9) Which of the following statements is true?

A) The fundamental causes of prosperity are effective only in the short run.

B) The proximate causes of prosperity are effective only in the short run.

C) The proximate causes of prosperity are shaped by the fundamental

causes of prosperity.

D) The fundamental causes of prosperity are shaped by the proximate

causes of prosperity.

20) Countries in sub-Saharan Africa are economically disadvantaged

because infectious diseases spread in these countries relatively easily. This

statement reflects the ________.

A) culture hypothesis

B) geography hypothesis

C) institutions hypothesis

D) location hypothesis

21) If the geography hypothesis holds, then ________.

A) poorer countries are permanently disadvantaged

B) poorer countries are likely to catch up with richer countries very fast

C) living standards in poorer countries can be substantially improved

D) cultural beliefs can be considered an important source of economic

prosperity

8 22) Which of the following may partially reduce the geographical

disadvantages faced by poorer countries?

A) Restricting the immigration of skilled workers from rich countries to the

poorer countries

B) Transferring technology from richer to poorer countries

C) Limiting the use of natural resources so that they can be preserved for

future use

D) Limiting the participation of poorer countries in international trade

23) The cultural hypothesis of economic growth claims that ________.

A) most ancient cultures of the world have been almost forgotten post

globalization

B) a common global culture is automatically created through liberal trade

practices

C) different values and cultural beliefs cause differences in prosperity

around the world

D) values and cultural beliefs are proximate causes for differences in

prosperity around the world

24) Certain countries remain backward because they nurture superstition

and are suspicious of new technology. This argument is based on the

________.

A) culture hypothesis

B) geography hypothesis

C) capital hypothesis

D) location hypothesis