Question 1

What,if any,do most modern economists believe is the single most important factor that can be used to explain economic growth?

Accepted Answer

A) Nearly all economists agree that there is more than a single factor, but that capital formation is the most important factor. 
B) Nearly all economists believe that extensive private property rights are the most important factor. 
C) Nearly all economists believe that economic growth is a complex process without a single dominant factor. 
D) Nearly all economists agree that abundant resources are the most important factor. 
A) Nearly all economists agree that there is more than a single factor, but that capital formation is the most important factor. 
B) Nearly all economists believe that extensive private property rights are the most important factor. 
C) Nearly all economists believe that economic growth is a complex process without a single dominant factor. 
D) Nearly all economists agree that abundant resources are the most important factor.

Question 2

What rule shows roughly how long it will take a nation to double its output at various growth rates?

Accepted Answer

A) the rule of 70 
B) the rule of 1950 
C) the rule of rapid growth 
D) the duopoly rule 
A) the rule of 70 
B) the rule of 1950 
C) the rule of rapid growth 
D) the duopoly rule

Question 3

Will increased investment alone guarantee economic growth?

Accepted Answer

A) No, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology. 
B) No, because an economy must rely on capital injections from abroad. 
C) Yes, because money is the only resource needed for growth. 
D) Yes, because growth occurs only with savings. 
A) No, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology. 
B) No, because an economy must rely on capital injections from abroad. 
C) Yes, because money is the only resource needed for growth. 
D) Yes, because growth occurs only with savings.

Question 4

What is the relationship between savings,capital formation,and consumption?

Accepted Answer

One of the most important determinants o

Question 5

Which of the following was NOT one of Malthus's assumptions?

Accepted Answer

A) The economy was agricultural in nature. 
B) The supply of land was fixed. 
C) Human sexual desire worked to increase population. 
D) Technology would increase with population. 
A) The economy was agricultural in nature. 
B) The supply of land was fixed. 
C) Human sexual desire worked to increase population. 
D) Technology would increase with population.

Question 6

Economies of large-scale production may exist in some forms of production,so larger markets associated with greater populations can lead to more efficiently sized production units.

Accepted Answer

A) True 
 B)False

Question 7

Why does agricultural output tend to increase along with population,in contrast to Malthus's predictions?

Accepted Answer

A) Specialization and division of labour tend to increase agricultural output enough. 
B) Irrigation, fertilizers, and conservation techniques increase the amount of arable land. 
C) In the long run, land is not a fixed resource. 
D) The law of diminishing returns only applies in theory, not in practice. 
A) Specialization and division of labour tend to increase agricultural output enough. 
B) Irrigation, fertilizers, and conservation techniques increase the amount of arable land. 
C) In the long run, land is not a fixed resource. 
D) The law of diminishing returns only applies in theory, not in practice.

Question 8

If real GDP per capita is decreasing,what can we conclude about real output?

Accepted Answer

A) It is growing more rapidly than the population. 
B) It is growing less rapidly than the population. 
C) It is growing more rapidly than are prices. 
D) It is growing at the same rate as the population. 
A) It is growing more rapidly than the population. 
B) It is growing less rapidly than the population. 
C) It is growing more rapidly than are prices. 
D) It is growing at the same rate as the population.

Question 9

In countries with low levels of income,which of the following is NOT likely?

Accepted Answer

A) The opportunity cost of an education is higher than in high-income countries. 
B) Illiteracy rates are higher than in high-income countries. 
C) Economies are primarily agriculture based. 
D) Property rights are well defined and enforced. 
A) The opportunity cost of an education is higher than in high-income countries. 
B) Illiteracy rates are higher than in high-income countries. 
C) Economies are primarily agriculture based. 
D) Property rights are well defined and enforced.

Question 10

What correlates with a slower rate of capital formation?

Accepted Answer

A) a slower rate of economic growth 
B) a greater rate of population growth 
C) a slower rate of growth of the money supply 
D) a greater rate of economic growth 
A) a slower rate of economic growth 
B) a greater rate of population growth 
C) a slower rate of growth of the money supply 
D) a greater rate of economic growth

Question 11

If Denmark's output increases by 6 percent while its population rises by 2 percent,Denmark's per capita output will rise.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is one of the most important determinants of economic growth?

Accepted Answer

A) the birth rate 
B) the savings rate 
C) the unemployment rate 
D) the rate of infant mortality 
A) the birth rate 
B) the savings rate 
C) the unemployment rate 
D) the rate of infant mortality

Question 13

Which of the following countries does NOT have an abundance of natural resources?

Accepted Answer

A) Japan 
B) Australia 
C) United States 
D) Brazil 
A) Japan 
B) Australia 
C) United States 
D) Brazil

Question 14

The higher opportunity cost of obtaining an education in developing countries is one of the reasons that school enrollments are lower.

Accepted Answer

A) True 
 B)False

Question 15

Is it possible to have economic growth with no opportunity cost?

Accepted Answer

A) No, because growth depletes the stock of knowledge so that more growth today means less growth tomorrow. 
B) No, but economic growth is always worth whatever sacrifice is required. 
C) No, because growth requires the sacrifice of consumption goods in order to invest in capital formation and research and development. 
D) Yes, economic growth requires no current sacrifices, only the passage of time. 
A) No, because growth depletes the stock of knowledge so that more growth today means less growth tomorrow. 
B) No, but economic growth is always worth whatever sacrifice is required. 
C) No, because growth requires the sacrifice of consumption goods in order to invest in capital formation and research and development. 
D) Yes, economic growth requires no current sacrifices, only the passage of time.

Question 16

Given a constant rate of growth of real GDP,what would cause a fall in real GDP per capita?

Accepted Answer

A) a decrease in the capital stock 
B) an increase in the size of the labour force 
C) a rate of population growth that is less than the rate of growth of real GDP 
D) a rate of population growth that is greater than the rate of growth of real GDP 
A) a decrease in the capital stock 
B) an increase in the size of the labour force 
C) a rate of population growth that is less than the rate of growth of real GDP 
D) a rate of population growth that is greater than the rate of growth of real GDP

Question 17

Which of the following is NOT considered a factor that contributes to economic growth?

Accepted Answer

A) government regulation of key industries 
B) improved efficiencies through economies of scale 
C) government protection of property rights 
D) increased specialization of labour 
A) government regulation of key industries 
B) improved efficiencies through economies of scale 
C) government protection of property rights 
D) increased specialization of labour

Question 18

Which of the following will cause an economy's production possibilities curve to shift outward over time?

Accepted Answer

A) if the quality of resources decreases 
B) if the productivity of labour decreases 
C) if the stock of available capital decreases 
D) if technological progress occurs 
A) if the quality of resources decreases 
B) if the productivity of labour decreases 
C) if the stock of available capital decreases 
D) if technological progress occurs

Question 19

What is the effect of an increase in the stock of capital on an economy's production?

Accepted Answer

A) It causes an economy's production possibilities curve to shift inward over time. 
B) It causes an economy's production possibilities curve to shift outward over time. 
C) It has no effect on the position of an economy's production possibilities curve over time. 
D) It causes a movement from a point on an economy's production possibilities curve to a point inside the curve. 
A) It causes an economy's production possibilities curve to shift inward over time. 
B) It causes an economy's production possibilities curve to shift outward over time. 
C) It has no effect on the position of an economy's production possibilities curve over time. 
D) It causes a movement from a point on an economy's production possibilities curve to a point inside the curve.

Question 20

Which of the following is most likely to contribute to economic growth as measured by real GDP per capita?

Accepted Answer

A) the imposition of tariffs and quotas on imported goods 
B) rapid population growth 
C) an increase in marginal tax rates 
D) increased capital formation 
A) the imposition of tariffs and quotas on imported goods 
B) rapid population growth 
C) an increase in marginal tax rates 
D) increased capital formation

What,if any,do most modern economists believe is the single most important factor that can be used to explain economic growth?

What rule shows roughly how long it will take a nation to double its output at various growth rates?

Will increased investment alone guarantee economic growth?

What is the relationship between savings,capital formation,and consumption?

Which of the following was NOT one of Malthus's assumptions?

Economies of large-scale production may exist in some forms of production,so larger markets associated with greater populations can lead to more efficiently sized production units.

Why does agricultural output tend to increase along with population,in contrast to Malthus's predictions?

If real GDP per capita is decreasing,what can we conclude about real output?

In countries with low levels of income,which of the following is NOT likely?

What correlates with a slower rate of capital formation?

If Denmark's output increases by 6 percent while its population rises by 2 percent,Denmark's per capita output will rise.

Which of the following is one of the most important determinants of economic growth?

Which of the following countries does NOT have an abundance of natural resources?

The higher opportunity cost of obtaining an education in developing countries is one of the reasons that school enrollments are lower.

Is it possible to have economic growth with no opportunity cost?

Given a constant rate of growth of real GDP,what would cause a fall in real GDP per capita?

Which of the following is NOT considered a factor that contributes to economic growth?

Which of the following will cause an economy's production possibilities curve to shift outward over time?

What is the effect of an increase in the stock of capital on an economy's production?

Which of the following is most likely to contribute to economic growth as measured by real GDP per capita?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters

Exam 7: Economic Growth in the Global Economy

What,if any,do most modern economists believe is the single most important factor that can be used to explain economic growth?

What rule shows roughly how long it will take a nation to double its output at various growth rates?

Will increased investment alone guarantee economic growth?

What is the relationship between savings,capital formation,and consumption?

Which of the following was NOT one of Malthus's assumptions?

Economies of large-scale production may exist in some forms of production,so larger markets associated with greater populations can lead to more efficiently sized production units.

Why does agricultural output tend to increase along with population,in contrast to Malthus's predictions?

If real GDP per capita is decreasing,what can we conclude about real output?

In countries with low levels of income,which of the following is NOT likely?

What correlates with a slower rate of capital formation?

If Denmark's output increases by 6 percent while its population rises by 2 percent,Denmark's per capita output will rise.

Which of the following is one of the most important determinants of economic growth?

Which of the following countries does NOT have an abundance of natural resources?

The higher opportunity cost of obtaining an education in developing countries is one of the reasons that school enrollments are lower.

Is it possible to have economic growth with no opportunity cost?

Given a constant rate of growth of real GDP,what would cause a fall in real GDP per capita?

Which of the following is NOT considered a factor that contributes to economic growth?

Which of the following will cause an economy's production possibilities curve to shift outward over time?

What is the effect of an increase in the stock of capital on an economy's production?

Which of the following is most likely to contribute to economic growth as measured by real GDP per capita?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters