Question 1

What do you think about dollarization?

Accepted Answer

This is an open question. The answer is ...

Question 2

The per-capita GNP of the industrial group is about ________ times that of the upper middle-income countries.

Accepted Answer

A)   6
B)   10
C)   15
D)   19
E)   2F) None of the above
G) A) and D)

Question 3

Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997?

Accepted Answer

By introducing a new currency and initia...

Question 4

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

Accepted Answer

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.F) B) and C)
G) A) and E)

Question 5

Write an essay on the importance of a sound banking system in developing countries.

Accepted Answer

See for example the vivid exam...

Question 6

Which Latin American country defaulted on loans in 2005 and paid off their creditors at only 1/3 value?

Accepted Answer

A)   Argentina
B)   Brazil
C)   Chile
D)   Colombia
E)   MexicoF) B) and E)
G) A) and B)

Question 7

Most developing countries have tried to

Accepted Answer

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.F) A) and E)
G) B) and E)

Question 8

Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry. These factors are

Accepted Answer

A)   capital and skilled labor.
B)   capital and unskilled labor.
C)   fertile land and unskilled labor.
D)   fertile land and skilled labor.
E)   water and capital.F) A) and D)
G) B) and D)

Question 9

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

Accepted Answer

A)   hinders
B)   has no effect
C)   aides
D)   hard to tell, sometime hinders, sometimes aides
E)   spikesF) A) and D)
G) C) and D)

Question 10

The real resource a government earns when it prints money and spends it on goods and services is called

Accepted Answer

A)   seigniorage.
B)   control of capital movements by limiting foreign exchange transactions.
C)   pure profits.
D)   inflation profits.
E)   greenback.F) A) and C)
G) A) and E)

Question 11

The problem of moral hazard has led

Accepted Answer

A)   the governments of many developing countries to guarantee repayment of all loans.
B)   to higher growth rates in Latin America.
C)   to excessively speculative investment.
D)   to both privilege and responsibility of creditors.
E)   to stable investments with small and steady expected gains.F) C) and E)
G) A) and E)

Question 12

Some economists claim that the Chilean experience during the 1990s was much more successful than its Latin American neighbors. Evaluate the Chilean policies during that decade.

Accepted Answer

Students should refer to the d...

Question 13

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

Accepted Answer

A)   close to no
B)   an unimportant
C)   an important
D)   close a to 5 percent
E)   close to a 10 percentF) A) and E)
G) A) and B)

Question 14

What explains the sharply divergent long-run growth patterns?

Accepted Answer

The answer lies in the economi...

Question 15

Between 1960 and 2010, the annual growth rate in percent per year was the highest in

Accepted Answer

A)   China.
B)   United States.
C)   Brazil.
D)   Singapore.
E)   South Korea.F) B) and D)
G) A) and C)

Question 16

Why is China's currency undervalued?

Accepted Answer

A)   The Asian miracle is over.
B)   They do not trade with the U.S.
C)   They do not allow their currency to appreciate despite large external surpluses.
D)   They are stockpiling international reserves to protect against the next East Asian crisis.
E)   They are not aware of the real value of their currency.F) C) and D)
G) A) and D)

Question 17

In developing economies, national saving is often ________ relative to developed economies.

Accepted Answer

A)   high
B)   the same
C)   hard to tell
D)   low
E)   low for the very poor countries and high for the more developedF) B) and C)
G) A) and B)

Question 18

Compare currency board to conventional fixed exchange rate.

Accepted Answer

Currency board may not acquire domestic ...

Question 19

The $50 billion emergency loan orchestrated by the U.S. Treasury and the IMF to Mexico in 1994

Accepted Answer

A)   was a disastrous policy for Mexico.
B)   avoided a disaster to the Mexican economy.
C)   did not affect Mexico in the short run.
D)   did not affect Mexico in the long run.
E)   was ineffective both in the short and long runs.F) B) and C)
G) B) and D)

Question 20

How was South Korea able to become one of the East Asian Economic Miracles?

Accepted Answer

South Korea was able to become one of th...

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

The per-capita GNP of the industrial group is about ________ times that of the upper middle-income countries.

Correct AnswerverifiedShow Answer

The problem of moral hazard has led

Correct AnswerverifiedShow Answer

What explains the sharply divergent long-run growth patterns?

Correct AnswerverifiedThe answer lies in the economi...View AnswerShow Answer

In developing economies, national saving is often ________ relative to developed economies.

Correct AnswerverifiedShow Answer

Which Latin American country defaulted on loans in 2005 and paid off their creditors at only 1/3 value?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry. These factors are

Correct AnswerverifiedShow Answer

How was South Korea able to become one of the East Asian Economic Miracles?

Correct AnswerverifiedSouth Korea was able to become one of th...View AnswerShow Answer

Why is China's currency undervalued?

Correct AnswerverifiedShow Answer

Write an essay on the importance of a sound banking system in developing countries.

Correct AnswerverifiedSee for example the vivid exam...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

What do you think about dollarization?

Correct AnswerverifiedThis is an open question. The answer is ...View AnswerShow Answer

Most developing countries have tried to

Correct AnswerverifiedShow Answer

Between 1960 and 2010, the annual growth rate in percent per year was the highest in

Correct AnswerverifiedShow Answer

Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997?

Correct AnswerverifiedBy introducing a new currency and initia...View AnswerShow Answer

Some economists claim that the Chilean experience during the 1990s was much more successful than its Latin American neighbors. Evaluate the Chilean policies during that decade.

Correct AnswerverifiedStudents should refer to the d...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Compare currency board to conventional fixed exchange rate.

Correct AnswerverifiedCurrency board may not acquire domestic ...View AnswerShow Answer

The $50 billion emergency loan orchestrated by the U.S. Treasury and the IMF to Mexico in 1994

Correct AnswerverifiedShow Answer

The real resource a government earns when it prints money and spends it on goods and services is called

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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The answer lies in the economi...
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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South Korea was able to become one of th...
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Correct Answer
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Correct Answer
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See for example the vivid exam...
View Answer

Correct Answer
verified

Correct Answer
verified
This is an open question. The answer is ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
By introducing a new currency and initia...
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Correct Answer
verified
Students should refer to the d...
View Answer

Correct Answer
verified

Correct Answer
verified
Currency board may not acquire domestic ...
View Answer

Correct Answer
verified

Correct Answer
verified