Question 1

The relationship between the rate of saving and per capita real GDP is

Accepted Answer

A) positive. 
B) negative. 
C) constant. 
D) not stable. 
A) positive. 
B) negative. 
C) constant. 
D) not stable.

Question 2

Which of the following is an obstacle to economic development?

Accepted Answer

A) poorly defined property rights 
B) foreign direct investment 
C) immigration 
D) openness to trade 
A) poorly defined property rights 
B) foreign direct investment 
C) immigration 
D) openness to trade

Question 3

Would a new growth theorist expect economic growth to be very rapid in one of the Communist nations before the fall of Communism?
 Why or why not?

Accepted Answer

No. These centrally planned economies di

Question 4

-Refer to the above table. How long would it take for a country to triple its GDP if the GDP grew at a 20 percent rate?

Accepted Answer

A) 2 years 
B) 4 years 
C) 6 years 
D) 10 years 
A) 2 years 
B) 4 years 
C) 6 years 
D) 10 years

Question 5

Which of the following contributes to economic growth?

Accepted Answer

A) increase in labor productivity 
B) increase in consumer spending 
C) increase in labor regulations restricting the hours of overtime allowed 
D) increase in environmental protection policies 
A) increase in labor productivity 
B) increase in consumer spending 
C) increase in labor regulations restricting the hours of overtime allowed 
D) increase in environmental protection policies

Question 6

An educated populace contributes to economic growth because

Accepted Answer

A) schools provide many jobs for teachers. 
B) education allows workers to develop skills that increase their productive capabilities. 
C) educated people are more likely to live in poverty. 
D) educated people understand the importance of protectionism. 
A) schools provide many jobs for teachers. 
B) education allows workers to develop skills that increase their productive capabilities. 
C) educated people are more likely to live in poverty. 
D) educated people understand the importance of protectionism.

Question 7

According to the text, data supports the conclusion that lower trade barriers

Accepted Answer

A) help boost per capita real Gross Domestic Product (GDP)growth. 
B) help to increase welfare payments. 
C) decrease the standard of living in the country. 
D) decrease life expectancy. 
A) help boost per capita real Gross Domestic Product (GDP)growth. 
B) help to increase welfare payments. 
C) decrease the standard of living in the country. 
D) decrease life expectancy.

Question 8

Is it possible to see gains in a nation's real standard of living without any positive economic growth?

Accepted Answer

A) No, a nation's standard of living cannot improve without economic growth. 
B) Yes, but only if the government prints more money so people feel rich. 
C) Yes, if workers can produce the same level of output in fewer work hours, so that more leisure time could push up the real standard of living. 
D) None of the above: Economic growth has nothing to do with a nation's standard of living. 
A) No, a nation's standard of living cannot improve without economic growth. 
B) Yes, but only if the government prints more money so people feel rich. 
C) Yes, if workers can produce the same level of output in fewer work hours, so that more leisure time could push up the real standard of living. 
D) None of the above: Economic growth has nothing to do with a nation's standard of living.

Question 9

-Refer to the above table. Suppose one country has a per capita real GDP of $1000 and another has a per capita real GDP of $10,000, or ten times larger. If both countries have a growth rate of 5 percent, how much larger will per capita real GDP be in the second country be than the first after 50 years?

Accepted Answer

A) 4 times larger 
B) 5 times larger 
C) 8 times larger 
D) 10 times larger 
A) 4 times larger 
B) 5 times larger 
C) 8 times larger 
D) 10 times larger

Question 10

An outward shift of the production possibilities curve demonstrates

Accepted Answer

A) a recession. 
B) an increased rate of inflation. 
C) economic growth. 
D) a cyclical shock. 
A) a recession. 
B) an increased rate of inflation. 
C) economic growth. 
D) a cyclical shock.

Question 11

When analyzing stages of economic development in the United States, it appears that we have entered the "tertiary stage." This is a stage marked by a shift toward

Accepted Answer

A) agriculture. 
B) manufacturing. 
C) services. 
D) population increases. 
A) agriculture. 
B) manufacturing. 
C) services. 
D) population increases.

Question 12

Labor productivity can best be calculated as

Accepted Answer

A) real Gross Domestic Product (GDP)/ Gross Domestic Product (GDP)price index. 
B) real Gross Domestic Product (GDP)/ number of workers. 
C) number of workers / hours of work. 
D) real wages / hours of work. 
A) real Gross Domestic Product (GDP)/ Gross Domestic Product (GDP)price index. 
B) real Gross Domestic Product (GDP)/ number of workers. 
C) number of workers / hours of work. 
D) real wages / hours of work.

Question 13

Which one of the following is TRUE?

Accepted Answer

A) Saving deters economic growth, because it takes money out of circulation. 
B) Saving enables economic growth by providing for investment in the capital stock. 
C) International comparisons have found no relationship between the rate of saving and the level of per capita real GDP. 
D) Economies with sophisticated credit markets, such as the United States, have no need for saving. 
A) Saving deters economic growth, because it takes money out of circulation. 
B) Saving enables economic growth by providing for investment in the capital stock. 
C) International comparisons have found no relationship between the rate of saving and the level of per capita real GDP. 
D) Economies with sophisticated credit markets, such as the United States, have no need for saving.

