Question 1

A nation's account with the IMF is called its

Accepted Answer

A) deposit surplus. 
B) current account. 
C) quota subscription. 
D) capital account. 
A) deposit surplus. 
B) current account. 
C) quota subscription. 
D) capital account.

Question 2

The amount of funds that a nation can withdraw from the International Monetary Fund depends upon

Accepted Answer

A) its quota subscription. 
B) whether it is a developing nation or a developed nation. 
C) whether it is seeking a long-term or short-term loan. 
D) the rules set up by the World Bank. 
A) its quota subscription. 
B) whether it is a developing nation or a developed nation. 
C) whether it is seeking a long-term or short-term loan. 
D) the rules set up by the World Bank.

Question 3

Portfolio investment means buying

Accepted Answer

A) less than 10 percent of stock shares of of a foreign company. 
B) more than 50 percent of stock shares of a foreign company. 
C) a combination of different companies' stock shares. 
D) bonds through a financial company. 
A) less than 10 percent of stock shares of of a foreign company. 
B) more than 50 percent of stock shares of a foreign company. 
C) a combination of different companies' stock shares. 
D) bonds through a financial company.

Question 4

Voting power in the IMF is determined by

Accepted Answer

A) the population size of member states. 
B) the quota subscription size. 
C) the length of membership. 
D) the size of the member nation's trade surplus. 
A) the population size of member states. 
B) the quota subscription size. 
C) the length of membership. 
D) the size of the member nation's trade surplus.

Question 5

The World Bank will primarily make

Accepted Answer

A) short-term loans for investment projects that are relatively safe. 
B) short-term loans for investment projects which might not receive private financial support. 
C) long-term loans for investment projects that are relatively risky. 
D) long-term in nature for investment projects which might not receive private financial support. 
A) short-term loans for investment projects that are relatively safe. 
B) short-term loans for investment projects which might not receive private financial support. 
C) long-term loans for investment projects that are relatively risky. 
D) long-term in nature for investment projects which might not receive private financial support.

Question 6

Which one of the following statements is TRUE?

Accepted Answer

A) Dead capital is most frequently found in countries with well-defined property rights. 
B) Dead capital is most frequently found in the most prosperous countries. 
C) It is easy for dead capital resources to be allocated to their best possible use. 
D) It is difficult for dead capital resources to be insured or traded. 
A) Dead capital is most frequently found in countries with well-defined property rights. 
B) Dead capital is most frequently found in the most prosperous countries. 
C) It is easy for dead capital resources to be allocated to their best possible use. 
D) It is difficult for dead capital resources to be insured or traded.

Question 7

The multinational agency that specializes in making loans to developing nations in an effort to promote long-term development and growth is the

Accepted Answer

A) International Monetary Fund. 
B) World Trade Organization. 
C) United Nations Development Program. 
D) World Bank. 
A) International Monetary Fund. 
B) World Trade Organization. 
C) United Nations Development Program. 
D) World Bank.

Question 8

If a country has a 4 percent annual growth in real GDP and a one percent growth in population, its per capita growth of real GDP is

Accepted Answer

A) five percent. 
B) four percent. 
C) three percent. 
D) 1/4 = 0.25 percent. 
A) five percent. 
B) four percent. 
C) three percent. 
D) 1/4 = 0.25 percent.

Question 9

Which of the following equations is correct?

Accepted Answer

A) rate of growth of per capita real GDP = rate of growth in real GDP - rate of growth of population 
B) rate of growth of per capita real GDP = rate of growth in real GDP + rate of growth of population 
C) rate of growth in real GDP = rate of growth of per capita real GDP - rate of growth of population 
D) rate of growth in real GDP = rate of growth of per capita real GDP + rate of growth of population 
A) rate of growth of per capita real GDP = rate of growth in real GDP - rate of growth of population 
B) rate of growth of per capita real GDP = rate of growth in real GDP + rate of growth of population 
C) rate of growth in real GDP = rate of growth of per capita real GDP - rate of growth of population 
D) rate of growth in real GDP = rate of growth of per capita real GDP + rate of growth of population

Question 10

After the financial crisis in the 1990s many economists criticized the IMF and the World Bank. Some suggestions for reform are to

Accepted Answer

A) create a board of directors made up of finance ministers for the IMF. 
B) eliminate both the institutions. 
C) increase private-sector lending by governments providing tax breaks to lenders. 
D) all of the above 
A) create a board of directors made up of finance ministers for the IMF. 
B) eliminate both the institutions. 
C) increase private-sector lending by governments providing tax breaks to lenders. 
D) all of the above

Question 11

With respect to economic freedom, which of the following is TRUE?

Accepted Answer

A) Three out of four people live in nations with governments that grant residents high degrees of economic freedom. 
B) Where governments do not grant residents a high degree of economic freedom, economic growth rates tend to be above the annual average for the world's nations. 
C) About three dozen nations with governments unwilling to grant much in the way of economic freedom are home to two-thirds of the world's population. Even so, these countries produce over 50 percent of the world's output. 
D) As economic freedom increases, so does a nation's prospects for economic growth. 
A) Three out of four people live in nations with governments that grant residents high degrees of economic freedom. 
B) Where governments do not grant residents a high degree of economic freedom, economic growth rates tend to be above the annual average for the world's nations. 
C) About three dozen nations with governments unwilling to grant much in the way of economic freedom are home to two-thirds of the world's population. Even so, these countries produce over 50 percent of the world's output. 
D) As economic freedom increases, so does a nation's prospects for economic growth.

