Question 1

Foreign direct investment (capital injections from abroad)can also promote economic growth.

Accepted Answer

A) True 
 B)False

Question 2

How is the prosperity of a nation typically measured today?

Accepted Answer

A) by its real output per capita 
B) by its proportionate share of international trade 
C) by its gold reserves 
D) by its total output or gross national product 
A) by its real output per capita 
B) by its proportionate share of international trade 
C) by its gold reserves 
D) by its total output or gross national product

Question 3

According to the rule of 70,if a nation grows at a rate of 1 percent per year,in roughly how many years will national income double?

Accepted Answer

A) 7 years 
B) 10 years 
C) 70 years 
D) 100 years 
A) 7 years 
B) 10 years 
C) 70 years 
D) 100 years

Question 4

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

Accepted Answer

A) growth in the quantity and quality of labour resources used 
B) growth in physical capital inputs (machines, tools, buildings, and inventories) 
C) growth in the money supply that exceeds the growth of final goods and services 
D) government protection of property rights 
A) growth in the quantity and quality of labour resources used 
B) growth in physical capital inputs (machines, tools, buildings, and inventories) 
C) growth in the money supply that exceeds the growth of final goods and services 
D) government protection of property rights

Question 5

Country A and Country B initially have the same real GDP per capita.Country A experiences no economic growth,while Country B grows at a sustained rate of 5 percent.In 14 years,how will Country A's GDP compare to that of Country B's?

Accepted Answer

A) It will be approximately one-fourth of Country B's. 
B) It will be approximately one-half of Country B's. 
C) It will be approximately double of Country B's. 
D) It will be approximately triple of Country B's. 
A) It will be approximately one-fourth of Country B's. 
B) It will be approximately one-half of Country B's. 
C) It will be approximately double of Country B's. 
D) It will be approximately triple of Country B's.

Question 6

Which of the following best describes the relationship between economic growth and reduced levels of illiteracy?

Accepted Answer

A) Reduced levels of illiteracy are, in part, a cause of economic growth. 
B) Reduced levels of illiteracy are, in part, caused by economic growth. 
C) Reduced levels of illiteracy are largely unrelated to economic growth. 
D) Reduced levels of illiteracy are, in part, both a cause of economic growth and caused by economic growth. 
A) Reduced levels of illiteracy are, in part, a cause of economic growth. 
B) Reduced levels of illiteracy are, in part, caused by economic growth. 
C) Reduced levels of illiteracy are largely unrelated to economic growth. 
D) Reduced levels of illiteracy are, in part, both a cause of economic growth and caused by economic growth.

Question 7

Economists generally define economic growth as an increase in the nominal income of the population.

Accepted Answer

A) True 
 B)False

Question 8

Given a constant rate of growth of real GDP,what would lead to an increasing real GDP per capita?

Accepted Answer

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

Question 9

What annual growth rate will result in a country roughly doubling its GDP in 20 years?

Accepted Answer

A) 2.5 percent 
B) 3.5 percent 
C) 7.5 percent 
D) 12 percent 
A) 2.5 percent 
B) 3.5 percent 
C) 7.5 percent 
D) 12 percent

Question 10

In any country,under which of the following circumstances will the population generally be better off?

Accepted Answer

A) if the quantity and quality of output decreases and the population does not increase faster than real output 
B) if the technology improves and the population increases faster than real output 
C) if the quantity and quality of output increases and the population increases faster than real output 
D) if the quantity and quality of output increases and the population does not increase faster than real output 
A) if the quantity and quality of output decreases and the population does not increase faster than real output 
B) if the technology improves and the population increases faster than real output 
C) if the quantity and quality of output increases and the population increases faster than real output 
D) if the quantity and quality of output increases and the population does not increase faster than real output

Question 11

What effect will better technology have on an economy's production possibilities curve?

Accepted Answer

A) It will shift the curve outwards. 
B) It will result in a movement along the curve. 
C) It will shift the curve inwards. 
D) It will not shift the curve. 
A) It will shift the curve outwards. 
B) It will result in a movement along the curve. 
C) It will shift the curve inwards. 
D) It will not shift the curve.

Question 12

Which of the following is the most likely explanation for the continued poverty in many developing countries?

Accepted Answer

A) There is political stability. 
B) There is an absence of or prohibition on birth control. 
C) There is a lack of defined and enforceable property rights. 
D) There is a general lack of natural resources. 
A) There is political stability. 
B) There is an absence of or prohibition on birth control. 
C) There is a lack of defined and enforceable property rights. 
D) There is a general lack of natural resources.

Question 13

Which of the following will NOT contribute to increasing the stock of capital of a nation?

Accepted Answer

A) a lack of enforcement of private property rights 
B) an increase in savings 
C) a reduction in taxes on capital gains and stock dividends 
D) the subsidization of higher education 
A) a lack of enforcement of private property rights 
B) an increase in savings 
C) a reduction in taxes on capital gains and stock dividends 
D) the subsidization of higher education

Question 14

Which of the following exists when an economy experiences significant economic growth?

