Week 1 Quiz

1. Which of the following is an intangible that has contributed to Chile’s prosperity?

• an increased money supply

• a boom in exports

• low unemployment numbers

• strong institutions

2. Which of the following statements about Chile’s economic progress is true?

• It has the highest poverty rate in Latin America.

• It has one of the world’s most closed economies.

• It has brought high wages to all sectors of the economy.

• It has gone from debtor to creditor nation.

3. Which of the following is a reason why it’s so difficult for Yonada (and poor people in the developing world in general) to get a loan from a bank? Choose the BEST answer.

• She has very little financial literacy.

• She works in an industry that doesn’t really need additional access to credit.

• She doesn’t have any assets to put up as collateral.

• She refuses to agree to the bank’s interest rates on loans.

4. Because of Malawi’s depleted soils, maize crops in the country produce:

• a less nutritious form of maize.

• rotten and bug-infested millet.

• about a third as much maize as they would in healthy soil.

• seeds that can only be harvested during the winter.

5. Which of the following is a reason why Malawians are not getting treatment for AIDS?

• In Malawi AIDS is not taken seriously.

• Patients given AIDS medication won’t take it as directed.

• Medicine is simply not available to treat AIDS.

• Citizens and government can’t afford medication, and the international community is not willing to pay for it.

6. Which of the following is a reason given by the author for the reduction in the number of children born to Bangladeshi women?

• New job opportunities in Dhaka have empowered women, giving them more control over how many children they will have and when they will have them.

• The Bangladeshi government has waged a successful public relations campaign against having too many children.

• Village elders have come to demand daughters in the village have fewer children.

• Working in garment factories leaves women with no time to have children.

7. Which of the following statements about India’s recent information technology (IT) boom is true?

• The IT boom has brought India to the very top of the development ladder.

• Few women have been benefiting from the IT boom.

• IT jobs are significantly better than low-skilled industrial labor jobs or farm jobs.

• The IT boom has occurred despite minimal connections with foreign countries.

8. Which of the following statements is supported by Sachs’s family portrait on this page?

• Making a few thousand dollars a year puts you among the 2.5 billion people in the global middle class.

• Reliance on cash crops is the best strategy for extremely poor countries trying to get out of poverty to take.

• The modern global economy has made life better for everyone in the world.

• Most people in the world are extremely poor, meaning they are barely subsisting.

9. According to Sachs, which of the following should be a responsibility of wealthy nations?

• abiding by commitments to provide adequate development assistance

• working against polluting corporations

• collaborating to help poor countries reach World Bank targets

• offering immigration visas to desperate citizens of poor countries

10. In addition to increasing Rwanda’s GDP and per capita income, Kagame seeks to do which of the following?

• increase the number of colleges in Rwanda

• decrease the number of foreign residents in Rwanda

• decrease the number of people farming in Rwanda

• increase Rwanda’s foreign debt

11. Which of the following BEST describes Rwanda’s postwar development program?

• expanded access to microloans

• an acceleration in foreign investment

• an increase in subsidies for staple crops such as coffee

• expanded state control of the economy

12. How has Kagame attempted to “bypass the traditional development model”?

• by courting UN support at its headquarters in Europe, not in Africa

• by developing direct networks with business leaders

• by rejecting all forms of aid

• by pushing for industrialization even though Rwanda is mostly an agrarian country

13. What problem with the scarf project is underscored in the text? Choose the BEST answer.

• Price shocks on wool have made profitability fluctuate wildly.

• Few Rwandans know how to knit.

• Its sustainability is questionable.

• There is no market for Rwandan-made scarves in the developed world.

14. Which of the following is an example of Kagame’s controversial but bold approach to improving Rwanda’s fortunes?

• investing more than ten million dollars from Rwanda’s social-security fund in a U.S. biotech startup

• auctioning off the rights to run the Rwandan state church

• investing more than one million Rwandan tax dollars in a public relations campaign to promote tourism

• selling seats on a presidential advisory board to well-connected Americans

15. According to Yunus, which of the following is “the basic source of poverty”?

• a lack of access to resources

• poor education

• predatory moneylenders

• financial illiteracy