Question 1

Which of the following is the term used to describe the expansion of a country's per capita real GDP?

Accepted Answer

A) economic growth 
B) technological change 
C) change in the labor force 
D) change in factor incomes 
A) economic growth 
B) technological change 
C) change in the labor force 
D) change in factor incomes

Question 2

In nondemocratic countries that have experienced consistent economic growth and improvements in their standards of living

Accepted Answer

A) there is no tendency to become more democratic over time because the current political situation is economically successful. 
B) political freedom is apt to decrease over time as governments become more controlling. 
C) the rise of special-interest groups usually promotes competition and growth. 
D) there is a tendency to become democratic over time. 
A) there is no tendency to become more democratic over time because the current political situation is economically successful. 
B) political freedom is apt to decrease over time as governments become more controlling. 
C) the rise of special-interest groups usually promotes competition and growth. 
D) there is a tendency to become democratic over time.

Question 3

Dead capital is

Accepted Answer

A) machinery that fails to operate properly. 
B) machinery that requires constant maintenance. 
C) any capital resource that lacks clear title of ownership. 
D) a capital resource that depreciates rapidly. 
A) machinery that fails to operate properly. 
B) machinery that requires constant maintenance. 
C) any capital resource that lacks clear title of ownership. 
D) a capital resource that depreciates rapidly.

Question 4

The right to openly support and democratically select national leaders 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 5

Political freedom can sometimes moderately reduce economic growth because

Accepted Answer

A) special interest groups may gain at the expense of the overall economy. 
B) campaign contributions rob the economy of investment. 
C) most jobs are in unions that are politically connected. 
D) none of the above. 
A) special interest groups may gain at the expense of the overall economy. 
B) campaign contributions rob the economy of investment. 
C) most jobs are in unions that are politically connected. 
D) none of the above.

Question 6

What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 5 percent per year and the annual rate of population growth is 3 percent?

Accepted Answer

A) 1.7 percent 
B) 2 percent 
C) 5 percent 
D) 8 percent 
A) 1.7 percent 
B) 2 percent 
C) 5 percent 
D) 8 percent

Question 7

Approximately what percentage of the World Bank's loans go to developing nations in the East Asia/Pacific and South Asia regions combined?

Accepted Answer

A) 10% 
B) 40% 
C) 70% 
D) 100% 
A) 10% 
B) 40% 
C) 70% 
D) 100%

Question 8

Which of the following statements is TRUE about the success of the World Bank?

Accepted Answer

A) The World Bank has been very successful in promoting economic growth because loans have been primarily made to countries that have trouble attracting private funds. 
B) The World Bank has not been successful because many loans have been made to countries that can attract private funds. 
C) The World Bank has been successful because it has focused on its primary function of making loans to governments. 
D) The World Bank has not been successful because it has focused on making loans to governments where there has been a loss of confidence in a nation's financial system. 
A) The World Bank has been very successful in promoting economic growth because loans have been primarily made to countries that have trouble attracting private funds. 
B) The World Bank has not been successful because many loans have been made to countries that can attract private funds. 
C) The World Bank has been successful because it has focused on its primary function of making loans to governments. 
D) The World Bank has not been successful because it has focused on making loans to governments where there has been a loss of confidence in a nation's financial system.

Question 9

A nation's economic growth is more rapid when

Accepted Answer

A) special interest groups acquire the political power to restrict competition. 
B) capital resources are devoted to their most efficient use. 
C) there are barriers to establishing legal ownership of capital resources. 
D) scarce resources are made available for all citizens free of charge. 
A) special interest groups acquire the political power to restrict competition. 
B) capital resources are devoted to their most efficient use. 
C) there are barriers to establishing legal ownership of capital resources. 
D) scarce resources are made available for all citizens free of charge.

Question 10

The World Bank primarily engages in

Accepted Answer

A) short-term lending aimed at helping developing nations repay debt accumulated in past years. 
B) short-term lending aimed at helping developing nations repay loans from the International Monetary Fund. 
C) long-term lending aimed at helping developing nations' governments and central banks keep exchange rates from varying. 
D) long-term lending aimed at helping developing nations' governments and businesses make investments that will contribute to economic growth. 
A) short-term lending aimed at helping developing nations repay debt accumulated in past years. 
B) short-term lending aimed at helping developing nations repay loans from the International Monetary Fund. 
C) long-term lending aimed at helping developing nations' governments and central banks keep exchange rates from varying. 
D) long-term lending aimed at helping developing nations' governments and businesses make investments that will contribute to economic growth.

Question 11

The adverse selection problem in international investment means

Accepted Answer

A) that those seeking funds for the riskiest projects are those most actively seeking the funds. 
B) that the recipients of the funds may use the funds for other than the approved projects. 
C) that government officials may demand higher than the usual amount of bribes. 
D) those in the highest levels of government are the most dishonest. 
A) that those seeking funds for the riskiest projects are those most actively seeking the funds. 
B) that the recipients of the funds may use the funds for other than the approved projects. 
C) that government officials may demand higher than the usual amount of bribes. 
D) those in the highest levels of government are the most dishonest.

Question 12

Economic freedom by its nature suggests

Accepted Answer

A) minimal government interference. 
B) zero government. 
C) a lack of laws and regulations. 
D) economic anarchy. 
A) minimal government interference. 
B) zero government. 
C) a lack of laws and regulations. 
D) economic anarchy.