Accepted Answer

A) No observed relationship exists between output per capita and adult literacy rates. 
B) A direct relationship exists between output per capita and adult literacy rates. 
C) An indirect relationship exists between output per capita and adult literacy rates. 
D) A negative relationship exists between output per capita and adult literacy rates. 
A) No observed relationship exists between output per capita and adult literacy rates. 
B) A direct relationship exists between output per capita and adult literacy rates. 
C) An indirect relationship exists between output per capita and adult literacy rates. 
D) A negative relationship exists between output per capita and adult literacy rates.

Question 15

Which of the following does NOT affect growth in real GDP per capita?

Accepted Answer

A) the total production of final goods in the economy 
B) the distribution of income 
C) the population 
D) the production of final services in the economy 
A) the total production of final goods in the economy 
B) the distribution of income 
C) the population 
D) the production of final services in the economy

Question 16

Which of the following statements best illustrates economic growth?

Accepted Answer

A) An increase in the quantity of labour always leads to economic growth. 
B) Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. 
C) A decrease in the productivity of labour leads to economic growth. 
D) An increase in the minimum wage will always lead to economic growth. 
A) An increase in the quantity of labour always leads to economic growth. 
B) Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. 
C) A decrease in the productivity of labour leads to economic growth. 
D) An increase in the minimum wage will always lead to economic growth.

Question 17

A technological advance may come in either the form of a product or a process innovation.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following will NOT cause the production possibilities curve to shift outward?

Accepted Answer

A) a very low birth rate 
B) increased educational opportunities 
C) increased entrepreneurial activity 
D) improvements in the stock of land 
A) a very low birth rate 
B) increased educational opportunities 
C) increased entrepreneurial activity 
D) improvements in the stock of land

Question 19

How is growth in a production possibilities curve diagram shown?

Accepted Answer

A) as an outward shift of the curve 
B) as a movement along the curve to the southeast 
C) as an inward shift of the curve 
D) as a movement along the curve to the southwest 
A) as an outward shift of the curve 
B) as a movement along the curve to the southeast 
C) as an inward shift of the curve 
D) as a movement along the curve to the southwest

Question 20

Economists generally define economic growth as an increase in real income per capita.

Accepted Answer

A) True 
 B)False

Foreign direct investment (capital injections from abroad)can also promote economic growth.

How is the prosperity of a nation typically measured today?

According to the rule of 70,if a nation grows at a rate of 1 percent per year,in roughly how many years will national income double?

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

Country A and Country B initially have the same real GDP per capita.Country A experiences no economic growth,while Country B grows at a sustained rate of 5 percent.In 14 years,how will Country A's GDP compare to that of Country B's?

Which of the following best describes the relationship between economic growth and reduced levels of illiteracy?

Economists generally define economic growth as an increase in the nominal income of the population.

Given a constant rate of growth of real GDP,what would lead to an increasing real GDP per capita?

What annual growth rate will result in a country roughly doubling its GDP in 20 years?

In any country,under which of the following circumstances will the population generally be better off?

What effect will better technology have on an economy's production possibilities curve?

Which of the following is the most likely explanation for the continued poverty in many developing countries?

Which of the following will NOT contribute to increasing the stock of capital of a nation?

Which of the following exists when an economy experiences significant economic growth?

Which of the following does NOT affect growth in real GDP per capita?

Which of the following statements best illustrates economic growth?

A technological advance may come in either the form of a product or a process innovation.

Which of the following will NOT cause the production possibilities curve to shift outward?

How is growth in a production possibilities curve diagram shown?

Economists generally define economic growth as an increase in real income 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

Foreign direct investment (capital injections from abroad)can also promote economic growth.

How is the prosperity of a nation typically measured today?

According to the rule of 70,if a nation grows at a rate of 1 percent per year,in roughly how many years will national income double?

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

Country A and Country B initially have the same real GDP per capita.Country A experiences no economic growth,while Country B grows at a sustained rate of 5 percent.In 14 years,how will Country A's GDP compare to that of Country B's?

Which of the following best describes the relationship between economic growth and reduced levels of illiteracy?

Economists generally define economic growth as an increase in the nominal income of the population.

Given a constant rate of growth of real GDP,what would lead to an increasing real GDP per capita?

What annual growth rate will result in a country roughly doubling its GDP in 20 years?

In any country,under which of the following circumstances will the population generally be better off?

What effect will better technology have on an economy's production possibilities curve?

Which of the following is the most likely explanation for the continued poverty in many developing countries?

Which of the following will NOT contribute to increasing the stock of capital of a nation?

Which of the following exists when an economy experiences significant economic growth?

Which of the following does NOT affect growth in real GDP per capita?

Which of the following statements best illustrates economic growth?

A technological advance may come in either the form of a product or a process innovation.

Which of the following will NOT cause the production possibilities curve to shift outward?

How is growth in a production possibilities curve diagram shown?

Economists generally define economic growth as an increase in real income 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