Question

(1)The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.

True

False

(2) Which of the following countries had the highest per capita energy consumption in 2013?

		Japan
		India
		United States
		China

(3) (Last Word) Providing poor families with grants if they send their children to school and get proper medical care is known as

		unconditional cash transfers.
		in-kind transfers.
		conditional cash transfers.
		microcredit.

(4) Most of the DVCs find it difficult to accumulate capital goods because

		it is very difficult to restrict consumption and thus to free resources for capital goods production.
		the terms of trade prohibit the inflow of private capital from the advanced nations.
		domestic monetary policies designed to achieve price stability result in low interest rates, thereby discouraging investment.
		investment is interest inelastic in DVCs.

(5) Examples of low-income developing countries are

		Mexico, South Korea, and Brazil.
		Germany, Austria, and Italy.
		Switzerland, New Zealand, and Australia.
		Chad, Bangladesh, and Ethiopia.

Answer 1

Ans) 1) True. Developed countries can help developing countries through public and private investment as it will yield developed countries good return and developing countries good infrastructure.

While reducing the trade barrier can also help developing countries to come at par with developed countries goods.

2) Japan- 3,567.63 kg of oil equivalent.

India- 606.87 kg of oil equivalent

US - 6,901.79 kg of oil equivalent

China- 2,213.76 kg of oil equivalent

Clearly option c is correct.

3) Unconditional cash transfer- here welfare program is provided without any condition.

In kind transfer- instead of cash some specific goods or services are provided free or at reduced rates.

Conditional cash transfer- it aims to reduce poverty by attaching a welfare program as a condition on the receivers.

Micro credit- is is providing loan at low interest rates.

So, option c is correct.

4) DVCs stand for developing countries.

These countries have to spend on needs of the people, after fulfilling it, little is left . Hence, it makes accumulation of capital goods a difficult task.

Option a is correct.

5) according to IMF some low income developing countries are Ethiopia, Chad, Bangladesh, Nigeria, Ghana, Mali , Madagascar etc.

So option d is correct.