Developing countries
a. do not benefit from foreign aid
b. do not benefit from private investment
c. generate less than half of their annual flow of foreign exchange from exports
d. must acquire foreign exchange in order to pay for imports
e. need to decrease labor productivity
QUESTION 2Usually the poorest fifth of the population in a developing country receives more than 20 percent of the country's income.
a. True
b. False
QUESTION 3To escape poverty, a country needs
a. Western banks to report deposits by corrupt officials
b. to develop laws and regulations to ensure the transparent management of natural resources
c. special trade advantages
d. ten years of domestic peace
e. All of the answers are correct
QUESTION 4Successful management of resource wealth is a poverty trap
a. True
b. False
QUESTION 5One possible reason that the country of Whatsis is trapped in poverty is
a. a lack of mineral wealth
b. an honest and functional government
c. laws and regulations to help detect fiscal fraud
d. a free press
e. a civil war
QUESTION 6An example of a poverty trap is
a. extended time periods without war
b. a lack of mineral wealth
c. a dysfunctional or corrupt government
d. laws and regulations to help detect fiscal fraud
e. None of the answers is correct
QUESTION 7All developed countries achieve their status as a result of large supplies of natural resources.
a. True
b. False
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