Exam 3 Study Guide

which of the following statements is false?
A. comprehensive wealth includes produced, natural, and intangible capital
B. natural capital makes up the largest category of wealth at all income levels
C. turning natural capital into other forms of wealth of sustainable development
D. intergenerational well-being declines if population grows faster than wealth

(T or F) Nigeria’s use of oil revenue is a prime example of unsustainable development.

The rate of adjusted net saving (the change in comprehensive net wealth) is increasing
in
A. Latin America
B. Sub-Saharan Africa
C. East and South Asia
D. All of the above

What is a powerful and effective mechanism for promoting efficient
resource use, reducing environmental degradation, and generating sustainable economic
development?

What activities have been the two leading contributors to global climate change?

T or F) On average, carbon emissions per capita in developing countries have been
one-tenth the level produced in the developed countries.

Which country overtook the
United States as the leading source of carbon dioxide emissions?

Which socioeconomic group is the most vulnerable to global climate change?

What
continent is particularly at risk if global warming continues?

What is “the biggest market failure the world has ever seen,”
according to the economist Nicholas Stern?

What lies at the core of the country’s formal financial system? What are its two major responsibilities?

Who are the main net savers in most developing countries?

In what region was chronic inflation an enduring fact of economic life from the 1950s to the 1980s?

What inflation rate sets the threshold for hyperinflation?

During the hyperinflation in Peru, why did laborers rush to the market to buy food
each payday?

The basic idea for micro-credit was that the poor could be safe ___________
_________ if organized properly.

According to randomized control trials, what appears to
be the constraint on most poor households: a lack of profitable investment opportunities
or of cheaper credit?

What did Milton Friedman think foreign aid strengthens and enlarges?

Jeffrey Sachs, Joseph Stiglitz, and others have argued that foreign aid
A. has always worked well.
B. has been critical to poverty reduction in many countries.
C. has been largely given for political (rather than development) purposes.
D. both B and C.

(T or F) Private voluntary assistance to poor nations has grown in
recent decades.

T or F) Measured in total aid dollars given, the U.S. has consistently been the
world’s largest donor.

(T or F) Measured as a share of donor income, the U.S. is one of
the smallest donors (ODA).

Foreign aid makes up what percentage of the U.S. budget? (U.S. public opinion is
wildly wrong.)

In 2009, what country received the most aid (ODA)?

Which region received more
than $50 of aid per person in 2009: South Asia or sub-Saharan Africa?

In middle income countries, what began to replace aid flows in the 1990s?

What do some of the largest recipients of Chinese aid have that China
wants?

(T or F) There is a simple relationship between aid and growth.

T or F) Using the World Bank’s index for the ease of doing business, virtually all the
high-income countries rank in the top-30.

What country has frequently applied the death penalty for corruption,
yet has not seen it decline?

What entities undertake the majority of foreign direct investments?

Foreign direct investment in developing countries aims at
A. Natural resource-based activities (oil, minerals, agriculture)
B. Manufacturing and services for the domestic market of the host country
C. Labor-intensive manufacturing for export to world markets (e.g., electronics)
D. All of the above

(T or F) Foreign investment in developing countries is small compared to domestic investment, but its share is growing rapidly.