Question 1

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

Accepted Answer

A)   large
B)   moderate
C)   nonexistent
D)   small
E)   insubstantialF) A) and B)
G) All of the above

Question 2

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) D) and E)
G) B) and D)

Question 3

What is the basic problem of developing countries?

Accepted Answer

A)   corruption
B)   murder
C)   poverty
D)   stock market
E)   natural resourcesF) C) and D)
G) A) and B)

Question 4

Describe the Asian financial crisis as it unfolds beginning with the devaluation of the Thai currency in July 1997, followed by the Malaysian, Indonesian and South Korean crises. As part of your answer, elaborate on the Malaysian response to the crisis versus its troubled neighbors' responses.

Accepted Answer

Students should emphasize the relation t...

Question 5

Does it appear that currency boards make fixed exchange rates credible?

Accepted Answer

No, because is prohibited by law from ac...

Question 6

Evaluate the Argentinean Convertibility Law of April, 1991.

Accepted Answer

Good idea in the short run, ca...

Question 7

With which country did the Debt Crisis of the early 1980s begin?

Accepted Answer

A)   France
B)   Mexico
C)   Argentina
D)   Japan
E)   GermanyF) C) and E)
G) B) and E)

Question 8

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 9

Over the post-war era, the gaps between countries' living standards

Accepted Answer

A)   disappeared.
B)   stayed the same.
C)   increased.
D)   decreased.
E)   changed inconsistently.F) D) and E)
G) B) and C)

Question 10

Since foreign credit dries up in crises when it is most needed, developing countries can protect themselves from default by

Accepted Answer

A)   cutting off imports of goods.
B)   allowing the exchange rate to float.
C)   using equity finance only.
D)   accumulating high levels of international reserves.
E)   avoiding the international capital market.F) C) and D)
G) A) and D)

Question 11

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...

Question 12

Explain the theory behind convergence and why it is a "deceptively simple" theory.

Accepted Answer

Convergence is the tendency for gaps bet...

Question 13

Discuss the role of more "transparency" in reducing the risk of financial crisis.

Accepted Answer

Students should discuss the Asian crisis...

Question 14

Which of the following are characteristic of a developing country?

Accepted Answer

A)   extensive embrace of free trade policies
B)   low inflation
C)   high national savings
D)   a current account deficit and low national savings
E)   strong credit institutionsF) B) and D)
G) None of the above

Question 15

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) A) and C)
G) A) and D)

Question 16

Compare currency board to conventional fixed exchange rate.

Accepted Answer

Currency board may not acquire domestic ...

Question 17

What are the five major channels, which developing countries use to finance their external deficit?

Accepted Answer

The five major channels are bo...

Question 18

One should expect ________ relationship between annual per-capita GDP and an inverse index of corruption.

Accepted Answer

A)   a weak and negative
B)   a weak and positive
C)   a strong and negative
D)   a strong and positive
E)   an unpredictableF) B) and C)
G) A) and D)

Question 19

Since 1960, countries in Africa have grown at rates ________ those of the main industrial countries.

Accepted Answer

A)   far below
B)   far above
C)   about the same
D)   slightly below
E)   slightly aboveF) A) and B)
G) A) and C)

Question 20

Over the post-war era, the gaps between industrial countries' living standards

Accepted Answer

A)   disappeared.
B)   stayed the same.
C)   increased.
D)   decreased.
E)   fluctuated.F) B) and E)
G) C) and D)

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

Discuss the role of more "transparency" in reducing the risk of financial crisis.

Correct AnswerverifiedStudents should discuss the Asian crisis...View AnswerShow Answer

Over the post-war era, the gaps between countries' living standards

Correct AnswerverifiedShow Answer

With which country did the Debt Crisis of the early 1980s begin?

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

Explain the theory behind convergence and why it is a "deceptively simple" theory.

Correct AnswerverifiedConvergence is the tendency for gaps bet...View AnswerShow Answer

Over the post-war era, the gaps between industrial countries' living standards

Correct AnswerverifiedShow 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

Describe the Asian financial crisis as it unfolds beginning with the devaluation of the Thai currency in July 1997, followed by the Malaysian, Indonesian and South Korean crises. As part of your answer, elaborate on the Malaysian response to the crisis versus its troubled neighbors' responses.

Correct AnswerverifiedStudents should emphasize the relation t...View AnswerShow Answer

What are the five major channels, which developing countries use to finance their external deficit?

Correct AnswerverifiedThe five major channels are bo...View AnswerShow Answer

Which of the following are characteristic of a developing country?

Correct AnswerverifiedShow Answer

Since foreign credit dries up in crises when it is most needed, developing countries can protect themselves from default by

Correct AnswerverifiedShow Answer

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

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

Does it appear that currency boards make fixed exchange rates credible?

Correct AnswerverifiedNo, because is prohibited by law from ac...View AnswerShow Answer

Evaluate the Argentinean Convertibility Law of April, 1991.

Correct AnswerverifiedGood idea in the short run, ca...View AnswerShow Answer

What is the basic problem of developing countries?

Correct AnswerverifiedShow Answer

One should expect ________ relationship between annual per-capita GDP and an inverse index of corruption.

Correct AnswerverifiedShow Answer

Since 1960, countries in Africa have grown at rates ________ those of the main industrial countries.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Compare currency board to conventional fixed exchange rate.

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

Correct Answer
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Students should discuss the Asian crisis...
View Answer

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
verified
Convergence is the tendency for gaps bet...
View Answer

Correct Answer
verified

Correct Answer
verified
Students should refer to the d...
View Answer

Correct Answer
verified
Students should emphasize the relation t...
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Correct Answer
verified
The five major channels are bo...
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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No, because is prohibited by law from ac...
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Correct Answer
verified
Good idea in the short run, ca...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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