Question 1

Significant economic growth did not begin in the world until

Accepted Answer

A)  1000 A.D. 
B)  1750 A.D. 
C)  1820 A.D. 
D)  the 20th century A.D. 
A)  1000 A.D. 
B)  1750 A.D. 
C)  1820 A.D. 
D)  the 20th century A.D.

Question 2

Figure 22-4  
-Refer to Figure 22-4. The movement from A to B to C illustrates

Accepted Answer

A)  an improvement in technology. 
B)  a decline in capital per worker. 
C)  diminishing returns to capital. 
D)  diminishing returns to labor. 
A)  an improvement in technology. 
B)  a decline in capital per worker. 
C)  diminishing returns to capital. 
D)  diminishing returns to labor.

Question 3

The rapid growth of the Chinese economy should

Accepted Answer

A)  benefit U.S. consumers as they have access to less-expensive consumer goods. 
B)  make it more difficult for citizens of the United States to find jobs. 
C)  not affect the mix of jobs available to citizens of the United States. 
D)  A and B 
A)  benefit U.S. consumers as they have access to less-expensive consumer goods. 
B)  make it more difficult for citizens of the United States to find jobs. 
C)  not affect the mix of jobs available to citizens of the United States. 
D)  A and B

Question 4

Figure 22-4  
-Refer to Figure 22-4. Which of the following combinations of points illustrates changes in the Soviet Union's economy from 1950 to 1980?

Accepted Answer

A)  E to B 
B)  B to D 
C)  B to E 
D)  A to B to C 
A)  E to B 
B)  B to D 
C)  B to E 
D)  A to B to C

Question 5

Technological change will

Accepted Answer

A)  shift the per-worker production function up. 
B)  shift the per-worker production function down. 
C)  move the economy to a point beneath the per-worker production function. 
D)  move the economy along a given per-worker production function. 
A)  shift the per-worker production function up. 
B)  shift the per-worker production function down. 
C)  move the economy to a point beneath the per-worker production function. 
D)  move the economy along a given per-worker production function.

Question 6

Figure 22-2  
-Refer to Figure 22-2. Assuming no technological change, if the United States increases capital per hour worked by $40,000 every year between 2014 and 2018, we would expect to see

Accepted Answer

A)  real GDP per hour worked will increase by the same increment each year between 2014 and 2018. 
B)  real GDP per hour worked will be lower in 2018 than it was in 2014. 
C)  the per-worker production function will get flatter over time. 
D)  the per-worker production function will shift up every year there is increase in capital per hour worked. 
A)  real GDP per hour worked will increase by the same increment each year between 2014 and 2018. 
B)  real GDP per hour worked will be lower in 2018 than it was in 2014. 
C)  the per-worker production function will get flatter over time. 
D)  the per-worker production function will shift up every year there is increase in capital per hour worked.

Question 7

Georg, a German citizen, just purchased 10 shares of stock in Microsoft, a U.S. company. This purchase is an example of

Accepted Answer

A)  foreign direct investment. 
B)  foreign public investment. 
C)  foreign portfolio investment. 
D)  contractual globalization. 
A)  foreign direct investment. 
B)  foreign public investment. 
C)  foreign portfolio investment. 
D)  contractual globalization.

Question 8

Some researchers have been unable to find evidence of increasing returns to human capital.

Accepted Answer

A) True 
 B)False

Question 9

Robert Lucas, a Nobel laureate in economics, argues that there are increasing returns to

Accepted Answer

A)  knowledge capital. 
B)  physical capital. 
C)  financial capital. 
D)  human capital. 
A)  knowledge capital. 
B)  physical capital. 
C)  financial capital. 
D)  human capital.

Question 10

Productivity growth in the United States has steadily increased since 1995.

Accepted Answer

A) True 
 B)False

Question 11

The growth rate of real GDP per capita in Mexico was negative in which of the following time periods?

Accepted Answer

A)  1980-1989 
B)  1990-1999 
C)  2000-2016 
D)  all of the above 
A)  1980-1989 
B)  1990-1999 
C)  2000-2016 
D)  all of the above

Question 12

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen, but just "appeared" to happen because

Accepted Answer

A)  exports were becoming a less important part of the economy, and it was hard to measure decreases in output from exports. 
B)  new environmental laws had passed and forced firms to spend to reduce pollution, and this spending did not raise output. 
C)  increased spending on health and safety raised worker productivity. 
D)  of the high inflation levels of the 1970s. 
A)  exports were becoming a less important part of the economy, and it was hard to measure decreases in output from exports. 
B)  new environmental laws had passed and forced firms to spend to reduce pollution, and this spending did not raise output. 
C)  increased spending on health and safety raised worker productivity. 
D)  of the high inflation levels of the 1970s.

Question 13

In the long run, ________ differences in economic growth rates result in ________ differences in GDP per capita.

