Question 1

Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?

Accepted Answer

A)  Higher tax rates. 
B)  A higher rate of investment. 
C)  A smaller trade sector. 
D)  Greater use of taxation to transfer income from the rich to the poor. 
A)  Higher tax rates. 
B)  A higher rate of investment. 
C)  A smaller trade sector. 
D)  Greater use of taxation to transfer income from the rich to the poor.

Question 2

In general, GDP per capita is highly correlated with alternative measures of quality of life.

Accepted Answer

A) True 
 B)False

Question 3

If a country's real GDP is growing at 5 percent and the population is also growing at 5 percent, its:

Accepted Answer

A)  per capita real GDP grows at an increasing rate. 
B)  per capita real GDP grows at a constant rate. 
C)  population growth will eventually exceed real GDP. 
D)  per capita real GDP decreases at a constant rate. 
E)  per capita real GDP does not change. 
A)  per capita real GDP grows at an increasing rate. 
B)  per capita real GDP grows at a constant rate. 
C)  population growth will eventually exceed real GDP. 
D)  per capita real GDP decreases at a constant rate. 
E)  per capita real GDP does not change.

Question 4

Which of the following is not a common characteristic of IACs?

Accepted Answer

A)  Market-based economies. 
B)  Large stocks of technologically advanced capital. 
C)  Well-educated labor. 
D)  Low per capita energy consumption. 
A)  Market-based economies. 
B)  Large stocks of technologically advanced capital. 
C)  Well-educated labor. 
D)  Low per capita energy consumption.

Question 5

In order for a country to develop a high per capita GDP, it must have a rich endowment of natural resources, particularly energy and mineral resources.​

Accepted Answer

A) True 
 B)False

Question 6

According to the text, Singapore is classified as a less developed country (LDC).

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an example of a country's infrastructure?

Accepted Answer

A)  Transportation system. 
B)  Communications system. 
C)  Political system. 
D)  Educational system. 
E)  Energy system. 
A)  Transportation system. 
B)  Communications system. 
C)  Political system. 
D)  Educational system. 
E)  Energy system.

Question 8

If an economy's population grows at 3 percent and real GDP grows at 2 percent, then:

Accepted Answer

A)  per capita real GDP is declining. 
B)  the economy's standard of living is increasing. 
C)  per capita real GDP is negative. 
D)  per capita real GDP is growing. 
E)  the economy is experiencing unemployment. 
A)  per capita real GDP is declining. 
B)  the economy's standard of living is increasing. 
C)  per capita real GDP is negative. 
D)  per capita real GDP is growing. 
E)  the economy is experiencing unemployment.

Question 9

Exhibit 17-1 Nation of Padia  
-Exhibit 17-1 shows the production possibility curve of the nation of Padia. Based only on this information, the point which would produce the highest rate of growth would be:

Accepted Answer

A)  I 
B)  II 
C)  III 
D)  IV 
E)  V 
A)  I 
B)  II 
C)  III 
D)  IV 
E)  V

Question 10

A country can develop without a large natural resource base.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true?

Accepted Answer

A)  A less developed country (LD
C)  is a country with a low GDP per capita, low levels of capital, and uneducated workers. 
B)  The vicious circle of poverty exists because GDP must rise before people can save and invest. 
C)  LDCs are characterized by rapid population growth and low levels of investment in human capital. 
D)  All of these. 
A)  A less developed country (LD
C)  is a country with a low GDP per capita, low levels of capital, and uneducated workers. 
B)  The vicious circle of poverty exists because GDP must rise before people can save and invest. 
C)  LDCs are characterized by rapid population growth and low levels of investment in human capital. 
D)  All of these.

Question 12

Which of the following does not hinder economic development?

Accepted Answer

A)  Low birth rates. 
B)  Low GDP that limits saving and investment. 
C)  Lack of knowledge. 
D)  Lack of technology. 
E)  Lack of physical capital. 
A)  Low birth rates. 
B)  Low GDP that limits saving and investment. 
C)  Lack of knowledge. 
D)  Lack of technology. 
E)  Lack of physical capital.

Question 13

If population grows faster than GDP, then per capita GDP must fall.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following factors would be most likely to encourage investment and capital formation in a less-developed nation?

Accepted Answer

A)  High and variable rates of inflation. 
B)  Tariffs and quotas that restrict international trade. 
C)  A legal system that provides for secure property rights and evenhanded enforcement of contracts. 
D)  High marginal tax rates. 
A)  High and variable rates of inflation. 
B)  Tariffs and quotas that restrict international trade. 
C)  A legal system that provides for secure property rights and evenhanded enforcement of contracts. 
D)  High marginal tax rates.

Question 15

A country with a high GDP per capita is classified as an industrially advanced country (IAC).

Accepted Answer

A) True 
 B)False

Question 16

Which of the following helps low-income countries grow rapidly relative to high-income countries?

Accepted Answer

A)  Low-income countries are in a better position to save a larger share of their income. 
B)  Low-income countries can employ technologies and practices that have been successful in high-income countries. 
C)  Low-income countries generally have legal systems that protect property rights and enforce contracts in a more evenhanded manner. 
D)  Low-income countries generally have more favorable weather conditions. 
A)  Low-income countries are in a better position to save a larger share of their income. 
B)  Low-income countries can employ technologies and practices that have been successful in high-income countries. 
C)  Low-income countries generally have legal systems that protect property rights and enforce contracts in a more evenhanded manner. 
D)  Low-income countries generally have more favorable weather conditions.

Question 17

According to the text, Singapore and Hong Kong are classified as industrially advanced countries (IACs).

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is infrastructure?

Accepted Answer

A)  Schools. 
B)  Roads. 
C)  Public health and sanitation services. 
D)  All of these. 
A)  Schools. 
B)  Roads. 
C)  Public health and sanitation services. 
D)  All of these.

Question 19

GDP per capita is a relatively good measurement of:

Accepted Answer

A)  the distribution of income. 
B)  purchasing power. 
C)  household production. 
D)  the standard of living. 
A)  the distribution of income. 
B)  purchasing power. 
C)  household production. 
D)  the standard of living.

Question 20

Which of the following represents a problem with using per capita GDP to compare standard of living between less-developed and industrially advanced countries? ​

Accepted Answer

A)  ​GDP per capita does not take into account differences in population between countries. 
B)  ​GDP is particularly difficult to measure in industrially advanced countries because a much larger percentage of economic activity occurs outside of officially measured market activity than in less-developed countries. 
C)  ​GDP per capita will overstate the prevailing standard of living for the average person in countries with extreme levels of income inequality. 
D)  ​None of the above are correct. 
A)  ​GDP per capita does not take into account differences in population between countries. 
B)  ​GDP is particularly difficult to measure in industrially advanced countries because a much larger percentage of economic activity occurs outside of officially measured market activity than in less-developed countries. 
C)  ​GDP per capita will overstate the prevailing standard of living for the average person in countries with extreme levels of income inequality. 
D)  ​None of the above are correct.

Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?

In general, GDP per capita is highly correlated with alternative measures of quality of life.

If a country's real GDP is growing at 5 percent and the population is also growing at 5 percent, its:

Which of the following is not a common characteristic of IACs?

In order for a country to develop a high per capita GDP, it must have a rich endowment of natural resources, particularly energy and mineral resources.

According to the text, Singapore is classified as a less developed country (LDC).

Which of the following is not an example of a country's infrastructure?

If an economy's population grows at 3 percent and real GDP grows at 2 percent, then:

Exhibit 17-1 Nation of Padia -Exhibit 17-1 shows the production possibility curve of the nation of Padia. Based only on this information, the point which would produce the highest rate of growth would be:

A country can develop without a large natural resource base.

Which of the following statements is true?

Which of the following does not hinder economic development?

If population grows faster than GDP, then per capita GDP must fall.

Which of the following factors would be most likely to encourage investment and capital formation in a less-developed nation?

A country with a high GDP per capita is classified as an industrially advanced country (IAC).

Which of the following helps low-income countries grow rapidly relative to high-income countries?

According to the text, Singapore and Hong Kong are classified as industrially advanced countries (IACs).

Which of the following is infrastructure?

GDP per capita is a relatively good measurement of:

Which of the following represents a problem with using per capita GDP to compare standard of living between less-developed and industrially advanced countries?

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Filters

Exam 17: Growth and the

Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?

In general, GDP per capita is highly correlated with alternative measures of quality of life.

If a country's real GDP is growing at 5 percent and the population is also growing at 5 percent, its:

Which of the following is not a common characteristic of IACs?

In order for a country to develop a high per capita GDP, it must have a rich endowment of natural resources, particularly energy and mineral resources.​

According to the text, Singapore is classified as a less developed country (LDC).

Which of the following is not an example of a country's infrastructure?

If an economy's population grows at 3 percent and real GDP grows at 2 percent, then:

Exhibit 17-1 Nation of Padia -Exhibit 17-1 shows the production possibility curve of the nation of Padia. Based only on this information, the point which would produce the highest rate of growth would be:

A country can develop without a large natural resource base.

Which of the following statements is true?

Which of the following does not hinder economic development?

If population grows faster than GDP, then per capita GDP must fall.

Which of the following factors would be most likely to encourage investment and capital formation in a less-developed nation?

A country with a high GDP per capita is classified as an industrially advanced country (IAC).

Which of the following helps low-income countries grow rapidly relative to high-income countries?

According to the text, Singapore and Hong Kong are classified as industrially advanced countries (IACs).

Which of the following is infrastructure?

GDP per capita is a relatively good measurement of:

Which of the following represents a problem with using per capita GDP to compare standard of living between less-developed and industrially advanced countries? ​

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Filters

In order for a country to develop a high per capita GDP, it must have a rich endowment of natural resources, particularly energy and mineral resources.

Which of the following represents a problem with using per capita GDP to compare standard of living between less-developed and industrially advanced countries?