Question 1

An increase in population growth in a country

Accepted Answer

A) always causes an increase in labor resources. 
B) may not necessarily cause an increase in per capita real GDP. 
C) may not cause an increase in labor resources in rich countries because employers will cut down on the number of hours required of workers. 
D) will always cause an increase in per capita real GDP. 
A) always causes an increase in labor resources. 
B) may not necessarily cause an increase in per capita real GDP. 
C) may not cause an increase in labor resources in rich countries because employers will cut down on the number of hours required of workers. 
D) will always cause an increase in per capita real GDP.

Question 2

The World Bank was formed in

Accepted Answer

A) 1919. 
B) 1945. 
C) 1960. 
D) 1980. 
A) 1919. 
B) 1945. 
C) 1960. 
D) 1980.

Question 3

Foreign direct investment is

Accepted Answer

A) the purchase of less than 10 percent of the shares of ownership in a company in another country. 
B) the purchase of more than 10 percent of the shares of ownership in a company in another country. 
C) the diversification of purchasing shares in many companies in one country so that risk is kept to a minimum. 
D) the diversification of purchasing shares in one company in many countries so that risk is kept to a minimum. 
A) the purchase of less than 10 percent of the shares of ownership in a company in another country. 
B) the purchase of more than 10 percent of the shares of ownership in a company in another country. 
C) the diversification of purchasing shares in many companies in one country so that risk is kept to a minimum. 
D) the diversification of purchasing shares in one company in many countries so that risk is kept to a minimum.

Question 4

Economic freedom is

Accepted Answer

A) the right to vote in an election for a political leader. 
B) the right to own private property and to exchange goods with minimal government interference. 
C) the amount of control that the government has in a market. 
D) present as long as private individuals own businesses. 
A) the right to vote in an election for a political leader. 
B) the right to own private property and to exchange goods with minimal government interference. 
C) the amount of control that the government has in a market. 
D) present as long as private individuals own businesses.

Question 5

An international financial crisis is

Accepted Answer

A) when at least one developing country defaults on its loans. 
B) when a major bank defaults. 
C) when a world leader is deposed from office. 
D) the rapid withdrawal of foreign investments and loans from a nation. 
A) when at least one developing country defaults on its loans. 
B) when a major bank defaults. 
C) when a world leader is deposed from office. 
D) the rapid withdrawal of foreign investments and loans from a nation.

Question 6

The largest quota subscriber of the International Monetary Fund (IMF)is

Accepted Answer

A) Japan. 
B) Germany. 
C) the United States. 
D) China. 
A) Japan. 
B) Germany. 
C) the United States. 
D) China.

Question 7

If the level of aggregate real Gross Domestic Product (GDP)remains constant, a reduction in the population

Accepted Answer

A) directly increases per capita real GDP. 
B) directly reduces per capita real GDP. 
C) indirectly reduces per capita real GDP. 
D) has no effect on real per capita real GDP. 
A) directly increases per capita real GDP. 
B) directly reduces per capita real GDP. 
C) indirectly reduces per capita real GDP. 
D) has no effect on real per capita real GDP.

Question 8

Which organization functions as a lender of last resort for national governments?

Accepted Answer

A) the World Bank 
B) the U.S. Treasury 
C) the Federal Reserve Bank 
D) the International Monetary Fund 
A) the World Bank 
B) the U.S. Treasury 
C) the Federal Reserve Bank 
D) the International Monetary Fund

Question 9

What are some of the criticisms that have been levied on the World Bank and the International Monetary Fund concerning adverse selection and moral hazard?

Accepted Answer

The World Bank and International Monetar

Question 10

Adverse selection is a barrier to financing global growth because

Accepted Answer

A) firms sometimes have trouble determining whether they need funds or not. 
B) if investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms. 
C) there is the possibility that the funds are used for riskier behavior than the lender agreed to. 
D) of the differences between financing using loans, portfolio investment and foreign direct investment. 
A) firms sometimes have trouble determining whether they need funds or not. 
B) if investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms. 
C) there is the possibility that the funds are used for riskier behavior than the lender agreed to. 
D) of the differences between financing using loans, portfolio investment and foreign direct investment.

Question 11

The rights to own private property and to exchange goods with minimal government interference is

Accepted Answer

A) capital freedom. 
B) population freedom. 
C) economic freedom. 
D) political freedom. 
A) capital freedom. 
B) population freedom. 
C) economic freedom. 
D) political freedom.

Question 12

What is the mission of the International Monetary Fund (IMF)?

Accepted Answer

The IMF was established after World War

Question 13

Economic growth is measured by

Accepted Answer

A) the annual percentage change in nominal GDP. 
B) the annual percentage change in the unemployment rate. 
C) the annual percentage change in per capita nominal GDP. 
D) the annual percentage change in per capita real GDP. 
A) the annual percentage change in nominal GDP. 
B) the annual percentage change in the unemployment rate. 
C) the annual percentage change in per capita nominal GDP. 
D) the annual percentage change in per capita real GDP.

