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do not discuss values, since Economics thinks of itself as very similar to a physical science. do not discuss values, because Economics is a value-free science. do not discuss values, in order to avoid injecting consider values in their analysis, because they believe in certain universal value premises on which everyone agrees. their own cultural biases into the analysis. consider values in their analysis, because economic investigations cannot be considered separately from their institutional, social, and political contexts. do not discuss values, since Economics thinks of itself as very similar to a physical science. do not discuss values, in order to avoid injecting their own cultural biases into the analysis. consider values in their analysis, because economic investigations cannot be considered separately from their institutional, social, and political contexts. do not discuss values, because Economics is a value-free science. consider values in their analysis, because they believe in certain universal value premises on which everyone agrees.
change in social and political institutions, as well as in the attitudes of the people. increases in the population growth rates to more reasonable levels. sustained increases in GNP per capita only. economic growth, accompanied by dramatic change in social and political institutions, as well as in the attitudes of the people. increases in the population growth rates to more reasonable levels. the process by which authoritarian political structures give way to more democratic forms of government. a movement towards national food security.
sustenance, freedom, and security. freedom, free markets, and free trade. sustenance, democracy, and free markets. sustenance, democracy, and free markets. sustenance, self-esteem, and freedom. sustenance, freedom, and security. freedom, free markets, and free trade. freedom, security, and democracy.
vulnerability in international relations. d. all of the above e. a and b only a. low levels of living, high levels of income inequality, and high dependency burdens. b. low levels of productivity, prevalence of imperfect markets, and high rates of population growth. c. primary-product exports, inadequate education and vulnerability in international relations. d. all of the above e. a and b only
Which of the following is not one of Kuznet's six characteristics of modern economic growth?
High rates of growth of per capita output and population infrastructure amelioration High rates of High rates of social and ideological transformation
High rates of structural transformation of the economy High rates of increase in total factor productivity High rates of growth of per capita output and population High rates of social and ideological transformation High rates of structural transformation of the economy High rates of infrastructure amelioration High rates of increase in total factor productivity
The migration of highly educated and skilled workers from developing countries to developed countries is
generally encouraged by developing countries as a way to reduce population pressure. illegal. commonly known as the "brain drain." less of a problem now than it was in the 1970s. none of the above. generally encouraged by developing countries as a way to reduce population pressure. commonly known as the "brain drain." less of a problem now than it was in the 1970s. illegal. none of the above.
For more rapid rates of economic growth, increased saving and investment is
is a sufficient but not necessary condition. condition. a necessary and sufficient condition. sufficient condition. is a sufficient but not necessary condition. a necessary and sufficient condition. is neither a necessary nor a sufficient condition. a necessary but not sufficient condition.
In the Harrod-Domar model, suppose that the national capital-output ratio is 4. If the national net savings rate increases from 8% to 12%, the economic growth rate will increase from __________ to __________.
32%; 48% information provided. 0.5%; 0.33% -6%; 0% 2%; 3% The answer cannot be determined from the information provided. 32%; 48% 0.5%; 0.33% 2%; 3% The answer cannot be determined from the -6%; 0%
According to the pattern of the demographic transition, a country's population growth rate generally
starts out high, then decreases. falls once again. starts out low, then increases, and finally starts out high, then decreases starts out low, then increases.
before finally increasing once again. none of the above starts out high, then decreases before finally increasing once again. starts out high, then decreases. starts out low, then increases.
starts out low, then increases, and finally falls once again. none of the above
According to the microeconomic household theory of fertility, children in poor societies are seen, at least in part, as economic investment goods because
a. children act as parents' social security or old-age pension. ordinary investment goods, children do not depreciate. income to the family. a and b only a and c only a. children act as parents' social security or old-age pension. b. unlike ordinary investment goods, children do not depreciate. c. children provide labor income to the family. a and b only a and c only b. unlike c. children provide labor
d. has reached a level that clearly is unsustainable. b and d are both correct. a. is rising ever more rapidly as time goes by. b. is expected to approach 10% by the end of the 21st century. c. seems to have peaked and is now falling. d. has reached a level that clearly is unsustainable. b and d are both correct.
Prior to the industrial revolution of the 19th century, annual world population growth rates averaged
about 1.0%. 0.5%. about 2.0%. above 2.0%. about 1.0%. about 1.5%. less than 0.5%.
about 1.5%.
about 2.0%.
above 2.0%.
less than
Market prices of outputs and inputs may not give a true reflection of social benefits and costs because
a. modern sector wage rates often exceed the social opportunity cost of labor. b. price controls exist for many goods and services. c. import prices often overstate the real cost to a country of purchasing imports. all of the above. a and b only. a. modern sector wage rates often exceed the social opportunity cost of labor. b. price controls exist for many goods and services. c. import prices often overstate the real cost to a country of purchasing imports. all of the above. a and b only.
b. enforcement of contracts and conditions of law and order. c. a considerable degree of market power in the form of oligopolies and monopolies. all of the above.
a and b only.
The approach to planning that involves an examination of the interrelationships between sectors of the economy is called
shadow price computation theory. modeling. social cost-benefit analysis. shadow price computation theory. input-output modeling. project appraisal. social cost-benefit analysis. aggregate growth modeling. project appraisal. input-output aggregate growth modeling.
rises. income inequality first rises then falls as per capita income rises. the above - there is no pattern
income inequality first rises then falls as per capita income rises. income inequality first falls then rises as per capita income rises. income inequality falls as per capita income rises. income inequality rises as per capita income rises. none of the above - there is no pattern
In the last 10 years, the absolute number of persons living on less than $1 per day has declined in which of the following region(s)?
East Asia and Pacific Pacific Sub-Saharan Africa East Asia and Pacific Sub-Saharan Africa South Asia Nowhere Sub-Saharan Africa, East Asia and Pacific Nowhere South Asia Sub-Saharan Africa, East Asia and
The Human Poverty Index measures poverty in terms of which three 'deprivations'?
economic provisioning, life, and political freedom civil liberties, and political freedom civil liberties income inequality, life, and basic education basic education, and life economic provisioning, basic education, and life income inequality, life, and basic education economic provisioning, life, and political freedom economic provisioning, civil liberties, and political freedom basic education, economic provisioning, and civil liberties economic provisioning, economic provisioning, basic education, economic provisioning, and
The developing world experienced a substantial deterioration in both current and capital account balances
in the 1970s. the 1980s. in the 1960s. in the 1980s. in the 1960s. between 1960 and 1970. between 1950 and 1980. in the 1970s. between 1950 and 1980. between 1960 and 1970. in
Which of the following is NOT part of a typical IMF macroeconomic stabilization program?
Liberalization of foreign exchange and import controls. Introduction of wage and price controls to combat inflation. foreign investment. Devaluation of the exchange rate. Greater hospitality to foreign investment. Devaluation of the exchange rate. Liberalization of foreign exchange and import controls. Introduction of wage and price controls to combat inflation. Stringent anti-inflation policies, both on the monetary policy side and the fiscal policy side. Stringent antiinflation policies, both on the monetary policy side and the fiscal policy side. Greater hospitality to
return. the situation is likely to help the development process if the interest rate on the loans is relatively high. the situation may impede development if the borrowed funds are invested in development projects with relatively high rates of return. it is always a mistake. the situation will impede development. the situation is likely to help the development process if the interest rate on the loans is relatively high. the situation may impede development if the borrowed funds are invested in development projects with relatively low rates of return.
When a multinati onal corporati on artificiall y inflates the price it pays for intermedi ate products purchase d from overseas affiliates in an effort to lower stated local profits
In most major developed countries, official development assistance is what percent of developed-country GNP?
5% 10% less than 1% 5% 2.5% 10% 1% less than 1% 2.5% 1%
Which of the following is not a reason why donor countries give official development assistance to developing countries?
to assist developing countries in the development process. donor country's political interests.
to advance the
of famine. to create markets for donor-country exports. all of the above are reasons donor countries provide official development assistance. to provide short term humanitarian relief in times of famine. to advance the donor country's political interests. to create markets for donor-country exports. to assist developing countries in the development process. all of the above are reasons donor countries provide official development assistance.
developed countries. are much lower in LDCs than in developed countries. much higher in LDCs than in developed countries. are much lower in LDCs than in developed countries. are slightly higher in LDCs than in developed countries.
are much higher in LDCs than in developed countries. are slightly lower in LDCs than in developed countries. are about the same in LDCs and more developed countries.
enterprises are generally profitable in African countries, but not in other regions. in accord with perceptions, state-owned enterprises in developing countries usually have relatively large operating surpluses. once interest payments, subsidies, and tax arrears are accounted for, most stateowned enterprises have large operating deficits. in accord with perceptions, state-owned enterprises in developing countries usually have relatively large operating surpluses. state-owned enterprises are generally profitable in African countries, but not in other regions. despite perceptions to the contrary, state-owned enterprises in developing countries usually have relatively large operating surpluses. once interest payments, subsidies, and tax arrears are accounted for, most stateowned enterprises have small (but positive) operating surpluses.
The share of developing country military expenditures in total world military spending
has steadily increased since 1960. fallen steadily ever since. increased steadily until 1980 but has has has generally increased, but did fall in the 1980s.
remained steady at under 5%. has steadily decreased since 1960. has generally increased, but did fall in the 1980s. has steadily decreased since 1960. increased steadily until 1980 but has fallen steadily ever since. has remained steady at under 5%.
developed countries. none of the above. developing countries continue to be heavily dependent on developed countries. both developing and developed countries are less economically interdependent than ever before. developing countries are becoming less dependent on developed countries. developed countries are becoming decreasingly economically dependent on developing countries. none of the above.