Question 1

A multinational organization that aims to promote world economic growth through more financial stability is

Accepted Answer

A) the World Monetary Fund. 
B) the International Bank. 
C) the International Monetary Fund. 
D) the International Monetary Bank. 
A) the World Monetary Fund. 
B) the International Bank. 
C) the International Monetary Fund. 
D) the International Monetary Bank.

Question 2

The "currency" of the IMF is the

Accepted Answer

A)  International Currency Unit. 
B) Special Drawing Right. 
C) IMF Dollar. 
D) U.S. dollar. 
A)  International Currency Unit. 
B) Special Drawing Right. 
C) IMF Dollar. 
D) U.S. dollar.

Question 3

When investment occurs in developing nations

Accepted Answer

A) investors hope to gain significant returns on their investment and residents gain higher rates of economic growth. 
B) higher rates of economic growth are usually not achieved. 
C) significant levels of pollution usually occur. 
D) government politicians usually benefit from the illegal payments made to secure the investment. 
A) investors hope to gain significant returns on their investment and residents gain higher rates of economic growth. 
B) higher rates of economic growth are usually not achieved. 
C) significant levels of pollution usually occur. 
D) government politicians usually benefit from the illegal payments made to secure the investment.

Question 4

All of the following are examples of institutions that promote real economic growth EXCEPT

Accepted Answer

A) an efficient judicial system used to enforce contracts. 
B) patent laws that protect innovation. 
C) complex rules associated with business licensing used to promote careful business growth. 
D) strong law enforcement used to protect business interests. 
A) an efficient judicial system used to enforce contracts. 
B) patent laws that protect innovation. 
C) complex rules associated with business licensing used to promote careful business growth. 
D) strong law enforcement used to protect business interests.

Question 5

According to the text, the 17 countries with high degrees of economic freedom

Accepted Answer

A) account for 81 percent of total world output. 
B) account for less than 25 percent of total world output. 
C) have the weakest economies. 
D) have low productivity. 
A) account for 81 percent of total world output. 
B) account for less than 25 percent of total world output. 
C) have the weakest economies. 
D) have low productivity.

Question 6

The general set of rights to own private property and exchange goods, services, and financial assets with minimal government interference is defined as

Accepted Answer

A) capitalism. 
B) market socialism. 
C) economic freedom. 
D) economic privilege. 
A) capitalism. 
B) market socialism. 
C) economic freedom. 
D) economic privilege.

Question 7

The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called

Accepted Answer

A) inequitable financing. 
B) moral hazard. 
C) adverse selection. 
D) asymmetric information. 
A) inequitable financing. 
B) moral hazard. 
C) adverse selection. 
D) asymmetric information.

Question 8

The official mission of the World Bank is to

Accepted Answer

A) fight global inflation. 
B) advise member nations on the appropriate levels of taxation. 
C) establish exchange rates between the currencies of member nations. 
D) provide funding for needed development projects that would have difficulty attracting private investment. 
A) fight global inflation. 
B) advise member nations on the appropriate levels of taxation. 
C) establish exchange rates between the currencies of member nations. 
D) provide funding for needed development projects that would have difficulty attracting private investment.

Question 9

What is the mission of the World Bank?

Accepted Answer

The World Bank, which was established af

Question 10

All of the following are barriers to international investment EXCEPT

Accepted Answer

A) symmetric information. 
B) adverse selection. 
C) incomplete information. 
D) moral hazard. 
A) symmetric information. 
B) adverse selection. 
C) incomplete information. 
D) moral hazard.

Question 11

The per capita real GDP is the

Accepted Answer

A) rate of growth in real GDP plus the population growth rate. 
B)  real GDP divided by the population. 
C) rate of growth in real GDP times the population growth rate. 
D) rate of growth in real GDP minus the population growth rate. 
A) rate of growth in real GDP plus the population growth rate. 
B)  real GDP divided by the population. 
C) rate of growth in real GDP times the population growth rate. 
D) rate of growth in real GDP minus the population growth rate.

Question 12

Any capital resource that lacks clear title ownership is

Accepted Answer

A) the result of foreign direct investment. 
B) dead capital. 
C) capital destruction. 
D) free capital. 
A) the result of foreign direct investment. 
B) dead capital. 
C) capital destruction. 
D) free capital.

Question 13

An example of the moral hazard problem in international investment would be that

Accepted Answer

A) those seeking funds for the riskiest projects are amongst those most actively seeking the funds. 
B) the recipients of the funds may use the funds for riskier projects than the approved project. 
C) government officials may demand higher than the usual amount of bribes. 
D) those seeking the funds are dishonest. 
A) those seeking funds for the riskiest projects are amongst those most actively seeking the funds. 
B) the recipients of the funds may use the funds for riskier projects than the approved project. 
C) government officials may demand higher than the usual amount of bribes. 
D) those seeking the funds are dishonest.

