ECON20332

Question

Compared to the developed countries, the LDCs have

Answer 1

A. higher birth rates and lower death rates

Answer 2

B. higher birth rates and higher death rates

Answer 3

C. lower birth rates and lower death rates

Answer 4

D. lower birth rates and higher death rates

Answer 5

A. the level of poverty

Answer 6

B. the level of relative inequality

Answer 7

C. disguised unemployment

Answer 8

D. the rate of growth

Answer 9

A. Increase in capital-output ratio

Answer 10

B. Decrease in capital-output ratio;

Answer 11

C. Increase in marginal propensity to consume;

Answer 12

D. None of the above

Answer 13

A. loans when they want to retain control of domestic industry

Answer 14

B. equity when they want to share risks with foreign investors

Answer 15

C. long-term loans for long-term infrastructure projects

Answer 16

D. all of the above

Answer 17

C. Capital

Answer 18

D. Natural resources

Answer 19

A. capital accumulation.

Answer 20

B. government policies.

Answer 21

C. human capital accumulation

Answer 22

D. forces that are not explained by the model itself.

Answer 23

A. the country with the greater initial level of output per worker will grow more rapidly than the country with the smaller initial level of output per worker.

Answer 24

B. the country with the smaller initial level of output per worker will grow more rapidly than the country with the greater initial level of output per worker.

Answer 25

C. both countries will have the same growth rates of output per worker, even if they start out with different levels of output per worker.

Answer 26

D. if both countries start out with different levels of income per worker, both countries may have different growth rates of output per worker, but we cannot be certain which country will have the higher growth rate of output per worker

Answer 27

A. increases the amount of additional human capital she can produce, but does not increase the amount of output she can produce.

Answer 28

B. increases the amount of additional output she can produce, but does not increase the amount of human capital she can produce.

