Exam 2 MCQ_Class Review_wth answers_Econ362_SP23

docx

School

Emory University *

*We aren’t endorsed by this school

Course

215

Subject

Economics

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by DrMetalMonkey43

Ch 5 1. Rising per-capita GNP may fail to increase incomes for most citizens because: a. Gains from growth may be used for expensive glory projects that provide few concrete benefits to the people. b. gains from growth may be heavily reinvested, so consumption gains are postponed c. Those who are already relatively well-off may get all or most of the benefits d. all of the above Ans. D 2. The idea which suggests that poverty is self-perpetuating because poor nations are unable to save and invest enough to accumulate the capital stock that would help them grow is a. the dependency theory. b. the vicious-circle-of-poverty hypothesis. c. neo-colonialism. d. the under-consumptionist hypothesis. Ans. B 3. If the vicious-cycle-of-poverty hypothesis were true at all levels of per capita income, then a. all economies would develop at the same rate. b. no nation could ever achieve economic development. c. no nation would ever fail to reach the highest level of economic development. d. poverty would not be self-perpetuating. Ans. B 4. Whereas the headcount measure tells us the number of poor and the poverty gap measure tells us about the average depth of poverty among the poor, the Foster-Greer-Thorbecke measure (also called P-alpha) tells us about the number, the average depth of poverty and a. average income b. inequality in the population c. inequality among the poor d. variance of average income Ans. C

5. If the distribution of income in country C is (1, 2, 2, 3, 5) and the poverty line is 2.5, the headcount measure tells us what percentage of the population is in poverty a. 40 b. 3 c. 2 d. 60 Ans. D 6. If the distribution of income in country C is (1, 2, 2, 3, 5), and in country D it is (1, 1, 2, 3, 5), and the poverty line in both countries is 2.5, by the headcount measure which country has more poverty? a. C b. D c. poverty is the same in C and D d. we cannot tell from the information given Ans. C 7. If the distribution of income in country C is (1, 2, 2, 3, 5) , and in country D it is (1, 1, 2, 3, 5), and the poverty line in both countries is 2.5, by the average income shortfall measure which country has more poverty? a. C b. D c. poverty is the same in C and D d. we cannot tell from the information given Ans. B 8. If the distribution of income in country C is (1, 2, 2, 3, 5) , and in country D it is (1, 1, 2, 3, 5), and the poverty line in both countries is 2.5, by the Lorenz curve which country has more inequlity? a. C b. D c. inequality is the same in C and D d. we cannot tell from the information given. Ans. D

9. Sen's welfare theory relies on a. individuals' accomplishments. b. individuals' capabilities. c. individuals' wealth. d. individuals' education. Ans. B 10. Indices of income distribution measure a. absolute poverty. b. economic growth. c. relative poverty. d. standard of living. Ans. C 11. Income inequalities are often shown on a a. production possibility curve. b. marginal inequality curve. c. Sen curve. d. Lorenz curve. Ans. D 12. A value of 1 in Gini index represents a. low inequality. b. maximum inequality. c. 10/10, 000% inequality. d. 1% inequality. Ans. B 13. The Lorenz curve shows a. patterns of poverty between developed and developing countries. b. the change in GDP per capita over time. c. the poorest’s income shares fall in the early stages of growth. d. income concentration relative to a 45-degree line. Ans. D 14. According to Kuznets, in the process of development inequality in an economy will normally a. first rise and then fall. b. first fall and then rise. c. remain about the same. d. show no definite pattern. Ans. A

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

15.The number of people in the world who are absolutely poor is closest to (a) 648 million (b) a billion. (c) one and a half billion. (d) two billion. (e) four billion. Ans. A 16. With modern sector enrichment growth, inequality will a. first rise and then fall. b. first fall and then rise. c. remain about the same. d. none of the above. Ans. D 17. Higher income countries tend to have lower levels of absolute poverty because (a) more employment opportunities (b) more public assistance (c) greater entrepreneurship opportunities. (d) all of the above. Ans. D 18. Which of the following policies may decrease the level of capital intensity in industry? a. an increase in the cost of capital b. a decrease in the minimum wage c. an increase in the elasticity of substitution d. all of the above. Ans. D 19.About what percent of the world’s poorest people are female? a. 30 b. 50 c. 70 d. 90 Ans. C

20. What conclusion can be reached from the following data on income shares? Percentage of Income Received by Lowest 40% Highest 20% Bangladesh 17.3 45.3 Indonesia 14.4 49.4 a. absolute poverty is more widespread in Bangladesh b. the size distribution of income is more unequal in Indonesia c. Bangladesh had adopted a strategy of redistribution with growth d. growth in Bangladesh is calculated using poverty weights rather than income weights Ans. B 21. Developing countries who have adopted capital-intensive technologies tend to have a. relatively higher Gini coefficients. b. relatively lower Gini coefficients. c. Gini coefficients equal to one. d. Gini coefficients equal to zero. Ans. A 22. The Gini coefficient provides a measure of (a) the level of poverty. (b) the level of relative inequality. (c) disguised unemployment. (d) the rate of growth. Ans. B Ch 6 23. The empirical evidence indicates that today's developing countries are undergoing a demographic transition very similar to what the developed countries experienced in the past. a. true b. false Ans. B

