Question 1

Which of the following provides the fuel for growth and achievement of high income levels?

Accepted Answer

A) gains from trade 
B) entrepreneurial discovery 
C) capital formation 
D) all of the above 
A) gains from trade 
B) entrepreneurial discovery 
C) capital formation 
D) all of the above

Question 2

If a country's political leaders wanted to promote economic growth,which of the following policy alternatives would be most effective?

Accepted Answer

A) imposition of price controls on agricultural products in an effort to keep food cheap. 
B) imposition of high marginal tax rates designed to reduce income inequality. 
C) imposition of tariffs and other trade restraints limiting international trade. 
D) monetary policy consistent with long-run price stability 
A) imposition of price controls on agricultural products in an effort to keep food cheap. 
B) imposition of high marginal tax rates designed to reduce income inequality. 
C) imposition of tariffs and other trade restraints limiting international trade. 
D) monetary policy consistent with long-run price stability

Question 3

Which country had the most rapid growth rate of real income per person during 1980-2009?

Accepted Answer

A) Japan 
B) China 
C) United States 
D) Russia 
A) Japan 
B) China 
C) United States 
D) Russia

Question 4

According to the Economic Freedom of the World (EFW)rating,which of the following countries has the highest level of economic freedom?

Accepted Answer

A) Argentina 
B) Nigeria 
C) United States 
D) Nicaragua 
A) Argentina 
B) Nigeria 
C) United States 
D) Nicaragua

Question 5

When considering the impact of institutions and policies on economic performance,it is most important to focus on

Accepted Answer

A) long-term economic growth. 
B) short-term economic growth. 
C) business cycle fluctuations. 
D) the labor force participation rate of married women. 
A) long-term economic growth. 
B) short-term economic growth. 
C) business cycle fluctuations. 
D) the labor force participation rate of married women.

Question 6

Which of the following countries has the highest per capita income?

Accepted Answer

A) Malawi 
B) South Korea 
C) Sierra Leone 
D) Niger 
A) Malawi 
B) South Korea 
C) Sierra Leone 
D) Niger

Question 7

Political institutions are more likely to allow and encourage the emergence of good economic institutions and policies when

Accepted Answer

A) the top government executives have enough power to impose good economic arrangements on the nation. 
B) constitutional constraints prevent laws and regulations that weaken the rights of property owners,curtail voluntary exchange,and provide for decentralization of government. 
C) the elected executive and legislative branches have fewer constraints on what they can do,leaving them free to innovate and improve economic institutions. 
D) well organized interest groups exert a powerful influence on the political process. 
A) the top government executives have enough power to impose good economic arrangements on the nation. 
B) constitutional constraints prevent laws and regulations that weaken the rights of property owners,curtail voluntary exchange,and provide for decentralization of government. 
C) the elected executive and legislative branches have fewer constraints on what they can do,leaving them free to innovate and improve economic institutions. 
D) well organized interest groups exert a powerful influence on the political process.

Question 8

Which of the following is true?

Accepted Answer

A) The fastest growing economies in the world are mostly less developed countries. 
B) The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more)are mostly high-income industrial countries. 
C) The slowest growing countries in the world,many of which are experiencing declines in per capita GDP,are less developed countries. 
D) Both a and c are true. 
A) The fastest growing economies in the world are mostly less developed countries. 
B) The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more)are mostly high-income industrial countries. 
C) The slowest growing countries in the world,many of which are experiencing declines in per capita GDP,are less developed countries. 
D) Both a and c are true.

Question 9

Which one of the following countries has the lowest per capita income?

Accepted Answer

A) Canada 
B) South Korea 
C) Switzerland 
D) India 
A) Canada 
B) South Korea 
C) Switzerland 
D) India

Question 10

Which countries undertook economic reforms in the 1960's that resulted in more economic freedom and stronger economic growth?

Accepted Answer

A) Venezuela and Zimbabwe 
B) Malawi and Niger 
C) Hong Kong and Singapore 
D) United States and Switzerland 
A) Venezuela and Zimbabwe 
B) Malawi and Niger 
C) Hong Kong and Singapore 
D) United States and Switzerland

Question 11

For most less-developed countries,the proven technologies of the high-income countries are readily available.Why hasn't this always led to economic growth for these low-income countries?

Accepted Answer

The mere existence of technology is not

Question 12

How do growth rates vary across countries? Are the rich countries getting richer while the poor are getting poorer?

Accepted Answer

Growth rates vary widely across countrie

Question 13

During 1980-2005,the developing countries that moved most rapidly toward economic freedom

Accepted Answer

A) achieved higher rates of economic growth,but the reductions in their poverty rates were smaller than those for countries that were less free. 
B) grew less rapidly,but the reductions in the poverty rates were greater than those achieved in countries that were less free. 
C) experienced both slower rates of economic growth and smaller reductions in poverty rates than countries that were less free. 
D) experienced both more rapid rates of economic growth and larger reductions in poverty rates than countries that were less free. 
A) achieved higher rates of economic growth,but the reductions in their poverty rates were smaller than those for countries that were less free. 
B) grew less rapidly,but the reductions in the poverty rates were greater than those achieved in countries that were less free. 
C) experienced both slower rates of economic growth and smaller reductions in poverty rates than countries that were less free. 
D) experienced both more rapid rates of economic growth and larger reductions in poverty rates than countries that were less free.

