Question 1

When Country X has high economic growth, this country has

Accepted Answer

A) a high level of real Gross Domestic Product (GDP). 
B) a high level of per capita real Gross Domestic Product (GDP). 
C) a large increase in per capita real Gross Domestic Product (GDP). 
D) a large increase in personal income. 
A) a high level of real Gross Domestic Product (GDP). 
B) a high level of per capita real Gross Domestic Product (GDP). 
C) a large increase in per capita real Gross Domestic Product (GDP). 
D) a large increase in personal income.

Question 2

Economic growth tends to be higher in a country that

Accepted Answer

A) has a low saving rate. 
B) has an open economy that encourages the rapid spread of technology. 
C) has an undeveloped system of property rights. 
D) does not grant patents to investors. 
A) has a low saving rate. 
B) has an open economy that encourages the rapid spread of technology. 
C) has an undeveloped system of property rights. 
D) does not grant patents to investors.

Question 3

One important factor that affects economic growth is

Accepted Answer

A) gold reserves. 
B) the rate of saving. 
C) which political party is in power. 
D) the number of workers in heavy industry. 
A) gold reserves. 
B) the rate of saving. 
C) which political party is in power. 
D) the number of workers in heavy industry.

Question 4

Creative destruction refers to

Accepted Answer

A) the destruction of the government system which limits economic growth. 
B) the movement from an agricultural society to a service economy. 
C) the mechanism for establishing property rights. 
D) the creation of new jobs and economic growth after destroying old jobs. 
A) the destruction of the government system which limits economic growth. 
B) the movement from an agricultural society to a service economy. 
C) the mechanism for establishing property rights. 
D) the creation of new jobs and economic growth after destroying old jobs.

Question 5

Other things being equal, an increase in consumption spending implies

Accepted Answer

A) a decline in saving. 
B) a decline in government spending. 
C) a higher standard of living in the future. 
D) that economic growth will soon increase. 
A) a decline in saving. 
B) a decline in government spending. 
C) a higher standard of living in the future. 
D) that economic growth will soon increase.

Question 6

If population growth is greater than the growth of real output

Accepted Answer

A) real per capita Gross Domestic Product (GDP)growth will be less than the growth of real Gross Domestic Product (GDP). 
B) the production possibilities curve is shifting to the left. 
C) real per capita Gross Domestic Product (GDP)growth will be greater than the growth of real Gross Domestic Product (GDP). 
D) real per capita Gross Domestic Product (GDP)and real Gross Domestic Product (GDP)will be growing at the same rate. 
A) real per capita Gross Domestic Product (GDP)growth will be less than the growth of real Gross Domestic Product (GDP). 
B) the production possibilities curve is shifting to the left. 
C) real per capita Gross Domestic Product (GDP)growth will be greater than the growth of real Gross Domestic Product (GDP). 
D) real per capita Gross Domestic Product (GDP)and real Gross Domestic Product (GDP)will be growing at the same rate.

Question 7

What is economic growth and why are growth rates so important?

Accepted Answer

Economic growth is measured by increases

Question 8

Why might population growth and immigration stimulate economic growth?

Accepted Answer

Faster population growth means

Question 9

An important factor in determining a country's rate of economic growth is

Accepted Answer

A) the diversity of its population. 
B) its rate of saving. 
C) the size of its labor force. 
D) the proportion of the adult population that is working. 
A) the diversity of its population. 
B) its rate of saving. 
C) the size of its labor force. 
D) the proportion of the adult population that is working.

Question 10

If all income is consumed in a year, then

Accepted Answer

A) investment spending will increase. 
B) income next year will increase. 
C) investment spending will be zero. 
D) any investment spending will be done by the government. 
A) investment spending will increase. 
B) income next year will increase. 
C) investment spending will be zero. 
D) any investment spending will be done by the government.

Question 11

Which one of the following is TRUE?

Accepted Answer

A) For every country that experiences an increase in its growth rate, there must be another experiencing a decline. 
B) Small changes in the annual growth rate amount to a measurable difference in the long-term growth trend of a country. 
C) Restricting imports will enhance a country's economic growth. 
D) A well-defined system of property rights benefits only the wealthy, and consequently it produces income inequality that will stifle economic growth. 
A) For every country that experiences an increase in its growth rate, there must be another experiencing a decline. 
B) Small changes in the annual growth rate amount to a measurable difference in the long-term growth trend of a country. 
C) Restricting imports will enhance a country's economic growth. 
D) A well-defined system of property rights benefits only the wealthy, and consequently it produces income inequality that will stifle economic growth.

Question 12

Countries with higher rates of saving

Accepted Answer

A) experience lower growth rates in the future. 
B) have a large population. 
C) have a greater number of poor people. 
D) have higher rates of growth. 
A) experience lower growth rates in the future. 
B) have a large population. 
C) have a greater number of poor people. 
D) have higher rates of growth.