Answer 29

C. increases both the amount of additional human capital she can produce and the amount of output she can produce.

Answer 30

D. increases neither the amount of additional human capital she can produce nor the amount of output she can produce.

Answer 31

A. recipient countries with a low level of Human Development Index,

Answer 32

B. recipient countries that used to be former colonies of the donor and that are not necessarily poor,

Answer 33

C. recipient countries with a high level of population

Answer 34

D. none of the previous answers

Answer 35

A. controlling for the level of democracy inside the recipient country

Answer 36

B. using a variable that accounts for the type of fiscal policy implemented by the recipient government,

Answer 37

C. using a composite index that accounts for the fiscal, monetary and foreign policy

Answer 38

D. controlling for the level of corruption inside the recipient country.

Answer 39

A. a higher output level than before.

Answer 40

B. the same output level as before.

Answer 41

C. a lower output level than before.

Answer 42

D. the Golden Rule output level.

Answer 43

A. absolute poverty is more widespread in Bangladesh

Answer 44

B. the size distribution of income is more unequal in Indonesia

Answer 45

C. Bangladesh has adopted a strategy of redistribution with growth

Answer 46

D. growth in Bangladesh is calculated using poverty weights rather than income weights

Answer 47

A. the value of the country’s capital stock

Answer 48

B. the ratio of the country’s capital stock to its output

Answer 49

C. the change in the country’s capital stock

Answer 50

D. none of the above

Answer 51

A. Increase in capital-output ratio

Answer 52

B. Decrease in capital-output ratio,

Answer 53

C. Increase in marginal propensity to consume,

Answer 54

D. None of the above

Answer 55

A. increase; increase

Answer 56

B. increase; decrease

Answer 57

C. decrease; decrease

Answer 58

D. decrease; increase

Answer 59

A. controlling for the level of democracy inside the recipient country

Answer 60

B. using a variable that accounts for the type of fiscal policy implemented by the recipient government,

Answer 61

C. using a composite index that accounts for the fiscal, monetary and foreign policy

Answer 62

D. controlling for the level of corruption inside the recipient country

Answer 63

A. infinity

Answer 64

A. is based upon the cost of hamburgers around the world

Answer 65

B. is based upon the cost of the same market basket of goods in different countries

Answer 66

C. is based upon the market exchange rate

Answer 67

D. is based upon the nominal exchange rate

Answer 68

A. higher birth rates and lower death rates

Answer 69

B. higher birth rates and higher death rates

Answer 70

C. lower birth rates and lower death rates

Answer 71

D. lower birth rates and higher death rates

Answer 72

A. had virtually the same number of households in absolute poverty.

Answer 73

B. had virtually the same percentage of households in absolute poverty.

Answer 74

C. had virtually the same Human Development Index level.

Answer 75

D. none of the above.

Answer 76

A. higher birth rates and lower death rates

Answer 77

B. higher birth rates and higher death rates

Answer 78

C. lower birth rates and lower death rates

Answer 79

D. lower birth rates and higher death rates

Answer 80

A. the level of poverty

Answer 81

B. the level of relative inequality

Answer 82

C. disguised unemployment

Answer 83

D. the rate of growth

Answer 84

A. Increase in capital-output ratio

Answer 85

B. Decrease in capital-output ratio;

Answer 86

C. Increase in marginal propensity to consume;

Answer 87

D. None of the above

Answer 88

A. loans when they want to retain control of domestic industry

Answer 89

B. equity when they want to share risks with foreign investors

Answer 90

C. long-term loans for long-term infrastructure projects

Answer 91

D. all of the above

Answer 92

A. The higher the household income, the greater the demand for children

Answer 93

B. The higher the prices of all other goods relative to children, the smaller the quantity of children demanded

Answer 94

C. The higher the prices of all other goods relative to children, the greater the quantity of children demanded

Answer 95

D. The greater the strength of tastes for goods relative to children, the fewer children demanded

Answer 96

A. Total foreign aid the country receives is positively correlated with total national savings

Answer 97

B. Aid-to-income ratio is positively correlated with national savings ratio

Answer 98

C. Total foreign aid the country receives is negatively correlated with total national savings

Answer 99

D. Aid-to-income ratio is negatively correlated with national savings ratio

Answer 100

A. Rising debt service obligations

Answer 101

B. Protectionism in developed countries

Answer 102

C. Declines in lending by international banks

Answer 103

D. Capital flight

Answer 104

A. Foreign investors’ optimism foreseeing little exchange rate risk.

Answer 105

B. Capital flight preceding the Crisis

Answer 106

C. Over-valued fixed exchange rate

Answer 107

D. Asset and real estate bubbles

Answer 108

A. Fiscal gap

Answer 109

B. Savings gap

Answer 110

C. Foreign exchange gap

Answer 111

D. None of the above.

Answer 112

A. country A has a comparative advantage in producing wine

Answer 113

B. country A has an absolute advantage in producing wine

Answer 114

C. country B has an comparative advantage in producing cheese

Answer 115

D. country B has an absolute advantage in producing wine

Answer 116

A. country A has a comparative advantage in producing wine

Answer 117

B. country A has an absolute advantage in producing wine

Answer 118

C. country B has an comparative advantage in producing cheese

Answer 119

D. country B has an comparative advantage in producing wine

Answer 120

A. tariffs and taxes on imports will be reduced

Answer 121

B. subsidies to exports will be increased

Answer 122

C. taxes and tariffs on imports be increased

Answer 123

D. taxes and tariffs will remain unchanged

Answer 124

A. the price elasticity of demand for agricultural goods is low

Answer 125

B. the income elasticity of demand for agricultural goods is low

Answer 126

C. the price elasticity of demand for agricultural goods is high

Answer 127

D. the income elasticity of demand for agricultural goods is high

Answer 128

A. the price of exports relative to the price of imports have decreased

Answer 129

B. the price of exports relative to the price of imports have increased

Answer 130

C. the price of exports relative to the price of imports have remain unchanged

Answer 131

D. the price of exports have increased and the price of imports have decreased

Answer 132

A. Increase in capital-output ratio

Answer 133

B. Decrease in capital-output ratio,

Answer 134

C. Increase in marginal propensity to consume,

Answer 135

D. None of the above

Answer 136

A. Underestimating saving

Answer 137

B. Ignoring government deficit spending

Answer 138

C. Omitting non-market transactions

Answer 139

D. All of the above

Answer 140

A. Rich nations will grow faster than poor nations

Answer 141

B. The rich will get richer and the poor will get poorer

Answer 142

C. The rich will get poorer and the poor will get richer

Answer 143

D. Poor nations will grow faster than rich nations

Answer 144

A. Per capita Real GDP differences among nations will increase

Answer 145

B. Per capita Real GDP differences among nations will diminish

Answer 146

C. Economic freedom as measured by the Heritage Foundation Index will decrease

Answer 147

D. Population growth rates in rich countries will increase

Answer 148

A. absolute poverty is more widespread in Bangladesh

Answer 149

B. the size distribution of income is more unequal in Indonesia

Answer 150

C. Bangladesh has adopted a strategy of redistribution with growth

Answer 151

D. growth in Bangladesh is calculated using poverty weights rather than income weights

Answer 152

A. the rate of population growth within a country.

Answer 153

B. the rate of capital accumulation within a country.

Answer 154

C. the factors that determine the size of the Solow residual.

Answer 155

D. why there are diminishing returns to capital.

Answer 156

A. Causes a deterioration in human capital and a decline in labor productivity;

Answer 157

B. Causes a deterioration in human capital and an increase in physical capital;

Answer 158

C. Increases human capital and a cause a decline in labor productivity;

Answer 159

D. Causes a decline in physical capital and a decline in labour productivity

Answer 160

A. Foreign aid has always a positive impact on growth but with diminishing returns;

Answer 161

B. Foreign aid has a positive impact on growth if associated with sound policies but with diminishing returns;

Answer 162

C. Foreignaiddoesnothaveapositiveimpactongrowthbutwithincreasingreturns;

Answer 163

D. Foreign aid has a positive impact on growth if associated with sound policies but with increasing returns.

Answer 164

A. is negatively correlated with Life expectancy;

Answer 165

B. is negatively correlated with Adult Literacy;

Answer 166

C. is positively correlated with Infant Mortality;

Answer 167

D. none of the above

Answer 168

A. Individuals who inherit less than f work as unskilled but their descendants in future generations will work as skilled workers;

Answer 169

B. Individuals who inherit less than f work as unskilled and so are their descendants in future generations;

Answer 170

C. Individuals who inherit more than f invest in human capital and all their descendants will remain in the skilled labour sector in future generations;

Answer 171

D. Individuals who inherit less than g may invest in human capital but after some generations their descendants become skilled workers;

Answer 172

A. Higher than in the organized credit market;

Answer 173

B. Same as in the organized credit market;

Answer 174

C. Lower than in the organized credit market;

Answer 175

D. None of the above

Answer 176

A. Negatively correlated

Answer 177

B. Positively correlated

Answer 178

C. Non correlated

Answer 179

D. None of the above

Answer 180

A. Borne by the tenant,

Answer 181

B. Borne by the landlord,

Answer 182

C. Shared between landlord and tenant,

Answer 183

D. None of the above.

Answer 184

A. The rural wage initially remains constant

Answer 185

B. Industry makes a profit by employing cheap labor

Answer 186

C. Rural wage will rise when industry expands sufficiently

Answer 187

D. All of the above

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ECON20332

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