Which of the following is not a problem in comparing developed and developing countries GNP ?

A. GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods
B. The economic contribution of a housewife is a peasant family may not be measured is GNP is poor country
C. GNP in understated for developing countries since many of their labor intensive good have no impact on exchange rate since they are not traded
D. GNP is overstated for for countries where the price of foreign exchange is less than market clearing price

PPP is ?

A. a theory that tells us that exchanged rates between currencies are in equilibrium when their purchasing power is the same in both countries
B. GDP divided by exchange rate
C. a measure of income inequality
D. a measure of infant mortality in developing countries

According to chapter 2 in the text which of the following is true ?

A. The boundary between rich and poor countries has become clearer in 1990s
B. The fastest growing countries must be the ones with the highest per capita GNP
C. A few poor countries like South Korea and Malaysia in the 1950s grew much more rapidly than some higher-income countries like Uruguay and New Zealand
D. Today all high and Upper-middle income countries are Western.

Which of the following statement is not true about LDCs ?

A. Most LDCs have less than 1/10 the per capita GNP of the U.S
B. A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S
C. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible
D. Most LDCs have a greater shortage of qualified teachers than the U.S does

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