Holt 7525-9 S15_IT

4. List four ways that governments in LDCs often weaken private property rights.
5. List four ways that countries can increase competition in product markets, according to “The
Power of Productivity”.
Answers for Chapter 15
Fill-in-the-blanks:
1. developed
2. less developed
Multiple Choice: 1. d. 9. c. 17. c.
2. d. 10. a. 18. b.
3. c. 11. d. 19. b.
4. c. 12. d. 20. d.
5. c. 13. c. 21. a.
6. c. 14. d. 22. d.
7. c. 15. b. 23. c.
8. d. 16. b.
Problems:
1. At a growth rate of 4%, per capita GDP will double in 17.5 years. Thus, by 2049, Country A’s
per capita GDP will have increased from $12,000 to $48,000.
2. LDCs often face one or more of the following obstacles to economic development:
(1) Rapid population growth
(2) Low savings rate
(3) Cultural norms that hinder economic development
(4) Counterproductive governmental policies
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3. A high population growth rate means a high dependency ratio. A high dependency ratio
means a high percentage of the population consists of children and the elderly. A high
dependency ratio makes it difficult for the working-age population to support themselves and
their dependents, and to make investments toward economic development.
15 - 17 Less Developed Countries