Question 1

Your friend does not understand the benefits of globalization.Outline for your friend the positive economic aspects of globalization.

Accepted Answer

Globalization is the process of countrie

Question 2

Because knowledge capital is nonexcludable and nonrival,firms have an incentive to ________ on the research and development of other firms.

Accepted Answer

A)  make bids 
B)  not use 
C)  ignore 
D)  free ride 
A)  make bids 
B)  not use 
C)  ignore 
D)  free ride

Question 3

If an outflow of workers leaves a country with a smaller but more productive workforce and the capital per hour worked does not change,there will be ________ the per-worker production function in that country.

Accepted Answer

A)  a movement up 
B)  a movement down 
C)  an upward shift of 
D)  a downward shift of 
A)  a movement up 
B)  a movement down 
C)  an upward shift of 
D)  a downward shift of

Question 4

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The average annual growth rate of GDP was

Accepted Answer

A)  4%. 
B)  7%. 
C)  10%. 
D)  40%. 
A)  4%. 
B)  7%. 
C)  10%. 
D)  40%.

Question 5

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

Accepted Answer

A) True 
 B)False

Question 6

New growth theory states that increases in ________ capital will result in ________ at the ________ level.

Accepted Answer

A)  knowledge; increasing returns to scale: firm 
B)  physical; decreasing returns to scale; firm 
C)  knowledge; decreasing returns to scale; economy 
D)  knowledge; increasing returns to scale; economy 
A)  knowledge; increasing returns to scale: firm 
B)  physical; decreasing returns to scale; firm 
C)  knowledge; decreasing returns to scale; economy 
D)  knowledge; increasing returns to scale; economy

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

Accepted Answer

A)  The British government was committed to upholding private property rights. 
B)  The British government was able to eliminate arbitrary increases in taxes. 
C)  The British government was able to more easily seize wealth. 
D)  Institutional changes by the British government helped protect wealth. 
A)  The British government was committed to upholding private property rights. 
B)  The British government was able to eliminate arbitrary increases in taxes. 
C)  The British government was able to more easily seize wealth. 
D)  Institutional changes by the British government helped protect wealth.

Question 9

Policies to promote growth by increasing saving and investment work through

Accepted Answer

A)  decreasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital. 
B)  increasing the supply of loanable funds, increasing the interest rate, raising the level of investment in physical capital. 
C)  increasing the supply of loanable funds, lowering the interest rate, lowering the level of investment in physical capital. 
D)  increasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital. 
A)  decreasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital. 
B)  increasing the supply of loanable funds, increasing the interest rate, raising the level of investment in physical capital. 
C)  increasing the supply of loanable funds, lowering the interest rate, lowering the level of investment in physical capital. 
D)  increasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital.

Question 10

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?

Accepted Answer

A)  Information and communication innovations are increasingly geared toward improving business processes and not consumer products. 
B)  Faster computers have sped up data processing. 
C)  Internet use has increased the efficiency of how firms buy and sell to each other and to consumers. 
D)  Cell phones and wireless Internet access increase worker flexibility. 
A)  Information and communication innovations are increasingly geared toward improving business processes and not consumer products. 
B)  Faster computers have sped up data processing. 
C)  Internet use has increased the efficiency of how firms buy and sell to each other and to consumers. 
D)  Cell phones and wireless Internet access increase worker flexibility.

Question 11

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Accepted Answer

A) True 
 B)False

Question 12

Your friend owns a snow cone stand that he works by himself.He produces about 25 snow cones per hour.He wants to be able to produce twice as many snow cones per hour so he buys a second machine.He notices that he can only produce 10 more snow cones an hour.He jokes that he could have doubled his output with the second machine if he only had four hands.Using your knowledge of the production process,explain to your friend what you think has happened when he added more capital to his production process.

Accepted Answer

The second machine does not add as much

Question 13

Table 22-1
  
-Refer to Table 22-1.Based on the table above,which country has a higher standard of living and why?

