chapter 22 - Chapter 22 Developing Countries: Growth,...

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Chapter 22 Developing Countries: Growth, Crisis, and Reform Multiple Choice Questions 1. The world’s economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle- income and high-income economies. What category would Pakistan and India fall under? A. Low-income B. Upper middle- income C. High-income D. Lower middle-income E. Pakistan and India fall between lower-middle and upper-middle Answer: A 2. While many developing countries have reformed their economies in order to imitate the success of the successful industrial economies, the process remains incomplete and most developing countries tend to be characterized by all of the following except: A. Seigniorage B. Control of capital movements by limiting foreign exchange transactions connected with trade in assets. C. Use of natural resources or agricultural commodities as an important share of exports. D. A worse job of directing savings toward their most efficient investment uses. E. Reduced corruption and poverty due to limited underground markets. Answer: E 3. Average per-capita GNP in the richest, most prosperous economies is ___ times that of the average in the ____ economies. A. 95 and low (poorest) income B. 95 and lower-middle income C. 73 and lower-middle income D. 55 and low (poorest) income E. 63 and low (poorest) income
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Answer: E 4. Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry: These factors are A. capital and skilled labor B. capital and unskilled labor C. fertile land and unskilled labor D. fertile land and skilled labor E. water and capital Answer: A 5. The main factors that discourage investment in capital and skills in developing countries are: A. political instability, insecure property rights B. political instability, insecure property rights, misguided economic policies C. political instability, misguided economic policies D. political instability E. insecure property rights, misguided economic policies Answer: B 6. The world’s economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle- income and high-income economies. What category would sub-Saharan Africa fall under? A. Low-income B. Upper middle- income C. High-income D. Lower middle-income E. Sub-Saharan Africa falls between lower-middle and upper-middle Answer: A
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7. The world’s economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle- income and high-income economies. What category would mainland China fall under? A.
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chapter 22 - Chapter 22 Developing Countries: Growth,...

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