Accepted Answer

A)  large; small 
B)  large; no 
C)  small; large 
D)  small; no 
A)  large; small 
B)  large; no 
C)  small; large 
D)  small; no

Question 14

Which of the following accurately describes the economic growth and standards of living between 1,000,000 B.C. and 1300 A.D.?

Accepted Answer

A)  Standards of living in 1300 A.D. were substantially better than what they were in 1,000,000 B.C. 
B)  Standards of living substantially declined from 1,000,000 B.C. to 1300 A.D. 
C)  Significant economic growth took place between 1,000,000 B.C. and 1300 A.D. 
D)  No sustained economic growth occurred between 1,000,000 B.C. and 1300 A.D. 
A)  Standards of living in 1300 A.D. were substantially better than what they were in 1,000,000 B.C. 
B)  Standards of living substantially declined from 1,000,000 B.C. to 1300 A.D. 
C)  Significant economic growth took place between 1,000,000 B.C. and 1300 A.D. 
D)  No sustained economic growth occurred between 1,000,000 B.C. and 1300 A.D.

Question 15

As predicted by the catch-up prediction in economic growth models, countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Accepted Answer

A) True 
 B)False

Question 16

Globalization is defined as the process of countries becoming ________ open to foreign trade and ________ open to foreign investment.

Accepted Answer

A)  more; less 
B)  more; more 
C)  less; more 
D)  less; less 
A)  more; less 
B)  more; more 
C)  less; more 
D)  less; less

Question 17

Creative destruction means that

Accepted Answer

A)  firms develop new products that replace old products in the economy, thereby encouraging economic growth. 
B)  economic growth can only be sustained if capital depreciates rapidly. 
C)  knowledge capital can be created through a system of government subsidies for education and research and development. 
D)  research and development should only be financed if research and development is incremental (a result of making small changes to existing products). 
A)  firms develop new products that replace old products in the economy, thereby encouraging economic growth. 
B)  economic growth can only be sustained if capital depreciates rapidly. 
C)  knowledge capital can be created through a system of government subsidies for education and research and development. 
D)  research and development should only be financed if research and development is incremental (a result of making small changes to existing products).

Question 18

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Accepted Answer

Convergence is a term that describes a p

Question 19

Figure 22-4  
-Refer to Figure 22-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy. If the United States decided to cut its support of university research in half, this would cause a movement from

Accepted Answer

A)  B to A. 
B)  B to E. 
C)  B to C. 
D)  B to D. 
A)  B to A. 
B)  B to E. 
C)  B to C. 
D)  B to D.

Question 20

Over the past 50 years, deaths among children have

Accepted Answer

A)  declined in most high-income countries and have risen in most low-income countries. 
B)  declined in nearly all countries, including most low-income countries. 
C)  remained relatively unchanged in most high-income countries and have declined in most low-income countries. 
D)  declined in most high-income countries and have remained relatively unchanged in most low-income countries. 
A)  declined in most high-income countries and have risen in most low-income countries. 
B)  declined in nearly all countries, including most low-income countries. 
C)  remained relatively unchanged in most high-income countries and have declined in most low-income countries. 
D)  declined in most high-income countries and have remained relatively unchanged in most low-income countries.

Exam 22: Long-Run Economic Growth: Sources and Policies

Significant economic growth did not begin in the world until

Figure 22-4 -Refer to Figure 22-4. The movement from A to B to C illustrates

The rapid growth of the Chinese economy should

Figure 22-4 -Refer to Figure 22-4. Which of the following combinations of points illustrates changes in the Soviet Union's economy from 1950 to 1980?

Technological change will

Figure 22-2 -Refer to Figure 22-2. Assuming no technological change, if the United States increases capital per hour worked by $40,000 every year between 2014 and 2018, we would expect to see

Georg, a German citizen, just purchased 10 shares of stock in Microsoft, a U.S. company. This purchase is an example of

Some researchers have been unable to find evidence of increasing returns to human capital.

Robert Lucas, a Nobel laureate in economics, argues that there are increasing returns to

Productivity growth in the United States has steadily increased since 1995.

The growth rate of real GDP per capita in Mexico was negative in which of the following time periods?

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen, but just "appeared" to happen because

In the long run, ________ differences in economic growth rates result in ________ differences in GDP per capita.

Which of the following accurately describes the economic growth and standards of living between 1,000,000 B.C. and 1300 A.D.?

As predicted by the catch-up prediction in economic growth models, countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Globalization is defined as the process of countries becoming ________ open to foreign trade and ________ open to foreign investment.

Creative destruction means that

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Figure 22-4 -Refer to Figure 22-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy. If the United States decided to cut its support of university research in half, this would cause a movement from

Over the past 50 years, deaths among children have

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

In the long run, differences in economic growth rates result in differences in GDP per capita.

Globalization is defined as the process of countries becoming open to foreign trade and open to foreign investment.