24. Malthus argued that the poor would always remain poor because a. population growth tends to outrun growth of food production b. they do not save enough c. there are not enough resources to educate them d. all of the above Ans. A 25. The Malthusian theory of population growth, as formulated by Malthus, proved a. entirely correct for human behavior b. overly pessimistic about future productivity increases c. that food output will decline with population growth d. none of the above Ans. B 26. Infant mortality a. is defined as the annual number of deaths of infant under 1 year old per 1,000 live births. b. reflects the availability of primary education, the rights of employment and social security. c. is life expectancy up to age 3. d. reflects the availability of hospitals and childcare facilities, and the parents’ wealth. Ans. A 27. Evidence presented in the text suggests that birthrates among developing countries are lower with (a) higher growth. (b) higher inequality. (c) higher GNP per capita. (d) all of the above. Ans. A 28. The world rate of population growth is closest to (a) 1%. (b) 2%. (c) 3%. (d) 4%. Ans . A

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

29. The number of live births per 1,000 people in the population per year is the a. hidden momentum of population growth. b. population growth rate. c. demographic transition. d. crude birth rate. Ans . D 30. Assuming a world population growth rate of 1 % per year, approximately how many years would it take for the world’s population to double? (a) 35. (b) 72. (c) 96. (d) 211. Ans . B 31. The Malthusian population trap model has been criticized on the grounds that it (a) ignores the role of technological progress. (b) assumes that population growth is primarily determined by individual choice over the number of children to have. (c) both (a) and (b) are correct. (d) neither (a) nor (b) is correct. Ans. A 32. A period of rapid population growth between a preindustrial, stable population characterized by high birth and death rates and a later, modern, stable population marked by low fertility and mortality is known as a. demographic transition. b. population maturity. c. demobilizing population. d. birth-death transformation. Ans. A 33. The _______________ is the ratio of the non-working population (under 15 years old and over 64 years old) to the working-age population. a. labor force participation rate. b. per capita population ratio. c. population transition. d. dependency ratio. Ans. D

34. A stationary population is when population growth is a. increasing at an increasing rate. b. decreasing. c. zero. d. 100%. Ans. C 35. Which of the following is not a possible cost of high fertility rates and rapid population growth? a. increasing returns to natural resources, with a direct impact on average food consumption. b. increased urbanization and congestion. c. a higher labor force growth rate and higher unemployment. d. a working population that must support a larger number of dependents. Ans. A 36. Malthus's theory was that population a. increased proportionally to economic growth. b. increased geometrically, outstripping food supply, which grew arithmetically. c. increased stagnantly with food supply and economic development. d. increased disproportionately, surpassing agricultural production. Ans. B 37. The total fertility rate (TFR) is a. the total number of children born in a country in a given year divided by labor force. b. the number of children born to the average woman during her reproductive years. c. the number of births in a country divided by total population in a given year. d. the number of women age 15-45 in a country divided by total population. Ans. B 38. Organized family-planning programs and the demand for birth control resulting from urbanization, modernization, economic development, and increased education have contributed to a. a decline in fertility. b. the demographic transition from stage 3 to stage 2. c. increases in the ratio of labor to capital. d. an increase in the dependency ratio. Ans. A

39. If the birth rate is 6% and the death rate is 2%, the natural rate of population increase is a. 0 .3% b. 3.0% c. 4.0% d. 8.0% Ans. C 40. Historically, low rate of population growth were maintained because of a. low fertility rates. b. high mortality rates. c. migration out of developing countries. d. government restrictions on the number of children families can have. Ans. B Ch 7 41. Suppose migrants are risks averse, then in the Harris-Todaro model, in equilibrium, the expected urban wages will be _________ the rural wage rate a. Greater than, b. Equal to, c. Less than, d. None of the above Ans. A 42. If the rural wage is 4 and the formal urban wage rate is 10, there will be rural to urban migration if the formal urban unemployment rate is (a) 50%. (b) 60%. (c) 70%. (d) all of the above. Ans . A

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

43. According to Harris and Todaro, creating urban jobs by expanding industrial output a. is insufficient for solving the urban unemployment problem. b. will generate capital-intensive technologies. c. will generate more government revenue through urban wages. d. induces government to increase minimum wages. Ans. A 44. Which of the following is not TRUE about rural-urban migration? a. Migration to the cities is a larger contributor than natural population growth to urban labor growth in sub-Saharan Africa. b. In Latin America natural population increase is the major source of urban growth. c. From 1975 to 2000, the number of cities in developing countries with populations over 1 million increased from 20 to 50. d. The urban share of total developing countries population grew from 27 percent in 1975 and 35 percent in 1992 to 40 percent in 2003. Ans. C Ch 8 45. It is important to place particular stress on the role of primary education in the development strategy because of (a) LDC’s comparative advantage from basic skills education. (b) the law of diminishing returns. (c) development emphasis on poverty alleviation. (d) all of the above. Ans . D 46. The fact that developed countries have strong, widely attended university systems indicates that (a) university expansion should be a development priority. (b) universities teach skills used on the job. (c) developing countries place too much stress on agriculture. (d) none of the above. Ans . D

47. The supply of public-school places is determined by (a) individuals’ demand for education. (b) direct and indirect costs of schooling. (c) political processes, often unrelated to economic criteria. (d) all of the above. Ans . C 48. As the number of years of schooling completed increases, the expected private return and private cost of education (a) increase at roughly the same rate. (b) increase at different rates with expected private return increasing at a slower rate than private cost. (c) increase at different rates with expected private return increasing at a faster rate than private cost. (d) do not increase. Ans . C

Exam 2 MCQ_Class Review_wth answers_Econ362_SP23

Related Documents