Question 1

Which of the following countries had the highest level of GDP per capita in 2014?

Accepted Answer

A) Japan 
B) France 
C) Canada 
D) the United States 
E) Germany 
A) Japan 
B) France 
C) Canada 
D) the United States 
E) Germany

Question 2

An economic growth model explains

Accepted Answer

A) changes in real GDP per capita in the long run. 
B) how changes in the money supply affect real interest rates. 
C) changes in government tax policies over time. 
D) the growth rate of the price level over time. 
E) changes in a country's population over time. 
A) changes in real GDP per capita in the long run. 
B) how changes in the money supply affect real interest rates. 
C) changes in government tax policies over time. 
D) the growth rate of the price level over time. 
E) changes in a country's population over time.

Question 3

Figure 7.2   Alt text for Figure 7.2: In figure 7.2, a graph comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.2: The x-axis is labelled, capital per hour worked.The y-axis is labelled, real GDP per hour worked, Y/L.A concave curve originates from 0 at the vertex and passes through 2 points ($35,000, 1,850)and (40,000, $2000), toward the end of the x-axis.These 2 points are connected to their respective coordinates on the x-axis and y-axis with dotted lines.
-Refer to Figure 7.2.Based on the per-worker production function above, if the Canadian economy raises capital per hour worked from $35,000 to $40,000, by how much will real GDP per hour worked increase?

Accepted Answer

A) $150 
B) $1,850 
C) $2,000 
D) $5,000 
E) $35,000 
A) $150 
B) $1,850 
C) $2,000 
D) $5,000 
E) $35,000

Question 4

Which of the following is a reason why the Industrial Revolution began in England, and not in China, India, Africa, or Japan?

Accepted Answer

A) The British system ensured the property rights of entrepreneurs. 
B) English inventors were more productive than those in other countries. 
C) British government was less stable than those in other countries. 
D) The British people had a longer history of embracing technological change. 
E) The British Navy prevented China from growing. 
A) The British system ensured the property rights of entrepreneurs. 
B) English inventors were more productive than those in other countries. 
C) British government was less stable than those in other countries. 
D) The British people had a longer history of embracing technological change. 
E) The British Navy prevented China from growing.

Question 5

Some factors currently exist that inhibit the growth rate of the Mexican economy.The main reason given is

Accepted Answer

A) the introduction of free-market reforms. 
B) the lack of natural resources in Mexico. 
C) the lack of the rule of law that predictably enforce property rights. 
D) the total lack of governmental intervention in the market place. 
E) the lack of highly educated workers. 
A) the introduction of free-market reforms. 
B) the lack of natural resources in Mexico. 
C) the lack of the rule of law that predictably enforce property rights. 
D) the total lack of governmental intervention in the market place. 
E) the lack of highly educated workers.

Question 6

Which of the following is not a reason Palliser Furniture Upholstery Ltd.decided to build a factory in Mexico instead of in China?

Accepted Answer

A) It would be easier for managers to oversee production. 
B) Investing in Mexico carries virtually no risk. 
C) Mexico is closer to Palliser's North American markets. 
D) Producing in Mexico is cheaper than producing in Canada. 
A) It would be easier for managers to oversee production. 
B) Investing in Mexico carries virtually no risk. 
C) Mexico is closer to Palliser's North American markets. 
D) Producing in Mexico is cheaper than producing in Canada.

Question 7

Which factors explain labour productivity?

Accepted Answer

A) technological change; the quantity of labour per hour worked 
B) diminishing returns; the quantity of labour per hour worked 
C) diminishing returns; the quantity of capital per hour worked 
D) technological change; the quantity of capital per hour worked 
E) population; the unemployment rate; and minimum wages 
A) technological change; the quantity of labour per hour worked 
B) diminishing returns; the quantity of labour per hour worked 
C) diminishing returns; the quantity of capital per hour worked 
D) technological change; the quantity of capital per hour worked 
E) population; the unemployment rate; and minimum wages

Question 8

The rapid growth of the Chinese economy should

Accepted Answer

A) benefit Canadian consumers, as they have access to less expensive consumer goods. 
B) make it more difficult for citizens of Canada to find a job. 
C) make the cost of living for Canadians rise. 
D) not affect the mix of jobs available to citizens of Canada. 
E) A and B 
A) benefit Canadian consumers, as they have access to less expensive consumer goods. 
B) make it more difficult for citizens of Canada to find a job. 
C) make the cost of living for Canadians rise. 
D) not affect the mix of jobs available to citizens of Canada. 
E) A and B

Question 9

Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?

Accepted Answer

A) because firms must disclose information about the product or process being patented in a patent application 
B) because trade secrets are never divulged 
C) because a patent only gives the inventor exclusive rights to a product or process for 5 years 
D) because trade secrets provide the same exclusive legal rights to a product as a patent does 
E) because legal enforcement of patents is uncertain in North America 
A) because firms must disclose information about the product or process being patented in a patent application 
B) because trade secrets are never divulged 
C) because a patent only gives the inventor exclusive rights to a product or process for 5 years 
D) because trade secrets provide the same exclusive legal rights to a product as a patent does 
E) because legal enforcement of patents is uncertain in North America

Question 10

The U.S.economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of Canada and many Western European countries.Which of the following explains this?

Accepted Answer

A) U)S.unions impose stricter work rules as compared to unions in Canada and many Western European countries. 
B) U)S.government regulations impose stricter work rules as compared to government regulations in Canada and Western Europe. 
C) The United States has a higher rate of job mobility than do Canada and many Western European countries. 
D) U)S.workers can obtain unemployment insurance for a longer period of time as compared to workers in Canada and most Western European countries. 
E) Western European countries have more regulations concerning technological improvement. 
A) U)S.unions impose stricter work rules as compared to unions in Canada and many Western European countries. 
B) U)S.government regulations impose stricter work rules as compared to government regulations in Canada and Western Europe. 
C) The United States has a higher rate of job mobility than do Canada and many Western European countries. 
D) U)S.workers can obtain unemployment insurance for a longer period of time as compared to workers in Canada and most Western European countries. 
E) Western European countries have more regulations concerning technological improvement.

Question 11

The small group of East Asian countries that experienced high rates of growth in the 1980s and 1990s are referred to as

Accepted Answer

A) newly industrializing countries. 
B) countries with low standards of living. 
C) education-deprived countries. 
D) industrial countries. 
E) newly decolonized countries. 
A) newly industrializing countries. 
B) countries with low standards of living. 
C) education-deprived countries. 
D) industrial countries. 
E) newly decolonized countries.

Question 12

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following government policies would most likely result in an increase in economic growth?

Accepted Answer

A) a decrease in the life of a patent from 20 years to 15 years 
B) a decrease in the interest rate at which the government provides student loans 
C) a decrease in government spending on grants issued through the National Institutes of Health 
D) decreased copyright protection on music and movies 
E) an increase in taxes on research and development spending 
A) a decrease in the life of a patent from 20 years to 15 years 
B) a decrease in the interest rate at which the government provides student loans 
C) a decrease in government spending on grants issued through the National Institutes of Health 
D) decreased copyright protection on music and movies 
E) an increase in taxes on research and development spending

Question 14

Figure 7.1   Alt text for Figure 7.1: In figure 7.1, a graph comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.1: The x-axis is labelled, capital per hour worked, K/L, with values 40,000 and 60,000 marked.The y-axis is labelled, real GDP per hour worked, Y/L, with 0 at the vertex.3 concave curves, each originating from the vertex are shown.4 points A, B, C, and D are plotted such that point A has 40,000 as the x coordinate, and points B, C, and D have 60,000 as the x coordinate.The 3 curves pass through these points.The curve labelled, Production function 1, passes through point B.The curve labelled, Production function 2, passes through points A and C.The curve labelled, Production function 3, passes through point D.
-Refer to Figure 7.1.Technological change is illustrated in the per-worker production function in the figure above by a movement from

Accepted Answer

A) A to B. 
B) B to C. 
C) B to A. 
D) D to C. 
E) D to A. 
A) A to B. 
B) B to C. 
C) B to A. 
D) D to C. 
E) D to A.

Question 15

Figure 7.1   Alt text for Figure 7.1: In figure 7.1, a graph comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.1: The x-axis is labelled, capital per hour worked, K/L, with values 40,000 and 60,000 marked.The y-axis is labelled, real GDP per hour worked, Y/L, with 0 at the vertex.3 concave curves, each originating from the vertex are shown.4 points A, B, C, and D are plotted such that point A has 40,000 as the x coordinate, and points B, C, and D have 60,000 as the x coordinate.The 3 curves pass through these points.The curve labelled, Production function 1, passes through point B.The curve labelled, Production function 2, passes through points A and C.The curve labelled, Production function 3, passes through point D.
-Refer to Figure 7.1.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so, these countries were essentially preventing a moment from

Accepted Answer

A) A to B. 
B) B to C. 
C) B to A. 
D) D to C. 
E) D to A. 
A) A to B. 
B) B to C. 
C) B to A. 
D) D to C. 
E) D to A.

Question 16

Starting at point B in the diagram below, identify which combinations of points illustrate technological change.Give a brief explanation to support your answer.   Alt text for Question 46: For question 46, a graph illustrating technological change.
Long description for Question 46: The x-axis is labelled, capital per hour worked, K/L.The y-axis is labelled, real GDP per hour worked, Y/L.3 concave curves originating from 0 at the vertex are shown.5 points, A ($50000, $15000), B ($60000, $16000), C ($70000, $16400), D ($60000, $17000), and E ($60000, $15000)are plotted.The curve labelled Production function 1, passes through point E.The curve labelled Production function 2, passes through points A, B, and C.The curve labeled Production function 3, passes through point D.The 5 points are connected to their respective coordinates on the x and y-axis with dotted lines.

Accepted Answer

The movement from B to D in the diagram

Question 17

Your friend does not understand the benefits of globalization.Outline for your friend the positive economic aspects of globalization.

Accepted Answer

Globalization is the process of countrie

Question 18

Figure 7.3   Alt text for Figure 7.3: In figure 7.3, a graph, comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.3: The x-axis is labelled, capital per hour worked, K/L.The y-axis is labelled, real GDP per hour worked, Y/L.2 concave curves originating from 0 at the vertex are shown.5 points A ($50000, $15000), B ($60000, $16000), C ($70000, $16400), D ($80000, $16500), and E ($60000, $17000)are plotted.The curve labelled Production function 1, passes through points A, B, C, and D.The curve labelled Production function 2, passes through point E.These 5 points are connected to their respective coordinates on the x and y-axis with dotted lines.
-Refer to Figure 7.3.Technological change is shown in the figure above by the movement from

Accepted Answer

A) B to C. 
B) B to D. 
C) B to E. 
D) B to A. 
E) D to C. 
A) B to C. 
B) B to D. 
C) B to E. 
D) B to A. 
E) D to C.

Question 19

Compared to the previous 20 years, productivity growth in Canada increased between 1995 and 2011.

Accepted Answer

A) True 
 B)False

Question 20

The rapid growth of China's economy relative to Canada's has benefitted Canadian consumers because

Accepted Answer

A) competition from China has made jobs harder to find in Canada. 
B) Canadian consumers can purchase more lower-priced goods made in China. 
C) Canada has comparative advantage in more goods than China does. 
D) goods made in China are always of higher quality than goods made in Canada. 
E) Canadian consumers no longer have access to Canadian made goods. 
A) competition from China has made jobs harder to find in Canada. 
B) Canadian consumers can purchase more lower-priced goods made in China. 
C) Canada has comparative advantage in more goods than China does. 
D) goods made in China are always of higher quality than goods made in Canada. 
E) Canadian consumers no longer have access to Canadian made goods.

Which of the following countries had the highest level of GDP per capita in 2014?

An economic growth model explains

Which of the following is a reason why the Industrial Revolution began in England, and not in China, India, Africa, or Japan?

Some factors currently exist that inhibit the growth rate of the Mexican economy.The main reason given is

Which of the following is not a reason Palliser Furniture Upholstery Ltd.decided to build a factory in Mexico instead of in China?

Which factors explain labour productivity?

The rapid growth of the Chinese economy should

Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?

The U.S.economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of Canada and many Western European countries.Which of the following explains this?

The small group of East Asian countries that experienced high rates of growth in the 1980s and 1990s are referred to as

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Which of the following government policies would most likely result in an increase in economic growth?

Your friend does not understand the benefits of globalization.Outline for your friend the positive economic aspects of globalization.

Compared to the previous 20 years, productivity growth in Canada increased between 1995 and 2011.

The rapid growth of China's economy relative to Canada's has benefitted Canadian consumers because

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

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

Which of the following countries had the highest level of GDP per capita in 2014?

An economic growth model explains

Which of the following is a reason why the Industrial Revolution began in England, and not in China, India, Africa, or Japan?

Some factors currently exist that inhibit the growth rate of the Mexican economy.The main reason given is

Which of the following is not a reason Palliser Furniture Upholstery Ltd.decided to build a factory in Mexico instead of in China?

Which factors explain labour productivity?

The rapid growth of the Chinese economy should

Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?

The U.S.economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of Canada and many Western European countries.Which of the following explains this?

The small group of East Asian countries that experienced high rates of growth in the 1980s and 1990s are referred to as

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Which of the following government policies would most likely result in an increase in economic growth?

Your friend does not understand the benefits of globalization.Outline for your friend the positive economic aspects of globalization.

Compared to the previous 20 years, productivity growth in Canada increased between 1995 and 2011.

The rapid growth of China's economy relative to Canada's has benefitted Canadian consumers because

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