17 Aug 1. Countries tend to be classified as more or less developed based on

1. Countries tend to be classified as more or less developed based on

a. the literacy rate.

b. the poverty rate.

c. the level of income per capita.

d. the types of goods they produce.

2. Which of the following demonstrates international interdependence?

a. the oil shocks

b. the debt crisis

c. global warming

d. all of the above.

3. A subsistence economy is

a. a very low income economy.

b. an economy in which people make what they consume.

c. an economy in which people receive food for pay.

d. all of the above.

4. Development economics is the study of the

a. alleviation of absolute poverty.

b. transformation of institutions.

c. allocation of resources in developing countries.

d. all of the above.

5. Development economics must have a scope wider than traditional economics because

a. values and attitudes play little role in the pace of development.

b. people in developing societies do less utility-maximizing.

c. transformation of social institutions is necessary for development.

d. all of the above.

6. A good definition of the meaning of development is the

a. elimination of absolute poverty.

b. improvement in the quality of life.

c. fulfillment of the potential of individuals.

d. all of the above.

7. Which of the following is not an important objective of development?

a. increases in per capita income

b. the expansion of available choices

c. increases in individual and national self-esteem

d. all of the above are important objectives of development

8. The Millennium Development Goals include

a. eliminating the proportion of people living on less than $1 per day.

b. universal primary education.

c. increasing exports by one half.

d. all of the above.

9. The core values of development include

a. increasing income per person.

b. reducing the inequality of income.

c. the ability to meet basic needs.

d. all of the above.

1. An example of an upper-middle income country is

a. India.

b. Brazil.

c. Indonesia.

d. Nigeria.

2. A newly industrialized country is

a. the same as a high-income country.

b. any country that has experienced sustained growth in industry.

c. a special classification given to some upper-middle income countries that have achieved relatively advanced manufacturing sectors.

d. any country that has moved out of lower income status.

3. Which of the following is not an upper-middle income country?

a. Brazil

b. South Africa

c. Pakistan

d. Argentina

4. Which of the following is a low-income country?

a. Mexico

b. Thailand

c. Turkey

d. Bangladesh

5. One of the components of the human development index is

a. the percentage of the population who are high school graduates.

b. the average daily intake of protein.

c. life expectancy at birth.

d. the number of doctors per hundred people in the population.

6. What percent of the world’s nations have at least five significant ethnic populations?

a. 0–10

b. 10–20

c. 20–30

d. 30–40

e. over 40

7. What fraction of developing countries have recently experienced some form of significant interethnic conflict?

a. less than one-tenth

b. a tenth to one-quarter

c. one quarter to one half

d. over one half

8. Which of the following African countries has experienced widespread death and destruction due to ethnic or clan based conflict in the previous decade?

a. Rwanda

b. Sudan

c. Somalia

d. all of the above

9. Which measure uses a common set of international prices for all goods and services produced?

a. purchasing power parity income levels

b. GNI price deflators

c. foreign exchange rate conversions to U.S. dollars

d. the exchange rate

10. The number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the U.S. is given by

a. GNI price deflator.

b. Human Development Index ranking.

c. purchasing power parity.

d. the exchange rate.

11. About how many people lack access to basic sanitation?

a. 20 million

b. 200 million