Question : 22.2   Structural Features of Developing Countries 1) While many developing countries : 1303737

 

22.2   Structural Features of Developing Countries

 

1) 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

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.

 

 

2) In general, one would expect that life expectancies reflect international differences in income levels. Do the data support such a claim?

A) Average life span falls as relative poverty falls.

B) Average life span increases as relative poverty falls.

C) There is no statistically significant relationship between the two.

D) The relation is not very strong.

E) The relationship looks more like a U-shape.

 

 

3) Seigniorage refers to

A) real resources a government earns when it prints money to use for spending on goods and services.

B) nominal resources a government earns when it prints money to use for spending on goods and services.

C) real resources a government earns when it prints money.

D) nominal resources a government earns when it prints money.

E) real resources a government earns when it issues bonds to use for spending on goods and services.

 

 

4) In developing countries, exchange rates tend to be

A) floating with some government intervention.

B) pegged.

C) hard to tell from the data.

D) run by currency boards.

E) flexible.

 

5) Most developing countries have tried to

A) liberalize capital movement.

B) control capital movements.

C) Hard to tell from the data.

D) in the 1960s and 1970s control, now to liberalize.

E) in the 1960s and 1970s liberalize, now to control.

 

 

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

A) close to no

B) an unimportant

C) an important

D) close a to 5 percent

E) close to a 10 percent

 

 

7) In general, the development of underground economic activity ________ economic efficiency

A) hinders

B) has no effect

C) aides

D) hard to tell, sometime hinders, sometimes aides

E) spikes

 

 

8) One should expect ________ relationship between annual per-capita GDP and an inverse index of corruption

A) a weak and negative

B) a weak and positive

C) a strong and negative

D) a strong and positive

E) an unpredictable

 

 

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

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 exports.

 

10) The relationship between annual real per-capita GDP and corruption across countries has been found to be

A) negative.

B) positive.

C) The relationship was negative in the late 1960s but is now positive.

D) The relationship was in the late 1960s but is now negative.

E) There is no relationship between these two variables.

 

 

 

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