Accepted Answer

A)  Sweden has a higher standard of living because their GDP is higher. 
B)  Ireland has a higher standard of living because their GDP per capita is higher. 
C)  Sweden has a higher standard of living because their GDP per capita is higher. 
D)  Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden. 
A)  Sweden has a higher standard of living because their GDP is higher. 
B)  Ireland has a higher standard of living because their GDP per capita is higher. 
C)  Sweden has a higher standard of living because their GDP per capita is higher. 
D)  Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.

Question 14

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

Accepted Answer

Any two of the following three explanati

Question 15

The economic growth model predicts that

Accepted Answer

A)  GDP per capita of rich countries will grow more rapidly than in poor countries. 
B)  GDP per capita of poor countries will grow more rapidly than in rich countries. 
C)  Governments must centrally direct the economy for growth to occur. 
D)  GDP per capita of poor countries will never change. 
A)  GDP per capita of rich countries will grow more rapidly than in poor countries. 
B)  GDP per capita of poor countries will grow more rapidly than in rich countries. 
C)  Governments must centrally direct the economy for growth to occur. 
D)  GDP per capita of poor countries will never change.

Question 16

As predicted by the economic growth model,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 17

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Accepted Answer

A) True 
 B)False

Question 18

Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s,

Accepted Answer

A)  real GDP per capita grew more rapidly. 
B)  real GDP per capita grew more slowly. 
C)  the standard of living did not change. 
D)  the standard of living increased in the United States. 
A)  real GDP per capita grew more rapidly. 
B)  real GDP per capita grew more slowly. 
C)  the standard of living did not change. 
D)  the standard of living increased in the United States.

Question 19

Which of the following countries had the highest level of GDP per capita in 2010?

Accepted Answer

A)  Japan 
B)  France 
C)  Italy 
D)  the United States 
A)  Japan 
B)  France 
C)  Italy 
D)  the United States

Question 20

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

Accepted Answer

A)  Countries with a strong rule of law have faster economic growth. 
B)  Countries with a weak rule of law have faster economic growth. 
C)  Countries that enforce property rights through lawsuits have slower economic growth. 
D)  Countries where favoritism and bribery are common have stronger rates of growth. 
A)  Countries with a strong rule of law have faster economic growth. 
B)  Countries with a weak rule of law have faster economic growth. 
C)  Countries that enforce property rights through lawsuits have slower economic growth. 
D)  Countries where favoritism and bribery are common have stronger rates of growth.

Your friend does not understand the benefits of globalization.Outline for your friend the positive economic aspects of globalization.

Because knowledge capital is nonexcludable and nonrival,firms have an incentive to ________ on the research and development of other firms.

If an outflow of workers leaves a country with a smaller but more productive workforce and the capital per hour worked does not change,there will be ________ the per-worker production function in that country.

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The average annual growth rate of GDP was

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

New growth theory states that increases in capital will result in at the level.

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

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

Policies to promote growth by increasing saving and investment work through

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Table 22-1 -Refer to Table 22-1.Based on the table above,which country has a higher standard of living and why?

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

The economic growth model predicts that

As predicted by the economic growth model,countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s,

Which of the following countries had the highest level of GDP per capita in 2010?

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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

Exam 11: Long-Run Economic Growth: Sources and Policies

Your friend does not understand the benefits of globalization.Outline for your friend the positive economic aspects of globalization.

Because knowledge capital is nonexcludable and nonrival,firms have an incentive to ________ on the research and development of other firms.

If an outflow of workers leaves a country with a smaller but more productive workforce and the capital per hour worked does not change,there will be ________ the per-worker production function in that country.

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The average annual growth rate of GDP was

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

New growth theory states that increases in ________ capital will result in ________ at the ________ level.

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

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

Policies to promote growth by increasing saving and investment work through

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Table 22-1 -Refer to Table 22-1.Based on the table above,which country has a higher standard of living and why?

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

The economic growth model predicts that

As predicted by the economic growth model,countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s,

Which of the following countries had the highest level of GDP per capita in 2010?

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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

New growth theory states that increases in capital will result in at the level.