Question 1

Should the IMF be abolished?
 Discuss.

Accepted Answer

An open answer. Arguments for abolishing...

Question 2

Which of the following countries had a larger growth rate since 1960?

Accepted Answer

A)   U.S.
B)   Senegal
C)   South Korea
D)   Kamul
E)   ColombiaF) None of the above
G) B) and D)

Question 3

The Convertibility Law of April 1991 in Argentina

Accepted Answer

A)   pegged the Argentinean currency to the U.S. dollar at a ratio of one to one.
B)   pegged the Argentinean currency to the U.S. dollar at a ratio of one to two.
C)   pegged the Argentinean currency to the U.S. dollar at a ratio of one to 0.5.
D)   represents an era of floating exchange rate in Argentina.
E)   pegged the Argentinean currency to the British pound at a ratio of one to one.F) B) and D)
G) A) and E)

Question 4

How would you define convergence?

Accepted Answer

A)   tendency for gaps between industrial countries' per-capital incomes to narrow
B)   tendency for gaps between all countries' per-capital incomes to narrow
C)   the theory that a crisis in a low-income country will spread to all countries, regardless of debt structure
D)   the theory that a crisis in a low-income country will spread to only those countries which had lent money to the original country
E)   tendency for the world distribution of income to be persistently unequalF) B) and D)
G) A) and B)

Question 5

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

Accepted Answer

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.F) B) and C)
G) All of the above

Question 6

For many developing countries, natural resources or agricultural commodities make up a ________ share of exports.

Accepted Answer

A)   large
B)   moderate
C)   nonexistent
D)   small
E)   insubstantialF) B) and D)
G) D) and E)

Question 7

Evaluate the Argentinean Convertibility Law of April, 1991.

Accepted Answer

Good idea in the short run, ca...

Question 8

Which of the following is NOT a common characteristic of a developing country?

Accepted Answer

A)   extensive direct government control of the economy
B)   history of low inflation
C)   many weak credit institutions
D)   "pegged" exchange rates
E)   agricultural commodities make up a large share of its exportsF) C) and D)
G) B) and E)

Question 9

In developing countries, exchange rates tend to be

Accepted Answer

A)   floating with some government intervention.
B)   pegged.
C)   hard to tell from the data.
D)   run by currency boards.
E)   flexible.F) None of the above
G) C) and D)

Question 10

With which country did the Debt Crisis of the early 1980s begin?

Accepted Answer

A)   France
B)   Mexico
C)   Argentina
D)   Japan
E)   GermanyF) B) and C)
G) A) and D)

Question 11

What is the domino effect or contagion?

Accepted Answer

The definition is the vulnerability of e...

Question 12

Describe some of the features hindering developing countries from growing faster.

Accepted Answer

One of the features that can be holding ...

Question 13

The main reason for the crisis in Argentina in 2001 and 2002, has to do with exchange rate policy, i.e., the continued peg of the exchange rate to the dollar. Discuss.

Accepted Answer

Student should emphasize that the quote ...

Question 14

Explain why despite enormous natural resources, much of Latin America's population remains in poverty and the region has been repeatedly experiencing financial crises.

Accepted Answer

Most Latin America population remains in...

Question 15

In the early 1960s South Korea was an extremely poor country. However, in 1963, the country began a remarkable economic ascent. What was a direct cause of this?

Accepted Answer

A)   a shift in strategy that emphasized exports rather than imports
B)   an increase in wages
C)   an increase in the labor force
D)   an increase in the money supply
E)   an emphasis on education, leading to a highly productive labor forceF) C) and D)
G) B) and C)

Question 16

Please consider Table 22-2 below.

At that Annual Average Growth Rate, how many years does it take for the output per capita to double in both the United States and South Korea.

Accepted Answer

The answer of Please consider Table 22-2 below.
  
...

Question 17

Over the post-war era, the gaps between countries' living standards

Accepted Answer

A)   disappeared.
B)   stayed the same.
C)   increased.
D)   decreased.
E)   changed inconsistently.F) C) and E)
G) B) and E)

Question 18

How would you describe the world distribution of income?