Question 13

Many countries find it difficult to achieve economic growth. This is because economic growth

Accepted Answer

A) is not understood well by economists, so it is difficult to advise policy makers on the best policies to pursue. 
B) requires saving, and saving means less consumption today. A poor country may find it difficult to consume less today. 
C) appears to be predetermined and not subject to factors that policy makers can have any affect on. 
D) depends on technological change and technological change depends on noneconomic factors such as the growth rate of scientific knowledge. 
A) is not understood well by economists, so it is difficult to advise policy makers on the best policies to pursue. 
B) requires saving, and saving means less consumption today. A poor country may find it difficult to consume less today. 
C) appears to be predetermined and not subject to factors that policy makers can have any affect on. 
D) depends on technological change and technological change depends on noneconomic factors such as the growth rate of scientific knowledge.

Question 14

The term "economic growth" refers to increases in

Accepted Answer

A) resources use. 
B) nominal income. 
C) satisfaction. 
D) productive capacity. 
A) resources use. 
B) nominal income. 
C) satisfaction. 
D) productive capacity.

Question 15

New growth theorists conclude that

Accepted Answer

A) invention is more important than innovation in spurring economic growth. 
B) the amount of technological innovation in an economy is independent of the rewards offered for innovation. 
C) rates of global economic growth are limited by the amount of raw materials available. 
D) economic growth can continue as long as we keep coming up with new ideas. 
A) invention is more important than innovation in spurring economic growth. 
B) the amount of technological innovation in an economy is independent of the rewards offered for innovation. 
C) rates of global economic growth are limited by the amount of raw materials available. 
D) economic growth can continue as long as we keep coming up with new ideas.

Question 16

A patent is a government protection that gives

Accepted Answer

A) consumers the right to sue when products are unsafe. 
B) inventors exclusive rights to their product for a time. 
C) monopolies the right to be sole producers due to economies of scale. 
D) companies the right to produce any good they choose. 
A) consumers the right to sue when products are unsafe. 
B) inventors exclusive rights to their product for a time. 
C) monopolies the right to be sole producers due to economies of scale. 
D) companies the right to produce any good they choose.

Question 17

When examining the growth record of any nation

Accepted Answer

A) all that must be examined is increases in per capital real GDP. 
B) no consideration should be given to the change in the average amount of leisure time in the nation. 
C) increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted. 
D) we must consider which income groups have benefited most from the growth. 
A) all that must be examined is increases in per capital real GDP. 
B) no consideration should be given to the change in the average amount of leisure time in the nation. 
C) increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted. 
D) we must consider which income groups have benefited most from the growth.

Question 18

Which of the following is TRUE of trends in the number of new U.S. patents?

Accepted Answer

A) There was a steady increase in new patents throughout the 1970s. 
B) There was a surge in new patents in the latter part of the 1990s. 
C) The number of new patents granted each year has remained unchanged since the early 1970s. 
D) The number of new patents granted each year declined by more than 50 percent after 2001. 
A) There was a steady increase in new patents throughout the 1970s. 
B) There was a surge in new patents in the latter part of the 1990s. 
C) The number of new patents granted each year has remained unchanged since the early 1970s. 
D) The number of new patents granted each year declined by more than 50 percent after 2001.

Question 19

The development of human capital

Accepted Answer

A) is a form of investment. 
B) does not appear to enhance economic growth. 
C) enhances economic growth, but it does not improve the productivity of the labor force. 
D) enhances economic growth, but the individuals acquiring the capital are not made better off themselves. 
A) is a form of investment. 
B) does not appear to enhance economic growth. 
C) enhances economic growth, but it does not improve the productivity of the labor force. 
D) enhances economic growth, but the individuals acquiring the capital are not made better off themselves.

Question 20

Economic growth occurs when there is

Accepted Answer

A) growth in technology that increases productivity. 
B) growth in government spending. 
C) lower taxes on individuals. 
D) more environmental regulation. 
A) growth in technology that increases productivity. 
B) growth in government spending. 
C) lower taxes on individuals. 
D) more environmental regulation.

When Country X has high economic growth, this country has

Economic growth tends to be higher in a country that

One important factor that affects economic growth is

Creative destruction refers to

Other things being equal, an increase in consumption spending implies

If population growth is greater than the growth of real output

What is economic growth and why are growth rates so important?

Why might population growth and immigration stimulate economic growth?

An important factor in determining a country's rate of economic growth is

If all income is consumed in a year, then

Which one of the following is TRUE?

Countries with higher rates of saving

Many countries find it difficult to achieve economic growth. This is because economic growth

The term "economic growth" refers to increases in

New growth theorists conclude that

A patent is a government protection that gives

When examining the growth record of any nation

Which of the following is TRUE of trends in the number of new U.S. patents?

The development of human capital

Economic growth occurs when there is

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

When Country X has high economic growth, this country has

Economic growth tends to be higher in a country that

One important factor that affects economic growth is

Creative destruction refers to

Other things being equal, an increase in consumption spending implies

If population growth is greater than the growth of real output

What is economic growth and why are growth rates so important?

Why might population growth and immigration stimulate economic growth?

An important factor in determining a country's rate of economic growth is

If all income is consumed in a year, then

Which one of the following is TRUE?

Countries with higher rates of saving

Many countries find it difficult to achieve economic growth. This is because economic growth

The term "economic growth" refers to increases in

New growth theorists conclude that

A patent is a government protection that gives

When examining the growth record of any nation

Which of the following is TRUE of trends in the number of new U.S. patents?

The development of human capital

Economic growth occurs when there is

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