Question 1

When a nation joins the IMF, it deposits funds into an account. These funds have a value based on a weighted average of

Accepted Answer

A) the euro, the British pound sterling, the Japanese yen, and the U.S. dollar. 
B) the euro, the British pound sterling, the Chinese yuan, and the U.S. dollar. 
C) the Russian ruble, the British pound sterling, the Japanese yen, and the U.S. dollar. 
D) the Russian ruble, the British pound sterling, the Chinese yuan, and the U.S. dollar. 
A) the euro, the British pound sterling, the Japanese yen, and the U.S. dollar. 
B) the euro, the British pound sterling, the Chinese yuan, and the U.S. dollar. 
C) the Russian ruble, the British pound sterling, the Japanese yen, and the U.S. dollar. 
D) the Russian ruble, the British pound sterling, the Chinese yuan, and the U.S. dollar.

Question 2

Developing countries are damaged by dead capital because

Accepted Answer

A) it replaces too many workers, creating unemployment. 
B) resulting inefficiencies greatly reduce the rate of return on investment. 
C) it must be sold as scrap. 
D) none of the above. 
A) it replaces too many workers, creating unemployment. 
B) resulting inefficiencies greatly reduce the rate of return on investment. 
C) it must be sold as scrap. 
D) none of the above.

Question 3

The following are impediments to economic growth EXCEPT

Accepted Answer

A) dead capital. 
B) increased education. 
C) lack of economic freedom. 
D) bureaucratic inefficiency. 
A) dead capital. 
B) increased education. 
C) lack of economic freedom. 
D) bureaucratic inefficiency.

Question 4

Most international investment finance today comes from

Accepted Answer

A) portfolio and foreign direct investment. 
B) the sale of antiques. 
C) government financing. 
D) tax collections. 
A) portfolio and foreign direct investment. 
B) the sale of antiques. 
C) government financing. 
D) tax collections.

Question 5

Portfolio investment and foreign direct investment are methods through which

Accepted Answer

A) ownership in assets are acquired in countries other than one's home country. 
B) U.S. residents invest funds in companies that export goods. 
C) U.S. residents invest funds in companies that import goods. 
D) short-term investments are converted to long-term ones. 
A) ownership in assets are acquired in countries other than one's home country. 
B) U.S. residents invest funds in companies that export goods. 
C) U.S. residents invest funds in companies that import goods. 
D) short-term investments are converted to long-term ones.

Question 6

The role that dead capital plays in a country's economic growth is that

Accepted Answer

A) growth increases because the dead capital is replaced with more technologically efficient capital. 
B) growth increases since the firms using the dead capital are using it for free. 
C) growth neither increases nor is impaired by dead capital. 
D) growth is impaired since the capital cannot be allocated to its most efficient use. 
A) growth increases because the dead capital is replaced with more technologically efficient capital. 
B) growth increases since the firms using the dead capital are using it for free. 
C) growth neither increases nor is impaired by dead capital. 
D) growth is impaired since the capital cannot be allocated to its most efficient use.

Question 7

Suppose a nation's rate of growth of per capita real Gross Domestic Product (GDP)is 3 percent and its rate of growth in real GDP is 4 percent. Given this information, the nation's population growth rate is approximately equal to

Accepted Answer

A) 1 percent. 
B) 2 percent. 
C) 7 percent. 
D) None of the above: Cannot be determined with the information. 
A) 1 percent. 
B) 2 percent. 
C) 7 percent. 
D) None of the above: Cannot be determined with the information.

Question 8

Which of the following best represents economic growth?

Accepted Answer

A) an increase in nominal GDP 
B) an increase in real GDP 
C) an increase in the per capita nominal GDP 
D) an increase in the per capita real GDP 
A) an increase in nominal GDP 
B) an increase in real GDP 
C) an increase in the per capita nominal GDP 
D) an increase in the per capita real GDP

Question 9

Portfolio investment is defined as

Accepted Answer

A) the purchase of less than 40 percent of the shares of ownership in a company in another country. 
B) the acquisition of more than 40 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) none of the above 
A) the purchase of less than 40 percent of the shares of ownership in a company in another country. 
B) the acquisition of more than 40 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) none of the above

Question 10

Discuss the rationales for foreign financing of investment in developing actions and explain how developing countries benefit from international capital investment.

