1) Modernization theory asserts that most underdeveloped nations should
- arely on trading natural resources for finished goods from First World nations.
- bincrease GDP through investment in state-controlled industries.
- cview development as an unstoppable force that happens naturally.
- dadopt the same economic and political systems as neighboring nations.
- efollow political and economic paths similar to those of Western countries.
2) Which development theory insists that political stability is crucial to development?
- areconciliation theory
- bdependency theory
- cconflict theory
- dmodernization theory
- eregime theory
3) Some stable democracies and relatively wealthy nations are still considered to be part of the Third World because
- atheir economic and political systems are largely shaped by the developed world.
- bthey lack military power.
- ctheir demographics closely match those of neighboring developing countries.
- dthey have an unstable national currency.
- ethey engage in excessive redistribution of income through government programs.
4) Dependency theorists and advocates of modernization theory differ on their views of improvements in Third World nations. Which of the following statements is true?
- aModernization theorists do not view an increase in urban areas as a positive measure.
- bDependency theorists view increased exports as a positive measure.
- cModernization theorists considered transformation of traditional culture an important step to modernize.
- dModernization theorists can explain the economic boom in all developing countries.
- eModernization theorists are unconcerned with politics.
5) Countries that rely on exports of agricultural products, minerals, and oil
- ahave equitable distributions of income.
- btend to fare poorly on measures of economic and social development.
- care likely to become democracies over time.
- dare lacking in technological innovations.
- eall have similar political systems.
6) Defining underdevelopment in strictly economic terms can be difficult because
- atribal cultures place little importance on personal wealth.
- bsome developing nations have per capita incomes equal to those of developed nations.
- cthe gap between rich and poor is always greater in developing nations.
- dnations that do not engage in trade can be self-sufficient.
- eall Asian nations are experiencing economic growth, though not all are considered developed.
7) According to the World Bank, by 2015 the number of people living in extreme poverty fell by
- amore than three quarters.
- bmore than a half.
- cmore than a tenth.
- dmore than a fifth.
8) Increasing life expectancy and literacy rates are valuable indicators of development because they are
- anot always correlated with average income of nations.
- bdirectly correlated with democratic governments.
- cfound only in developing nations.
- dindicative of higher rates of employment.
- edirectly correlated with population growth.
9) Since 1990, many developing nations
- ahave had falling per capita incomes.
- bhave all experienced recessions.
- chave seen similar levels of growth across regions.
- dhave seen considerable social and economic development.
- ehave grown at a rate similar to their populations.
10) Developing countries with a better chance of becoming democratic and maintaining democracy have
- areached a minimal threshold of socioeconomic development.
- bestablished trade agreements with Western nations.
- cgone through an initial stage of failed democracy.
- dfully exploited their natural resources.
- eestablished natural trade partners along shared borders.