Question 1

The three stages of economic development include

Accepted Answer

A) the agriculture stage, the manufacturing stage, and the service sector stage. 
B) the computerized stage, the agriculture stage, and the manufacturing stage. 
C) the feudal stage, the agriculture stage, and the totalitarian stage. 
D) the agriculture stage, the manufacturing stage, and the socialist stage. 
A) the agriculture stage, the manufacturing stage, and the service sector stage. 
B) the computerized stage, the agriculture stage, and the manufacturing stage. 
C) the feudal stage, the agriculture stage, and the totalitarian stage. 
D) the agriculture stage, the manufacturing stage, and the socialist stage. A

Question 2

Countries are concerned about small changes in their average annual growth rates in per capita income because

Accepted Answer

A) growth rates tend to decline over time. 
B) the power of compounding means small changes have large effects over time. 
C) the faster a country grows today, the less it will be able to consume in the future. 
D) growth rates are a factor in U.N. participation. 
A) growth rates tend to decline over time. 
B) the power of compounding means small changes have large effects over time. 
C) the faster a country grows today, the less it will be able to consume in the future. 
D) growth rates are a factor in U.N. participation. B

Question 3

Which one of the following is TRUE?

Accepted Answer

A) As a country becomes more prosperous, it experiences a higher birth rate. 
B) Over the past century, the supply of food has grown more quickly than has the demand for food. 
C) Over the past century, the real price of food has risen, reflecting the pressure of population growth on food supplies. 
D) Over the next half-century, it is expected that population growth in industrially advanced nations will outpace population growth in developing countries. 
A) As a country becomes more prosperous, it experiences a higher birth rate. 
B) Over the past century, the supply of food has grown more quickly than has the demand for food. 
C) Over the past century, the real price of food has risen, reflecting the pressure of population growth on food supplies. 
D) Over the next half-century, it is expected that population growth in industrially advanced nations will outpace population growth in developing countries. B

Question 4

Why are economic growth and saving related?

Accepted Answer

To consume more in the future

Question 5

When economic growth is compared between countries, the best measure to use is

Accepted Answer

A) nominal GDP. 
B) real GDP. 
C) chain-weighted GDP. 
D) real GDP per capita. 
A) nominal GDP. 
B) real GDP. 
C) chain-weighted GDP. 
D) real GDP per capita.

Question 6

A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as

Accepted Answer

A) a positive externality. 
B) a negative externality. 
C) a protectionism clause. 
D) a patent. 
A) a positive externality. 
B) a negative externality. 
C) a protectionism clause. 
D) a patent.

Question 7

What did Malthus say about population growth?

Accepted Answer

A) Population growth is the key to a nation's economic growth. 
B) Population growth is not a problem if food production keeps up, and Malthus predicted that it would. 
C) Population growth is a huge problem if housing and medical care don't also increase. 
D) The population would grow faster than food supplies, which would be a recipe for disaster. 
A) Population growth is the key to a nation's economic growth. 
B) Population growth is not a problem if food production keeps up, and Malthus predicted that it would. 
C) Population growth is a huge problem if housing and medical care don't also increase. 
D) The population would grow faster than food supplies, which would be a recipe for disaster.

Question 8

Which of the following does free trade encourage?

Accepted Answer

A) more rapid spread of technology 
B) higher rates of economic growth 
C) domestic industries' access to larger markets 
D) all of the above 
A) more rapid spread of technology 
B) higher rates of economic growth 
C) domestic industries' access to larger markets 
D) all of the above

Question 9

Economic growth depends on

Accepted Answer

A) low tax rates. 
B) high government spending. 
C) high rates of consumption. 
D) increases in the capital stock as a result of saving. 
A) low tax rates. 
B) high government spending. 
C) high rates of consumption. 
D) increases in the capital stock as a result of saving.

Question 10

An outward shift of the production possibilities curve represents

Accepted Answer

A) economic contraction. 
B) economic growth. 
C) economic recession. 
D) economic inflation. 
A) economic contraction. 
B) economic growth. 
C) economic recession. 
D) economic inflation.

Question 11

New growth theory argues that

Accepted Answer

A) growth is due to the proper government policies concerning interest rates. 
B) growth relies on maintaining lower growth rates of population, especially in less developed countries. 
C) technology cannot be looked at as an outside factor without an explanation of what drives it. 
D) technology is the key factor that explains growth but technology is beyond economic explanation itself. 
A) growth is due to the proper government policies concerning interest rates. 
B) growth relies on maintaining lower growth rates of population, especially in less developed countries. 
C) technology cannot be looked at as an outside factor without an explanation of what drives it. 
D) technology is the key factor that explains growth but technology is beyond economic explanation itself.