Question 14

Countries with lower levels of economic freedom tend to have

Accepted Answer

A) lower levels of economic growth 
B) higher levels of per person income 
C) higher levels of investment 
D) all of the above 
A) lower levels of economic growth 
B) higher levels of per person income 
C) higher levels of investment 
D) all of the above

Question 15

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 16

A country that organizes economic activity in a manner consistent with personal choice,voluntary exchange coordinated by markets,freedom to enter and compete in markets,and protection of persons and their property from aggression by others is said to have a high degree of

Accepted Answer

A) central planning. 
B) government regulation. 
C) collective choice. 
D) economic freedom. 
A) central planning. 
B) government regulation. 
C) collective choice. 
D) economic freedom.

Question 17

According to the Economic Freedom of the World (EFW)rating,which of the following countries has the highest level of economic freedom?

Accepted Answer

A) Myanmar 
B) Syria 
C) Hong Kong 
D) Mexico 
A) Myanmar 
B) Syria 
C) Hong Kong 
D) Mexico

Question 18

Which of the following countries has had the highest growth rate of per capita GDP over the past 25 years?

Accepted Answer

A) Haiti 
B) Niger 
C) India 
D) Zimbabwe 
A) Haiti 
B) Niger 
C) India 
D) Zimbabwe

Question 19

Which of the following is true?

Accepted Answer

A) economic freedom is present if a country is a political democracy. 
B) economic freedom ratings indicate the consistency of a nation's institutions and policies with personal choice,freedom of exchange,and protection of private property. 
C) economies that are highly free tend to grow less rapidly than those with less economic freedom. 
D) all of the above are correct. 
A) economic freedom is present if a country is a political democracy. 
B) economic freedom ratings indicate the consistency of a nation's institutions and policies with personal choice,freedom of exchange,and protection of private property. 
C) economies that are highly free tend to grow less rapidly than those with less economic freedom. 
D) all of the above are correct.

Question 20

Which of the following economies was most economically free during 1980-2009?

Accepted Answer

A) United States 
B) Brazil 
C) Japan 
D) Hong Kong 
A) United States 
B) Brazil 
C) Japan 
D) Hong Kong

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

Which of the following provides the fuel for growth and achievement of high income levels?

If a country's political leaders wanted to promote economic growth,which of the following policy alternatives would be most effective?

Which country had the most rapid growth rate of real income per person during 1980-2009?

According to the Economic Freedom of the World (EFW)rating,which of the following countries has the highest level of economic freedom?

When considering the impact of institutions and policies on economic performance,it is most important to focus on

Which of the following countries has the highest per capita income?

Political institutions are more likely to allow and encourage the emergence of good economic institutions and policies when

Which of the following is true?

Which one of the following countries has the lowest per capita income?

Which countries undertook economic reforms in the 1960's that resulted in more economic freedom and stronger economic growth?

For most less-developed countries,the proven technologies of the high-income countries are readily available.Why hasn't this always led to economic growth for these low-income countries?

How do growth rates vary across countries? Are the rich countries getting richer while the poor are getting poorer?

During 1980-2005,the developing countries that moved most rapidly toward economic freedom

Countries with lower levels of economic freedom tend to have

Which of the following is true of technology?

A country that organizes economic activity in a manner consistent with personal choice,voluntary exchange coordinated by markets,freedom to enter and compete in markets,and protection of persons and their property from aggression by others is said to have a high degree of

According to the Economic Freedom of the World (EFW)rating,which of the following countries has the highest level of economic freedom?

Which of the following countries has had the highest growth rate of per capita GDP over the past 25 years?

Which of the following is true?

Which of the following economies was most economically free during 1980-2009?

The Economic Approach

Asome Tools of the Economist

Asupply,demand,and the Market Process

Asupply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Ataking the Nations Economic Pulse

Economic Fluctuations, unemployment, and Inflation

Aan Introduction to Basic Macroeconomic Markets

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

Fiscal Policy: the Keynesian View and Historical Perspective

Fiscal Policy, incentives, and Secondary Effects

Amoney 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

Consumer Choice and Elasticity

Acosts and the Supply of Goods

Aprice Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Aprice-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Government Spending and Taxation

The Economics of Social Security

The Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Great Debates in Economics: Keynes Versus Hayek

The Crisis of 2008: Causes and Lessons for the Future

Lessons From the Great Depression

Lessons From Japan and Canada

The Federal Budget and the National Debt

The Economics of Healthcare

Education: Problems and Performance

Earnings Differences Between Men and Women

Do Labor Unions Increase the Wages of Workers

The Question of Resource Exhaustion

Difficult Environmental Cases and the Role of Government

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