Docx (44) - intermediate accounting volume 3 valix 2020 answer key pdf PDF

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CH1 absolute poverty line (a) decreases as real income grows. (b) shows the average income of the lowest income group. (c) can be measured with the Lorenz curve. (d) none of the above. Answer: D 2. The Gini coefficient provides a measure of (a) the level of poverty. (b) the level of relative inequal...

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CH5 1.The absolute poverty line (a) decreases as real income grows. (b) shows the average income of the lowest income group. (c) can be measured with the Lorenz curve. (d) none of the above. Answer: D 2. The Gini coefficient provides a measure of (a) the level of poverty. (b) the level of relative inequality. (c) disguised unemployment. (d) the rate of growth. Answer: B 3. Kuznets’ inverted-U hypothesis (a) implies that things must get worse before they get better. (b) suggests that inequality will worsen and then improve as a country grows. (c) suggests that inequality will improve and then worsen as a country grows. (d) points out six characteristics of modern economic growth. Answer: B 4. According to Kuznets, in the process of development inequality in an economy will normally

(a) first rise and then fall. (b) first fall and then rise. (c) remain about the same. (d) show no definite pattern. Answer: A 5. Poverty is better studied with size distribution measures than those based on factor distribution because (a) labor income may be highly concentrated in well-paid modern sector workers. (b) some poor farmers may receive a sizable share of income in rent. (c) income from nonmarket activities such as foraging may be important. (d) all of the above. Answer: D 6. The number of people in the world who are absolutely poor is closest to (a) a quarter-billion. (b) a half-billion. (c) one and a half billion. (d) two billion. (e) four billion. Answer: C 7. With modern sector enrichment growth, inequality will (a) first rise and then fall. (b) first fall and then rise.

(c) remain about the same. (d) none of the above. Answer: D 8. With modern sector enlargement growth, inequality will (a) first rise and then fall. (b) first fall and then rise. (c) remain about the same. (d) all of the above. Answer: A 9. Higher income countries tend to have lower levels of absolute poverty because (a) more employment opportunities (b) more public assistance (c) greater entrepreneurship opportunities. (d) all of the above. Answer: D 10. One of the characteristics of the poor is that they are (a) more likely to be employed in the modern industrial sector. (b) more likely to come from small families. (c) more likely to be well educated. (d) more likely to live in a rural area. Answer: D

11.Which of the following policies might increase labor intensity in industry? (a) a decline in the cost of credit (b) a decline in the minimum wage rate (c) a decline in the elasticity of substitution (d) all of the above. Answer: B 12. Which of the following policies may decrease the level of capital intensity in industry? (a) an increase in the cost of capital (b) a decrease in the minimum wage (c) an increase in the elasticity of substitution (d) all of the above. Answer: D 13. The Ahluwalia-Chenery welfare index (a) is a method used to measure changes in absolute poverty. (b) shows the value judgment implications of using the change in income per capita as a measure of the change in development. (c) is a method used to measure changes in inequality. (d) is a method used to measure the growth rate of GDP. Answer: B 14. About what percent of the world’s poorest people are female? (a) 30 (b) 50

(c) 70 (d) 90 Answer: C 15. About how many girls and women are said to be “missing” in LDCs? (a) 2 million (b) 20 million (c) 100 million (d) 2 billion Answer: C 16. Which of the following groups is(are) more likely to be poor? (a) minorities (b) indigenous people (c) women (d) all of the above. Answer: D 17. Distribution of income according to percentiles, such as the highest 40% or lowest 20% is known as the _______________ distribution of income. (a) size (b) functional (c) GNP-weighted (d) equal-weighted Answer: A 18. What conclusion can be reached from the following data on income shares?

Bangladesh Indonesia

Percentage of Income Received by Lowest 40% Highest 20% 17.3 45.3 14.4 49.4

(a) (b) (c) (d)

absolute poverty is more widespread in Bangladesh the size distribution of income is more unequal in Indonesia Bangladesh had adopted a strategy of redistribution with growth growth in Bangladesh is calculated using poverty weights rather than income weights Answer: B 19. Developing countries who have adopted capital-intensive technologies tend to have (a) relatively higher Gini coefficients. (b) relatively lower Gini coefficients. (c) Gini coefficients equal to one. (d) Gini coefficients equal to zero. Answer: A 20. Assuming that the Gini coefficient for Egypt is 0.403 and the Gini coefficient for Australia is 0.404, it is possible to conclude that both Egypt and Australia have (a) virtually the same number of households in absolute poverty. (b) virtually the same percentage of households in absolute poverty. (c) virtually the same level of the Human Development Index. (d) none of the above.