Accepted Answer

A)   persistently unequal
B)   temporarily unequal
C)   converging
D)   fairly equal
E)   completely unpredictableF) A) and B)
G) C) and D)

Question 19

Over the post-war era, the gaps between industrial countries' living standards

Accepted Answer

A)   disappeared.
B)   stayed the same.
C)   increased.
D)   decreased.
E)   fluctuated.F) C) and E)
G) C) and D)

Question 20

Which of the following does NOT explain why developing countries encouraged new manufacturing industries of their own in the mid 20th century?

Accepted Answer

A)   They were cut off from traditional suppliers of manufactures during WWII.
B)   Former colonial areas had something to prove; they wanted to attain the same income levels as their former rulers.
C)   Leaders of these countries feared that their efforts to escape poverty would be doomed if they continue to specialize in primary commodity exports.
D)   There was political pressure to protect these industries.
E)   Developing countries ran out of the natural resources that traditionally made up the majority of their trade.F) B) and E)
G) A) and E)

Exam 22: Developing Countries: Growth, Crisis, and Reform

Evaluate the Argentinean Convertibility Law of April, 1991.

Correct AnswerverifiedGood idea in the short run, ca...View AnswerShow Answer

For many developing countries, natural resources or agricultural commodities make up a ________ share of exports.

Correct AnswerverifiedShow Answer

Describe some of the features hindering developing countries from growing faster.

Correct AnswerverifiedOne of the features that can be holding ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

In developing countries, exchange rates tend to be

Correct AnswerverifiedShow Answer

With which country did the Debt Crisis of the early 1980s begin?

Correct AnswerverifiedShow Answer

Please consider Table 22-2 below. At that Annual Average Growth Rate, how many years does it take for the output per capita to double in both the United States and South Korea.

Correct AnswerverifiedShow Answer

Which of the following countries had a larger growth rate since 1960?

Correct AnswerverifiedShow Answer

The Convertibility Law of April 1991 in Argentina

Correct AnswerverifiedShow Answer

In the early 1960s South Korea was an extremely poor country. However, in 1963, the country began a remarkable economic ascent. What was a direct cause of this?

Correct AnswerverifiedShow Answer

Over the post-war era, the gaps between industrial countries' living standards

Correct AnswerverifiedShow Answer

Which of the following is NOT a common characteristic of a developing country?

Correct AnswerverifiedShow Answer

How would you define convergence?

Correct AnswerverifiedShow Answer

How would you describe the world distribution of income?

Correct AnswerverifiedShow Answer

What is the domino effect or contagion?

Correct AnswerverifiedThe definition is the vulnerability of e...View AnswerShow Answer

Explain why despite enormous natural resources, much of Latin America's population remains in poverty and the region has been repeatedly experiencing financial crises.

Correct AnswerverifiedMost Latin America population remains in...View AnswerShow Answer

The main reason for the crisis in Argentina in 2001 and 2002, has to do with exchange rate policy, i.e., the continued peg of the exchange rate to the dollar. Discuss.

Correct AnswerverifiedStudent should emphasize that the quote ...View AnswerShow Answer

Over the post-war era, the gaps between countries' living standards

Correct AnswerverifiedShow Answer

Should the IMF be abolished? Discuss.

Correct AnswerverifiedAn open answer. Arguments for abolishing...View AnswerShow Answer

Which of the following does NOT explain why developing countries encouraged new manufacturing industries of their own in the mid 20th century?

Correct AnswerverifiedShow Answer

Correct Answer
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Good idea in the short run, ca...
View Answer

Correct Answer
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Correct Answer
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One of the features that can be holding ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The definition is the vulnerability of e...
View Answer

Correct Answer
verified
Most Latin America population remains in...
View Answer

Correct Answer
verified
Student should emphasize that the quote ...
View Answer

Correct Answer
verified

Correct Answer
verified
An open answer. Arguments for abolishing...
View Answer

Correct Answer
verified