Question 14

The inefficiencies associated with dead capital can

Accepted Answer

A) lead to increased consumption. 
B) reduce the rate of return on investment. 
C) increase the amount of investment as businesses look for more technologically advanced capital. 
D) lead to more economic freedom as firms try to get rid of the inefficient capital. 
A) lead to increased consumption. 
B) reduce the rate of return on investment. 
C) increase the amount of investment as businesses look for more technologically advanced capital. 
D) lead to more economic freedom as firms try to get rid of the inefficient capital.

Question 15

A major contributor to a country's real rate of economic growth is its real GDP growth relative to its

Accepted Answer

A) inflation. 
B) unemployment rate. 
C) money growth. 
D) none of the above. 
A) inflation. 
B) unemployment rate. 
C) money growth. 
D) none of the above.

Question 16

Suppose a nation's real Gross Domestic Product (GDP)grows at a rate of 2 percent per year while its population grows 2 percent annually. Given this information, this nation's annual rate of per capita real GDP growth is equal to

Accepted Answer

A) 0 percent. 
B) 1 percent. 
C) 4 percent. 
D) -1 percent. 
A) 0 percent. 
B) 1 percent. 
C) 4 percent. 
D) -1 percent.

Question 17

Foreign direct investment implies that the investor obtains ________ share in a foreign company's ownership.

Accepted Answer

A) less than 1 percent 
B) less than 5 percent 
C) less than 10 percent 
D) none of the above 
A) less than 1 percent 
B) less than 5 percent 
C) less than 10 percent 
D) none of the above

Question 18

Laws that make it difficult to start a new business lead to a

Accepted Answer

A) high rate of economic growth. 
B) low rate of economic growth. 
C) more political freedom. 
D) laissez-faire. 
A) high rate of economic growth. 
B) low rate of economic growth. 
C) more political freedom. 
D) laissez-faire.

Question 19

When government inefficiencies exist

Accepted Answer

A) a country tends to grow at a slower rate. 
B) a country tends to grow at a faster rate. 
C) economic growth is not influenced. 
D) dead capital is usually not a problem. 
A) a country tends to grow at a slower rate. 
B) a country tends to grow at a faster rate. 
C) economic growth is not influenced. 
D) dead capital is usually not a problem.

Question 20

The World Bank was formed in

Accepted Answer

A) 1930. 
B) 1960. 
C) 1945. 
D) 1918. 
A) 1930. 
B) 1960. 
C) 1945. 
D) 1918.

An increase in population growth in a country

The World Bank was formed in

Foreign direct investment is

Economic freedom is

An international financial crisis is

The largest quota subscriber of the International Monetary Fund (IMF)is

If the level of aggregate real Gross Domestic Product (GDP)remains constant, a reduction in the population

Which organization functions as a lender of last resort for national governments?

What are some of the criticisms that have been levied on the World Bank and the International Monetary Fund concerning adverse selection and moral hazard?

Adverse selection is a barrier to financing global growth because

The rights to own private property and to exchange goods with minimal government interference is

What is the mission of the International Monetary Fund (IMF)?

Economic growth is measured by

The inefficiencies associated with dead capital can

A major contributor to a country's real rate of economic growth is its real GDP growth relative to its

Suppose a nation's real Gross Domestic Product (GDP)grows at a rate of 2 percent per year while its population grows 2 percent annually. Given this information, this nation's annual rate of per capita real GDP growth is equal to

Foreign direct investment implies that the investor obtains ________ share in a foreign company's ownership.

Laws that make it difficult to start a new business lead to a

When government inefficiencies exist

The World Bank was formed in

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

Global Economic Growth and Development

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

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 17: Policies and Prospects for Global Economic Growth

An increase in population growth in a country

The World Bank was formed in

Foreign direct investment is

Economic freedom is

An international financial crisis is

The largest quota subscriber of the International Monetary Fund (IMF)is

If the level of aggregate real Gross Domestic Product (GDP)remains constant, a reduction in the population

Which organization functions as a lender of last resort for national governments?

What are some of the criticisms that have been levied on the World Bank and the International Monetary Fund concerning adverse selection and moral hazard?

Adverse selection is a barrier to financing global growth because

The rights to own private property and to exchange goods with minimal government interference is

What is the mission of the International Monetary Fund (IMF)?

Economic growth is measured by

The inefficiencies associated with dead capital can

A major contributor to a country's real rate of economic growth is its real GDP growth relative to its

Suppose a nation's real Gross Domestic Product (GDP)grows at a rate of 2 percent per year while its population grows 2 percent annually. Given this information, this nation's annual rate of per capita real GDP growth is equal to

Foreign direct investment implies that the investor obtains ________ share in a foreign company's ownership.

Laws that make it difficult to start a new business lead to a

When government inefficiencies exist

The World Bank was formed in

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

Global Economic Growth and Development

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

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters