1. By the World Bank's classification system, Malaysia, Mexico and Brazil are a. low-income countries b. upper-middle-income countries c. industrial economies d. underdeveloped countries
2. In 1997, the World Bank found that the fraction of the world's population living in low and lower-middle income countries-that is, countries with per capita incomes of $1230 or less-was approximately
a. 25% b. 40% c. 55% d. 75%
3. Overall, the growth rate of average incomes in less developed countries between 1960 and 1995
a. was approximately zero b. exceeded that of high income countries c. exceeded that of Britain during the industrial revolution d. was approximately 3.0% per year
4. Most Latin American countries achieved independence
a. shortly after World War II b. in the 1960s c. around the time of World War I d. in the early nineteenth century

5. Many countries that became independent after World War II found that the legacy of colonialism hindered their economic development. According to the textbook, the list of hindrances included
a. artificial political boundaries that covered diverse ethnic groups with little in common b. inadequate access to higher education and training for nationals under the colonial administration c. control of domestic commerce by foreign minority groups which had been brought in by the colonial power d. all of the above
6. At the time of independence, there were already hundreds of thousands of university graduates in ____, but hardly any at all in ____.
a. India, Congo b. India, South Korea c. Congo, South Korea d. South Korea, India
7. Which of the following is not viewed by the text as a major political obstacle to development?
a. growth oriented policies may damage the short-term interests of influential groups b. civil war c. corruption d. departing from strict laissez faire principles
8. In the Harrod-Domar equation g = s/v, v is defined as
a. the value of the country's capital stock b. the ratio of the country's capital stock to its output c. the change in the country's capital stock d. none of the above
9. A sources of growth equation derived from the neoclassical production function Y = f(K,L,R,A) is gY = a + wKgK + wLgL + wRgR. In this equation, gK refers to the growth rate of the capital stock and wK is
a. the average wage of capital owners b. a weight on capital typically set at the rate of interest c. a weight on capital typically set to 1/3 so that wK + wL + wR = 1. d. a weight on capital typically set equal to capital's share in national income

10. Suppose that in the equation above gY = .04, that gK, gL, and gR are all = .03, and wK + wL + wR = 1. What does this imply?
a. national income must be growing by 7% a year b. national income must be growing by 1% a year c. productivity must be growing by 1% a year d. productivity must be growing by 7% a year
11. In the three-part diagram of the labor-surplus model in Figure 3-5, the marginal product of labor in the agricultural sector can be measured in the lower panel (A) by
a. the height the solid curve at a given quantity of labor b. the angle of a ray from the zero point to the solid curve at a given quantity of labor c. the length on the (bottom) horizontal axis from the zero point to the quantity of labor in question d. the (negative of the) slope of the solid curve at a given quantity of labor
12. If the number of agricultural workers is i, a commercial (i.e., profit maximizing) farmer would find it profitable to hire a laborer
a. as long as the wage is less than the distance t'h (shown in the middle panel) b. as long as the wage is less than the distance t''k (shown in the top panel) c. only if the laborer will work for free d. only under a share-cropping arrangement
13. World Bank data show that in 1995, the poorest 20% of households accounted for 7.5% of household income in Niger, the next 20% of households accounted for 11.8% of income, the middle 20% accounted for 15.5% of income, the second richest 20% accounted for 21.1% of income, and the top 20% accounted for 44.1% of income. What was the cumulative income share of the bottom 60% of households in Niger?
a. 15.5% b. 34.8% c. 48.1% d. 65.2%