Question 1

One of the key factors in the economic success of South Korea was

Accepted Answer

A) an increase in years of schooling. 
B) a reduction in the amount of imports. 
C) the creation of new technology. 
D) all of the above. 
A) an increase in years of schooling. 
B) a reduction in the amount of imports. 
C) the creation of new technology. 
D) all of the above.

Question 2

Several countries in the world have failed to "converge" with industrialized countries.What does this mean about their economic growth rates?
 Explain why poorer countries have failed to "catch up", in terms of the pillars of economic growth.Are there any special problems facing these countries?

Accepted Answer

If a poor country fails to converge, thi

Question 3

The school of engineering at a modern university would be a supporter of the new

Accepted Answer

A) consumption theory. 
B) growth theory. 
C) monetary theory. 
D) construction theory. 
A) consumption theory. 
B) growth theory. 
C) monetary theory. 
D) construction theory.

Question 4

Labor productivity growth in the United States during the 1973-1995 period could be explained by a ____ slowdown.

Accepted Answer

A) labor force 
B) capital formation 
C) technological 
D) population growth 
A) labor force 
B) capital formation 
C) technological 
D) population growth

Question 5

The type of human capital formation that occurs in the business sector is called

Accepted Answer

A) vocational education. 
B) business education. 
C) on-the-job training. 
D) productivity enhancement. 
A) vocational education. 
B) business education. 
C) on-the-job training. 
D) productivity enhancement.

Question 6

Workforce explanations of the productivity changes in the 1973-1995 period include

Accepted Answer

A) rising SAT scores. 
B) declining SAT scores. 
C) rising educational attainment. 
D) falling levels of average educational attainment. 
A) rising SAT scores. 
B) declining SAT scores. 
C) rising educational attainment. 
D) falling levels of average educational attainment.

Question 7

Devoting more of a country's resources for producing consumer goods means

Accepted Answer

A) economy is using it resources for future production. 
B) fewer resources to producing investment goods. 
C) country will grow more rapidly in the future. 
D) productivity of the invested capital is extremely high. 
A) economy is using it resources for future production. 
B) fewer resources to producing investment goods. 
C) country will grow more rapidly in the future. 
D) productivity of the invested capital is extremely high.

Question 8

One of the factors causing the shrinking gap between rich and poor countries is

Accepted Answer

A) learning by poor countries. 
B) increasing resource discoveries. 
C) increasing populations in poor countries. 
D) transfers of income from rich countries. 
A) learning by poor countries. 
B) increasing resource discoveries. 
C) increasing populations in poor countries. 
D) transfers of income from rich countries.

Question 9

The threat of confiscated private property diminishes the incentive to invest.

Accepted Answer

A) True 
 B)False

Question 10

In general, as productivity levels decrease, the potential for productivity growth

Accepted Answer

A) decreases. 
B) increases. 
C) remains the same. 
D) decreases if GDP decreases. 
A) decreases. 
B) increases. 
C) remains the same. 
D) decreases if GDP decreases.

Question 11

Private investment from a foreign country is known as

Accepted Answer

A) development assistance. 
B) foreign direct investment. 
C) technical progress. 
D) the cost disease of personal services. 
A) development assistance. 
B) foreign direct investment. 
C) technical progress. 
D) the cost disease of personal services.

Question 12

In most rich countries, adult citizens typically have a

Accepted Answer

A) primary education. 
B) secondary education. 
C) higher education. 
D) graduate-level education. 
A) primary education. 
B) secondary education. 
C) higher education. 
D) graduate-level education.

Question 13

The productivity speed-up of the 1950s and the 1960s could have been caused by

Accepted Answer

A) wartime innovations. 
B) civilian innovations after World War II. 
C) industrial innovations spurred by the Korean and Vietnam conflicts. 
D) decreases in the rate of population growth. 
A) wartime innovations. 
B) civilian innovations after World War II. 
C) industrial innovations spurred by the Korean and Vietnam conflicts. 
D) decreases in the rate of population growth.

Question 14

Economists believe that the same explanation for the rapid growth of costs applies to services, theatrical performances and restaurant meals.

Accepted Answer

A) True 
 B)False

Question 15

The information technology revolution seems to have had its greatest positive effect on labor productivity growth in the ____ period.

Accepted Answer

A) 1948-1973 
B) 1973-1995 
C) 1995-2005 
D) 1948-2005 
A) 1948-1973 
B) 1973-1995 
C) 1995-2005 
D) 1948-2005

Question 16

The financing of investment spending is often made possible by

Accepted Answer

A) consumer spending. 
B) money supply creation. 
C) borrowing. 
D) tax reductions. 
A) consumer spending. 
B) money supply creation. 
C) borrowing. 
D) tax reductions.

Question 17

On-the-job training is the one area of education in the United States most influenced by the

Accepted Answer

A) business sector. 
B) government sector. 
C) household sector. 
D) foreign sector. 
A) business sector. 
B) government sector. 
C) household sector. 
D) foreign sector.

Question 18

The expansion of information technology and the increasing complexity of the economy should make the wage premium

Accepted Answer

A) continue rising. 
B) continue falling. 
C) rise. 
D) fall. 
A) continue rising. 
B) continue falling. 
C) rise. 
D) fall.

Question 19

Imitation is not only the highest form of flattery but also an easier way for poorer countries to develop new technology.

Accepted Answer

A) True 
 B)False

Question 20

In 2011, which country had the highest level of GDP per hour of work?

Accepted Answer

A) Spain 
B) the United Kingdom 
C) France 
D) Japan 
A) Spain 
B) the United Kingdom 
C) France 
D) Japan

Exam 24: Economic Growth: Theory and Policy

One of the key factors in the economic success of South Korea was

Several countries in the world have failed to "converge" with industrialized countries.What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up", in terms of the pillars of economic growth.Are there any special problems facing these countries?

The school of engineering at a modern university would be a supporter of the new

Labor productivity growth in the United States during the 1973-1995 period could be explained by a ____ slowdown.

The type of human capital formation that occurs in the business sector is called

Workforce explanations of the productivity changes in the 1973-1995 period include

Devoting more of a country's resources for producing consumer goods means

One of the factors causing the shrinking gap between rich and poor countries is

The threat of confiscated private property diminishes the incentive to invest.

In general, as productivity levels decrease, the potential for productivity growth

Private investment from a foreign country is known as

In most rich countries, adult citizens typically have a

The productivity speed-up of the 1950s and the 1960s could have been caused by

Economists believe that the same explanation for the rapid growth of costs applies to services, theatrical performances and restaurant meals.

The information technology revolution seems to have had its greatest positive effect on labor productivity growth in the ____ period.

The financing of investment spending is often made possible by

On-the-job training is the one area of education in the United States most influenced by the

The expansion of information technology and the increasing complexity of the economy should make the wage premium

Imitation is not only the highest form of flattery but also an easier way for poorer countries to develop new technology.

In 2011, which country had the highest level of GDP per hour of work?

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

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

He 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

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