income per capita among these countries can vary widely, depending on factors such as the level of economic development, access to natural resources, political stability, and trade relations with other countries. Therefore, option B is the correct choice.

Quiz 22: The Economics of Developing Countries