Question 1

Which one of the following helps preserve incentives to develop new technologies?

Accepted Answer

A) patents 
B) tariffs 
C) quantity restrictions on imports 
D) income taxes 
A) patents 
B) tariffs 
C) quantity restrictions on imports 
D) income taxes

Question 2

Which of the following is NOT an important factor affecting economic growth?

Accepted Answer

A) the rate of saving 
B) the growth of leisure 
C) the rate of growth of capital 
D) the rate of growth in labor productivity 
A) the rate of saving 
B) the growth of leisure 
C) the rate of growth of capital 
D) the rate of growth in labor productivity

Question 3

A patent is

Accepted Answer

A) a bond issued by the government. 
B) a bond issued by a state. 
C) the monopoly right given to a producer/company. 
D) an agreement between a union and management on certain labor issues. 
A) a bond issued by the government. 
B) a bond issued by a state. 
C) the monopoly right given to a producer/company. 
D) an agreement between a union and management on certain labor issues.

Question 4

The study of factors that contribute to the economic development of a country is

Accepted Answer

A) population growth economics. 
B) development economics. 
C) the theory of technological advancements. 
D) the new technology theory. 
A) population growth economics. 
B) development economics. 
C) the theory of technological advancements. 
D) the new technology theory.

Question 5

In order for a nation to be able to consume more in the future, it needs to

Accepted Answer

A) consume less today in aggregate and save the difference between consumption and income. 
B) consume more today in aggregate and borrow the difference between consumption and income. 
C) produce more today in aggregate and save the difference between consumption and production. 
D) produce less today in aggregate and save the difference between consumption and income. 
A) consume less today in aggregate and save the difference between consumption and income. 
B) consume more today in aggregate and borrow the difference between consumption and income. 
C) produce more today in aggregate and save the difference between consumption and production. 
D) produce less today in aggregate and save the difference between consumption and income.

Question 6

The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from

Accepted Answer

A) capital accumulation. 
B) increased gross investment. 
C) technological progress. 
D) an increase in per capita real income. 
A) capital accumulation. 
B) increased gross investment. 
C) technological progress. 
D) an increase in per capita real income.

Question 7

What occurs in the second stage of economic development?

Accepted Answer

A) Most of the labor force works in agriculture. 
B) The service sector comes to the forefront. 
C) The manufacturing sector declines in importance. 
D) Manufacturing gains in importance and employs a large portion of the labor force. 
A) Most of the labor force works in agriculture. 
B) The service sector comes to the forefront. 
C) The manufacturing sector declines in importance. 
D) Manufacturing gains in importance and employs a large portion of the labor force.

Question 8

Which of the following nations has experienced the highest average annual rate of growth of per capita real GDP since 1990?

Accepted Answer

A) India 
B) United States 
C) China 
D) Germany 
A) India 
B) United States 
C) China 
D) Germany

Question 9

Firms are more likely to devote resources to research and development when

Accepted Answer

A) the country is in recession. 
B) they expect to earn rewards from successful research and development. 
C) it is easy to copy new techniques of other firms. 
D) the country has been experiencing slow economic growth in order to spur economic growth. 
A) the country is in recession. 
B) they expect to earn rewards from successful research and development. 
C) it is easy to copy new techniques of other firms. 
D) the country has been experiencing slow economic growth in order to spur economic growth.

Question 10

The more certain private property rights are

Accepted Answer

A) the less people need to invest in education or human capital development. 
B) the less entrepreneurship there will be. 
C) the more capital accumulation there will be. 
D) the more an economy must grow to maintain a certain living standard. 
A) the less people need to invest in education or human capital development. 
B) the less entrepreneurship there will be. 
C) the more capital accumulation there will be. 
D) the more an economy must grow to maintain a certain living standard.

Question 11

By dividing the value of total domestic output (real Gross Domestic Product (GDP))by the number of workers, economists derive

Accepted Answer

A) the net domestic product. 
B) labor productivity. 
C) the size of the labor force. 
D) the rate of capital accumulation. 
A) the net domestic product. 
B) labor productivity. 
C) the size of the labor force. 
D) the rate of capital accumulation.

Question 12

What does the fact that U.S. students are falling behind other nations' students in math and science have to do with economic growth?

Accepted Answer

A) Nothing. People in the United States just don't like to fall behind in anything as a matter of pride. 
B) If U.S. students don't excel in math and science, the nation will see fewer plays written and fewer pieces of music composed. 
C) Better technology, a key to economic growth, depends largely on math and science skills. 
D) Math and science skills don't foster economic growth, but it takes math skills to calculate a nation's rate of economic growth. 
A) Nothing. People in the United States just don't like to fall behind in anything as a matter of pride. 
B) If U.S. students don't excel in math and science, the nation will see fewer plays written and fewer pieces of music composed. 
C) Better technology, a key to economic growth, depends largely on math and science skills. 
D) Math and science skills don't foster economic growth, but it takes math skills to calculate a nation's rate of economic growth.

Question 13

Graphically, economic growth is represented as

Accepted Answer

A) a movement along the production possibilities curve. 
B) a movement from a point inside the production possibilities curve to a point on the curve itself. 
C) an inward shift of the production possibilities curve. 
D) an outward shift of the production possibilities curve. 
A) a movement along the production possibilities curve. 
B) a movement from a point inside the production possibilities curve to a point on the curve itself. 
C) an inward shift of the production possibilities curve. 
D) an outward shift of the production possibilities curve.

Question 14

Regarding open economies, economists tend to find evidence that

Accepted Answer

A) the more closed an economy is, the higher the rate of growth the economy will experience. 
B) trade tariffs tend to improve economic growth. 
C) free trade encourages a more rapid spread of technology, and hence increases economic growth. 
D) open economies tend to have access to smaller markets than do closed economies. 
A) the more closed an economy is, the higher the rate of growth the economy will experience. 
B) trade tariffs tend to improve economic growth. 
C) free trade encourages a more rapid spread of technology, and hence increases economic growth. 
D) open economies tend to have access to smaller markets than do closed economies.

Question 15

-Refer to the above table (all figures in millions). Which country experienced the greatest economic growth from 2014 to 2015?

Accepted Answer

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

Question 16

Entrepreneurs often undertake the innovations that are necessary to bring inventions to the marketplace. Accordingly, what empirical pattern should be expected in an international comparison?

Accepted Answer

A) Countries with higher rates of entrepreneurship have higher rates of poverty. 
B) Countries with higher rates of entrepreneurship have lower rates of immigration. 
C) Countries with higher rates of entrepreneurship have lower rates of economic growth. 
D) Countries that protect the property rights of entrepreneurs will have higher rates of economic growth. 
A) Countries with higher rates of entrepreneurship have higher rates of poverty. 
B) Countries with higher rates of entrepreneurship have lower rates of immigration. 
C) Countries with higher rates of entrepreneurship have lower rates of economic growth. 
D) Countries that protect the property rights of entrepreneurs will have higher rates of economic growth.

Question 17

Real standards of living can increase

Accepted Answer

A) if the country is producing the same amount they traditionally have and are enjoying more leisure time. 
B) only if there is positive economic growth. 
C) if there is positive growth in the manufacturing sector. 
D) only at the cost of increased urban congestion. 
A) if the country is producing the same amount they traditionally have and are enjoying more leisure time. 
B) only if there is positive economic growth. 
C) if there is positive growth in the manufacturing sector. 
D) only at the cost of increased urban congestion.

Question 18

Which of the following would typically be considered a cost of economic growth?

Accepted Answer

A) increased illiteracy 
B) decreased levels of health 
C) increased poverty 
D) urban congestion 
A) increased illiteracy 
B) decreased levels of health 
C) increased poverty 
D) urban congestion

Question 19

Which of the following statements is NOT true about economic growth?

Accepted Answer

A) When growth occurs the production possibilities curve shifts outward. 
B) Growth represents an increase in a nation's productive capacity. 
C) Growth is measured as the overall level of real GDP. 
D) Growth generally means that overall the members of the nation are better off materially. 
A) When growth occurs the production possibilities curve shifts outward. 
B) Growth represents an increase in a nation's productive capacity. 
C) Growth is measured as the overall level of real GDP. 
D) Growth generally means that overall the members of the nation are better off materially.

Question 20

Which of the following is a negative effect of economic growth?

Accepted Answer

A) higher inflation 
B) higher unemployment 
C) environmental pollution 
D) all of the above 
A) higher inflation 
B) higher unemployment 
C) environmental pollution 
D) all of the above

Which one of the following helps preserve incentives to develop new technologies?

Which of the following is NOT an important factor affecting economic growth?

A patent is

The study of factors that contribute to the economic development of a country is

In order for a nation to be able to consume more in the future, it needs to

The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from

What occurs in the second stage of economic development?

Which of the following nations has experienced the highest average annual rate of growth of per capita real GDP since 1990?

Firms are more likely to devote resources to research and development when

The more certain private property rights are

By dividing the value of total domestic output (real Gross Domestic Product (GDP))by the number of workers, economists derive

What does the fact that U.S. students are falling behind other nations' students in math and science have to do with economic growth?

Graphically, economic growth is represented as

Regarding open economies, economists tend to find evidence that

-Refer to the above table (all figures in millions). Which country experienced the greatest economic growth from 2014 to 2015?

Entrepreneurs often undertake the innovations that are necessary to bring inventions to the marketplace. Accordingly, what empirical pattern should be expected in an international comparison?

Real standards of living can increase

Which of the following would typically be considered a cost of economic growth?

Which of the following statements is NOT true about economic growth?

Which of the following is a negative effect of economic growth?

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

Which one of the following helps preserve incentives to develop new technologies?

Which of the following is NOT an important factor affecting economic growth?

A patent is

The study of factors that contribute to the economic development of a country is

In order for a nation to be able to consume more in the future, it needs to

The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from

What occurs in the second stage of economic development?

Which of the following nations has experienced the highest average annual rate of growth of per capita real GDP since 1990?

Firms are more likely to devote resources to research and development when

The more certain private property rights are

By dividing the value of total domestic output (real Gross Domestic Product (GDP))by the number of workers, economists derive

What does the fact that U.S. students are falling behind other nations' students in math and science have to do with economic growth?

Graphically, economic growth is represented as

Regarding open economies, economists tend to find evidence that

-Refer to the above table (all figures in millions). Which country experienced the greatest economic growth from 2014 to 2015?

Entrepreneurs often undertake the innovations that are necessary to bring inventions to the marketplace. Accordingly, what empirical pattern should be expected in an international comparison?

Real standards of living can increase

Which of the following would typically be considered a cost of economic growth?

Which of the following statements is NOT true about economic growth?

Which of the following is a negative effect of economic growth?

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