TEST BANK for Economics of Development 7th Edition By Perkins Radelet Lindauer Block All Chapters 1-

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Chapter 1 : Patterns of Development MULTIPLE CHOICE 1. While working in the Japanese electronics factory in Penang, Rachmina Abdullah: a. saved money to provide herself with a better future. b. became a wealthy urbanite who sought after the better amenities of life. c. decided to permanently settle in Japan and become a citizen of that country. d. grew accustomed to spending most of her wages on cosmetics and luxury items.

ANS: A MSC: Factual

DIF: Easy

REF: 3

TOP: Malaysia

2. Which of the following empirical statements about low-income countries is NOT a valid generalization about changes since 1990? a. Infant mortality rates have fallen substantially. b. Rapid population growth has more than offset GNP growth. c. Manufacturing has increased as a share of total output. d. Primary school enrollment rates have risen sharply.

ANS: B MSC: Factual

DIF: Medium

REF: 3

TOP: Malaysia

3. ________ has experienced unprecedented rates of economic growth, which has dramatically changed the lives of its population. a. Paraguay c. Mongolia b. Malaysia d. North Korea ANS: B MSC: Factual

DIF: Medium

REF: 3

TOP: Malaysia

4. The primary economic activities for three-quarters of Ethiopians are: a. tending livestock and building computer chips. b. growing crops and tending livestock. c. telemarketing and trade. d. none of the above.

ANS: B MSC: Factual

DIF: Medium

REF: 5

TOP: Ethiopia

5. Which indicator is inversely related (meaning that it falls as per capita income rises) to per capita income? a. adult illiteracy rate b. infant mortality rate c. share of the population living in rural areas d. all of the above ANS: D MSC: Factual

DIF: Difficult

REF: 5

TOP: Ethiopia

6. Viktor and Yulia’s country comes from which of the following groups of countries? a. South c. transitional

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b. sub-Saharan Africa ANS: C MSC: Factual

d. third world

DIF: Medium

REF: 6

TOP: Ukraine

7. Which of the following statements is true about globalization? a. It is a term used by different people to mean different things. b. It covers more than just economics. c. It is not a new phenomenon. d. All of the above.

ANS: D DIF: Easy TOP: Development and Globalization

REF: 8 MSC: Factual

8. Among the nations of the developing world, new technologies have primarily been responsible for: a. eliminating the need for travel. b. an obesity epidemic among children under 18. c. increased electrical and energy problems. d. creating jobs.

ANS: D DIF: Medium TOP: Development and Globalization

REF: 8 MSC: Factual

9. All of the following reasons have contributed to the enhancement of economic development among the developing nations of the world EXCEPT for: a. the information revolution. c. lower transport costs. b. the globalization of culture. d. the spread of democracy.

ANS: B DIF: Difficult TOP: Development and Globalization

REF: 8 MSC: Factual

10. The poorest nations in the world, representing 12 percent of humanity, are primarily located in: a. Southeast Asia. c. sub-Saharan Africa. b. Eastern Europe. d. Latin America.

ANS: C MSC: Factual

DIF: Easy

REF: 10

TOP: Rich and Poor Countries

11. By the World Bank’s classification system, Malaysia, Iran, and Brazil are: a. low-income countries. c. industrial economies. b. upper-middle-income countries. d. backward economies.

ANS: B MSC: Factual

DIF: Easy

REF: 10

TOP: Rich and Poor Countries

12. According to Simon Kuznets, the key characteristic of the epoch of modern economic growth is: a. expansion of heavy industry. b. a rapid decline in population growth rates. c. high rates of saving and investment. d. the application of science to problems of economic production.

ANS: D MSC: Factual

DIF: Easy

REF: 13

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TOP: Growth and Development

13. For a country where income per capita is growing by 2 percent per year, how many years will it take for average incomes to double? a. 35 years c. 14 years b. 96 years d. 180 years ANS: A DIF: Easy REF: 15 TOP: Diversity in Development Achievements

MSC: Applied

14. What method in the 1970s failed to gain popularity as a key to development? a. income redistribution c. providing basic human needs to the poor b. labor-intensive techniques d. decreased sales tax ANS: D MSC: Factual

DIF: Medium

REF: 16

TOP: Approaches to Development

15. If a country achieves a rapid increase in per capita income by discovering new oil reserves, it is experiencing: a. growth but not development. c. both growth and development. b. development but not growth. d. neither growth nor development.

ANS: A DIF: Medium REF: 18 TOP: The Study of Development Economics

MSC: Applied

SHORT ANSWER IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.

1. Economic growth, economic development ANS: Answer will vary 2. Modern economic growth, modernization ANS: Answer will vary 3. Low-income countries, middle-income countries ANS: Answer will vary 4. North, South ANS: Answer will vary 5. Newly industrializing economy, transitional economy

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ANS: Answer will vary 6. GDP, per capita income ANS: Answer will vary 7. Rich-poor dichotomy, World Bank ANS: Answer will vary 8. Import substitution, export promotion ANS: Answer will vary 9. LDCs, diseases ANS: Answer will vary 10. Institutions, economic development ANS: Answer will vary

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Chapter 2 : Measuring Economic Growth and Development MULTIPLE CHOICE 1. GNP or GDP divided by total population provides a measure of: a. the wellness index. c. per capita income. b. the gap between the rich and poor. d. the poverty index.

ANS: C DIF: Easy TOP: Measuring Economic Growth

REF: 24 MSC: Factual

2. More than three-quarters of Angola’s national income is derived from: a. cotton. c. rubber trees. b. oil. d. tourism.

ANS: B DIF: Easy TOP: Measuring Economic Growth

REF: 24 MSC: Factual

3. In 2009, Bangladesh’s GNP was 9 percent higher than its GDP; this occurred due to the fact that: a. large numbers of Bangladeshi men and women work abroad. b. Bangladesh is rich in ore and mineral deposits. c. Bangladesh is subject to frequent and unpredictable changes in weather patterns. d. foreign investment has been robust in the country.

ANS: A DIF: Easy TOP: Measuring Economic Growth

REF: 24 MSC: Factual

4. A country’s nominal GNP for a given year is defined as the total market value of: a. labor plus capital plus technical change. b. all final goods and services produced. c. all final plus intermediate goods and services produced. d. all final goods and services consumed.

ANS: B MSC: Factual

DIF: Medium

REF: 25

TOP: Measuring GDP

5. One of the problems in measuring GDP is that family farm production of food for personal consumption is not included; this is illustrated by the problem of calculating Cambodia’s GDP where unpaid family workers represent: a. 75 percent of the labor force. c. 33 percent of the labor force. b. 57 percent of the labor force. d. 9 percent of the labor force.

ANS: C MSC: Factual

DIF: Easy

REF: 25

TOP: Measuring GDP

6. In some nations, illegal activities may even be included when calculating GDP; this is most notable in Afghanistan where the GDP includes: a. military expenses. c. money laundering. b. child trafficking. d. poppy production.

ANS: D MSC: Factual

DIF: Easy

REF: 25

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TOP: Measuring GDP