Which of these numbers is the best approximation of how many people are currently living in “extreme poverty”?750,000500 million1.2 billion7 billion2. Why are some development organizations made up of multiple member-nations?because development projects are always a massive undertakingbecause some of the problems facing the world are too large in scope to be handled by a single countrybecause it takes a lot of countries to oppose the United Statesbecause the United Nations was the world’s first development organization and it’s made up of nearly 200 member-nations3. Which of the following statements about defining “developing” countries is true? Choose the BEST answer.All of the world’s major development organizations agree on how to define a “developing” country.The World Bank, the IMF, and the UN each has its own, different criteria regarding what makes a country “developing.”Only the UN has the power to designate a country as “developing.”The U.S. State Department is responsible for identifying the world’s “developing” countries.4. Which of these numbers is the best approximation of how many people live on $2.50 a day or less?30 million300 millionthree billionone billion5. Which of these numbers is the best approximation of how many people live on $1.25 a day or less?500,000125 million1.2 billion3 billion6. Which of the following is a common criticism of the International Monetary Fund (IMF) and the World Bank?The conditions made on poor countries that seek IMF and World Bank loans are too burdensome.The IMF and the World Bank regularly disregard the wishes of the United Nations.The IMF and the World Bank try to impose socialist economic policies on their member nations.The IMF and the World Bank help developing nations at the expense of developed nations.7. To opponents of lending to poor countries, which of the following is a typical result of providing loans?The countries taking out the loans are likely to become “addicted” to credit.The countries taking out the loans are likely to become financially empowered.The countries taking out the loans are likely to embezzle all of the money.The countries taking out the loans are likely to improve their economy, but very slowly.8. Which of the following describes “dependency theory”?the notion that developed nations are obligated to provide for poor nationsthe notion that poor nations should become dependent on one anotherthe notion that developing nations are kept poor because of their reliance on wealthier nationsthe notion that international financial institutions are dependent on their member states for legitimacy9. Which of the following statements about subsidies is true?Subsidies enable citizens to purchase goods at prices below market value.Subsidies improve the efficiency of a country’s economy.Typically, if a country wants an IMF loan, it must expand its subsidies.Subsidies are a sign of cooperation between countries.10. Which of the following actions is likely to fall under the responsibility of the World Bank, as opposed to the International Monetary Fund (IMF)?helping the Cambodian treasury to avoid defaultpublishing an analysis of the labor market in the Philippinesfinancing a dam in Argentinaadvising the Liberian government on tax reform11. Which of the following is a reason why it is relatively easy for a rebellion to form against governments in poor countries? Choose the BEST answer.Poor countries often suffer from social and ethnic tensions.In a poor country, it does not take much money to muster up a rebel force.Poor countries tend to be undemocratic.Governments in poor countries care less about the welfare of their country than governments in wealthy countries.12. Which of the following statements about the relationship between countries’ incomes and their likelihood of sustained peace is true?The prospect for sustained peace after civil war is the same for high-income and low-income countries.High-income countries are more likely to relapse into civil war than countries with low incomes.Low-income countries are more likely to relapse into civil war than countries with high incomes.There is no relationship between a country’s income and its likelihood of relapsing into civil war.13. Which of the following is a typical result of civil war?the achievement of justice for marginalized groupshigh rates of incarcerationmass refugeesa reduction in illegal activities, since those living outside the law are now engaged in fighting14. Which of the following BEST predicts that a country will have a civil war?The country is repressive.The country has a large amount of ethnic diversity.The country has had a civil war within the past ten years.The culture of the country is based in violence and war is not seen as undesirable.15. Why does the presence of valuable natural resources in a developing country often wind up hindering the development of the country’s economy?Natural resources from poor nations are worth less on the international market.Complicated tax policies often make the resources too expensive to be worth developing.The country’s natural resources are targeted by just a few powerful people in the country, who keep the majority of their profits for themselves.Countries with valuable resources are often forced by multinational corporations to sign predatory deals, leaving the countries with only a pittance.16. Which of the following statements BEST describes the relationship between weak institutions and a country’s distribution of wealth?In countries with weak institutions, the economy is freer, so anyone is able to get rich whether lower or upper class.In countries with weak institutions, the majority of wealth usually winds up in the hands of a few elites.In countries with weak institutions, most of the wealth is extracted out by wealthy nations such as Japan and France.In countries with weak institutions, there is almost always total anarchy, so nobody has any chance to amass wealth.17. In terms of performance, communist governments have historically tended to:create prosperous societies with shared equality.create poor societies with widespread equality.create an elite group with concentrated political and economic power.create societies of poor people that have oppressed wealthy people.18. Why are healthy institutions so important to nation building? Choose the BEST answer.They provide checks and balances against political and economic opportunists who, left to their own devices, would operate without restraint.They provide international organizations such as the UN and the World Bank with tools to punish bad-behaving developing nations.They provide economic elites with a measure of protection from the masses who, left to their own devices, might seize their assets.They ensure that the will of military leaders is carried out.19. Which of the following is one way nations have, in modern history, beat back harmful institutions?by gradually reforming their political systemby unionizing their workersby adopting capitalismby becoming more urbanized20. In the eyes of reformers, the best way to transform extractive institutions is to make them more:political; they should dedicate themselves to supporting a single politician.inclusive; they should include different groups with varying concerns under their umbrella.business-oriented; they should push for the removal of economic restrictions.authoritarian; they should advocate for the government’s absolute control over its citizens.