Question 14

Assume that in the economy real GDP grows at a constant rate. There has just been a decrease in the rate of growth of the population. This implies that the

Accepted Answer

A) rate of growth of per capita real GDP will decrease. 
B) rate of growth of per capita real GDP will increase. 
C) rate of growth of capital accumulation will decrease. 
D) rate of growth of capital accumulation will increase. 
A) rate of growth of per capita real GDP will decrease. 
B) rate of growth of per capita real GDP will increase. 
C) rate of growth of capital accumulation will decrease. 
D) rate of growth of capital accumulation will increase.

Question 15

The percentage change in per capita real GDP measures economic growth because it takes into account all of the following variables EXCEPT

Accepted Answer

A) the percentage change in population. 
B) the percentage change in the inflation rates. 
C) the percentage change in nominal GDP. 
D) the percentage change in the quality of life. 
A) the percentage change in population. 
B) the percentage change in the inflation rates. 
C) the percentage change in nominal GDP. 
D) the percentage change in the quality of life.

Question 16

Which of the following are NOT part of the World Bank?

Accepted Answer

A) International Development Association 
B) Federal Reserve Bank of New York 
C) International Center for Settlement of Investment Disputes 
D) Multinational Investment Guarantee Agency 
A) International Development Association 
B) Federal Reserve Bank of New York 
C) International Center for Settlement of Investment Disputes 
D) Multinational Investment Guarantee Agency

Question 17

Suppose that the real Gross Domestic Product (GDP)growth rate for a country was 7 percent and the population growth rate was 3 percent. What would the per capital real Gross Domestic Product (GDP)growth rate be for this country?

Accepted Answer

A) -3 percent 
B) -4 percent 
C) 3 percent 
D) 4 percent 
A) -3 percent 
B) -4 percent 
C) 3 percent 
D) 4 percent

Question 18

A rapid withdrawal of foreign investments and loans from a nation is

Accepted Answer

A) dead capital. 
B) an international financial crisis. 
C) foreign direct capital. 
D) portfolio investment. 
A) dead capital. 
B) an international financial crisis. 
C) foreign direct capital. 
D) portfolio investment.

Question 19

A higher population growth rate can potentially lead to a higher rate of growth in per capita real GDP if

Accepted Answer

A) it leads to an increase in the amount of dead capital. 
B) it leads to greater democracy in a nation. 
C) young workers replace older workers. 
D) there is a greater labor force participation rate. 
A) it leads to an increase in the amount of dead capital. 
B) it leads to greater democracy in a nation. 
C) young workers replace older workers. 
D) there is a greater labor force participation rate.

Question 20

An international financial crisis can be precipitated when

Accepted Answer

A) the rate of money supply growth is not the same in all nations. 
B) many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country. 
C) newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition. 
D) there is an increase in portfolio investment. 
A) the rate of money supply growth is not the same in all nations. 
B) many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country. 
C) newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition. 
D) there is an increase in portfolio investment.

A multinational organization that aims to promote world economic growth through more financial stability is

The "currency" of the IMF is the

When investment occurs in developing nations

All of the following are examples of institutions that promote real economic growth EXCEPT

According to the text, the 17 countries with high degrees of economic freedom

The general set of rights to own private property and exchange goods, services, and financial assets with minimal government interference is defined as

The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called

The official mission of the World Bank is to

What is the mission of the World Bank?

All of the following are barriers to international investment EXCEPT

The per capita real GDP is the

Any capital resource that lacks clear title ownership is

An example of the moral hazard problem in international investment would be that

Assume that in the economy real GDP grows at a constant rate. There has just been a decrease in the rate of growth of the population. This implies that the

The percentage change in per capita real GDP measures economic growth because it takes into account all of the following variables EXCEPT

Which of the following are NOT part of the World Bank?

Suppose that the real Gross Domestic Product (GDP)growth rate for a country was 7 percent and the population growth rate was 3 percent. What would the per capital real Gross Domestic Product (GDP)growth rate be for this country?

A rapid withdrawal of foreign investments and loans from a nation is

A higher population growth rate can potentially lead to a higher rate of growth in per capita real GDP if

An international financial crisis can be precipitated when

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

A multinational organization that aims to promote world economic growth through more financial stability is

The "currency" of the IMF is the

When investment occurs in developing nations

All of the following are examples of institutions that promote real economic growth EXCEPT

According to the text, the 17 countries with high degrees of economic freedom

The general set of rights to own private property and exchange goods, services, and financial assets with minimal government interference is defined as

The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called

The official mission of the World Bank is to

What is the mission of the World Bank?

All of the following are barriers to international investment EXCEPT

The per capita real GDP is the

Any capital resource that lacks clear title ownership is

An example of the moral hazard problem in international investment would be that

Assume that in the economy real GDP grows at a constant rate. There has just been a decrease in the rate of growth of the population. This implies that the

The percentage change in per capita real GDP measures economic growth because it takes into account all of the following variables EXCEPT

Which of the following are NOT part of the World Bank?

Suppose that the real Gross Domestic Product (GDP)growth rate for a country was 7 percent and the population growth rate was 3 percent. What would the per capital real Gross Domestic Product (GDP)growth rate be for this country?

A rapid withdrawal of foreign investments and loans from a nation is

A higher population growth rate can potentially lead to a higher rate of growth in per capita real GDP if

An international financial crisis can be precipitated when

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