Question 1

Economic development has never taken off in Africa.

Accepted Answer

A) True 
 B)False

Question 2

The World Bank makes loans to governments and for general purposes, never for specific projects.

Accepted Answer

A) True 
 B)False

Question 3

Differences in human capital do not explain different rates of catch-up.

Accepted Answer

A) True 
 B)False

Question 4

Many of today's developing countries lack

Accepted Answer

A) the government leadership necessary to escape poverty. 
B) the necessary scientific knowledge to escape poverty. 
C) an adequate supply of natural resources. 
D) a sufficient amount of government regulation necessary to escape poverty. 
E) individual property rights. 
A) the government leadership necessary to escape poverty. 
B) the necessary scientific knowledge to escape poverty. 
C) an adequate supply of natural resources. 
D) a sufficient amount of government regulation necessary to escape poverty. 
E) individual property rights.

Question 5

In terms of the catch-up line for advanced countries from 1960 to 2005, New Zealand is an example of a country that

Accepted Answer

A) was richer and therefore grew less rapidly. 
B) was poorer and therefore grew less rapidly. 
C) was richer and therefore grew more rapidly. 
D) was poorer and therefore grew more rapidly. 
E) None of these 
A) was richer and therefore grew less rapidly. 
B) was poorer and therefore grew less rapidly. 
C) was richer and therefore grew more rapidly. 
D) was poorer and therefore grew more rapidly. 
E) None of these

Question 6

A wise development strategy would be to find a way to quickly bring all the informal sector businesses into the formal sector.

Accepted Answer

A) True 
 B)False

Question 7

China's GDP is larger than Japan's.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true?

Accepted Answer

A) Growth theory cannot explain the growth pattern experienced by the whole world. 
B) Growth theory does not explain the growth pattern experienced by the United States. 
C) Growth theory does not explain the growth pattern experienced by the developed countries of the world. 
D) Growth theory explains the growth pattern experienced by the whole world. 
E) The growth experiences of Portugal and Spain are counter to what growth theory would have predicted. 
A) Growth theory cannot explain the growth pattern experienced by the whole world. 
B) Growth theory does not explain the growth pattern experienced by the United States. 
C) Growth theory does not explain the growth pattern experienced by the developed countries of the world. 
D) Growth theory explains the growth pattern experienced by the whole world. 
E) The growth experiences of Portugal and Spain are counter to what growth theory would have predicted.

Question 9

A developing country refers to a country that is growing rapidly.

Accepted Answer

A) True 
 B)False

Question 10

Huge disparities in world income distribution remain today.

Accepted Answer

A) True 
 B)False

Question 11

According to economic growth theory, what should happen to the productivity level in all countries of the world in the long run? What is a key assumption of this prediction?

Accepted Answer

In the long run, the productivity level

Question 12

The majority of the world's population has an annual income between $5,000 and $10,000.

Accepted Answer

A) True 
 B)False

Question 13

Explain how the catch-up theory depends upon diminishing returns to capital, the adaptability of technology, and the free, riskless flow of investment funds.

Accepted Answer

The existence of diminishing returns to

Question 14

More advanced scientific knowledge is the main reason why the Industrial Revolution occurred when and where it did.

Accepted Answer

A) True 
 B)False

Question 15

Economic development economists focus primarily on how less developed countries can attract more investment funds from developed countries.

Accepted Answer

A) True 
 B)False

Question 16

Private property enables entrepreneurs to capture the benefits of taking risks.

Accepted Answer

A) True 
 B)False

Question 17

The historical growth experience of California

Accepted Answer

A) was consistent with the catch-up line. 
B) was opposite to the catch-up line. 
C) cannot be explained by the catch-up line. 
D) was consistent with the catch-up line only from 1960 to 2000. 
E) was sometime consistent with the catch-up line and sometime against it. 
A) was consistent with the catch-up line. 
B) was opposite to the catch-up line. 
C) cannot be explained by the catch-up line. 
D) was consistent with the catch-up line only from 1960 to 2000. 
E) was sometime consistent with the catch-up line and sometime against it.

Question 18

Which of the following statements is true?

Accepted Answer

A) All countries with low productivity levels in 1960 grew slowly between 1960 and 2005. 
B) Since the United States had the highest productivity level in 1960, it was the slowest-growing country in the world between 1960 and 2005. 
C) Countries with high productivity levels in 1960 grew the fastest between 1960 and 2005. 
D) All countries with low productivity levels in 1960 grew rapidly between 1960 and 2005. 
E) There is little correlation between the productivity level in 1960 and the growth rate between 1960 and 2005 for the developing countries. 
A) All countries with low productivity levels in 1960 grew slowly between 1960 and 2005. 
B) Since the United States had the highest productivity level in 1960, it was the slowest-growing country in the world between 1960 and 2005. 
C) Countries with high productivity levels in 1960 grew the fastest between 1960 and 2005. 
D) All countries with low productivity levels in 1960 grew rapidly between 1960 and 2005. 
E) There is little correlation between the productivity level in 1960 and the growth rate between 1960 and 2005 for the developing countries.

Question 19

Which of the following is considered a developing country?

Accepted Answer

A) United States 
B) Japan 
C) China 
D) Canada 
E) Korea 
A) United States 
B) Japan 
C) China 
D) Canada 
E) Korea

Question 20

According to economic growth theory, how does a country's current productivity level predict its future growth rate?

Accepted Answer

Countries with a high productivity level

Exam 28: Economic Growth Around the World

Economic development has never taken off in Africa.

The World Bank makes loans to governments and for general purposes, never for specific projects.

Differences in human capital do not explain different rates of catch-up.

Many of today's developing countries lack

In terms of the catch-up line for advanced countries from 1960 to 2005, New Zealand is an example of a country that

A wise development strategy would be to find a way to quickly bring all the informal sector businesses into the formal sector.

China's GDP is larger than Japan's.

Which of the following statements is true?

A developing country refers to a country that is growing rapidly.

Huge disparities in world income distribution remain today.

According to economic growth theory, what should happen to the productivity level in all countries of the world in the long run? What is a key assumption of this prediction?

The majority of the world's population has an annual income between $5,000 and $10,000.

Explain how the catch-up theory depends upon diminishing returns to capital, the adaptability of technology, and the free, riskless flow of investment funds.

More advanced scientific knowledge is the main reason why the Industrial Revolution occurred when and where it did.

Economic development economists focus primarily on how less developed countries can attract more investment funds from developed countries.

Private property enables entrepreneurs to capture the benefits of taking risks.

The historical growth experience of California

Which of the following statements is true?

Which of the following is considered a developing country?

According to economic growth theory, how does a country's current productivity level predict its future growth rate?

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

International Trade

International Finance

Filters