Question 13

Investors are often willing to take the risks associated with investing in capital goods in developing nations because developing nations

Accepted Answer

A) always insure the investments. 
B) insure a small return on investment. 
C) get the International Monetary Fund (IMF)to back investments through a series of loan guarantees. 
D) have a large portion of the world's unutilized or underutilized resources and hence profit potential. 
A) always insure the investments. 
B) insure a small return on investment. 
C) get the International Monetary Fund (IMF)to back investments through a series of loan guarantees. 
D) have a large portion of the world's unutilized or underutilized resources and hence profit potential.

Question 14

To be a member of the Internal Monetary Fund a nation must deposit funds based on

Accepted Answer

A) its national income. 
B) the amount of funds it wants to deposit. 
C) the need to loan money to developing nations. 
D) rules set up by the World Bank. 
A) its national income. 
B) the amount of funds it wants to deposit. 
C) the need to loan money to developing nations. 
D) rules set up by the World Bank.

Question 15

A quota subscription is

Accepted Answer

A) the maximum amount of funds that can be drawn at the World Bank without a formal proposal. 
B) the maximum amount that a private investor can invest in foreign firms. 
C) a nation's account at the International Monetary Fund. 
D) when an investor sets limits on the proportion of their portfolio that will contain foreign investments. 
A) the maximum amount of funds that can be drawn at the World Bank without a formal proposal. 
B) the maximum amount that a private investor can invest in foreign firms. 
C) a nation's account at the International Monetary Fund. 
D) when an investor sets limits on the proportion of their portfolio that will contain foreign investments.

Question 16

Explain the role of economic freedom in economic development.

Accepted Answer

Economic freedom is a measurement of the

Question 17

The international unit of accounting used by the IMF is the

Accepted Answer

A) euro. 
B) special financial right. 
C) special drawing right. 
D) dollar. 
A) euro. 
B) special financial right. 
C) special drawing right. 
D) dollar.

Question 18

How have government inefficiencies contributed to the creation of dead capital in the world's developing nations?

Accepted Answer

Governments in developing nations place

Question 19

International investors are more likely to invest in countries

Accepted Answer

A) where it is relatively easier to establish property rights to capital goods. 
B) where there is a significant amount of dead capital. 
C) which have a high amount of government inefficiency. 
D) where there are barriers to the ownership of capital goods. 
A) where it is relatively easier to establish property rights to capital goods. 
B) where there is a significant amount of dead capital. 
C) which have a high amount of government inefficiency. 
D) where there are barriers to the ownership of capital goods.

Question 20

To the extent that there are concerns about moral hazard and adverse selection in a country,

Accepted Answer

A) economic growth will be hindered. 
B) there will be more portfolio investment. 
C) there will be more foreign direct investment. 
D) it will be easier to arrange financing for new development projects. 
A) economic growth will be hindered. 
B) there will be more portfolio investment. 
C) there will be more foreign direct investment. 
D) it will be easier to arrange financing for new development projects.

Which of the following is the term used to describe the expansion of a country's per capita real GDP?

In nondemocratic countries that have experienced consistent economic growth and improvements in their standards of living

Dead capital is

The right to openly support and democratically select national leaders is

Political freedom can sometimes moderately reduce economic growth because

What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 5 percent per year and the annual rate of population growth is 3 percent?

Approximately what percentage of the World Bank's loans go to developing nations in the East Asia/Pacific and South Asia regions combined?

Which of the following statements is TRUE about the success of the World Bank?

A nation's economic growth is more rapid when

The World Bank primarily engages in

The adverse selection problem in international investment means

Economic freedom by its nature suggests

Investors are often willing to take the risks associated with investing in capital goods in developing nations because developing nations

To be a member of the Internal Monetary Fund a nation must deposit funds based on

A quota subscription is

Explain the role of economic freedom in economic development.

The international unit of accounting used by the IMF is the

How have government inefficiencies contributed to the creation of dead capital in the world's developing nations?

International investors are more likely to invest in countries

To the extent that there are concerns about moral hazard and adverse selection in a country,

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

Which of the following is the term used to describe the expansion of a country's per capita real GDP?

In nondemocratic countries that have experienced consistent economic growth and improvements in their standards of living

Dead capital is

The right to openly support and democratically select national leaders is

Political freedom can sometimes moderately reduce economic growth because

What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 5 percent per year and the annual rate of population growth is 3 percent?

Approximately what percentage of the World Bank's loans go to developing nations in the East Asia/Pacific and South Asia regions combined?

Which of the following statements is TRUE about the success of the World Bank?

A nation's economic growth is more rapid when

The World Bank primarily engages in

The adverse selection problem in international investment means

Economic freedom by its nature suggests

Investors are often willing to take the risks associated with investing in capital goods in developing nations because developing nations

To be a member of the Internal Monetary Fund a nation must deposit funds based on

A quota subscription is

Explain the role of economic freedom in economic development.

The international unit of accounting used by the IMF is the

How have government inefficiencies contributed to the creation of dead capital in the world's developing nations?

International investors are more likely to invest in countries

To the extent that there are concerns about moral hazard and adverse selection in a country,

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