1. Why are some development organizations made up of multiple member-nations?
because development projects are always a massive undertaking
because some of the problems facing the world are too large in scope to be handled by a single country
because it takes a lot of countries to oppose the United States
because the United Nations was the world’s first development organization and it’s made up of nearly 200 member-nations
2. Which of the following statements about purchasing power parity (PPP) is true?
Purchasing power parity is an attempt to compare exchange rates on a country’s black market with official, government-backed exchange rates.
To adjust for purchasing power parity, prices in a country are compared against Spanish pesos.
If we say that someone “lives on less than a dollar a day,” what we mean is that the person lives on an amount of his local currency whose total value is less than a U.S. dollar.
Purchasing power parity means that a steak in Russia will be the exact same price as a steak in Thailand.
3. Generally speaking, which of the following BEST describes the objective of nongovernmental organizations (NGOs)?
to maximize corporate profits
to advance various social causes (education, clean water, political reform, etc.)
to enforce the policies of the government the NGO is hired by
to combat governments in the developed world on behalf of developing countries
4. The World Bank considers a country “developing” if which of the following is true?
The country has little or no industrial diversification.
The country has a low rate of literacy.
The country has a high rate of inflation.
The country has a low- or middle-income economy.
5. Which of the following statements BEST expresses the beliefs of social-conflict theory?
There is a smaller risk of social conflict in North America than in other areas of the world.
The history of the world is the history of the powerful dominating the weak.
The Soviet Union is the world’s model for successful development.
The best way for countries to develop is to follow the model of wealthy developed countries
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