Question 1

The relationship of dead capital to inefficient production is

Accepted Answer

A) without clear ownership it is not possible to sell or transfer a resource so that it can be used efficiently. 
B) that outdated equipment will lead to inefficient production. 
C) nonexistent since the capital is already dead. 
D) that when the dead capital is replaced by more technologically advanced capital, economic growth occurs. 
A) without clear ownership it is not possible to sell or transfer a resource so that it can be used efficiently. 
B) that outdated equipment will lead to inefficient production. 
C) nonexistent since the capital is already dead. 
D) that when the dead capital is replaced by more technologically advanced capital, economic growth occurs.

Question 2

If the World Bank makes loans to nations that can attract private funds

Accepted Answer

A) the increase in growth in that nation will spill over to other nations that are developing. 
B) these loans will interfere in the private market for capital goods and can lead to inefficient investment. 
C) the World Bank's loans will crowd out the private funds made to developing nations to encourage economic growth. 
D) the presence of the World Bank's loans will lead to even more private funds being attracted to that country. 
A) the increase in growth in that nation will spill over to other nations that are developing. 
B) these loans will interfere in the private market for capital goods and can lead to inefficient investment. 
C) the World Bank's loans will crowd out the private funds made to developing nations to encourage economic growth. 
D) the presence of the World Bank's loans will lead to even more private funds being attracted to that country.

Question 3

A reduction in the rate of population growth

Accepted Answer

A) always causes an increase in economic growth. 
B) never causes an increase in economic growth. 
C) may or may not cause an increase in economic growth. 
D) will cause a reduction in economic growth if accompanied by an increase in the rate of growth of real GDP. 
A) always causes an increase in economic growth. 
B) never causes an increase in economic growth. 
C) may or may not cause an increase in economic growth. 
D) will cause a reduction in economic growth if accompanied by an increase in the rate of growth of real GDP.

Question 4

The World Bank specializes in making loans to promote

Accepted Answer

A) short-term assistance when a nation experiences a financial crisis. 
B) so-called stand-by arrangements and credits. 
C) financial stability. 
D) long-term development and growth. 
A) short-term assistance when a nation experiences a financial crisis. 
B) so-called stand-by arrangements and credits. 
C) financial stability. 
D) long-term development and growth.

Question 5

It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to

Accepted Answer

A) promote the increase of dead capital. 
B) make more loans. 
C) focus on basic market foundations of guaranteeing property and contract rights. 
D) join forces and merge into one unit. 
A) promote the increase of dead capital. 
B) make more loans. 
C) focus on basic market foundations of guaranteeing property and contract rights. 
D) join forces and merge into one unit.

Question 6

According to the text, population growth in many poor countries does not generally result in increased labor resources because

Accepted Answer

A) many people do not join the labor force. 
B) most people are not productive in their work. 
C) many people work two jobs. 
D) most jobs are for middle-age workers. 
A) many people do not join the labor force. 
B) most people are not productive in their work. 
C) many people work two jobs. 
D) most jobs are for middle-age workers.

Question 7

A multinational agency that specializes solely in making loans to promote long-term development and growth in developing countries is the

Accepted Answer

A) Federal Reserve System. 
B) World Bank. 
C) International Monetary Fund. 
D) International World Fund. 
A) Federal Reserve System. 
B) World Bank. 
C) International Monetary Fund. 
D) International World Fund.

Question 8

How did the original focus of the IMF differ from that of the World Bank?

Accepted Answer

A) The IMF provided short-term loans and the World Bank provided long-term loans. 
B) The IMF assisted wealthy nations and the World Bank assisted developing nations. 
C) The IMF gave grants to developing countries and the World Bank made loans. 
D) The IMF dealt in North and South America only, and the World Bank dealt with the rest of the world. 
A) The IMF provided short-term loans and the World Bank provided long-term loans. 
B) The IMF assisted wealthy nations and the World Bank assisted developing nations. 
C) The IMF gave grants to developing countries and the World Bank made loans. 
D) The IMF dealt in North and South America only, and the World Bank dealt with the rest of the world.

Question 9

Foreign direct investment refers to

Accepted Answer

A) the acquisition of more than 10 percent of the shares of ownership in a company in another nation. 
B) the acquisition of less than 10 percent of the shares of ownership in a company in another nation. 
C) the granting of a loan to a company located in a foreign country. 
D) a direct monetary grant to a foreign company or government. 
A) the acquisition of more than 10 percent of the shares of ownership in a company in another nation. 
B) the acquisition of less than 10 percent of the shares of ownership in a company in another nation. 
C) the granting of a loan to a company located in a foreign country. 
D) a direct monetary grant to a foreign company or government.

Question 10

Foreign direct investment is defined as

Accepted Answer

A) the acquisition of more than 10 percent of the shares of ownership in a company in another nation. 
B) funds allocated into a foreign stock market that represent an ownership share of firms less than 5 percent. 
C) purchasing both capital equipment and government bonds abroad. 
D) purchasing government bonds. 
A) the acquisition of more than 10 percent of the shares of ownership in a company in another nation. 
B) funds allocated into a foreign stock market that represent an ownership share of firms less than 5 percent. 
C) purchasing both capital equipment and government bonds abroad. 
D) purchasing government bonds.

Question 11

The potential for recipients of a loan to engage in riskier behavior after receiving the financing is called

Accepted Answer

A) adverse selection. 
B) moral hazard. 
C) moral selection. 
D) adverse hazard. 
A) adverse selection. 
B) moral hazard. 
C) moral selection. 
D) adverse hazard.