Accepted Answer

The primary motivation for foreign inves

Question 11

The significance of dead capital is that

Accepted Answer

A) it is difficult to allocate to its most efficient use. 
B) its fixed cost is too high. 
C) it is being removed from its most efficient use. 
D) it replaces too many workers. 
A) it is difficult to allocate to its most efficient use. 
B) its fixed cost is too high. 
C) it is being removed from its most efficient use. 
D) it replaces too many workers.

Question 12

Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?

Accepted Answer

A) The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment. 
B) The interest rate charged on the loans is usually lower than what can be earned in the U.S. 
C) It is illegal for banks to make loans to foreign firms. 
D) Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital. 
A) The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment. 
B) The interest rate charged on the loans is usually lower than what can be earned in the U.S. 
C) It is illegal for banks to make loans to foreign firms. 
D) Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital.

Question 13

The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a

Accepted Answer

A) portfolio investment. 
B) foreign direct investment. 
C) foreign indirect investment. 
D) negligible investment. 
A) portfolio investment. 
B) foreign direct investment. 
C) foreign indirect investment. 
D) negligible investment.

Question 14

What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?

Accepted Answer

A) It will increase since an increase in population means an increase in labor that translates into an increase in real GDP. 
B) It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita real GDP. 
C) It will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP. 
D) The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP. 
A) It will increase since an increase in population means an increase in labor that translates into an increase in real GDP. 
B) It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita real GDP. 
C) It will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP. 
D) The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP.

Question 15

Which of the following is NOT a method for promoting global economic growth?

Accepted Answer

A) reliance on private markets to direct capital goods toward their best use 
B) Count on the world's governments to develop policies that promote economic growth in developing nations. 
C) Encourage population growth so that developing nations' labor supply increases. 
D) market based approach 
A) reliance on private markets to direct capital goods toward their best use 
B) Count on the world's governments to develop policies that promote economic growth in developing nations. 
C) Encourage population growth so that developing nations' labor supply increases. 
D) market based approach

Question 16

In general, a country that adheres to the rule of law has

Accepted Answer

A) a higher level of real GDP per capita. 
B) a lower level of real GDP per capita. 
C) no relationship to the level of real GDP per capita. 
D) an inverse relationship to the level of real GDP per capita. 
A) a higher level of real GDP per capita. 
B) a lower level of real GDP per capita. 
C) no relationship to the level of real GDP per capita. 
D) an inverse relationship to the level of real GDP per capita.

When a nation joins the IMF, it deposits funds into an account. These funds have a value based on a weighted average of

Developing countries are damaged by dead capital because

The following are impediments to economic growth EXCEPT

Most international investment finance today comes from

Portfolio investment and foreign direct investment are methods through which

The role that dead capital plays in a country's economic growth is that

Suppose a nation's rate of growth of per capita real Gross Domestic Product (GDP)is 3 percent and its rate of growth in real GDP is 4 percent. Given this information, the nation's population growth rate is approximately equal to

Which of the following best represents economic growth?

Portfolio investment is defined as

Discuss the rationales for foreign financing of investment in developing actions and explain how developing countries benefit from international capital investment.

The significance of dead capital is that

Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?

The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a

What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?

Which of the following is NOT a method for promoting global economic growth?

In general, a country that adheres to the rule of law has

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

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Exam 17: Policies and Prospects for Global Economic Growth

When a nation joins the IMF, it deposits funds into an account. These funds have a value based on a weighted average of

Developing countries are damaged by dead capital because

The following are impediments to economic growth EXCEPT

Most international investment finance today comes from

Portfolio investment and foreign direct investment are methods through which

The role that dead capital plays in a country's economic growth is that

Suppose a nation's rate of growth of per capita real Gross Domestic Product (GDP)is 3 percent and its rate of growth in real GDP is 4 percent. Given this information, the nation's population growth rate is approximately equal to

Which of the following best represents economic growth?

Portfolio investment is defined as

Discuss the rationales for foreign financing of investment in developing actions and explain how developing countries benefit from international capital investment.

The significance of dead capital is that

Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?

The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a

What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?

Which of the following is NOT a method for promoting global economic growth?

In general, a country that adheres to the rule of law has

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