Question 1

Limiting protectionism means

Accepted Answer

A) reducing trade barriers. 
B) reducing corruption. 
C) reducing consumer fraud. 
D) reducing political dishonesty. 
A) reducing trade barriers. 
B) reducing corruption. 
C) reducing consumer fraud. 
D) reducing political dishonesty.

Question 2

According to new growth theorists, more technological improvements can be brought about by

Accepted Answer

A) a government policy that encourages increased consumption. 
B) government policies that lead to increases in human capital. 
C) tougher immigration laws. 
D) the government taking a more active role in regulating industries. 
A) a government policy that encourages increased consumption. 
B) government policies that lead to increases in human capital. 
C) tougher immigration laws. 
D) the government taking a more active role in regulating industries.

Question 3

One of the problems with the definition of economic growth is that

Accepted Answer

A) it overstates economic growth because it does not account for leisure time. 
B) it does not account for the distribution of income. 
C) it overstates economic growth because it does not account for the reduction in work time. 
D) it understates economic growth because it does not account for the reduction in work time. 
A) it overstates economic growth because it does not account for leisure time. 
B) it does not account for the distribution of income. 
C) it overstates economic growth because it does not account for the reduction in work time. 
D) it understates economic growth because it does not account for the reduction in work time.

Question 4

Of the following nations, the country with the highest saving rate is

Accepted Answer

A) the United States. 
B) Japan. 
C) Mexico. 
D) Ethiopia. 
A) the United States. 
B) Japan. 
C) Mexico. 
D) Ethiopia.

Question 5

"There is a direct relationship between economic growth rates and the wealth of a nation." Do you agree or disagree?
 Why?

Accepted Answer

Disagree. Wealthier nations often have s

Question 6

Which one of the following is a key to economic development?

Accepted Answer

A) the removal of property rights 
B) the preservation of established means of production 
C) an educated population 
D) a high level of protection against imported products 
A) the removal of property rights 
B) the preservation of established means of production 
C) an educated population 
D) a high level of protection against imported products

Question 7

A reduction in a country's saving rate will tend to cause which of the following in the long run?

Accepted Answer

A) an increase in the standard of living 
B) a reduction in economic growth 
C) an increase in labor productivity 
D) an increase in per capita real GDP 
A) an increase in the standard of living 
B) a reduction in economic growth 
C) an increase in labor productivity 
D) an increase in per capita real GDP

Question 8

A country has had its per capital real GDP remain constant for several years. During this period this country

Accepted Answer

A) has not experienced any economic growth. 
B) may have experienced economic growth if the average hours worked per week have fallen. 
C) will have experienced an inward shift of the production possibilities curve. 
D) will have an increase in the number of poor people. 
A) has not experienced any economic growth. 
B) may have experienced economic growth if the average hours worked per week have fallen. 
C) will have experienced an inward shift of the production possibilities curve. 
D) will have an increase in the number of poor people.

Question 9

Labor productivity increases when

Accepted Answer

A) the population increases. 
B) output increases even if the labor force has decreased. 
C) output increases at the same rate as the labor force increases. 
D) output increases faster than population increases. 
A) the population increases. 
B) output increases even if the labor force has decreased. 
C) output increases at the same rate as the labor force increases. 
D) output increases faster than population increases.

Question 10

Thomas Robert Malthus believed

Accepted Answer

A) that food supplies would always be more than sufficient to feed the world's population. 
B) that the world's population would eventually outstrip food supplies. 
C) that population growth was good for the world. 
D) that population growth would eventually lead to an increase in the quality of life for everyone. 
A) that food supplies would always be more than sufficient to feed the world's population. 
B) that the world's population would eventually outstrip food supplies. 
C) that population growth was good for the world. 
D) that population growth would eventually lead to an increase in the quality of life for everyone.

Question 11

According to Romer

Accepted Answer

A) capital drives economic growth. 
B) invention drives economic growth. 
C) ideas drive economic growth. 
D) government drives economic growth. 
A) capital drives economic growth. 
B) invention drives economic growth. 
C) ideas drive economic growth. 
D) government drives economic growth.

Question 12

Economic growth is defined as

Accepted Answer

A) an increase in the satisfaction of all people within a country. 
B) an increase in per capita real GDP measured by its rate of change per year. 
C) any increase in per capita nominal GDP measured by its rate of change per year. 
D) an increase in the supply of money measured by its rate of change per year. 
A) an increase in the satisfaction of all people within a country. 
B) an increase in per capita real GDP measured by its rate of change per year. 
C) any increase in per capita nominal GDP measured by its rate of change per year. 
D) an increase in the supply of money measured by its rate of change per year.

