Question 1

Research and development refers to

Accepted Answer

A)  the act of discovering new products or new ways of making products. 
B)  the act of putting new ideas into effect. 
C)  activities aimed at inventing new products or process, or improving existing ones. 
D)  the collaboration between the private sector and public sector. 
A)  the act of discovering new products or new ways of making products. 
B)  the act of putting new ideas into effect. 
C)  activities aimed at inventing new products or process, or improving existing ones. 
D)  the collaboration between the private sector and public sector.

Question 2

Investment is a(n) ____ and capital is a ____ variable.

Accepted Answer

A)  physical; financial 
B)  stock; flow 
C)  asset; liability 
D)  flow; stock 
A)  physical; financial 
B)  stock; flow 
C)  asset; liability 
D)  flow; stock

Question 3

According to the cost disease of the personal services, service activities that require direct personal contact

Accepted Answer

A)  tend to fall in price relative to other goods and services. 
B)  tend to rise in price relative to other goods and services. 
C)  follow price patterns similar to other goods and services. 
D)  tend to move up and down in price ignoring the rest of the market. 
A)  tend to fall in price relative to other goods and services. 
B)  tend to rise in price relative to other goods and services. 
C)  follow price patterns similar to other goods and services. 
D)  tend to move up and down in price ignoring the rest of the market.

Question 4

Because the Soviet Union educated more scientists and engineers than the United States, their level of economic growth was higher.

Accepted Answer

A) True 
 B)False

Question 5

Foreign direct investment generally leads to technological advancements in poorer countries.

Accepted Answer

A) True 
 B)False

Question 6

Many poorer countries face political instability and insecure property rights.

Accepted Answer

A) True 
 B)False

Question 7

A quick strategy used by developing countries to acquire new technology is through

Accepted Answer

A)  imitation. 
B)  innovation. 
C)  tariffs. 
D)  acquisition. 
A)  imitation. 
B)  innovation. 
C)  tariffs. 
D)  acquisition.

Question 8

The wealthy nations of the world have

Accepted Answer

A)  the largest populations. 
B)  more supplies of natural resources. 
C)  more supplies of capital. 
D)  larger labor forces. 
A)  the largest populations. 
B)  more supplies of natural resources. 
C)  more supplies of capital. 
D)  larger labor forces.

Question 9

A nation's capital consists mainly of stocks, bonds, and other financial assets.

Accepted Answer

A) True 
 B)False

Question 10

A country's level of well-being is determined primarily by its level of

Accepted Answer

A)  population growth. 
B)  educational attainment. 
C)  capital stock growth. 
D)  natural resource growth. 
A)  population growth. 
B)  educational attainment. 
C)  capital stock growth. 
D)  natural resource growth.

Question 11

Which period of recent U.S. history shows the lowest rates of productivity growth?

Accepted Answer

A)  1948-1973 
B)  1973-1995 
C)  1995-2000 
D)  All periods had similar growth rates. 
A)  1948-1973 
B)  1973-1995 
C)  1995-2000 
D)  All periods had similar growth rates.

Question 12

The prices of telecommunications services have decreased due to productivity increases.

Accepted Answer

A) True 
 B)False

Question 13

Imitation, rather than innovation, is a way for poorer countries to achieve growth.

Accepted Answer

A) True 
 B)False

Question 14

The productivity slowdown in the United States from 1973 to 1995

Accepted Answer

A)  can be explained easily with economic theory. 
B)  continued into the third millennium. 
C)  still confuses economists. 
D)  was a continuation of the slowdown from 1948 to 1973. 
A)  can be explained easily with economic theory. 
B)  continued into the third millennium. 
C)  still confuses economists. 
D)  was a continuation of the slowdown from 1948 to 1973.

Question 15

Which retail operation would have the highest costs per book sold?

Accepted Answer

A)  A small independent bookstore 
B)  A large retail bookstore chain 
C)  An Internet seller of books 
D)  The Internet seller and retailer 
A)  A small independent bookstore 
B)  A large retail bookstore chain 
C)  An Internet seller of books 
D)  The Internet seller and retailer

Question 16

More education and training usually lead to higher levels of

Accepted Answer

A)  productivity. 
B)  population. 
C)  pollution. 
D)  import protectionism. 
A)  productivity. 
B)  population. 
C)  pollution. 
D)  import protectionism.

Question 17

According to new growth theory, _______ is advocated as a critical component of economic growth.

Accepted Answer

A)  government spending 
B)  new equipment 
C)  access to Federal natural resources 
D)  education 
A)  government spending 
B)  new equipment 
C)  access to Federal natural resources 
D)  education

Question 18

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

Accepted Answer

Real interest rates: The amount that bus

Question 19

In general, as the amount of labor input decreases, the amount of output

Accepted Answer

A)  increases. 
B)  decreases. 
C)  remains constant. 
D)  decreases only if the capital stock also decreases. 
A)  increases. 
B)  decreases. 
C)  remains constant. 
D)  decreases only if the capital stock also decreases.

Question 20

Advancements in information technology can be used to explain the

Accepted Answer

A)  reductions in energy usage. 
B)  increases in energy usage. 
C)  productivity improvements in the United States. 
D)  productivity slowdown of the early 2000s in the United States. 
A)  reductions in energy usage. 
B)  increases in energy usage. 
C)  productivity improvements in the United States. 
D)  productivity slowdown of the early 2000s in the United States.

Exam 23: Economic Growth: Theory and Policy

Research and development refers to

Investment is a(n) ____ and capital is a ____ variable.

According to the cost disease of the personal services, service activities that require direct personal contact

Because the Soviet Union educated more scientists and engineers than the United States, their level of economic growth was higher.

Foreign direct investment generally leads to technological advancements in poorer countries.

Many poorer countries face political instability and insecure property rights.

A quick strategy used by developing countries to acquire new technology is through

The wealthy nations of the world have

A nation's capital consists mainly of stocks, bonds, and other financial assets.

A country's level of well-being is determined primarily by its level of

Which period of recent U.S. history shows the lowest rates of productivity growth?

The prices of telecommunications services have decreased due to productivity increases.

Imitation, rather than innovation, is a way for poorer countries to achieve growth.

The productivity slowdown in the United States from 1973 to 1995

Which retail operation would have the highest costs per book sold?

More education and training usually lead to higher levels of

According to new growth theory, _______ is advocated as a critical component of economic growth.

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

In general, as the amount of labor input decreases, the amount of output

Advancements in information technology can be used to explain the

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Us Economy

Filters

Investment is a(n) and capital is a variable.