1) 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.
2) 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.
3) 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.
4) 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.
5) 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.
6) Which development theory insists that political stability is crucial to development?
- areconciliation theory
- bdependency theory
- cconflict theory
- dmodernization theory
- eregime theory
7) 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.
8) 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.
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) 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.