merged

___ 4. Which of the following countries would be classified as a less developed country?
a. Italy
b. Taiwan
c. Indonesia
d. South Korea
___ 5. Economic growth and economic freedom tend to be:
a. inversely related
b. unrelated
c. directly related
d. second cousins
___ 6. Among the obstacles to economic development faced by LDCs is:
a. high savings rate
b. overpopulation
c. counterproductive governmental policies
d. All of the above
___ 7. A rapid population growth rate is an obstacle to economic development for LDCs because
it means:
a. overpopulation
b. excessive population density
c. a high dependency ratio
d. All of the above
___ 8. An LDC may be trapped in a vicious circle of poverty because:
a. its standard of living is very low
b. increasing its standard of living requires saving and investment
c. its low standard of living makes saving and investment difficult
d. All of the above
___ 9. A cultural norm that may hinder economic development is:
a. fatalism
b. traditionalism
c. Both of the above
d. Neither of the above
___ 10. Weak private property rights:
a. discourage the development of resources by the domestic economy
b. encourage foreign investment in the domestic economy
c. Both of the above
d. Neither of the above
___ 11. Governments of LDCs may weaken private property rights by:
a. failing to enforce private contracts
b. imposing high tax rates
c. permitting excessive government corruption
d. All of the above
___ 12. Among the counterproductive policies often followed by governments in LDCs are:
a. poor provision of public services
b. a large government
c. excessive inflation
d. All of the above
FOR REVIEW ONLY - NOT FOR DISTRIBUTION
Less Developed Countries 15 - 14