Question 1

Data from the 50 U.S. states show that higher-income states have higher growth rates.

Accepted Answer

A) True 
 B)False

Question 2

Data from the 50 U.S. states support the catch-up line theory.

Accepted Answer

A) True 
 B)False

Question 3

All else equal, regions with high capital per worker ratios should exhibit slower rates of growth than regions with low capital per worker ratios.

Accepted Answer

A) True 
 B)False

Question 4

Life expectancy is not correlated with income per capita.

Accepted Answer

A) True 
 B)False

Question 5

Answer the questions below:

Accepted Answer

The answer of Answer the questions below:
  
...

Question 6

Of the total amount of the world's GDP, approximately what percentage comes from developing countries in Africa?

Accepted Answer

A) 3 percent 
B) 15 percent 
C) 10 percent 
D) 20 percent 
E) 25 percent 
A) 3 percent 
B) 15 percent 
C) 10 percent 
D) 20 percent 
E) 25 percent

Question 7

A major reason for the different growth rates between countries in Africa and East Asia is

Accepted Answer

A) the different income tax rates. 
B) the different saving rates. 
C) the different languages people speak. 
D) the education levels. 
E) the proximity to advanced countries. 
A) the different income tax rates. 
B) the different saving rates. 
C) the different languages people speak. 
D) the education levels. 
E) the proximity to advanced countries.

Question 8

Does the growth experience of poorer countries of the world support the predictions of growth theory? Why or why not?

Accepted Answer

No. At this point, all that ca

Question 9

GDP per capita has been a good predictor of productivity growth in the developed countries.

Accepted Answer

A) True 
 B)False

Question 10

Foreign investment is an important source of capital formation in developing countries.

Accepted Answer

A) True 
 B)False

Question 11

Data for the states within the United States show that states with low real income per capita in 1880

Accepted Answer

A) tended to grow at faster rates. 
B) tended to grow at slower rates. 
C) tended to have negative growth rates. 
D) have higher income per capita than states with high real income per capita in 1880. 
E) do not exist today. 
A) tended to grow at faster rates. 
B) tended to grow at slower rates. 
C) tended to have negative growth rates. 
D) have higher income per capita than states with high real income per capita in 1880. 
E) do not exist today.

Question 12

Does the saving rate in developed countries have any effect on the time it takes for developing countries to catch up with the developed part of the world? Explain.

Accepted Answer

Yes. An increase in the saving rate of d

Question 13

A major source of capital development funds for a poor country is

Accepted Answer

A) government savings. 
B) increased net exports. 
C) private savings. 
D) foreign investment from abroad. 
E) taxes. 
A) government savings. 
B) increased net exports. 
C) private savings. 
D) foreign investment from abroad. 
E) taxes.

Question 14

When comparing the advanced countries of the world,

Accepted Answer

A) countries with high per capita income in 1960 experienced high growth rates between 1960 and 2005. 
B) every country experienced the same growth rate between 1960 and 2005, regardless of its size in 1960. 
C) the evidence does not support the catch-up behavior predicted by growth theory. 
D) countries with low per capita income in 1960 experienced low growth rates between 1960 and 2005. 
E) the evidence supports the catch-up behavior predicted by growth theory. 
A) countries with high per capita income in 1960 experienced high growth rates between 1960 and 2005. 
B) every country experienced the same growth rate between 1960 and 2005, regardless of its size in 1960. 
C) the evidence does not support the catch-up behavior predicted by growth theory. 
D) countries with low per capita income in 1960 experienced low growth rates between 1960 and 2005. 
E) the evidence supports the catch-up behavior predicted by growth theory.

Question 15

A country located on the lower-right-hand corner of the catch-up line is

Accepted Answer

A) Not enough information is given. 
B) a rich country experiencing slow growth rates. 
C) a poor country experiencing slow growth rates. 
D) a poor country experiencing rapid growth rates. 
E) a rich country enjoying rapid growth rates. 
A) Not enough information is given. 
B) a rich country experiencing slow growth rates. 
C) a poor country experiencing slow growth rates. 
D) a poor country experiencing rapid growth rates. 
E) a rich country enjoying rapid growth rates.

Question 16

Which of the following is the best example of portfolio investment?

Accepted Answer

A) A U.S.company acquires less than 10 percent ownership of a foreign company. 
B) A U.S.company acquires more than 10 ownership of a foreign company. 
C) A foreign bank lends more than 10 percent of the funds needed by a business. 
D) A foreign bank lends less than 10 percent of the funds needed by a business. 
E) The Bank of America extends a loan to a foreign country. 
A) A U.S.company acquires less than 10 percent ownership of a foreign company. 
B) A U.S.company acquires more than 10 ownership of a foreign company. 
C) A foreign bank lends more than 10 percent of the funds needed by a business. 
D) A foreign bank lends less than 10 percent of the funds needed by a business. 
E) The Bank of America extends a loan to a foreign country.

Question 17

The percentage of the world population with an income less than $5,000 is approximately

Accepted Answer

A) 45 percent. 
B) 90 percent. 
C) 10 percent. 
D) 2 percent. 
E) 20 percent. 
A) 45 percent. 
B) 90 percent. 
C) 10 percent. 
D) 2 percent. 
E) 20 percent.

Question 18

How would each of the following affect the world interest rate and growth prospects in developing countries, all else the same?

Accepted Answer

World saving must eq

Question 19

Human capital is needed in order for technology to be adopted.

Accepted Answer

A) True 
 B)False

Question 20

Government savings are an important source of funds for capital formation in developing countries.

Accepted Answer

A) True 
 B)False

Exam 28: Economic Growth Around the World

Data from the 50 U.S. states show that higher-income states have higher growth rates.

Data from the 50 U.S. states support the catch-up line theory.

All else equal, regions with high capital per worker ratios should exhibit slower rates of growth than regions with low capital per worker ratios.

Life expectancy is not correlated with income per capita.

Answer the questions below:

Of the total amount of the world's GDP, approximately what percentage comes from developing countries in Africa?

A major reason for the different growth rates between countries in Africa and East Asia is

Does the growth experience of poorer countries of the world support the predictions of growth theory? Why or why not?

GDP per capita has been a good predictor of productivity growth in the developed countries.

Foreign investment is an important source of capital formation in developing countries.

Data for the states within the United States show that states with low real income per capita in 1880

Does the saving rate in developed countries have any effect on the time it takes for developing countries to catch up with the developed part of the world? Explain.

A major source of capital development funds for a poor country is

When comparing the advanced countries of the world,

A country located on the lower-right-hand corner of the catch-up line is

Which of the following is the best example of portfolio investment?

The percentage of the world population with an income less than $5,000 is approximately

How would each of the following affect the world interest rate and growth prospects in developing countries, all else the same?

Human capital is needed in order for technology to be adopted.

Government savings are an important source of funds for capital formation in developing countries.

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

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