Question 1

Dividing data into quartiles means that you are dividing data into

Accepted Answer

A) two groups. 
B) three groups. 
C) four groups. 
D) twenty-five groups. 
A) two groups. 
B) three groups. 
C) four groups. 
D) twenty-five groups.

Question 2

Democracy tends to best promote economic freedom when there is

Accepted Answer

A) checks on the power of both the executive and legislative majorities. 
B) constitutional protection of private property rights. 
C) political decentralization. 
D) all of the above. 
A) checks on the power of both the executive and legislative majorities. 
B) constitutional protection of private property rights. 
C) political decentralization. 
D) all of the above.

Question 3

Income per person in the United States is approximately ____ that of Sierra Leone, Malawi, and Niger, three of the world's poorest countries.

Accepted Answer

A) the same as 
B) double 
C) ten times 
D) fifty times 
A) the same as 
B) double 
C) ten times 
D) fifty times

Question 4

On average, countries that have a larger degree of economic freedom tend to have

Accepted Answer

A) higher per capita income levels, but slower rates of economic growth, than countries with less economic freedom. 
B) lower per capita income levels, but more rapid rates of economic growth, than countries with less economic freedom. 
C) both higher per capita income levels and more rapid growth rates than countries with less economic freedom. 
D) both lower income levels and slower growth rates than countries with less economic freedom. 
A) higher per capita income levels, but slower rates of economic growth, than countries with less economic freedom. 
B) lower per capita income levels, but more rapid rates of economic growth, than countries with less economic freedom. 
C) both higher per capita income levels and more rapid growth rates than countries with less economic freedom. 
D) both lower income levels and slower growth rates than countries with less economic freedom.

Question 5

Private investment as a share of the economy tends to be higher in countries

Accepted Answer

A) with low levels of economic freedom. 
B) with high levels of economic freedom. 
C) with economic freedom ratings near zero. 
D) that have experienced a sharp reduction in economic freedom during the most recent decade. 
A) with low levels of economic freedom. 
B) with high levels of economic freedom. 
C) with economic freedom ratings near zero. 
D) that have experienced a sharp reduction in economic freedom during the most recent decade.

Question 6

During the past quarter of a century, which of the following has contributed to the economic growth of China?

Accepted Answer

A) agricultural reforms adopted in the late 1970s 
B) low taxes and deregulation in the special economic zones that were established during the 1980s 
C) the relaxation of restraints on foreign trade and joint ventures 
D) all of the above 
A) agricultural reforms adopted in the late 1970s 
B) low taxes and deregulation in the special economic zones that were established during the 1980s 
C) the relaxation of restraints on foreign trade and joint ventures 
D) all of the above

Question 7

Some low-income countries generally remain poor because

Accepted Answer

A) their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange. 
B) they are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. 
C) they are poorly endowed with natural resources, which are essential for long-term growth. 
D) when the average income level is low, workers have little incentive to earn higher incomes. 
A) their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange. 
B) they are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. 
C) they are poorly endowed with natural resources, which are essential for long-term growth. 
D) when the average income level is low, workers have little incentive to earn higher incomes.

Question 8

Other things constant, countries that invest more will grow

Accepted Answer

A) more rapidly. 
B) less rapidly. 
C) at the same rate. 
D) at exactly 2% per year. 
A) more rapidly. 
B) less rapidly. 
C) at the same rate. 
D) at exactly 2% per year.

Question 9

Which of the following about economic growth is true?

Accepted Answer

A) The developed nations are growing rapidly and the less-developed nations are stagnating. 
B) Most of the countries that have achieved the highest growth rates in the world during the last quarter of a century were classified as LDCs in 1980. 
C) It is an oversimplification to divide the world into the growing, developed nations and the stagnating, less-developed nations. 
D) Both b and c are true. 
E) All of the above are true. 
A) The developed nations are growing rapidly and the less-developed nations are stagnating. 
B) Most of the countries that have achieved the highest growth rates in the world during the last quarter of a century were classified as LDCs in 1980. 
C) It is an oversimplification to divide the world into the growing, developed nations and the stagnating, less-developed nations. 
D) Both b and c are true. 
E) All of the above are true.

Question 10

Which of the following is true of technology?

Accepted Answer

A) Technological improvements are less important today than was true in the past. 
B) Lack of access to modern technology is a major barrier restraining the growth of low-income countries. 
C) Often, perverse institutions and policies in low-income countries undermine the potential gains from adoption of modern technology. 
D) Countries with high investment rates will be unable to apply modern technology effectively. 
A) Technological improvements are less important today than was true in the past. 
B) Lack of access to modern technology is a major barrier restraining the growth of low-income countries. 
C) Often, perverse institutions and policies in low-income countries undermine the potential gains from adoption of modern technology. 
D) Countries with high investment rates will be unable to apply modern technology effectively.

Question 11

According to the Economic Freedom of the World measure, the United States was

Accepted Answer

A) the freest economy in the world during 1980-2000. 
B) the third freest economy in the world, behind only Hong Kong and Singapore during 1980-2000. 
C) less free than Australia and Canada throughout the 1980-2000 era. 
D) less free than the large economies of Western Europe throughout the 1980-2000 era. 
A) the freest economy in the world during 1980-2000. 
B) the third freest economy in the world, behind only Hong Kong and Singapore during 1980-2000. 
C) less free than Australia and Canada throughout the 1980-2000 era. 
D) less free than the large economies of Western Europe throughout the 1980-2000 era.

Dividing data into quartiles means that you are dividing data into

Democracy tends to best promote economic freedom when there is

Income per person in the United States is approximately ____ that of Sierra Leone, Malawi, and Niger, three of the world's poorest countries.

On average, countries that have a larger degree of economic freedom tend to have

Private investment as a share of the economy tends to be higher in countries

During the past quarter of a century, which of the following has contributed to the economic growth of China?

Some low-income countries generally remain poor because

Other things constant, countries that invest more will grow

Which of the following about economic growth is true?

Which of the following is true of technology?

According to the Economic Freedom of the World measure, the United States was

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy, Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Creating an Environment for Growth and Prosperity

Gaining From International Trade

International Finance and the Foreign Exchange Market

Filters

Exam 17: Institutions, Policies, and Cross-Country Differences in Income and Growth

Dividing data into quartiles means that you are dividing data into

Democracy tends to best promote economic freedom when there is

Income per person in the United States is approximately ____ that of Sierra Leone, Malawi, and Niger, three of the world's poorest countries.

On average, countries that have a larger degree of economic freedom tend to have

Private investment as a share of the economy tends to be higher in countries

During the past quarter of a century, which of the following has contributed to the economic growth of China?

Some low-income countries generally remain poor because

Other things constant, countries that invest more will grow

Which of the following about economic growth is true?

Which of the following is true of technology?

According to the Economic Freedom of the World measure, the United States was

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy, Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Creating an Environment for Growth and Prosperity

Gaining From International Trade

International Finance and the Foreign Exchange Market

Filters