The richest 20 percent of the world's population receivesmore than 75 percentof the world's income, while the poorest20 percent receives less than 2 percentof the world's income.
Learning Objective: 22-05 Describe how industrial nations attempt to aid low-income countries.
Test Bank: II Topic: The Role of Advanced Nations
The gap in the standardsof living betweenthe IACs (like the U.S., countries of Western Europe,and Japan) and the DVCs of Africa, Latin America,andAsia have been narrowing significantly over the decades.
Learning Objective: 22-02 List some of the obstaclesto economic development.
Test Bank: II Topic: Obstacles to Economic Development
Capital flight from DVCs (developing countries)tends to offset much of the foreignloans and aid that they receive from IACs (industrially advancedcountries).
Learning Objective: 22-02 List some of the obstaclesto economic development.
Test Bank: II Topic: Obstacles to Economic Development
When technological advances are of the capital-using kind, it is possible for an economy to increaseits productivity without any net investment in capital goods.
Learning Objective: 22-04 Discuss the role of government in promotingeconomic development within low-income nations.
Test Bank: II Topic: The Role of Government
The corruption and poor administration that arecommon to the public sectors of many DVCs suggest that government may not be veryeffective in promotingeconomic growth.
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
CountryPer Capital Income, 2014A$ 621B14,894C31,555D3,498E2,005
3.
Which of the given nations would be low-income developing countries (DVCs),according to theWorld Bank?
A. country A only
countries A, D, and E
countries A and E
countries A, B, D, and E
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
Type: Table
CountryPer Capital Income, 2014A$ 621B14,894C31,555D3,498E2,005
4.
Which of the given nations would be middle-income developing countries (DVCs),according to theWorld Bank?
country E only
countries A, D, and E
C. countries D and E
D. country D only
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
Type: Table
CountryPer Capital Income, 2014A$ 621B14,894C31,555D3,498E2,005
5.
Which of the given nations would be high-income countries (IACs), according to the World Bank?
country C only
countries B, C, and D
countries B, C, D, and E
D. countries B and C
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
Type: Table
CountryPer Capital Income, 2014A$ 621B14,894C31,555D3,498E2,005
6.
Refer to the table. If per capita income increasesby 10 percent over five years in each of the nations shown, the per capita incomegap between country C and country A
A. will remain the same.
B. will rise from $30,934 to $34,027.
may rise or fall depending on the rate of population growth.
will rise from $31,555 to$34,710.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
Type: Table
CountryPer Capital Income, 2014A$ 621B14,894C31,555D3,498E2,005
7.
Refer to the table. Which of the following might reduce the per capita incomegap between countries A and E?
faster population growth in country A than in countryE
greater investment relative to GDP in countryE than in countryA
C. morerapid improvement in literacy and education in country A than in country E
D. increased capital flight from country A relative tothat from country E
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
Type: Table
Which of the following is not inversely related to per capita income?
mortality rates for children under fiveyears of age
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
If two nations have differentper capita income levels andtheir rates of economic growth are identical, then the absolute per capita income differential
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after oneyearthe absolute real per capitaoutput gap will
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
If the real GDP of a DVC increases from $600billion to $630 billion and its population increases from 200 million to 216 million,its real per capita GDP will
Learning Objective: 22-01 Describe how the World Bank distinguishes between industrially advancedcountries and developing countries.
Test Bank: I Topic: The Rich and the Poor
If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 120 million, its real per capita output will have