Economics Chapter 17 & 18

What happens if a nation's population grows more quickly than gross domestic product?

• Population growth will not continue

• There will be economic decline

• The nation's resources will increase

• There is no relationship between the two

What is "brain drain"?

• The well educated leave a less developed country to work in a developed nation

• The citizens of a developed country leave to try to improve a less developed one

• The less educated leave a developed country to work in a less developed nation

• The well educated are in a minority in a less developed country

How does the literacy of men and women nearly equal in developed countries, differ in less developed countries?

• Women have a much higher rate

• Women have a slightly higher rate

• Men have a higher rate

• It does not differ

How does human capital contribute to development?

• Financiers lend money to developing countries

• Foreigners make investments in another country

• A skilled workforce encourages foreign investment

• People invest their money in local resources for growth

How do factors such as climate, mineral resources, and rainfall have an impact on development?

• Technology can be used to allocate resources differently

• Good climate and resources always result in full development

• These things seldom have any positive or negative effect on development

• Poor climate and rainfall and lack of mineral resources complicate development

How did their status as colonies of European powers have an effect on the development of many less developed countries?

• European use of these countries as agricultural centers, continues today

• The use of European oil keeps many former colonies in debt

• When they became independent, they made their political systems too similar to those of European colonial powers

• When they became independent, they relied on central planning rather than free enterprise to modernize their economies quickly

Which of the following are considered less developed countries?

• Canada and New Zealand

• Saudi Arabia and Poland

• Japan and Norway

• Spain and Portugal

How is per capita gross domestic product calculated?

• Total market value of goods and services produced within a year divided by total population

• Population multiplied by the value of goods but not services

• Total market value of goods produced within a year divided by adult population

• Literate population multiplied by the value of goods and services

Which of the following is generally a mark that a country is developed?

• Low numbers of people living in cities or suburbs

• Low literacy rate

• High per capita energy use

• High levels of people farming to feed themselves

Why does the infant mortality rate relate to a country's level of development?

• The rate is a predictor of the adult literacy rate

• The rate is low in a few non-industrialized areas

• The rate is high in some very industrialized countries

• The rate is an indicator of nutrition and health care