Question 1

Population growth rates are inversely related to income per capita.

Accepted Answer

A) True 
 B)False

Question 2

One drawback of globalization is that

Accepted Answer

A) economic fluctuations in one country will have an effect on other countries. 
B) more countries will carry a national debt. 
C) some countries can more easily exploit other countries. 
D) one country can gain only if another country loses. 
E) some countries will lose because of competition from foreign producers. 
A) economic fluctuations in one country will have an effect on other countries. 
B) more countries will carry a national debt. 
C) some countries can more easily exploit other countries. 
D) one country can gain only if another country loses. 
E) some countries will lose because of competition from foreign producers.

Question 3

The emergence of informal sectors in developing economies is due to

Accepted Answer

A) the low income of the population. 
B) heavy restrictions on businesses. 
C) the emergence of a service economy. 
D) the lack of an industrial base. 
E) the drug trade. 
A) the low income of the population. 
B) heavy restrictions on businesses. 
C) the emergence of a service economy. 
D) the lack of an industrial base. 
E) the drug trade.

Question 4

Suppose that per capita income in country A, a developed country, is $30,000 per year, and per capita income in country B, a developing country, is $5,000 per year.

Accepted Answer

The answer of Suppose that per capita income in country...

Question 5

If country B has a higher level of productivity than country A, we would predict country B's future rate of growth to be less than country A's.

Accepted Answer

A) True 
 B)False

Question 6

Economic growth theory predicts that

Accepted Answer

A) the amount of capital per hour of work is not a factor in determining growth. 
B) regions with low levels of productivity will grow faster than regions with high levels of productivity. 
C) the higher the amount of capital per hour worked, the more likely a country is to grow. 
D) an economy's rate of growth is directly related to the amount of capital per hour worked. 
E) only countries with low amounts of capital per hour of work can grow. 
A) the amount of capital per hour of work is not a factor in determining growth. 
B) regions with low levels of productivity will grow faster than regions with high levels of productivity. 
C) the higher the amount of capital per hour worked, the more likely a country is to grow. 
D) an economy's rate of growth is directly related to the amount of capital per hour worked. 
E) only countries with low amounts of capital per hour of work can grow.

Question 7

More than 50 percent of the world's GDP comes from industrialized countries.

Accepted Answer

A) True 
 B)False

Question 8

At the time of the Industrial Revolution,

Accepted Answer

A) Europe was much more advanced in scientific knowledge than China or the Islamic nations. 
B) Europe was first discovering the benefits of colonialism. 
C) Europe had more natural resources than any other part of the world. 
D) Europe was beginning to understand how slavery could advance economic development. 
E) None of these. 
A) Europe was much more advanced in scientific knowledge than China or the Islamic nations. 
B) Europe was first discovering the benefits of colonialism. 
C) Europe had more natural resources than any other part of the world. 
D) Europe was beginning to understand how slavery could advance economic development. 
E) None of these.

Question 9

Exhibit 28-1  
-Plot on a scatter diagram the data from the African countries listed in Exhibit 28-1. Does there appear to be a catch-up line in the scatter diagram?

Accepted Answer

The eviden

Question 10

Growth theory predictions support what has been happening in the world economy over the past 100 years.

Accepted Answer

A) True 
 B)False

Question 11

There is no connection between a country's geographic location and its per capita income level.

Accepted Answer

A) True 
 B)False

Question 12

For the most part, when making international geographic distinctions, it is accurate to say that

Accepted Answer

A) the South is generally richer than the North. 
B) the West is generally richer than the East. 
C) there is no geographic pattern between rich and poor countries. 
D) the East is generally richer than the West. 
E) the North is generally richer than the South. 
A) the South is generally richer than the North. 
B) the West is generally richer than the East. 
C) there is no geographic pattern between rich and poor countries. 
D) the East is generally richer than the West. 
E) the North is generally richer than the South.