Question 12

All of the following are sources of funding for capital goods in developing countries EXCEPT

Accepted Answer

A) loans from banks. 
B) foreign direct investment. 
C) taxation. 
D) portfolio investment. 
A) loans from banks. 
B) foreign direct investment. 
C) taxation. 
D) portfolio investment.

Question 13

The World Bank is

Accepted Answer

A) made up of the central banks of the leading industrial nations of the world. 
B) made up of five separate institutions. 
C) the Bank of the United Nations. 
D) the European Union. 
A) made up of the central banks of the leading industrial nations of the world. 
B) made up of five separate institutions. 
C) the Bank of the United Nations. 
D) the European Union.

Question 14

A nation's account with the International Monetary Fund is known as

Accepted Answer

A) a quota subscription. 
B) monetary deposits. 
C) monetary rights. 
D) international reserves. 
A) a quota subscription. 
B) monetary deposits. 
C) monetary rights. 
D) international reserves.

Question 15

The following are obstacles to international investment EXCEPT

Accepted Answer

A) population growth. 
B) asymmetric information. 
C) adverse selection. 
D) moral hazard. 
A) population growth. 
B) asymmetric information. 
C) adverse selection. 
D) moral hazard.

Question 16

The largest International Monetary Fund quota subscription, denominated in Special Drawing Rights, is held by

Accepted Answer

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

Question 17

The problem of dead capital can be eliminated by

Accepted Answer

A) changing the structure of import tariffs. 
B) increasing the labor force participation rate. 
C) making it easier for people to establish legal ownership of productive capital. 
D) restricting population growth. 
A) changing the structure of import tariffs. 
B) increasing the labor force participation rate. 
C) making it easier for people to establish legal ownership of productive capital. 
D) restricting population growth.

Question 18

Economic freedom is

Accepted Answer

A) important in leading to positive economic growth. 
B) not an important factor in leading to positive economic growth. 
C) a confusing concept since the more economic freedom residents in a country have the lower the level of economic growth. 
D) a concept in theory since no country has pure economic freedom and therefore cannot be analyzed with respect to economic growth. 
A) important in leading to positive economic growth. 
B) not an important factor in leading to positive economic growth. 
C) a confusing concept since the more economic freedom residents in a country have the lower the level of economic growth. 
D) a concept in theory since no country has pure economic freedom and therefore cannot be analyzed with respect to economic growth.

Question 19

Which of the following statements about the International Monetary Fund (IMF)is TRUE?

Accepted Answer

A) The IMF was created to finance long-term economic development projects in poor countries. 
B) The IMF was created to reduce tariff barriers between nations. 
C) The IMF functions as a central bank that conducts monetary policy for the world economy. 
D) The IMF obtains funds from quota subscriptions charged to member countries. 
A) The IMF was created to finance long-term economic development projects in poor countries. 
B) The IMF was created to reduce tariff barriers between nations. 
C) The IMF functions as a central bank that conducts monetary policy for the world economy. 
D) The IMF obtains funds from quota subscriptions charged to member countries.

Question 20

In the determination of economic growth, political freedom

Accepted Answer

A) is more important than economic freedom. 
B) appears to be less important than economic freedom. 
C) contributes little to job growth. 
D) is equally as important as economic freedom. 
A) is more important than economic freedom. 
B) appears to be less important than economic freedom. 
C) contributes little to job growth. 
D) is equally as important as economic freedom.

The relationship of dead capital to inefficient production is

If the World Bank makes loans to nations that can attract private funds

A reduction in the rate of population growth

The World Bank specializes in making loans to promote

It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to

According to the text, population growth in many poor countries does not generally result in increased labor resources because

A multinational agency that specializes solely in making loans to promote long-term development and growth in developing countries is the

How did the original focus of the IMF differ from that of the World Bank?

Foreign direct investment refers to

Foreign direct investment is defined as

The potential for recipients of a loan to engage in riskier behavior after receiving the financing is called

All of the following are sources of funding for capital goods in developing countries EXCEPT

The World Bank is

A nation's account with the International Monetary Fund is known as

The following are obstacles to international investment EXCEPT

The largest International Monetary Fund quota subscription, denominated in Special Drawing Rights, is held by

The problem of dead capital can be eliminated by

Economic freedom is

Which of the following statements about the International Monetary Fund (IMF)is TRUE?

In the determination of economic growth, political freedom

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

The relationship of dead capital to inefficient production is

If the World Bank makes loans to nations that can attract private funds

A reduction in the rate of population growth

The World Bank specializes in making loans to promote

It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to

According to the text, population growth in many poor countries does not generally result in increased labor resources because

A multinational agency that specializes solely in making loans to promote long-term development and growth in developing countries is the

How did the original focus of the IMF differ from that of the World Bank?

Foreign direct investment refers to

Foreign direct investment is defined as

The potential for recipients of a loan to engage in riskier behavior after receiving the financing is called

All of the following are sources of funding for capital goods in developing countries EXCEPT

The World Bank is

A nation's account with the International Monetary Fund is known as

The following are obstacles to international investment EXCEPT

The largest International Monetary Fund quota subscription, denominated in Special Drawing Rights, is held by

The problem of dead capital can be eliminated by

Economic freedom is

Which of the following statements about the International Monetary Fund (IMF)is TRUE?

In the determination of economic growth, political freedom

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