Question 14

It can be argued that Thomas Malthus' An Essay on the Principle of Population statement that population growth will always outstrip food production has been discredited due to

Accepted Answer

A) increase in the world-wide farming population. 
B) less world-wide consumption of grains. 
C) improvement in technology of food production. 
D) increase in food processing facilities. 
A) increase in the world-wide farming population. 
B) less world-wide consumption of grains. 
C) improvement in technology of food production. 
D) increase in food processing facilities.

Question 15

An increase in growth rates will cause the production possibilities curve to

Accepted Answer

A) shift inward. 
B) become steeper. 
C) become flatter. 
D) shift outward. 
A) shift inward. 
B) become steeper. 
C) become flatter. 
D) shift outward.

Question 16

Saving is important for economic growth because

Accepted Answer

A) a higher saving rate reduces investment spending. 
B) a higher saving rate increases investment spending. 
C) more saving increases consumption immediately. 
D) a higher saving rate will decrease the standard of living in the future. 
A) a higher saving rate reduces investment spending. 
B) a higher saving rate increases investment spending. 
C) more saving increases consumption immediately. 
D) a higher saving rate will decrease the standard of living in the future.

Question 17

A system of private property rights

Accepted Answer

A) enhances economic growth by creating incentives to the Fed to maintain stable prices. 
B) enhances economic growth by increasing the probability that a person can gain from making investments today. 
C) retards economic growth by serving the interests of the wealthy only. 
D) retards economic growth by limiting the options of people who own nothing. 
A) enhances economic growth by creating incentives to the Fed to maintain stable prices. 
B) enhances economic growth by increasing the probability that a person can gain from making investments today. 
C) retards economic growth by serving the interests of the wealthy only. 
D) retards economic growth by limiting the options of people who own nothing.

Question 18

According to economist Paul Romer, economies that wish to experience growth must

Accepted Answer

A) invest most of their savings in national defense. 
B) invest in knowledge. 
C) drastically lower their standards of living. 
D) become command economies. 
A) invest most of their savings in national defense. 
B) invest in knowledge. 
C) drastically lower their standards of living. 
D) become command economies.

Question 19

Costs associated with economic growth include all of the following EXCEPT

Accepted Answer

A) environmental pollution. 
B) psychological problems such as depression. 
C) urban congestion. 
D) improved health care. 
A) environmental pollution. 
B) psychological problems such as depression. 
C) urban congestion. 
D) improved health care.

Question 20

A patent is

Accepted Answer

A) a government protection that gives an inventor the exclusive right to the invention for a limited time period. 
B) a government protection that gives an inventor the exclusive right to the invention for an unlimited time period. 
C) the right to make a product and sell it at a reasonable price. 
D) a recognizable right to the profits associated with a new product or new way of making goods granted by business associations. 
A) a government protection that gives an inventor the exclusive right to the invention for a limited time period. 
B) a government protection that gives an inventor the exclusive right to the invention for an unlimited time period. 
C) the right to make a product and sell it at a reasonable price. 
D) a recognizable right to the profits associated with a new product or new way of making goods granted by business associations.

The relationship between the rate of saving and per capita real GDP is

Which of the following is an obstacle to economic development?

Would a new growth theorist expect economic growth to be very rapid in one of the Communist nations before the fall of Communism? Why or why not?

-Refer to the above table. How long would it take for a country to triple its GDP if the GDP grew at a 20 percent rate?

Which of the following contributes to economic growth?

An educated populace contributes to economic growth because

According to the text, data supports the conclusion that lower trade barriers

Is it possible to see gains in a nation's real standard of living without any positive economic growth?

An outward shift of the production possibilities curve demonstrates

When analyzing stages of economic development in the United States, it appears that we have entered the "tertiary stage." This is a stage marked by a shift toward

Labor productivity can best be calculated as

Which one of the following is TRUE?

It can be argued that Thomas Malthus' An Essay on the Principle of Population statement that population growth will always outstrip food production has been discredited due to

An increase in growth rates will cause the production possibilities curve to

Saving is important for economic growth because

A system of private property rights

According to economist Paul Romer, economies that wish to experience growth must

Costs associated with economic growth include all of the following EXCEPT

A patent 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

The relationship between the rate of saving and per capita real GDP is

Which of the following is an obstacle to economic development?

Would a new growth theorist expect economic growth to be very rapid in one of the Communist nations before the fall of Communism? Why or why not?

-Refer to the above table. How long would it take for a country to triple its GDP if the GDP grew at a 20 percent rate?

Which of the following contributes to economic growth?

An educated populace contributes to economic growth because

According to the text, data supports the conclusion that lower trade barriers

Is it possible to see gains in a nation's real standard of living without any positive economic growth?

An outward shift of the production possibilities curve demonstrates

When analyzing stages of economic development in the United States, it appears that we have entered the "tertiary stage." This is a stage marked by a shift toward

Labor productivity can best be calculated as

Which one of the following is TRUE?

It can be argued that Thomas Malthus' An Essay on the Principle of Population statement that population growth will always outstrip food production has been discredited due to

An increase in growth rates will cause the production possibilities curve to

Saving is important for economic growth because

A system of private property rights

According to economist Paul Romer, economies that wish to experience growth must

Costs associated with economic growth include all of the following EXCEPT

A patent 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