Answer: D 21. Brazil’s growth rate during the 1960’s was 6.0% when poverty weights were used to evaluate growth, compared with 8.2% when GNP weights were used to evaluate growth. One can conclude from these numbers that (a) average income growth was greater for poor households than for rich households. (b) average income growth was greater for rich households than for poor households. (c) more and more households were falling below the poverty line. (d) the size distribution of income was getting worse. Answer: B 22. The poverty gap is the (a) absolute number of people below the international poverty line. (b) percentage of the population below the international poverty line. (c) consumption (measured in dollars) necessary to bring everyone below the poverty line up to the line. (d) percentage of a country’s total consumption necessary to bring everyone in the country below the poverty line up to the line. Answer: D 23. The functional distribution of income refers to the distribution of income between (a) individuals or households. (b) rural individuals or households. (c) urban individuals or households. (d) the factors of production (land, labor and capital). Answer: D

CH6 1. Projections place world population by 2050 at

(a) between 4 and 6 billion. (b) between 6 and 8 billion. (c) between 8 and 10 billion. (d) between 10 and 12 billion. Answer: C 2. Children under the age of 15 represent about __________ percent of the population of developing countries. (a) 25 (b) 29 (c) 30 (d) 61 (e) 75 Answer: C 3. Evidence presented in the text suggests that birthrates among developing countries are lower with (a) higher growth. (b) higher inequality. (c) higher GNP per capita. (d) all of the above. Answer: A 4. The hidden momentum of population growth is caused by (a) the demographic transition. (b) population age structure.

(c) the opportunity cost of a woman’s time. (d) children’s contribution to income. Answer: B 5.The world rate of population growth is closest to (a) 1%. (b) 2%. (c) 3%. (d) 4%. Answer: A 6. In stage III of the demographic transition, (a) the birth rate and the death rate are relatively low. (b) the birth rate and the death rate are relatively high. (c) the birth rate is relatively high and the death rate is relatively low. (d) the birth rate is relatively low and the death rate is relatively high. Answer: A 7. The Malthusian population trap assumes that (a) contraception is unavailable. (b) technological progress may be rapid. (c) fertility increases with per capita income. (d) all of the above.

Answer: C 8. Which of the following would most likely reduce the birthrate? (a) public health improvements (b) an increase in child mortality (c) a decline in the availability of secondary education (d) a reduction in the opportunity cost of a woman’s time (e) all of the above. Answer: A 9. The number of live births per 1000 people in the population per year is the (a) hidden momentum of population growth. (b) population growth rate. (c) demographic transition. (d) crude birth rate. Answer: D 10. Which of the following will cause the largest reduction in the birthrate? (a) the population becomes less religious (b) public healthcare improves (c) education becomes more available (d) an increase in the opportunity cost of a woman’s time Answer: D 11.In recent years, the fertility rate in developing countries has been

(a) declining. (b) holding steady. (c) increasing. (d) showing no particular pattern. Answer: A 12. Evidence suggests that population growth has negative effects on (a) economic growth. (b) poverty reduction. (c) environment. (d) education. (e) all of the above. Answer: E 13. The proportion of the total population aged 0–15 and over 65, is known as the (a) dependency burden. (b) unproductive population. (c) surplus labor. (d) population momentum. Answer: A 14. The rate of natural increase in the population of developing countries is most correlated with (a) advances in developed country technology

(b) increases in developing country income (c) an increase in the fertility rate (d) all of the above. Answer: A 15. Which of the following is a direct implication of the view that childbearing is an economic decision? (a) People will not have additional children unless they can earn a profit from doing so. (b) Social factors have no effect on childbearing decisions. (c) Compulsory education will increase fertility because educated children have the potential to earn higher salaries. (d) Fertility should fall with improved opportunities for women to work in jobs outside the home. Answer: D 16. Which of the following geographic regions is expected to experience the largest percentage increase in its population between 2003 and 2050? (a) Asia and Oceania. (b) Latin America. (c) North America. (d) Africa. Answer: D 17. At present, approximately how many years would it take for the world’s population to double? (a) 35. (b) 58. (c) 96. (d) 211.

Answer: B 18. The Malthusian population trap model has been criticized on the grounds that it (a) ignores the role of technological progress. (b) assumes that population growth is primarily determined by individual choice over the number of children to have. (c) both (a) and (b) are correct. (d) neither (a) nor (b) is correct. Answer: A 19. Approximately how many women were estimated to be “missing” in China? (a) 20-30 million (b) 35-48 million (c) 44-50 million (d) 52-58 million Answer: C

CH8 1. Developing countries have not benefited as much as expected from their higher education programs because of (a) lack of program focus on the needs of the country. (b) increasing returns to scale in each individual’s education. (c) graduates get jobs in the private sector. (d) all of the above. Answer: A

2. Education of girls is a crucial development investment because (a) it leads to improved child health. (b) it leads to reduced fertility. (c) women do most of the work in agriculture. (d) all of the above. Answer: D 3. It is important to place particular stress on the role of primary education in the development strategy because of (a) LDC’s comparative advantage from basic skills education. (b) the law of diminishing returns. (c) development emphasis on poverty alleviation. (d) all of the above. Answer: D 4. Credential inflation results from (a) a combination of cost-push inflation and demand-pull inflation. (b) rigidities in the industrial sector. (c) the need to select from among qualified applicants in the modern sector. (d) all of the above. Answer: C 5. The fact that developed countries have strong, widely attended university systems indicates that (a) university expansion should be a development priority. (b) universities teach skills used on the job.

(c) developing countries place too much stress on agriculture. (d) none of the above. Answer: D 6. An individual’s demand for education is most affected by (a) direct and indirect costs of schooling. (b) development priorities of the country. (c) the desire to escape agricultural work. (d) all of the above. Answer: A 7. Concentration of resources on higher rather than basic education in developing countries tends to lead to (a) greater inequality. (b) lower fertility. (c) less international migration. (d) more job creation. Answer: A 8. The supply of public school places is determined by (a) individuals’ demand for education. (b) direct and indirect costs of schooling. (c) political processes, often unrelated to economic criteria. (d) all of the above. Answer: C

9.Studies show that improved education of women in developing countries leads to (a) lower infant mortality. (b) better designed, market based development policies. (c) lower international dependence. (d) all of the above. Answer: A 10. Human capital is best defined as (a) the amount of wealth people have. (b) the amount of money people have to spend on schooling. (c) human capacities that raise productivity. (d) the average education level of the population. Answer: C 11.Child labor is a widespread problem that applies primarily to children (a) between the ages of 5 and 14. (b) between the ages of 10 and 14. (c) between the ages of 12 and 14. (d) between the ages of 12 and 16. Answer: A 12. The World Bank approach to combating child labor stresses (a) making child labor legal under certain conditions. (b) tackling the sources of poverty.

(c) encouraging families to migrate to richer countries. (d) providing each child with a computer so that children have an alternative to working. Answer: B 13. The ILO approach to combating child labor stresses (a) encouraging parents to migrate to the cities in search of work. (b) banning child labor. (c) tackling the sources of poverty. (d) all of the above. Answer: B 14. As the number of years of schooling completed increases, the expected private return and private cost of education (a) increase at roughly the same rate. (b) increase at different rates with expected private return increasing at a slower rate than private cost. (c) increase at different rates with expected private return increasing at a faster rate than private cost. (d) do not increase. Answer: C 15. According to the 2005 UNDP Human Development Report child mortality (under age 5) has declined in all regions of the world except: (a) South Asia (b) Sub-Saharan Africa (c) Middle East and North Africa (d) None of the above Answer: B

16. According to the Regional HIV and AIDS Statistics data from WHO, which region of the world has the largest number of adults and children living with HIV? (a) South and South-East Asia (b) Sub-Saharan Africa (c) Latin America (d) North America Answer: B

CH12 1. The ratio of a country’s average export price to its average import price is (a) its absolute advantage. (b) its comparative advantage. (c) its terms of trade. (d) its exchange rate. Answer: C 2. According to the Prebisch-Singer thesis (a) demand for primary products has steadily fallen. (b) profits of primary producers have steadily fallen. (c) primary producers’ terms of trade have steadily fallen. (d) prices of primary products have risen over time. Answer: C 3. The purpose of commodity buffer stocks is

(a) to moderate price fluctuations. (b) to raise commodity prices. (c) to encourage commodity substitution. (d) to guarantee national security. Answer: A 4. Developing countries might be unable to respond smoothly to changing international price signals because of (a) a lack of government regulation. (b) an abundance of skilled labor. (c) inelastic supply curves. (d) limited foreign exchange. Answer: C 5. Autarchy as used in the text refers to (a) an economy that does not trade. (b) an economy that trades primary products in exchange for manufactures. (c) developing country dictatorships. (d) the caste system and related social structures. Answer: A 6. Which of the following is an argument in favor of the liberalization? (a) Increased technical efficiency. (b) Accelerated technical progress. (c) Decreased shortages of foreign exchange.

(d) All of the above. (e) both (a) and (b) are correct. Answer: D 7. Which of the following is an argument in favor of trade liberalization? (a) Increased investment. (b) Infant industry. (c) Fluctuating export earnings. (d) Increased government revenue. Answer: A 8. Which of the following is an argument in favor of interventionist trade policies? (a) Cheaper capital goods. (b) Declining terms of trade. (c) Decreased losses from rent-seeking activities. (d) All of the above. (e) None of the above. Answer: B 9. Guiding the market through strategic coordination of business investments to increase export market shares is known as (a) development planning. (b) industrial policy. (c) shifting terms of trade.

(d) all of the above. (e) none of the above. Answer: B 10. The opening of export markets for primary products can provide employment for previously underutilized land and labor. The term for this is (a) vent for surplus. (b) comparative advantage. (c) Prebisch-Singer thesis. (d) barter trade. Answer: A 11.Which of the following statements is true? (a) larger countries (in terms of size) tend to be more open (in terms of larger share of exports in GDP) than smaller countries and developing countries tend to be less open than developed economies. (b) larger countries (in terms of size) tend to be less open (in terms of lower share of exports in GDP) than smaller countries and developing countries tend to be less open than developed economies. (c) larger countries (in terms of size) tend to be more open (in terms of larger share of exports in GDP) than smaller countries and developing countries tend to be more open than developed economies. (d) larger countries (in terms of size) tend to be less open (in terms of lower share of exports in GDP) than smaller countries and developing countries tend to be more open than developed economies. Answer: D 12. The dependence on the export of one or two primary products for a majority of the revenue from exports is most severe in countries in (a) South Asia. (b) East Asia. (c) Sub Saharan Africa. (d) Latin America. Answer: C

13. The real price trendline for non fuel primary commodities from 1960-2005 has been a

Unchanged

b c

Steadily increasing Steadily decreasing

d First decreased and then increased. Answer: C 14. The nominal rate of protection shows the extent to which the domestic price of imported goods exceeds (a) what the price would be without tariffs. (b) the cost of intermediate inputs. (c) the social opportunity costs of the good. (d) the no-trade equilibrium price. Answer: A 15. The effective rate of protection is (a) value added with protection divided by value added without protection. (b) value added with protection. (c) value added without protection. (d) (value added with protection minus value added without protection) divided by value added without protection. Answer: D 16. The average level of effective protection has exceeded 300% for which of the following countries? a b

Pakistan and Uruguay. Argentina and Brazil.

c

Philippines and Mexico.

d India and China. Answer: A 17. An economic community (a) attempts to raise prices by restricting quantity. (b) seeks to stabilize commodity prices. (c) seeks concessional loans. (d) imposes a common external tariff. (e) none of the above. Answer: D 18. The long-run social benefits of infant industry protection are more likely to be realized if (a) investors believe that tariff barriers are permanent. (b) investors believe that tariff barriers are transitory. (c) tariff barriers increase over time. (d) tariff barriers are replaced with quotas over time. Answer: B 19. Which of the following factors makes the success of economic integration more likely? (a) Nationalism. (b) Desire for prestige projects. (c) Diverse economic systems.

(d) All of the above. (e) None of the above. Answer: E 20. Why is it impossible that all industries in a developing country qualify as infant industries? (a) You cannot have a comparative advantage in everything. (b) You cannot have an absolute advantage in everything. (c) This would violate international law. (d) This would reduce the terms of trade. Answer: A 21. Which of the...