Question 1

One of the major purposes of the Meiji Restoration in Japan was to import Western technology into the Japanese economy.

Accepted Answer

A) True 
 B)False

Question 2

What is the most important factor that explains why some countries have experienced sustained economic growth and some have not? Please explain.

Accepted Answer

The most important factor is the existen

Question 3

Karl Marx argued that the bourgeoisie inhibited growth in the late 1700s.

Accepted Answer

A) True 
 B)False

Question 4

Exhibit 28-1  
-Suppose the African countries listed in Exhibit 28-1 make a concerted effort to enforce property rights and maintain political stability within their countries. How might this affect catch-up in the future?

Accepted Answer

Answers will vary, but in general, enfor

Question 5

Which of the following is an emerging market country?

Accepted Answer

A) Japan 
B) Philippines 
C) Italy 
D) Ethiopia 
E) Chile 
A) Japan 
B) Philippines 
C) Italy 
D) Ethiopia 
E) Chile

Question 6

Of the total amount of GDP produced in the world today, industrialized countries produce approximately

Accepted Answer

A) 75 percent. 
B) 33 percent. 
C) 15 percent. 
D) 25 percent. 
E) 54 percent. 
A) 75 percent. 
B) 33 percent. 
C) 15 percent. 
D) 25 percent. 
E) 54 percent.

Question 7

Nigeria's development in the last 40 years (or lack thereof) represents evidence against the economic growth theory, as its data do not fall along the catch-up line.

Accepted Answer

A) True 
 B)False

Question 8

Examining the historical experience of the developed countries is of little value in explaining why today's poor countries remain poor.

Accepted Answer

A) True 
 B)False

Question 9

Why is it not a good idea for a developing country to avoid having a trade deficit?

Accepted Answer

For a country to develop there needs to

Question 10

High population growth rates

Accepted Answer

A) lower the amount of investment needed to maintain the amount of capital per worker. 
B) raise the amount of investment needed to maintain the level of capital per worker. 
C) are necessary for economic growth. 
D) are positively related to economic growth. 
E) cause the capital-labor ratio to increase. 
A) lower the amount of investment needed to maintain the amount of capital per worker. 
B) raise the amount of investment needed to maintain the level of capital per worker. 
C) are necessary for economic growth. 
D) are positively related to economic growth. 
E) cause the capital-labor ratio to increase.

Question 11

According to economic growth theory, if the spread of technology is not difficult, we would expect

Accepted Answer

A) countries with lower productivity to adopt newer technology and raise their productivity. 
B) countries with high levels of income per capita to continue growing faster than countries with low incomes per capita. 
C) the elimination of diminishing returns to labor. 
D) an increase in the diminishing returns to capital. 
E) the elimination of diminishing returns to capital. 
A) countries with lower productivity to adopt newer technology and raise their productivity. 
B) countries with high levels of income per capita to continue growing faster than countries with low incomes per capita. 
C) the elimination of diminishing returns to labor. 
D) an increase in the diminishing returns to capital. 
E) the elimination of diminishing returns to capital.

Question 12

Economic growth theory predicts that poor countries will catch up with rich countries because

Accepted Answer

A) productivity has tended to grow faster in the poor countries over time than in the rich countries. 
B) the higher level of capital per worker in poor countries will attract more investment funds. 
C) the higher level of capital per worker in rich countries will attract fewer investment funds. 
D) the higher level of productivity in poor countries will attract more investment funds. 
E) the higher level of productivity in rich countries will attract more investment funds. 
A) productivity has tended to grow faster in the poor countries over time than in the rich countries. 
B) the higher level of capital per worker in poor countries will attract more investment funds. 
C) the higher level of capital per worker in rich countries will attract fewer investment funds. 
D) the higher level of productivity in poor countries will attract more investment funds. 
E) the higher level of productivity in rich countries will attract more investment funds.

Question 13

What is meant by the term human capital, and how does its availability affect growth?

Accepted Answer

Human capital refers to the education an

Question 14

The catch-up line indicates that a lower growth rate productivity is related to a higher level of productivity.

Accepted Answer

A) True 
 B)False

Question 15

The majority of the people in the world have a per capita income less than $5,000.

Accepted Answer

A) True 
 B)False

Question 16

The World Bank and the International Monetary Fund were established after World War II as part of a major reform of the international monetary system.

Accepted Answer

A) True 
 B)False

Question 17

Why has there been a convergence in real income per capita for Western European countries, but not for African countries?

Accepted Answer

There are various possible explanations.

Question 18

Income per capita in sub-Saharan African countries is about 2 percent to 3 percent of that in the United States.

Accepted Answer

A) True 
 B)False

Question 19

Developing countries include all the following except

Accepted Answer

A) relatively poor countries. 
B) emerging markets. 
C) less-developed countries. 
D) advanced economies. 
E) low-income countries. 
A) relatively poor countries. 
B) emerging markets. 
C) less-developed countries. 
D) advanced economies. 
E) low-income countries.

Question 20

Evidence suggests that catch-up is not occurring among all countries of the world.

Accepted Answer

A) True 
 B)False

Exam 28: Economic Growth Around the World

One of the major purposes of the Meiji Restoration in Japan was to import Western technology into the Japanese economy.

What is the most important factor that explains why some countries have experienced sustained economic growth and some have not? Please explain.

Karl Marx argued that the bourgeoisie inhibited growth in the late 1700s.

Exhibit 28-1 -Suppose the African countries listed in Exhibit 28-1 make a concerted effort to enforce property rights and maintain political stability within their countries. How might this affect catch-up in the future?

Which of the following is an emerging market country?

Of the total amount of GDP produced in the world today, industrialized countries produce approximately

Nigeria's development in the last 40 years (or lack thereof) represents evidence against the economic growth theory, as its data do not fall along the catch-up line.

Examining the historical experience of the developed countries is of little value in explaining why today's poor countries remain poor.

Why is it not a good idea for a developing country to avoid having a trade deficit?

High population growth rates

According to economic growth theory, if the spread of technology is not difficult, we would expect

Economic growth theory predicts that poor countries will catch up with rich countries because

What is meant by the term human capital, and how does its availability affect growth?

The catch-up line indicates that a lower growth rate productivity is related to a higher level of productivity.

The majority of the people in the world have a per capita income less than $5,000.

The World Bank and the International Monetary Fund were established after World War II as part of a major reform of the international monetary system.

Why has there been a convergence in real income per capita for Western European countries, but not for African countries?

Income per capita in sub-Saharan African countries is about 2 percent to 3 percent of that in the United States.

Developing countries include all the following except

Evidence suggests that catch-up is not occurring among all countries of the world.

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