Question 1

Have the predictions of growth theory proven true for the states of the United States? Why?

Accepted Answer

Yes. This is in part because t

Question 2

The informal economy has been beneficial to Peru's development.

Accepted Answer

A) True 
 B)False

Question 3

The Industrial Revolution started in the United States.

Accepted Answer

A) True 
 B)False

Question 4

There is a positive correlation between the size of an informal economy and the cost of setting up a legal business.

Accepted Answer

A) True 
 B)False

Question 5

The richest countries in the world are those with a per capita income of more than

Accepted Answer

A) $1,000. 
B) $5,000. 
C) $500,000. 
D) $120,000. 
E) $30,000. 
A) $1,000. 
B) $5,000. 
C) $500,000. 
D) $120,000. 
E) $30,000.

Question 6

Poor countries are in principle aided by larger current account surpluses in the developed countries.

Accepted Answer

A) True 
 B)False

Question 7

Economic growth theory predicts that poor countries will

Accepted Answer

A) never be able to catch up with rich countries. 
B) not be able to catch up with rich countries because rich countries will always have a higher growth potential than poor countries. 
C) be able to catch up with rich countries because the existing level of low productivity in poor countries attracts investment. 
D) never be able to catch up with rich countries because the existing level of low productivity in poor countries deters investment. 
E) be able to catch up with rich countries because rich countries will run out of investment opportunities and will be forced to rely on investment opportunities in the poor countries. 
A) never be able to catch up with rich countries. 
B) not be able to catch up with rich countries because rich countries will always have a higher growth potential than poor countries. 
C) be able to catch up with rich countries because the existing level of low productivity in poor countries attracts investment. 
D) never be able to catch up with rich countries because the existing level of low productivity in poor countries deters investment. 
E) be able to catch up with rich countries because rich countries will run out of investment opportunities and will be forced to rely on investment opportunities in the poor countries.

Question 8

Economic development is

Accepted Answer

A) the branch of economics that studies economic growth. 
B) another name for economic growth. 
C) the branch of economics that studies why the catch-up theory has not applied in all parts of the world. 
D) the branch of economics that studies the history of economic growth. 
E) another name for welfare economics. 
A) the branch of economics that studies economic growth. 
B) another name for economic growth. 
C) the branch of economics that studies why the catch-up theory has not applied in all parts of the world. 
D) the branch of economics that studies the history of economic growth. 
E) another name for welfare economics.

Question 9

The share of the population in the world living with less than two U.S. dollars a day is

Accepted Answer

A) about 50 percent. 
B) about 25 percent. 
C) 10 percent. 
D) 2 percent. 
E) 90 percent. 
A) about 50 percent. 
B) about 25 percent. 
C) 10 percent. 
D) 2 percent. 
E) 90 percent.

Question 10

China's relatively high saving rate played a role in its faster economic growth in recent decades.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true?

Accepted Answer

A) Sustained economic growth began in the late 1700s, and it has spread throughout the world. 
B) Sustained economic growth began in the late 1400s, and it has spread throughout the world. 
C) For most of history, there has been no sustained economic growth. 
D) Sustained economic growth has been occurring since the dawn of civilization, and it has spread throughout the world. 
E) Sustained economic growth has always occurred in some countries, but it has spread unevenly. 
A) Sustained economic growth began in the late 1700s, and it has spread throughout the world. 
B) Sustained economic growth began in the late 1400s, and it has spread throughout the world. 
C) For most of history, there has been no sustained economic growth. 
D) Sustained economic growth has been occurring since the dawn of civilization, and it has spread throughout the world. 
E) Sustained economic growth has always occurred in some countries, but it has spread unevenly.

Question 12

According to the catch-up phenomenon, a rich country like the United States will

Accepted Answer

A) grow at a slower rate than a poor country. 
B) grow at a constant rate indefinitely. 
C) grow faster over time. 
D) become a poor country over time. 
E) become less productive immediately. 
A) grow at a slower rate than a poor country. 
B) grow at a constant rate indefinitely. 
C) grow faster over time. 
D) become a poor country over time. 
E) become less productive immediately.

Question 13

Income per capita in Argentina and Venezuela is about one-third that in the United States.

Accepted Answer

A) True 
 B)False

Question 14

According to Karl Marx,

Accepted Answer

A) the development of science was the key to economic growth. 
B) Malthus's predictions were coming true. 
C) the bourgeois class inhibited growth. 
D) the creation of the bourgeois class was the key to economic growth. 
E) economic growth cannot occur under capitalism. 
A) the development of science was the key to economic growth. 
B) Malthus's predictions were coming true. 
C) the bourgeois class inhibited growth. 
D) the creation of the bourgeois class was the key to economic growth. 
E) economic growth cannot occur under capitalism.

Question 15

Which of the following is an industrialized country?

Accepted Answer

A) Bangladesh 
B) Russia 
C) Korea 
D) Italy 
E) China 
A) Bangladesh 
B) Russia 
C) Korea 
D) Italy 
E) China

Question 16

What is meant by the term informal economy? How does its existence affect economic growth?

Accepted Answer

The informal economy consists of those b

Question 17

The Millennium Challenge Corporation (MCC) was created in 2003 by the U.S. Congress, and its stated mission goal is to reduce poverty by promoting economic growth.

Accepted Answer

A) True 
 B)False

Exam 28: Economic Growth Around the World

Have the predictions of growth theory proven true for the states of the United States? Why?

The informal economy has been beneficial to Peru's development.

The Industrial Revolution started in the United States.

There is a positive correlation between the size of an informal economy and the cost of setting up a legal business.

The richest countries in the world are those with a per capita income of more than

Poor countries are in principle aided by larger current account surpluses in the developed countries.

Economic growth theory predicts that poor countries will

Economic development is

The share of the population in the world living with less than two U.S. dollars a day is

China's relatively high saving rate played a role in its faster economic growth in recent decades.

Which of the following is true?

According to the catch-up phenomenon, a rich country like the United States will

Income per capita in Argentina and Venezuela is about one-third that in the United States.

According to Karl Marx,

Which of the following is an industrialized country?

What is meant by the term informal economy? How does its existence affect economic growth?

The Millennium Challenge Corporation (MCC) was created in 2003 by the U.S. Congress, and its stated mission goal is to reduce poverty by promoting economic growth.

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