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Multiple Choice


Virtually all LDCs spend a major part of their budgets on
A. medical care.
B. family planning programs.
C. implementing improved technology.
D. armaments. 

Question 2
Leaders in the lower level underdeveloped countries can enhance per capita income by
A. providing better health care
B. encouraging citizens to leave the cities and enter agricultural production
C. encouraging smaller families
D. implementing a social security program 

Question 3
In 2006, which one of these would have been considered the poorest country in the world?
A. Liberia
B. Ethiopia
C. Burundi
D. Nigeria 

Question 4
Which statement is true?
A. Because of their large populations, India and China have relatively high per capita GDPs
B. The only way to industrialize is to build up capital in the form of new plant and equipment.
C. The NICs have the highest per capita GDPs in the world.
D. We find GDP per capita by dividing GDP into population. 

Question 5
Which statement is true about the Malthusian theory?
A. It predicts that famine can easily be averted.
B. It is an application of the law of diminishing returns.
C. It is unduly optimistic.
D. It has proven true in most countries. 

Question 6
The age of mass consumption truly arrived in the
A. 1950s
B. 1920s
C. 1930s
D. 1960s 

Question 7
Each of the following would be an example of technological change, except
A. increases in output due to increases in capital.
B. improvements in the qualities of resources.
C. improved knowledge about how to combine resources.
D. the introduction of totally new production processes. 

Question 8
Through the 1970s and 1980s most of our productivity was in the _________ sector.
A. services
B. agriculture
C. manufacturing
D. technology 

Question 9
Which of the following would not be expected to increase labor productivity?
A. Technological advance
B. The acquisition of more education and training by the labor force
C. An increase in the size of the labor force
D. The realization of economies of scale 

Question 10
According to Thomas Robert Malthus, the wage rate would be depressed to the subsistence level because of
A. the power of monopolies.
B. the desire of capitalists to exploit the working class.
C. the natural tendency of population to grow more rapidly than the production of food.
D. the long-run downward trend in investment. 

Question 11
The lowest the poverty rate during the last 40 years was in
A. 1960.
B. 1988.
C. 1973.
D. 1979. 

Question 12
Charles Murray believed that the antipoverty programs of the 1960s and 1970s
A. drastically reduced the level of poverty.
B. slightly reduced the level of poverty.
C. had no impact on the level of poverty.
D. caused more poverty. 

Question 13
William Julius Wilson believes that the rise of black urban poverty was caused by each of the following except
A. the rise of welfare dependency.
B. racism.
C. the decline of smokestack industries.
D. the exodus from the ghettos of the black middle and working classes. 

Question 14
Between 1994 and 2005 our welfare rolls
A. rose sharply.
B. stayed about the same.
C. declined somewhat.
D. declined sharply. 

Question 15
A study by Kathryn Edin and Laura Lein found that
A. virtually all single mothers—whether working or receiving public assistance—had to supplement their income with money from relatives, boyfriends, or the absent father of their children.
B. most welfare families lived very comfortably on their public assistance checks, supplemented by Medicaid, public housing, and food stamps.
C. only half the number of Americans officially below the poverty line were actually poor.
D. government assistance hurt the poor much more than it helped the poor. 

Question 16
The conservative theory of poverty blames _____ for welfare dependency.
A. the poor
B. the government
C. both the poor and the government
D. neither the poor nor the government 

Question 17
Which group has the highest poverty rate from among these groups?
A. Children under 18
B. Persons over 65
C. White males
D. Members of working class families 

Question 18
_________________ breeds poverty.
A. joblessness
B. poverty
C. discrimination
D. welfare 

Question 19
The biggest anti-poverty program in the United States is
A. public assistance payments.
B. unemployment insurance benefits.
C. Social Security benefits.
D. the negative income tax. 

Question 20
Almost half of the world’s population lives on less then _______ dollar(s) per day.
A. one
B. five
C. two
D. three