Question 1

Economists typically agree that the special protection given to owners of patents tends to

Accepted Answer

A) reduce expenditures on research and development. 
B) increase expenditures on research and development. 
C) reduce economic growth. 
D) reduce productivity. 
A) reduce expenditures on research and development. 
B) increase expenditures on research and development. 
C) reduce economic growth. 
D) reduce productivity.

Question 2

Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change?

Accepted Answer

A) Capital productivity has declined. 
B) Unemployment has increased. 
C) The rate of economic growth has increased. 
D) Entrepreneurs no longer have an incentive to invest in information technology. 
A) Capital productivity has declined. 
B) Unemployment has increased. 
C) The rate of economic growth has increased. 
D) Entrepreneurs no longer have an incentive to invest in information technology.

Question 3

If we are interested in knowing whether a poor country is improving economically, we want to know not only what the economic growth rate is, but also

Accepted Answer

A) whether the economic growth rate is faster than other nations' growth rates. 
B) whether government spending is growing at the same rate. 
C) whether the economic growth rate is greater than last year's rate. 
D) whether the lowest income groups are benefiting from the growth. 
A) whether the economic growth rate is faster than other nations' growth rates. 
B) whether government spending is growing at the same rate. 
C) whether the economic growth rate is greater than last year's rate. 
D) whether the lowest income groups are benefiting from the growth.

Question 4

-Refer to the above table. Two countries have per capita real GDPs in 2010 of $5000. If country A has a 4 percent growth rate and Country B a 5 percent growth rate, what will the per capita real GDPs of each be in the year 2060?

Accepted Answer

A) A: $40,000; B: $60,000 
B) A: $35,550; B: $57,500 
C) A: $24,000; B: $35,200 
D) A: $15,000; B: $30,000 
A) A: $40,000; B: $60,000 
B) A: $35,550; B: $57,500 
C) A: $24,000; B: $35,200 
D) A: $15,000; B: $30,000

Question 5

Well-defined property rights give entrepreneurs the incentive to

Accepted Answer

A) engage in risky business endeavors in order to accumulate future wealth. 
B) use the eminent domain laws to seize property for public use. 
C) lobby Congress in order to increase environmental regulations. 
D) evade taxes. 
A) engage in risky business endeavors in order to accumulate future wealth. 
B) use the eminent domain laws to seize property for public use. 
C) lobby Congress in order to increase environmental regulations. 
D) evade taxes.

Question 6

When a nation's real per capita Gross Domestic Product (GDP)increases, which of the following is TRUE?

Accepted Answer

A) Every individual in that nation shares in the economic gain. 
B) A nation must channel most of the economic gains to its poorest citizens. 
C) Low income people are guaranteed to lose; they never share in their nation's economic gains. 
D) We don't know who has most benefited from economic growth unless we look at the distribution of income. 
A) Every individual in that nation shares in the economic gain. 
B) A nation must channel most of the economic gains to its poorest citizens. 
C) Low income people are guaranteed to lose; they never share in their nation's economic gains. 
D) We don't know who has most benefited from economic growth unless we look at the distribution of income.

Question 7

In order to be able to consume more in the future, you have to consume

Accepted Answer

A) less today and save the difference. 
B) more today to increase supply. 
C) more consumer goods. 
D) fewer capital goods. 
A) less today and save the difference. 
B) more today to increase supply. 
C) more consumer goods. 
D) fewer capital goods.

Question 8

The formula for the computation of labor productivity is

Accepted Answer

A) real GDP/population. 
B) real GDP/number of workers. 
C) nominal GDP/population. 
D) nominal GDP/number of workers. 
A) real GDP/population. 
B) real GDP/number of workers. 
C) nominal GDP/population. 
D) nominal GDP/number of workers.

Question 9

Which of the following is a TRUE statement concerning economic growth?

Accepted Answer

A) Changes in per capita nominal GDP are used to measure economic growth because population growth can distort the figures and we want to use the nominal amounts since that is what people identify with. 
B) Changes in per capita nominal GDP are used to measure economic growth, but there are serious problems concerning the desirability of using figures that do not account for pollution and urban sprawl. 
C) Changes in per capita real GDP are used to measure economic growth because this accurately measures all the differences in living standards across countries. 
D) Changes in per capita real GDP are used to measure economic growth because inflation and population growth can distort nominal GDP figures or total GDP figures. 
A) Changes in per capita nominal GDP are used to measure economic growth because population growth can distort the figures and we want to use the nominal amounts since that is what people identify with. 
B) Changes in per capita nominal GDP are used to measure economic growth, but there are serious problems concerning the desirability of using figures that do not account for pollution and urban sprawl. 
C) Changes in per capita real GDP are used to measure economic growth because this accurately measures all the differences in living standards across countries. 
D) Changes in per capita real GDP are used to measure economic growth because inflation and population growth can distort nominal GDP figures or total GDP figures.

Question 10

Traditionally, economists regarded improvements in technology as

Accepted Answer

A) the most important factor that helped explain economic growth, and basically the only factor that would cause economic growth. 
B) an outside factor that helped explain economic growth. 
C) an important factor in explaining economic growth that was due to economic forces that also could easily be explained. 
D) unrelated to economic growth in any systematic way. 
A) the most important factor that helped explain economic growth, and basically the only factor that would cause economic growth. 
B) an outside factor that helped explain economic growth. 
C) an important factor in explaining economic growth that was due to economic forces that also could easily be explained. 
D) unrelated to economic growth in any systematic way.

Question 11

-Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?

Accepted Answer

A) B is 8 times larger, or $175,000 larger on a real per capita basis. 
B) B is 12 times larger, or $230,000 larger on a real per capita basis. 
C) B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis. 
D) B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis. 
A) B is 8 times larger, or $175,000 larger on a real per capita basis. 
B) B is 12 times larger, or $230,000 larger on a real per capita basis. 
C) B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis. 
D) B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis.

Question 12

The immediate effect of increased population growth, with real GDP growth unchanged, is to

Accepted Answer

A) reduce economic growth by reducing per capita real GDP. 
B) increase economic growth by stimulating more saving. 
C) increase economic growth by boosting the capital stock. 
D) leave economic growth unchanged. 
A) reduce economic growth by reducing per capita real GDP. 
B) increase economic growth by stimulating more saving. 
C) increase economic growth by boosting the capital stock. 
D) leave economic growth unchanged.

Question 13

Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?

Accepted Answer

A) The definition does not indicate how the increase in growth is being disturbed among the nation's population. 
B) The definition assumes that some of the increase in productivity goes to the poor. 
C) The definition has understated actual economic growth because it does not take into consideration changes in leisure. 
D) The definition is not perfect for measuring increases in a nation's productive capacity. 
A) The definition does not indicate how the increase in growth is being disturbed among the nation's population. 
B) The definition assumes that some of the increase in productivity goes to the poor. 
C) The definition has understated actual economic growth because it does not take into consideration changes in leisure. 
D) The definition is not perfect for measuring increases in a nation's productive capacity.

Question 14

When looking at economic growth in a country, the distribution of output and income

Accepted Answer

A) generally follows predictable patterns. 
B) is not taken into consideration. 
C) is skewed toward the lowest quintile of the population. 
D) is shared equally. 
A) generally follows predictable patterns. 
B) is not taken into consideration. 
C) is skewed toward the lowest quintile of the population. 
D) is shared equally.

Question 15

A change in the growth rate of a country of one percentage point annually has

Accepted Answer

A) very little impact on the economy of a country. 
B) a large impact in the future due to compounding. 
C) a small impact in the current year, and smaller impact in the future because of compounding. 
D) a large impact on the economy in the current year, but not in the future. 
A) very little impact on the economy of a country. 
B) a large impact in the future due to compounding. 
C) a small impact in the current year, and smaller impact in the future because of compounding. 
D) a large impact on the economy in the current year, but not in the future.

Question 16

According to many economists, as nations become wealthier, what happens to family sizes?

Accepted Answer

A) They increase. 
B) They decline. 
C) There is no effect. 
D) They increase, but later in life. 
A) They increase. 
B) They decline. 
C) There is no effect. 
D) They increase, but later in life.

Question 17

-Refer to the above table. Which country has the lowest increase in per capita real GDP between 2014 and 2015?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 18

Assume a country produces two types of goods: manufactured goods and agricultural goods. When this country experiences economic growth, we know that

Accepted Answer

A) the production possibilities curve will shift outward. 
B) the production possibilities curve will shift inward. 
C) there will be a movement along the curve toward more manufactured goods. 
D) there will be movement along the curve toward more agricultural goods. 
A) the production possibilities curve will shift outward. 
B) the production possibilities curve will shift inward. 
C) there will be a movement along the curve toward more manufactured goods. 
D) there will be movement along the curve toward more agricultural goods.

Question 19

The federal government awards a patent holder the exclusive right to make, use, and sell an invention for a period of

Accepted Answer

A) 20 years. 
B) 17 years. 
C) unlimited period. 
D) 100 years. 
A) 20 years. 
B) 17 years. 
C) unlimited period. 
D) 100 years.

Question 20

An important foundation of the new growth theory is that

Accepted Answer

A) we will get more technological advances the more the government is involved. 
B) we will get more technological advances when the rewards for producing them are greater. 
C) the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth. 
D) improvements in labor productivity are poor measures of technological growth. 
A) we will get more technological advances the more the government is involved. 
B) we will get more technological advances when the rewards for producing them are greater. 
C) the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth. 
D) improvements in labor productivity are poor measures of technological growth.

Economists typically agree that the special protection given to owners of patents tends to

Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change?

If we are interested in knowing whether a poor country is improving economically, we want to know not only what the economic growth rate is, but also

-Refer to the above table. Two countries have per capita real GDPs in 2010 of $5000. If country A has a 4 percent growth rate and Country B a 5 percent growth rate, what will the per capita real GDPs of each be in the year 2060?

Well-defined property rights give entrepreneurs the incentive to

When a nation's real per capita Gross Domestic Product (GDP)increases, which of the following is TRUE?

In order to be able to consume more in the future, you have to consume

The formula for the computation of labor productivity is

Which of the following is a TRUE statement concerning economic growth?

Traditionally, economists regarded improvements in technology as

-Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?

The immediate effect of increased population growth, with real GDP growth unchanged, is to

Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?

When looking at economic growth in a country, the distribution of output and income

A change in the growth rate of a country of one percentage point annually has

According to many economists, as nations become wealthier, what happens to family sizes?

-Refer to the above table. Which country has the lowest increase in per capita real GDP between 2014 and 2015?

Assume a country produces two types of goods: manufactured goods and agricultural goods. When this country experiences economic growth, we know that

The federal government awards a patent holder the exclusive right to make, use, and sell an invention for a period of

An important foundation of the new growth theory 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

Economists typically agree that the special protection given to owners of patents tends to

Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change?

If we are interested in knowing whether a poor country is improving economically, we want to know not only what the economic growth rate is, but also

-Refer to the above table. Two countries have per capita real GDPs in 2010 of $5000. If country A has a 4 percent growth rate and Country B a 5 percent growth rate, what will the per capita real GDPs of each be in the year 2060?

Well-defined property rights give entrepreneurs the incentive to

When a nation's real per capita Gross Domestic Product (GDP)increases, which of the following is TRUE?

In order to be able to consume more in the future, you have to consume

The formula for the computation of labor productivity is

Which of the following is a TRUE statement concerning economic growth?

Traditionally, economists regarded improvements in technology as

-Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?

The immediate effect of increased population growth, with real GDP growth unchanged, is to

Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?

When looking at economic growth in a country, the distribution of output and income

A change in the growth rate of a country of one percentage point annually has

According to many economists, as nations become wealthier, what happens to family sizes?

-Refer to the above table. Which country has the lowest increase in per capita real GDP between 2014 and 2015?

Assume a country produces two types of goods: manufactured goods and agricultural goods. When this country experiences economic growth, we know that

The federal government awards a patent holder the exclusive right to make, use, and sell an invention for a period of

An important foundation of the new growth theory 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