Question 1

The purchase of stocks and bonds issued in another country is known as foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 2

The Industrial Revolution began in

Accepted Answer

A) England around 1750. 
B) the United States around 1820. 
C) Canada around 1867. 
D) Germany around 1780. 
E) France around 1777. 
A) England around 1750. 
B) the United States around 1820. 
C) Canada around 1867. 
D) Germany around 1780. 
E) France around 1777.

Question 3

Use production functions from the economic growth model to explain why Canada grew at a much faster rate than the former Soviet Union in the latter half of the 20th century.

Accepted Answer

@#IMG-DLM& Alt text for Question 100: For question

Question 4

How might Canada's educational system have contributed to the productivity slowdown of the mid-1970s to the mid-1990s?

Accepted Answer

If the educational system was not prepar

Question 5

How can freedom of the press promote economic growth?

Accepted Answer

A) A free press can act as a watchdog for corruption, increasing chances for economic growth. 
B) A free press can be more easily swayed to report only one side of any issue. 
C) A free press reduces the likelihood that judges will protect private property rights. 
D) A free press does not promote economic growth. 
E) A free press reduces the opportunities for profitable investment. 
A) A free press can act as a watchdog for corruption, increasing chances for economic growth. 
B) A free press can be more easily swayed to report only one side of any issue. 
C) A free press reduces the likelihood that judges will protect private property rights. 
D) A free press does not promote economic growth. 
E) A free press reduces the opportunities for profitable investment.

Question 6

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Accepted Answer

A) True 
 B)False

Question 7

Growth in Canada from 1870 to 1970 can be characterized as

Accepted Answer

A) positive and increasing. 
B) positive and flat. 
C) positive and decreasing. 
D) negative. 
E) negative and accelerating. 
A) positive and increasing. 
B) positive and flat. 
C) positive and decreasing. 
D) negative. 
E) negative and accelerating.

Question 8

Countries that are more globalized tend to have

Accepted Answer

A) lower levels of real GDP per capita. 
B) a higher likelihood of war or revolution. 
C) higher growth rates in real GDP per capita. 
D) lower levels of foreign direct investment. 
E) fewer opportunities for local businesses. 
A) lower levels of real GDP per capita. 
B) a higher likelihood of war or revolution. 
C) higher growth rates in real GDP per capita. 
D) lower levels of foreign direct investment. 
E) fewer opportunities for local businesses.

Question 9

Does globalization promote economic growth, and how does globalization affect the welfare of a given country's citizens?

Accepted Answer

More globalized countries generally expe

Question 10

The "new economy" which some economists believe can lead to higher productivity growth in the future is based on

Accepted Answer

A) manufacturing. 
B) financial services. 
C) information technology. 
D) retail sales. 
E) natural resource extraction. 
A) manufacturing. 
B) financial services. 
C) information technology. 
D) retail sales. 
E) natural resource extraction.

Question 11

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

Accepted Answer

A) The British government was committed to upholding private property rights. 
B) The British government was able to eliminate arbitrary increases in taxes. 
C) The British government was able to more easily seize wealth. 
D) Institutional changes by the British government helped protect wealth. 
E) The British courts were effective at enforcing contracts. 
A) The British government was committed to upholding private property rights. 
B) The British government was able to eliminate arbitrary increases in taxes. 
C) The British government was able to more easily seize wealth. 
D) Institutional changes by the British government helped protect wealth. 
E) The British courts were effective at enforcing contracts.

Question 12

The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed.Why did this occur?

Accepted Answer

A) Capital per hour worked grew rapidly from 1950 to 1980, but technological change occurred very slowly. 
B) Capital per hour worked grew slowly, but technological change grew very rapidly. 
C) Increasing implementation of new technologies eventually suffered diminishing marginal returns. 
D) The centrally planned economy invested too heavily in technological change. 
E) The Soviet labour force grew too slowly to maintain growth. 
A) Capital per hour worked grew rapidly from 1950 to 1980, but technological change occurred very slowly. 
B) Capital per hour worked grew slowly, but technological change grew very rapidly. 
C) Increasing implementation of new technologies eventually suffered diminishing marginal returns. 
D) The centrally planned economy invested too heavily in technological change. 
E) The Soviet labour force grew too slowly to maintain growth.

Question 13

One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy.Explain how he comes to this conclusion.

Accepted Answer

According to Romer, knowledge capital is

Question 14

By offering more generous unemployment insurance programs than the United States, Canada can expect

Accepted Answer

A) citizens to pay less in taxes than citizens pay in the United States. 
B) workers to be very fast in gaining new skills in response to fluctuations in the labour market. 
C) shorter periods of unemployment for their workers. 
D) longer periods of unemployment for their workers. 
E) worse matches between employers and employees. 
A) citizens to pay less in taxes than citizens pay in the United States. 
B) workers to be very fast in gaining new skills in response to fluctuations in the labour market. 
C) shorter periods of unemployment for their workers. 
D) longer periods of unemployment for their workers. 
E) worse matches between employers and employees.

Question 15

Because knowledge capital is nonexcludable and nonrival, firms have an incentive to ________ the research and development of other firms.

Accepted Answer

A) make bids on 
B) not use 
C) ignore 
D) free ride on 
E) steal 
A) make bids on 
B) not use 
C) ignore 
D) free ride on 
E) steal

Question 16

How can economic growth help a country combat "brain drain"?

Accepted Answer

A) Economic growth increases the incomes of low-skilled workers relative to high-skilled workers. 
B) Economic growth opens up opportunities for better jobs and higher incomes for skilled workers. 
C) Economic growth allows highly skilled persons to earn more in a foreign country than in their native country. 
D) Economic growth combined with decreasing returns to human capital require workers to achieve steadily higher and higher levels of education over time. 
E) Economic growth increases the supply of low skilled labour. 
A) Economic growth increases the incomes of low-skilled workers relative to high-skilled workers. 
B) Economic growth opens up opportunities for better jobs and higher incomes for skilled workers. 
C) Economic growth allows highly skilled persons to earn more in a foreign country than in their native country. 
D) Economic growth combined with decreasing returns to human capital require workers to achieve steadily higher and higher levels of education over time. 
E) Economic growth increases the supply of low skilled labour.

Question 17

In 2014, GDP per capita was ________ in Canada than in China, and since 1980 the growth rate of real GDP per capita has been ________ in Canada than in China.

Accepted Answer

A) higher; higher 
B) higher; lower 
C) lower; higher 
D) lower; lower 
A) higher; higher 
B) higher; lower 
C) lower; higher 
D) lower; lower

Question 18

Globalization refers to

Accepted Answer

A) the process of establishing a common world currency. 
B) the willingness of individuals within a given country to share knowledge with one another. 
C) the process of countries becoming more open to foreign trade and investment. 
D) the reduction in growth rates of real GDP per capita as a result of trade with foreign countries. 
E) the ongoing process of national governments giving up authority to the United Nations. 
A) the process of establishing a common world currency. 
B) the willingness of individuals within a given country to share knowledge with one another. 
C) the process of countries becoming more open to foreign trade and investment. 
D) the reduction in growth rates of real GDP per capita as a result of trade with foreign countries. 
E) the ongoing process of national governments giving up authority to the United Nations.

Question 19

Technological change is the key to sustaining economic growth.

Accepted Answer

A) True 
 B)False

Question 20

Table 7.5  
-Refer to Table 7.5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

Accepted Answer

These statistics for selected industrial

The purchase of stocks and bonds issued in another country is known as foreign direct investment.

The Industrial Revolution began in

Use production functions from the economic growth model to explain why Canada grew at a much faster rate than the former Soviet Union in the latter half of the 20th century.

How might Canada's educational system have contributed to the productivity slowdown of the mid-1970s to the mid-1990s?

How can freedom of the press promote economic growth?

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Growth in Canada from 1870 to 1970 can be characterized as

Countries that are more globalized tend to have

Does globalization promote economic growth, and how does globalization affect the welfare of a given country's citizens?

The "new economy" which some economists believe can lead to higher productivity growth in the future is based on

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed.Why did this occur?

One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy.Explain how he comes to this conclusion.

By offering more generous unemployment insurance programs than the United States, Canada can expect

Because knowledge capital is nonexcludable and nonrival, firms have an incentive to ________ the research and development of other firms.

How can economic growth help a country combat "brain drain"?

In 2014, GDP per capita was in Canada than in China, and since 1980 the growth rate of real GDP per capita has been in Canada than in China.

Globalization refers to

Technological change is the key to sustaining economic growth.

Table 7.5 -Refer to Table 7.5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 7: Long-Run Economic Growth: Sources and Policies

The purchase of stocks and bonds issued in another country is known as foreign direct investment.

The Industrial Revolution began in

Use production functions from the economic growth model to explain why Canada grew at a much faster rate than the former Soviet Union in the latter half of the 20th century.

How might Canada's educational system have contributed to the productivity slowdown of the mid-1970s to the mid-1990s?

How can freedom of the press promote economic growth?

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Growth in Canada from 1870 to 1970 can be characterized as

Countries that are more globalized tend to have

Does globalization promote economic growth, and how does globalization affect the welfare of a given country's citizens?

The "new economy" which some economists believe can lead to higher productivity growth in the future is based on

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed.Why did this occur?

One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy.Explain how he comes to this conclusion.

By offering more generous unemployment insurance programs than the United States, Canada can expect

Because knowledge capital is nonexcludable and nonrival, firms have an incentive to ________ the research and development of other firms.

How can economic growth help a country combat "brain drain"?

In 2014, GDP per capita was ________ in Canada than in China, and since 1980 the growth rate of real GDP per capita has been ________ in Canada than in China.

Globalization refers to

Technological change is the key to sustaining economic growth.

Table 7.5 -Refer to Table 7.5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

In 2014, GDP per capita was in Canada than in China, and since 1980 the growth rate of real GDP per capita has been in Canada than in China.