Question 13

Conditionality refers to

Accepted Answer

A) the concept that the IMF will lend money on the condition that the country will not engage in politically unpopular policies. 
B) the concept that the IMF will lend money on the condition that the loan's principal is repaid. 
C) the concept that the IMF will lend money on the condition that interest payments will be maintained. 
D) the concept that the IMF will lend money on the condition that the country undertakes economic reform. 
E) the concept that the IMF will lend money on the condition that the country will also borrow from private banks. 
A) the concept that the IMF will lend money on the condition that the country will not engage in politically unpopular policies. 
B) the concept that the IMF will lend money on the condition that the loan's principal is repaid. 
C) the concept that the IMF will lend money on the condition that interest payments will be maintained. 
D) the concept that the IMF will lend money on the condition that the country undertakes economic reform. 
E) the concept that the IMF will lend money on the condition that the country will also borrow from private banks.

Question 14

The "East-West problem" is the phrase most often used to describe the world's income disparity problem.

Accepted Answer

A) True 
 B)False

Question 15

For the world as a whole, the level of per capita GDP is a poor predictor of a country's economic growth.

Accepted Answer

A) True 
 B)False

Question 16

Approximately what percentage of the world's GDP is produced by the developing countries in Asia?

Accepted Answer

A) 10 percent 
B) 15 percent 
C) 5 percent 
D) 27 percent 
E) 60 percent 
A) 10 percent 
B) 15 percent 
C) 5 percent 
D) 27 percent 
E) 60 percent

Question 17

Japan is an example of a country

Accepted Answer

A) that had lower per capita income than the United States in 1960 and grew more rapidly than the United States between 1960 and 2005. 
B) that had lower per capita income than the United States in 1960 and grew less rapidly than the United States between 1960 and 2005. 
C) that did not grow between 1960 and 2005. 
D) that had higher per capita income than the United States in 1960 and grew less rapidly than the United States between 1960 and 2005. 
E) in transition. 
A) that had lower per capita income than the United States in 1960 and grew more rapidly than the United States between 1960 and 2005. 
B) that had lower per capita income than the United States in 1960 and grew less rapidly than the United States between 1960 and 2005. 
C) that did not grow between 1960 and 2005. 
D) that had higher per capita income than the United States in 1960 and grew less rapidly than the United States between 1960 and 2005. 
E) in transition.

Question 18

The existence of the informal sector in many less developed countries is evidence of the irrational behavior of less educated people in poor countries. Is this true or false? Explain your answer.

Accepted Answer

A) True 
 B)False

Question 19

What can be said about the accuracy of growth theory predictions for the group of countries shown in the table below?

Accepted Answer

Except for Japan, th

Question 20

A country located on the upper-left-hand corner of the catch-up line is

Accepted Answer

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

Exam 28: Economic Growth Around the World

Population growth rates are inversely related to income per capita.

One drawback of globalization is that

The emergence of informal sectors in developing economies is due to

Suppose that per capita income in country A, a developed country, is $30,000 per year, and per capita income in country B, a developing country, is $5,000 per year.

If country B has a higher level of productivity than country A, we would predict country B's future rate of growth to be less than country A's.

Economic growth theory predicts that

More than 50 percent of the world's GDP comes from industrialized countries.

At the time of the Industrial Revolution,

Exhibit 28-1 -Plot on a scatter diagram the data from the African countries listed in Exhibit 28-1. Does there appear to be a catch-up line in the scatter diagram?

Growth theory predictions support what has been happening in the world economy over the past 100 years.

There is no connection between a country's geographic location and its per capita income level.

For the most part, when making international geographic distinctions, it is accurate to say that

Conditionality refers to

The "East-West problem" is the phrase most often used to describe the world's income disparity problem.

For the world as a whole, the level of per capita GDP is a poor predictor of a country's economic growth.

Approximately what percentage of the world's GDP is produced by the developing countries in Asia?

Japan is an example of a country

The existence of the informal sector in many less developed countries is evidence of the irrational behavior of less educated people in poor countries. Is this true or false? Explain your answer.

What can be said about the accuracy of growth theory predictions for the group of countries shown in the table below?

A country located on the upper-left-hand corner of the catch-up line is

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