Chapter 10

5) Which statement is TRUE about the nine development regions?

A) Most of the world's countries cluster in the lowest development category.

B) The highest levels of development are found in Europe.

C) The classification of Russia is consistent from year to year.

D) Japan and Korea are included in calculated HDI for the East Asia region.

E) The world is divided into two developed and seven developing regions.

E

6) The Human Development Index (HDI) is based on indicators of

A) standard of living, education, and health.

B) standard of living, environmental health, and democracy.

C) education, health, and democracy.

D) fair trade, sustainability, and education.

E) low debt, education, and health.

A

7) Gross domestic product (GDP) is the total value of

A) the outputs minus inputs of goods and services produced in a country during a year.

B) exports of goods and services produced in a country during a year.

C) outputs of goods and services produced in a country during a year.

D) human capital development in a country during a year.

E) investments made in domestic and foreign sources of revenue during a year.

C

9) Processing of computer information is an example of which part of the economy?

A) manufacturing

B) primary and secondary

C) primary

D) tertiary

E) resource extraction

D

10) Which is a secondary sector economic activity?

A) data processing

B) mining

C) government

D) construction

E) banking

D

11) The primary sector of the economy includes which of the following?

A) data processing

B) beverage bottling

C) government

D) sheep herding

E) banking

D

12) Which of the following is an example of a secondary sector activity?

A) banking

B) farming

C) manufacturing

D) secondary education

E) professional football

C

13) An adjustment made to the GNI to account for differences among countries in the cost of

goods is

A) a tax exemption.

B) a subsidy.

C) purchasing power parity.

D) a per capita index.

E) a global pricing indicator.

C

14) Compared to less developed countries, more developed countries have higher rates of

A) literacy.

B) childhood mortality.

C) infectious disease.

D) illiteracy.

E) environmental pollution.

A

15) In which regions are literacy rates the lowest?

A) Sub-Saharan Africa and Eastern Europe

B) Sub-Saharan Africa and Southeast Asia

C) South Asia and Sub-Saharan Africa

D) Eastern Europe and Latin America

E) Central Asia and South Asia

C

19) Since 1990, most developed and developing countries have seen a decline in previous

patterns of

A) gender inequality.

B) gender equality.

C) economic inequality.

D) gender dynamics.

E) income inequality.

A

22) The principal benefit of the self-sufficiency approach is the promotion of

A) balanced growth of all economic sectors.

B) global competitiveness for local industries.

C) the maintenance of a large bureaucracy.

D) unequal distribution of resources.

E) international trade.

A

23) Traditional barriers to international trade have included

A) low taxes on imports.

B) making domestic goods more expensive.

C) eliminating quotas on imports.

D) requiring licenses for importers.

E) strong domestic and international demand.

D

24) Which factors have contributed to the success of the "four dragons?"

A) colonialism, location, and investment

B) natural resources, access to markets, and subsidies

C) abundant farmland, developed ports, and low tariffs

D) manufacturing, abundant labor, low export prices

E) mechanized farming, self-sufficiency, large cities

D

27) Major sources of foreign direct investment in terms of frequency and dollar amount are

A) startup organizations.

B) venture capitalists.

C) transnational corporations.

D) microfinance.

E) fair trade programs.

C

28) When were the World Bank and the IMF established?

A) at the same time as the League of Nations

B) after the Vietnam War

C) at the same time as NATO

D) just before the end of WWI

E) just before the end of WWII

E

29) Which financial institution has been a leader in microfinance?

A) the World Bank

B) the International Monetary Fund

C) Bank of America

D) Grameen Bank

E) the Central Bank of the EU

D

31) A stimulus strategy is introduced by governments to

A) counter negative conditions of economic downturns.

B) ensure stock prices do not collapse.

C) provide education funds in developed countries.

D) provide health benefits to all citizens.

E) promote research and development.

A

32) For which indicator has the gap between developed and developing widened since 1980?

A) human development index (HDI)

B) life expectancy

C) mean years of education

D) per capita gross national income (GNI)

E) food security

D

35) Which is NOT a characteristic of the fair trade movement?

A) Developing countries institute standards to protect workers.

B) Fair Trade business practices increase entrepreneurial and managerial skills of producers.

C) Cooperatives benefit local farmers and artisans, rather than absentee corporate owners.

D) Employers must pay fair wages and comply with environmental and safety standards.

E) Protection of workers' rights by multinational corporations.

E