Question 12

The primary motivation for private foreign investment in developing nations is

Accepted Answer

A) to improve the standard of living for workers. 
B) to do research in countries with fewer social regulations. 
C) to eradicate poverty. 
D) the potential for high rates of return. 
A) to improve the standard of living for workers. 
B) to do research in countries with fewer social regulations. 
C) to eradicate poverty. 
D) the potential for high rates of return.

Question 13

When a foreign company engages in riskier behavior after it has received international investment funds, it is known as

Accepted Answer

A) portfolio investment. 
B) moral hazard. 
C) foreign direct investment. 
D) adverse selection. 
A) portfolio investment. 
B) moral hazard. 
C) foreign direct investment. 
D) adverse selection.

Question 14

When there is a building that is used for production, but no one has clear property rights to it

Accepted Answer

A) resources are guided to their best use by "the invisible hand." 
B) this is known as "dead capital" and causes efficient production. 
C) this is known as "dead capital" and causes no production. 
D) this is known as "dead capital" and causes inefficient production. 
A) resources are guided to their best use by "the invisible hand." 
B) this is known as "dead capital" and causes efficient production. 
C) this is known as "dead capital" and causes no production. 
D) this is known as "dead capital" and causes inefficient production.

Question 15

Countries with a high level of bureaucratic inefficiency tend to have low rates of real GDP growth because

Accepted Answer

A) of complications that keep capital goods from flowing to their most efficient use. 
B) of poor accounting practices when determining real GDP. 
C) of poor management skill development in companies. 
D) they facilitate capital goods development. 
A) of complications that keep capital goods from flowing to their most efficient use. 
B) of poor accounting practices when determining real GDP. 
C) of poor management skill development in companies. 
D) they facilitate capital goods development.

Question 16

Which statement is TRUE about a comparison of economic freedom with political freedom?

Accepted Answer

A) Economic freedom cannot exist without political freedom. 
B) Economic freedom leads to positive economic growth while political freedom leads to negative economic growth. 
C) Political freedom is more important than economic freedom when considering positive economic growth. 
D) Economic freedom is more important than political freedom when considering positive economic growth. 
A) Economic freedom cannot exist without political freedom. 
B) Economic freedom leads to positive economic growth while political freedom leads to negative economic growth. 
C) Political freedom is more important than economic freedom when considering positive economic growth. 
D) Economic freedom is more important than political freedom when considering positive economic growth.

Question 17

What are the sources of private investments in foreign nations?

Accepted Answer

The three sources of private investment

Question 18

The World Bank is

Accepted Answer

A) composed of five separate institutions. 
B) the central bank of the U.S. government. 
C) the official name of the International Monetary Fund. 
D) the central bank of the United Nations. 
A) composed of five separate institutions. 
B) the central bank of the U.S. government. 
C) the official name of the International Monetary Fund. 
D) the central bank of the United Nations.

Question 19

The right to private property and ability to exchange goods and services freely is known as

Accepted Answer

A) political freedom. 
B) economic freedom. 
C) constitutional freedom. 
D) external freedom. 
A) political freedom. 
B) economic freedom. 
C) constitutional freedom. 
D) external freedom.

Question 20

The acquisition of more than 10 percent of the shares of ownership in a company in another country is known as

Accepted Answer

A) net exports. 
B) net national investment. 
C) portfolio investment 
D) none of the above 
A) net exports. 
B) net national investment. 
C) portfolio investment 
D) none of the above

A nation's account with the IMF is called its

The amount of funds that a nation can withdraw from the International Monetary Fund depends upon

Portfolio investment means buying

Voting power in the IMF is determined by

The World Bank will primarily make

Which one of the following statements is TRUE?

The multinational agency that specializes in making loans to developing nations in an effort to promote long-term development and growth is the

If a country has a 4 percent annual growth in real GDP and a one percent growth in population, its per capita growth of real GDP is

Which of the following equations is correct?

After the financial crisis in the 1990s many economists criticized the IMF and the World Bank. Some suggestions for reform are to

With respect to economic freedom, which of the following is TRUE?

The primary motivation for private foreign investment in developing nations is

When a foreign company engages in riskier behavior after it has received international investment funds, it is known as

When there is a building that is used for production, but no one has clear property rights to it

Countries with a high level of bureaucratic inefficiency tend to have low rates of real GDP growth because

Which statement is TRUE about a comparison of economic freedom with political freedom?

What are the sources of private investments in foreign nations?

The World Bank is

The right to private property and ability to exchange goods and services freely is known as

The acquisition of more than 10 percent of the shares of ownership in a company in another country is known as

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 nation's account with the IMF is called its

The amount of funds that a nation can withdraw from the International Monetary Fund depends upon

Portfolio investment means buying

Voting power in the IMF is determined by

The World Bank will primarily make

Which one of the following statements is TRUE?

The multinational agency that specializes in making loans to developing nations in an effort to promote long-term development and growth is the

If a country has a 4 percent annual growth in real GDP and a one percent growth in population, its per capita growth of real GDP is

Which of the following equations is correct?

After the financial crisis in the 1990s many economists criticized the IMF and the World Bank. Some suggestions for reform are to

With respect to economic freedom, which of the following is TRUE?

The primary motivation for private foreign investment in developing nations is

When a foreign company engages in riskier behavior after it has received international investment funds, it is known as

When there is a building that is used for production, but no one has clear property rights to it

Countries with a high level of bureaucratic inefficiency tend to have low rates of real GDP growth because

Which statement is TRUE about a comparison of economic freedom with political freedom?

What are the sources of private investments in foreign nations?

The World Bank is

The right to private property and ability to exchange goods and services freely is known as

The acquisition of more than 10 percent of the shares of ownership in a company in another country is known as

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