Question 1

Which one of the following is a key to economic development?

Accepted Answer

A)  the removal of property rights 
B)  the preservation of established means of production 
C)  an educated population 
D)  a high level of protection against imported products 
A)  the removal of property rights 
B)  the preservation of established means of production 
C)  an educated population 
D)  a high level of protection against imported products

Question 2

Economists have determined that there are four factors that seem to strongly affect a nation's rate of economic development. Which is NOT one of these four factors?

Accepted Answer

A)  Establishing a system of property rights 
B)  Developing an educated population 
C)  Supporting current industries and the jobs they provide instead of adopting new technology that brings disruptive social changes 
D)  Limiting the extent to which the government imposes trade barriers 
A)  Establishing a system of property rights 
B)  Developing an educated population 
C)  Supporting current industries and the jobs they provide instead of adopting new technology that brings disruptive social changes 
D)  Limiting the extent to which the government imposes trade barriers

Question 3

Economic growth can be defined as a percentage increase in

Accepted Answer

A)  per capita real GDP. 
B)  real GDP. 
C)  nominal GDP. 
D)  consumption by households. 
A)  per capita real GDP. 
B)  real GDP. 
C)  nominal GDP. 
D)  consumption by households.

Question 4

Per capita real GDP is a serviceable measure of

Accepted Answer

A)  economic welfare. 
B)  cost of living standards. 
C)  cultural superiority. 
D)  productive activity. 
A)  economic welfare. 
B)  cost of living standards. 
C)  cultural superiority. 
D)  productive activity.

Question 5

Economic growth tends to be higher in a country that

Accepted Answer

A)  has a low saving rate. 
B)  has an open economy that encourages the rapid spread of technology. 
C)  has an undeveloped system of property rights. 
D)  does not grant patents to investors. 
A)  has a low saving rate. 
B)  has an open economy that encourages the rapid spread of technology. 
C)  has an undeveloped system of property rights. 
D)  does not grant patents to investors.

Question 6

The most important thing about higher labor productivity is that it means

Accepted Answer

A)  we are doing better than anyone else is. 
B)  we can compete well with other nations. 
C)  we can achieve a happier population. 
D)  we can have a higher standard of living. 
A)  we are doing better than anyone else is. 
B)  we can compete well with other nations. 
C)  we can achieve a happier population. 
D)  we can have a higher standard of living.

Question 7

-Refer to the above table. Which country has the lowest increase in per capita real GDP between 2012 and 2013?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
A)  A 
B)  B 
C)  C 
D)  D

Question 8

An economy that is an active participant in international trade is

Accepted Answer

A)  an egalitarian economy. 
B)  a closed economy. 
C)  an economy whose currency value fluctuates widely. 
D)  an open economy. 
A)  an egalitarian economy. 
B)  a closed economy. 
C)  an economy whose currency value fluctuates widely. 
D)  an open economy.

Question 9

The development of human capital

Accepted Answer

A)  is a form of investment. 
B)  does not appear to enhance economic growth. 
C)  enhances economic growth, but it does not improve the productivity of the labor force. 
D)  enhances economic growth, but the individuals acquiring the capital are not made better off themselves. 
A)  is a form of investment. 
B)  does not appear to enhance economic growth. 
C)  enhances economic growth, but it does not improve the productivity of the labor force. 
D)  enhances economic growth, but the individuals acquiring the capital are not made better off themselves.

Question 10

When examining the growth record of any nation

Accepted Answer

A)  all that must be examined is increases in per capital real GDP. 
B)  no consideration should be given to the change in the average amount of leisure time in the nation. 
C)  increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted. 
D)  we must consider which income groups have benefited most from the growth. 
A)  all that must be examined is increases in per capital real GDP. 
B)  no consideration should be given to the change in the average amount of leisure time in the nation. 
C)  increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted. 
D)  we must consider which income groups have benefited most from the growth.

Question 11

Which of the following will NOT lead to increased capital investment within a country?

Accepted Answer

A)  Increased uncertainty about private property rights 
B)  Increased certainty about private property rights 
C)  The decreased possibility of nationalization of private property 
D)  Increased certainty about being able to reap the gains from investing 
A)  Increased uncertainty about private property rights 
B)  Increased certainty about private property rights 
C)  The decreased possibility of nationalization of private property 
D)  Increased certainty about being able to reap the gains from investing

Question 12

According to the late Julian Simon,

Accepted Answer

A)  legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact. However, the positive effect of the legal immigrants is stronger than the negative impact of the illegal immigrants. 
B)  legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact that almost exactly offsets the positive effect of the legal immigrants. 
C)  legal and illegal immigrants have a positive effect on the welfare of American citizens. 
D)  legal and illegal immigrants have a negative effect on the welfare of American citizens. 
A)  legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact. However, the positive effect of the legal immigrants is stronger than the negative impact of the illegal immigrants. 
B)  legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact that almost exactly offsets the positive effect of the legal immigrants. 
C)  legal and illegal immigrants have a positive effect on the welfare of American citizens. 
D)  legal and illegal immigrants have a negative effect on the welfare of American citizens.

Question 13

Which of the following is an important factor affecting economic growth?

Accepted Answer

A)  the rate of saving 
B)  exchange rates 
C)  the rate of interest 
D)  the level of prices 
A)  the rate of saving 
B)  exchange rates 
C)  the rate of interest 
D)  the level of prices

Question 14

When economic growth is compared between countries, the best measure to use is

Accepted Answer

A)  nominal GDP. 
B)  real GDP. 
C)  chain-weighted GDP. 
D)  real GDP per capita. 
A)  nominal GDP. 
B)  real GDP. 
C)  chain-weighted GDP. 
D)  real GDP per capita.

Question 15

Which of the following will tend to cause an increase in technology?

Accepted Answer

A)  an increase in research and development expenditures. 
B)  the development of new ideas. 
C)  increases in human capital. 
D)  all of the above. 
A)  an increase in research and development expenditures. 
B)  the development of new ideas. 
C)  increases in human capital. 
D)  all of the above.

Question 16

Saving is important for economic growth because

Accepted Answer

A)  a higher saving rate reduces investment spending. 
B)  a higher saving rate increases investment spending. 
C)  more saving increases consumption immediately. 
D)  a higher saving rate will decrease the standard of living in the future. 
A)  a higher saving rate reduces investment spending. 
B)  a higher saving rate increases investment spending. 
C)  more saving increases consumption immediately. 
D)  a higher saving rate will decrease the standard of living in the future.

Question 17

-Refer to the above table. Which country experienced the greatest economic growth from 2012 to 2013?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
A)  A 
B)  B 
C)  C 
D)  D

Question 18

Other things being equal, a higher saving rate

Accepted Answer

A)  leads to higher interest rates. 
B)  means higher standards of living in the future. 
C)  means higher standards of living today. 
D)  is associated with a decline in the rate of growth of the population. 
A)  leads to higher interest rates. 
B)  means higher standards of living in the future. 
C)  means higher standards of living today. 
D)  is associated with a decline in the rate of growth of the population.

Question 19

Which resource is the main contributor to economic growth in the United States, Latin America, and South Asia?

Accepted Answer

A)  growth in physical capital 
B)  growth in human capital (education) 
C)  growth in labor 
D)  growth in land 
A)  growth in physical capital 
B)  growth in human capital (education) 
C)  growth in labor 
D)  growth in land

Question 20

What is economic growth and why are growth rates so important?

Accepted Answer

Economic growth is measured by increases

Exam 9: Global Economic Growth and Development

Which one of the following is a key to economic development?

Economists have determined that there are four factors that seem to strongly affect a nation's rate of economic development. Which is NOT one of these four factors?

Economic growth can be defined as a percentage increase in

Per capita real GDP is a serviceable measure of

Economic growth tends to be higher in a country that

The most important thing about higher labor productivity is that it means

-Refer to the above table. Which country has the lowest increase in per capita real GDP between 2012 and 2013?

An economy that is an active participant in international trade is

The development of human capital

When examining the growth record of any nation

Which of the following will NOT lead to increased capital investment within a country?

According to the late Julian Simon,

Which of the following is an important factor affecting economic growth?

When economic growth is compared between countries, the best measure to use is

Which of the following will tend to cause an increase in technology?

Saving is important for economic growth because

-Refer to the above table. Which country experienced the greatest economic growth from 2012 to 2013?

Other things being equal, a higher saving rate

Which resource is the main contributor to economic growth in the United States, Latin America, and South Asia?

What is economic growth and why are growth rates so important?

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

Measuring the Economys Performance

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

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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