Economics Chapter 18 Test Questions – Flashcards
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Development
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Is the process by which a nation improves the economic political and social well-being of its people
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Developed nations
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Are those nations with a higher average level of material well-being
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Less developed countries (LDCs)
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Nation with a low level of material well-being, Include the world's poorest countries such as Bangladesh Nepal Albania and the nations of central and south Africa. They also include nation such as Mexico Poland Saudi Arabia in the former republics of the Soviet Union
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Per capita gross domestic product - Per Capita (GDP)
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A nation's GDP divided by its total population
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Industrialization
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The extensive organization of an economy for the purpose of manufacture. Industrial processes generally require large amounts of energy
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Subsidence agriculture
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Level of farming and witty person races only enough food to feed his or her family. True of many LDCs this is where large portions of the population engage
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Why is per capita GDP a better measure of development than a nations overall GDP
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Per capita GDP shows how much of the nations product is being created per person rather than the total production of the country
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Literacy rate
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Is a proportion of the population over age 15 and I can read and write for the country
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Life expectancy
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Is the average expected lifespan of an individual to indicate how on economic system supports life and friends often. A population is well Noris and house as well as protected from disease have a long life expectancy
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Infant mortality rate
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The number of deaths that occur in the first year of the life per 1000 live births
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Which of the following is the primary measure of a country's development
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Per capita gross domestic product
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Why does the infant mortality rate relate to a country's level of development
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The rate is an indicator of nutrition and health care
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Infrastructures
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The services and faculty is necessary for an economy to function. Transportation, communication, system, roads, powerplant, schools, and banks are all part of a nations infrastructure
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A particular nation has a low per capita GDP, low literacy rate, high infant mortality rate, and in adequate educational system. This nation would be considered a
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Less developed country
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Newly industrialized countries
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Some of the more successful or the developing countries
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If a certain countries per capita gross national income rose from $7500 to $8100 this year
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This country has remained a middle income nation
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What is the general term for a less developed nation that has shown significant improvement in its development
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Newly industrialized country
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Factors such as life expectancy, energy consumption, per capita GDP, literacy rates are used to
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Measure the development of a country
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Which of the following are characteristics of developed nations
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Hi per capita GDP's, low income mortality rates, high literacy rates
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If a certain countries economy has begun to significantly expand in certain industries have begun to export to other countries
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This country is in the semi develop stage of economic development
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A nation with a higher average level of material well-being is
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A developed nation
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Each of the following are considered a developed nation except
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Saudi Arabia
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All of the following are used to measure development except the
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Size of the labor workforce
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The level of development for a country does not indicate how well a nation
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Administers foreign-policy
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The literacy rate is
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The proportion of the countries people that can read and write
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What does infracture refer to
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Services and faculties necessary for an economy to function
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Population growth rate
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The increase in a countries population in a given year
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Natural rate of population increase
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The difference between the birthrate in the death rate
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Calculating a countries population growth takes into account all of the following except
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The number of people marry in a given year
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When compared with less developed countries, and higher proportion of people fall into which age group
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Older than 65
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Arable
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Suitable for producing crops
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Malnutrition
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Inadequate nutrition
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How does my nutrition affect human capital
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It causes low birth weight brain damage his birthday sex and infants, slows the physical mental development of the nations used, and causes G heart disease diabetes and other health problems in adults
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Which of the following is an example of brain drain
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An engineer leave her LDC to work and is about nation
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How does human capital contribute to development
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Is skilled workforce encourages foreign investment
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Which of the following is not an accurate statement about the depth problem and LDCs
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Debt holders often sees government property loans are not repaid
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In 1973, members of the organization of petroleum exporting countries reduced oil exports, which more than quadrupled oil prices. What affect did that have on less developed nations?
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They had to borrow money to buy oil, and this new debt made it difficult or impossible for them to repay foreign loans
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If the population of less about countries continue to face the population of these years. What would be a consequence of this rapid population growth?
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A large percentage of the population will be too young to work; therefore, productivity will not increase.
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How do you factors such as climate mineral resources and rainfall have an impact on development?
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Poor climate, rainfall, and a lack of mineral resources complicate development.
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How did their previous status as colonies of European powers have an affect on the development of many less developed countries.
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When they became independent, LDC's relied on central planning rather than free enterprise to modernize their economies.
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Factors that have contributed to limiting development in poor nations include all of the following except...
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Relying on a free market economy to stimulate economic growth.
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Which of the following does not refer to sustainable development
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Laying the groundwork for short-term economic growth
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How does arable land playing important role in a nations development
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The amount of arable land affects the agriculture output of a nation
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When A country does not have sufficient human capital
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Foreign investment will be discouraged
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Suppose a less developed country has experience for decades of central planning, a corrupt government, and years of Civil War. What affect with this experience have on the nations development
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It would limit or possibly reduce the nations development
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What happens if a nation's population grows more quickly than gross to Mestic product?
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There will be economic decline
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Internal financing
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Derived from the savings of the country's citizens
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Foreign investment
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External investment originates from the countries
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Foreign direct investment
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The establishment of an enterprise by a foreigner
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Foreign portfolio investment
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The entry of funds into a country when foreigners make purchases in the country stock and bond markets
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What is the difference between foreign direct investment and foreign portfolio investment
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Foreign direct investment is the establishment of an enterprise by a foreigner
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What is the status of a business enterprise by someone who lives outside a country called
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A foreign direct investment
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Why does the money that is invested in many countries have to come from outside the country
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Most residents do not have enough money to save and invest in their own country
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After World War II, the United States sent billions of dollars in foreign aid to help the war torn nations of Western Europe rebuild. What was one result of the efforts of the United States to help Europe rebuild.
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European economies recovered, and the United States gained new markets for American goods.
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World Bank
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The largest provider of development assistance
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The United Nations development program
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Dedicated to the elimination of poverty through development
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International monetary fund
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Originally developed in 1946 to stabilize international exchange rates
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Debt rescheduling
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Lengthening the time of debt repayment and forgiving, or dismissing, part of the loan.
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Stabilization program
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An agreement between a debter and the nation and IMF
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What role do stabilization programs play in debt rescheduling?
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In order for an LDC to have its debt rescheduled, it must agree to accept a stabilization program.
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Suppose a less developed country is having difficulty making payments on its foreign debts. What option does this nation have?
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It can ask it's lenders for debt rescheduling in exchange for accepting a stabilization program for the IMF
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What does the International Monetary Fund offer to a less developed country
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Policy advice and technical assistance
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Which of the following is an example of direct foreign investment?
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A factory that is built In an LDC but owned by a foreign company
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The Marshall plan was a program funded by the US government that
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Loaned and granted money to need countries in Europe after World War II in the hopes for promoting democracy
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What do the world bank, the United Nations development program, and the international monetary fund do?
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Provide development assistance to less developed countries
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The entry funds into a country one foreigners make purchases in the country stock and bond market is
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Foreign portfolio investment
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Investment originating from other countries is
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Foreign investment
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The establishment of an enterprise by foreigner is
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Foreign direct investment
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What was the purpose of the Marshall plan
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To help European countries are cover economically from World War II
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Most nations are less developed countries LDCs. Supporters of multinational corporation's MNCs might argue all of the following except that
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MNCs are more capital intensive and highly mechanized rather than labor-intensive
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What is the stop measurement of a business enterprise by someone who lives outside a country called?
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A foreign direct investment
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The US government provide a military put into Egypt, it would be an example of
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Foreign aid
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The Marshall plan was an example of
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Foreign aid
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Privatization
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The seller transfer of government owned businesses to individuals
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Why is privatization necessary to for creating a free market economy
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Five elevation get individuals and privately owned companies, rather than the government, the right to decide what to produce and how much to produce, which is a basis of free-market economy's
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Work Ethic
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System of values that give central importance to work
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Which of the following is not associated with moving from a centrally planned economy to a market economy
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An increase in the role of government in the operation of a business
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During the 1980s, Great Britain private allies a number of businesses, including the post office and telephone company. What did the government actually do?
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It's sold these government owned businesses to individuals
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Glasnost
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A policy of openness which encourage Soviet citizens to say what they wish without fear of government persecution
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Perestroika
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Gorbachev's economic reform and a plan for economic restructuring. This called for a gradual change from a centrally planned to some different enterprise. Perestroika was a plan for change.
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Gorbachev's plan for economic restructuring and Soviet union allow people to start businesses converted many military factories in the farmers long-term leases on their land. What was Gorbachev's plan called
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Perestroika
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What was the policy a political openess introduced in the Soviet Union in 1980s called
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Glasnost
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What is the difference between glasnost and Perestroika?
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Glasnost was a policy of political open this introduced in the Soviet Union in the late 1980s
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Light industry
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The production of small consumer goods such as clothing appliances and bicycles
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Special economic zones
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Local governments are allowed to offer tax and incentives to foreign investors businesses are allowed to make most of their own investment in production decisions and foreign companies are a lot to operate in the zones
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What role do special economic zones play in China's transition to free enterprise
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China special economic zones and corporate many aspects of a market based system, allowing businesses to make most of their own investment in production decisions
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Which of the following did not cause the economic problems and China starting in 1958?
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Overproduction of unneeded consumer goods
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What was the Chinese cultural Revolution
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An attempt to embrace communism by destroying all traces of the past
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Why most private ownership of property be guaranteed before a free market economy will work
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entrepreneurs need to be assured that they will benefit from a successful project
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Attempting to transition toward a more market-based economy,
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In 1992, Yeltsin lifted price controls.
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What did Deng Xiaoping NOT do to begin the transition of China's economy away from central planning and toward a market-based economy?
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He brought back Maos cultural revolution to emphasize the importance loyalty and hard work.
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How did China adjust to modern economic issues after the death of Mao Zedong?
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It adopted many of the ideas of free enterprise
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Soviet leader Gorbachev's plan for economic restructuring was called...
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Perestroika
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All of the following are methods that a nation can use to privatize a state-owned business except...
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Issuing certificates to foreign governments, enabling them to purchase shares in the business
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All of the following are important steps in moving from a centrally planned economy to a market economy except
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Changing
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What economic decision made consumer goods so difficult to get in the Soviet Union until the late 1980s?
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The emphasis on heavy industry
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In 1958, Mao Zedong introduced and ambitious development plan called the
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Great leap forward
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Both Mikhail Gorbachev & Deng Xiaoping...
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Delegates more authority to factory managers