Question 12

Other things being equal, a higher saving rate

Accepted Answer

A) leads to higher interest rates. 
B) means higher standards of living in the future. 
C) means higher standards of living today. 
D) is associated with a decline in the rate of growth of the population. 
A) leads to higher interest rates. 
B) means higher standards of living in the future. 
C) means higher standards of living today. 
D) is associated with a decline in the rate of growth of the population.

Question 13

All of the following are listed in the text as being keys to economic development EXCEPT

Accepted Answer

A) a system of property rights. 
B) an educated population. 
C) an open economy. 
D) a higher level of protectionism. 
A) a system of property rights. 
B) an educated population. 
C) an open economy. 
D) a higher level of protectionism.

Question 14

Whenever average output produced per worker during a specific time-period increases, then

Accepted Answer

A) leisure time increases. 
B) nominal GDP decreases. 
C) labor productivity increases. 
D) the standard of living goes down. 
A) leisure time increases. 
B) nominal GDP decreases. 
C) labor productivity increases. 
D) the standard of living goes down.

Question 15

What is the economic role of a patent?

Accepted Answer

A patent grants the inventor the exclusi

Question 16

Economic growth can be defined as a percentage increase in

Accepted Answer

A) per capita real GDP. 
B) real GDP. 
C) nominal GDP. 
D) consumption by households. 
A) per capita real GDP. 
B) real GDP. 
C) nominal GDP. 
D) consumption by households.

Question 17

Of the following, which best explains why Thomas Malthus was incorrect in his prediction that population would outstrip food supplies?

Accepted Answer

A) Malthus failed to realize that that human population would increase considerably. 
B) Malthus failed to recognize that economic growth is accompanied by smaller family sizes. 
C) Malthus incorrectly believed that economic growth would reduce birthrates. 
D) Malthus incorrectly predicted that modernization would increase the demand for children. 
A) Malthus failed to realize that that human population would increase considerably. 
B) Malthus failed to recognize that economic growth is accompanied by smaller family sizes. 
C) Malthus incorrectly believed that economic growth would reduce birthrates. 
D) Malthus incorrectly predicted that modernization would increase the demand for children.

Question 18

According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP)because

Accepted Answer

A) it has too many resources. 
B) it has a corrupt government. 
C) it has a low rate of saving. 
D) there are too many skilled workers in the country. 
A) it has too many resources. 
B) it has a corrupt government. 
C) it has a low rate of saving. 
D) there are too many skilled workers in the country.

Question 19

All of the following unambiguously contribute to economic growth EXCEPT

Accepted Answer

A) increase in human capital. 
B) increase in technology. 
C) increase in labor productivity. 
D) increase in government spending. 
A) increase in human capital. 
B) increase in technology. 
C) increase in labor productivity. 
D) increase in government spending.

Question 20

Patents stimulate technological advance by

Accepted Answer

A) making capital more productive. 
B) enabling the government to determine which potential technological advances firms should pursue. 
C) providing information about the status of technical knowledge in the economy. 
D) allowing inventors to capture the economic rewards of their inventions. 
A) making capital more productive. 
B) enabling the government to determine which potential technological advances firms should pursue. 
C) providing information about the status of technical knowledge in the economy. 
D) allowing inventors to capture the economic rewards of their inventions.

The three stages of economic development include

Countries are concerned about small changes in their average annual growth rates in per capita income because

Which one of the following is TRUE?

Why are economic growth and saving related?

When economic growth is compared between countries, the best measure to use is

A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as

What did Malthus say about population growth?

Which of the following does free trade encourage?

Economic growth depends on

An outward shift of the production possibilities curve represents

New growth theory argues that

Other things being equal, a higher saving rate

All of the following are listed in the text as being keys to economic development EXCEPT

Whenever average output produced per worker during a specific time-period increases, then

What is the economic role of a patent?

Economic growth can be defined as a percentage increase in

Of the following, which best explains why Thomas Malthus was incorrect in his prediction that population would outstrip food supplies?

According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP)because

All of the following unambiguously contribute to economic growth EXCEPT

Patents stimulate technological advance by

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 8: Global Economic Growth and Development

The three stages of economic development include

Countries are concerned about small changes in their average annual growth rates in per capita income because

Which one of the following is TRUE?

Why are economic growth and saving related?

When economic growth is compared between countries, the best measure to use is

A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as

What did Malthus say about population growth?

Which of the following does free trade encourage?

Economic growth depends on

An outward shift of the production possibilities curve represents

New growth theory argues that

Other things being equal, a higher saving rate

All of the following are listed in the text as being keys to economic development EXCEPT

Whenever average output produced per worker during a specific time-period increases, then

What is the economic role of a patent?

Economic growth can be defined as a percentage increase in

Of the following, which best explains why Thomas Malthus was incorrect in his prediction that population would outstrip food supplies?

According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP)because

All of the following unambiguously contribute to economic growth EXCEPT

Patents stimulate technological advance by

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters