Question 1

Labor productivity can be increased if

Accepted Answer

A) people spend less time developing skills before entering the workforce. 
B) the government mandates it. 
C) there is an increase in capital goods. 
D) the standard of living declines. 
A) people spend less time developing skills before entering the workforce. 
B) the government mandates it. 
C) there is an increase in capital goods. 
D) the standard of living declines.

Question 2

According to the United Nations, the largest expected growth in population for the coming decades will occur on which continent?

Accepted Answer

A) Europe 
B) South America 
C) North America 
D) Africa 
A) Europe 
B) South America 
C) North America 
D) Africa

Question 3

Human capital is

Accepted Answer

A) the saving done by human beings. 
B) the knowledge and skills that people in the work force acquire through education and training. 
C) a measure of the labor productivity of workers. 
D) the investment people make in industries that make capital goods. 
A) the saving done by human beings. 
B) the knowledge and skills that people in the work force acquire through education and training. 
C) a measure of the labor productivity of workers. 
D) the investment people make in industries that make capital goods.

Question 4

According to the new growth theory

Accepted Answer

A) technology should be considered as a factor of production. 
B) technology plays a minor role in economic development. 
C) technology provides few rewards to the society. 
D) technology is a natural by-product of invention. 
A) technology should be considered as a factor of production. 
B) technology plays a minor role in economic development. 
C) technology provides few rewards to the society. 
D) technology is a natural by-product of invention.

Question 5

Which of the following is NOT associated with the new growth theory?

Accepted Answer

A) natural resources 
B) research 
C) technology 
D) innovation 
A) natural resources 
B) research 
C) technology 
D) innovation

Question 6

Economic growth will

Accepted Answer

A) shift the production possibilities curve inward. 
B) shift the production possibilities curve outward. 
C) shift along the production possibilities curve toward the X-axis. 
D) be a movement from inside the productions possibilities curve to the curve itself. 
A) shift the production possibilities curve inward. 
B) shift the production possibilities curve outward. 
C) shift along the production possibilities curve toward the X-axis. 
D) be a movement from inside the productions possibilities curve to the curve itself.

Question 7

The definition of economic growth is the annual percentage

Accepted Answer

A) increase in the per capita real GDP. 
B) increase in the per capita nominal GDP. 
C) increase in the total nominal GDP. 
D) increase in total exports. 
A) increase in the per capita real GDP. 
B) increase in the per capita nominal GDP. 
C) increase in the total nominal GDP. 
D) increase in total exports.

Question 8

Economic growth can be depicted as

Accepted Answer

A) a movement up on the production possibilities curve. 
B) a movement down on the production possibilities curve. 
C) an outward shift on the production possibilities curve. 
D) an inward shift on the production possibilities curve. 
A) a movement up on the production possibilities curve. 
B) a movement down on the production possibilities curve. 
C) an outward shift on the production possibilities curve. 
D) an inward shift on the production possibilities curve.

Question 9

A one percentage point in the growth rate

Accepted Answer

A) does not make much difference in the long run per capita real GDP. 
B) will not influence the real standard of living in a country. 
C) can make a big difference in the per capita real GDP because of urban congestion. 
D) can make a big difference in the per capita real GDP because of compounding. 
A) does not make much difference in the long run per capita real GDP. 
B) will not influence the real standard of living in a country. 
C) can make a big difference in the per capita real GDP because of urban congestion. 
D) can make a big difference in the per capita real GDP because of compounding.

Question 10

Free trade

Accepted Answer

A) hurts economic growth because foreigners are not bound by the same patent laws as we are. 
B) helps economic growth by encouraging the sharing of technology and industrial ideas. 
C) hurts economic growth because foreign countries can produce goods with lower labor costs. 
D) helps economic growth by increasing tariffs. 
A) hurts economic growth because foreigners are not bound by the same patent laws as we are. 
B) helps economic growth by encouraging the sharing of technology and industrial ideas. 
C) hurts economic growth because foreign countries can produce goods with lower labor costs. 
D) helps economic growth by increasing tariffs.

Question 11

All of the following are factors that raise economic development EXCEPT

Accepted Answer

A) establishing a legal system. 
B) an educated work force. 
C) reducing trade barriers. 
D) government control of the country's resources. 
A) establishing a legal system. 
B) an educated work force. 
C) reducing trade barriers. 
D) government control of the country's resources.

Question 12

Entrepreneurship functions better when

Accepted Answer

A) patent laws are not strongly enforced since they make imitation difficult. 
B) government provides technical support to entrepreneurs. 
C) a system of private property rights permits entrepreneurs to capture the rewards from their entrepreneurial activities. 
D) universities provide research that is closely interrelated with the entrepreneurial activities. 
A) patent laws are not strongly enforced since they make imitation difficult. 
B) government provides technical support to entrepreneurs. 
C) a system of private property rights permits entrepreneurs to capture the rewards from their entrepreneurial activities. 
D) universities provide research that is closely interrelated with the entrepreneurial activities.

Question 13

Innovation is

Accepted Answer

A) always financed by the government. 
B) an invention financed by the sale of bonds. 
C) the transformation of an invention into something useful. 
D) an invention financed by the sale of stock certificates. 
A) always financed by the government. 
B) an invention financed by the sale of bonds. 
C) the transformation of an invention into something useful. 
D) an invention financed by the sale of stock certificates.

Question 14

-Refer to the above table. If an economy's current per capita real GDP is $3,000, and if its economy grows at an constant annual rate of 5 percent for 50 years, what will be its per capita real GDP at the end of that period?

Accepted Answer

A) $13,140 
B) $21,330 
C) $34,500 
D) $55,200 
A) $13,140 
B) $21,330 
C) $34,500 
D) $55,200

Question 15

The measurement of economic growth cannot take into account

Accepted Answer

A) the service sector of an economy. 
B) productive activity in an economy. 
C) cultural aspects of life in a country. 
D) differences in inflation rates across countries. 
A) the service sector of an economy. 
B) productive activity in an economy. 
C) cultural aspects of life in a country. 
D) differences in inflation rates across countries.

Question 16

Explain how the "new growth theory" treats technology differently from the way economists used to treat technology.

Accepted Answer

Technology used to be treated as an outs

Question 17

Does economic growth have any negative side effects?

Accepted Answer

A) No. Every person in a nation experiencing economic growth will benefit. 
B) No, because where negative side effects do occur, a nation's government is required to neutralize them. 
C) Quite possibly. Some say economic growth puts people on a never-ending quest to satisfy newly created wants, so we always feel disappointed with our lives. 
D) yes, but only for the poorest segment of a nation's population 
A) No. Every person in a nation experiencing economic growth will benefit. 
B) No, because where negative side effects do occur, a nation's government is required to neutralize them. 
C) Quite possibly. Some say economic growth puts people on a never-ending quest to satisfy newly created wants, so we always feel disappointed with our lives. 
D) yes, but only for the poorest segment of a nation's population

Question 18

-According to the above table, if per capita real GDP is currently $1000, then at a constant annual rate of growth of 8 percent, per capita real GDP ten years from now will be equal to

Accepted Answer

A) $2000. 
B) $2140. 
C) $2160. 
D) $2590. 
A) $2000. 
B) $2140. 
C) $2160. 
D) $2590.

Question 19

All of the following will cause the reported growth rate in a country to change EXCEPT

Accepted Answer

A) population changes. 
B) changes in the number of poor people in the country. 
C) a shift of the production possibilities curve. 
D) changes in productivity. 
A) population changes. 
B) changes in the number of poor people in the country. 
C) a shift of the production possibilities curve. 
D) changes in productivity.

Question 20

Economic growth occurs as a result of all of the following EXCEPT

Accepted Answer

A) more labor hours. 
B) growth of capital. 
C) technological progress. 
D) less saving. 
A) more labor hours. 
B) growth of capital. 
C) technological progress. 
D) less saving.

Labor productivity can be increased if

According to the United Nations, the largest expected growth in population for the coming decades will occur on which continent?

Human capital is

According to the new growth theory

Which of the following is NOT associated with the new growth theory?

Economic growth will

The definition of economic growth is the annual percentage

Economic growth can be depicted as

A one percentage point in the growth rate

Free trade

All of the following are factors that raise economic development EXCEPT

Entrepreneurship functions better when

Innovation is

-Refer to the above table. If an economy's current per capita real GDP is $3,000, and if its economy grows at an constant annual rate of 5 percent for 50 years, what will be its per capita real GDP at the end of that period?

The measurement of economic growth cannot take into account

Explain how the "new growth theory" treats technology differently from the way economists used to treat technology.

Does economic growth have any negative side effects?

-According to the above table, if per capita real GDP is currently $1000, then at a constant annual rate of growth of 8 percent, per capita real GDP ten years from now will be equal to

All of the following will cause the reported growth rate in a country to change EXCEPT

Economic growth occurs as a result of all of the following EXCEPT

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

Labor productivity can be increased if

According to the United Nations, the largest expected growth in population for the coming decades will occur on which continent?

Human capital is

According to the new growth theory

Which of the following is NOT associated with the new growth theory?

Economic growth will

The definition of economic growth is the annual percentage

Economic growth can be depicted as

A one percentage point in the growth rate

Free trade

All of the following are factors that raise economic development EXCEPT

Entrepreneurship functions better when

Innovation is

-Refer to the above table. If an economy's current per capita real GDP is $3,000, and if its economy grows at an constant annual rate of 5 percent for 50 years, what will be its per capita real GDP at the end of that period?

The measurement of economic growth cannot take into account

Explain how the "new growth theory" treats technology differently from the way economists used to treat technology.

Does economic growth have any negative side effects?

-According to the above table, if per capita real GDP is currently $1000, then at a constant annual rate of growth of 8 percent, per capita real GDP ten years from now will be equal to

All of the following will cause the reported growth rate in a country to change EXCEPT

Economic growth occurs as a result of all of the following EXCEPT

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