Question 13

When comparing across countries, the higher the rate of saving

Accepted Answer

A) the lower the level of per capita real Gross Domestic Product (GDP). 
B) the higher the level of per capita real Gross Domestic Product (GDP). 
C) the less industrialized the country. 
D) the lower the productivity rates. 
A) the lower the level of per capita real Gross Domestic Product (GDP). 
B) the higher the level of per capita real Gross Domestic Product (GDP). 
C) the less industrialized the country. 
D) the lower the productivity rates.

Question 14

Which of the following is an important factor affecting economic growth?

Accepted Answer

A) the rate of saving 
B) exchange rates 
C) the rate of interest 
D) the level of prices 
A) the rate of saving 
B) exchange rates 
C) the rate of interest 
D) the level of prices

Question 15

The majority of evidence points to the fact that, in the last decade in the United States, labor productivity has

Accepted Answer

A) decreased. 
B) increased. 
C) stayed the same. 
D) decreased in the manufacturing sector but increased in the service sector. 
A) decreased. 
B) increased. 
C) stayed the same. 
D) decreased in the manufacturing sector but increased in the service sector.

Question 16

The rate of economic growth will be faster if

Accepted Answer

A) the rate of growth of the money supply is higher. 
B) the rate of saving is higher. 
C) the rate of growth of the population is higher. 
D) consumption spending is greater. 
A) the rate of growth of the money supply is higher. 
B) the rate of saving is higher. 
C) the rate of growth of the population is higher. 
D) consumption spending is greater.

Question 17

According to Romer and other new growth theorists, what could poor countries do to stimulate greater economic growth?

Accepted Answer

According to new growth theory, poor cou

Question 18

A small reduction in a country's growth rate is a concern to policy makers because

Accepted Answer

A) a small change can have large effects on per capita GDP over time. 
B) a reduction usually leads to future reductions until finally the economy stagnates. 
C) policy makers focus too much on economic growth and not enough on increasing savings rates. 
D) the larger GDP is the better the economic welfare will be in the future. 
A) a small change can have large effects on per capita GDP over time. 
B) a reduction usually leads to future reductions until finally the economy stagnates. 
C) policy makers focus too much on economic growth and not enough on increasing savings rates. 
D) the larger GDP is the better the economic welfare will be in the future.

Question 19

According to the text, an open economy is likely to have all the following EXCEPT

Accepted Answer

A) high economic growth. 
B) relatively more trade barriers. 
C) high technological progress. 
D) relatively more rapid spread of ideas. 
A) high economic growth. 
B) relatively more trade barriers. 
C) high technological progress. 
D) relatively more rapid spread of ideas.

Question 20

One reason that economists encourage free trade is that

Accepted Answer

A) it encourages a more rapid spread of technology. 
B) it allows us to exploit the workers of less developed countries. 
C) we can sell more goods. 
D) it increases our capital stock. 
A) it encourages a more rapid spread of technology. 
B) it allows us to exploit the workers of less developed countries. 
C) we can sell more goods. 
D) it increases our capital stock.

Limiting protectionism means

According to new growth theorists, more technological improvements can be brought about by

One of the problems with the definition of economic growth is that

Of the following nations, the country with the highest saving rate is

"There is a direct relationship between economic growth rates and the wealth of a nation." Do you agree or disagree? Why?

Which one of the following is a key to economic development?

A reduction in a country's saving rate will tend to cause which of the following in the long run?

A country has had its per capital real GDP remain constant for several years. During this period this country

Labor productivity increases when

Thomas Robert Malthus believed

According to Romer

Economic growth is defined as

When comparing across countries, the higher the rate of saving

Which of the following is an important factor affecting economic growth?

The majority of evidence points to the fact that, in the last decade in the United States, labor productivity has

The rate of economic growth will be faster if

According to Romer and other new growth theorists, what could poor countries do to stimulate greater economic growth?

A small reduction in a country's growth rate is a concern to policy makers because

According to the text, an open economy is likely to have all the following EXCEPT

One reason that economists encourage free trade is that

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

Limiting protectionism means

According to new growth theorists, more technological improvements can be brought about by

One of the problems with the definition of economic growth is that

Of the following nations, the country with the highest saving rate is

"There is a direct relationship between economic growth rates and the wealth of a nation." Do you agree or disagree? Why?

Which one of the following is a key to economic development?

A reduction in a country's saving rate will tend to cause which of the following in the long run?

A country has had its per capital real GDP remain constant for several years. During this period this country

Labor productivity increases when

Thomas Robert Malthus believed

According to Romer

Economic growth is defined as

When comparing across countries, the higher the rate of saving

Which of the following is an important factor affecting economic growth?

The majority of evidence points to the fact that, in the last decade in the United States, labor productivity has

The rate of economic growth will be faster if

According to Romer and other new growth theorists, what could poor countries do to stimulate greater economic growth?

A small reduction in a country's growth rate is a concern to policy makers because

According to the text, an open economy is likely to have all the following EXCEPT

One reason that economists encourage free trade is that

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