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

Countries with the highest degrees of governmental bureaucratic inefficiency index

Accepted Answer

A)  typically are nations with the highest real GDP per capita. 
B)  typically are nations with the lowest real GDP per capita. 
C)  normally have the lowest measured levels of dead capital. 
D)  normally have the highest measured levels of economic freedom. 
A)  typically are nations with the highest real GDP per capita. 
B)  typically are nations with the lowest real GDP per capita. 
C)  normally have the lowest measured levels of dead capital. 
D)  normally have the highest measured levels of economic freedom.

Question 3

The World Bank specializes in making loans to promote

Accepted Answer

A)  short-term assistance when a nation experiences a financial crisis. 
B)  so-called stand-by arrangements and credits. 
C)  financial stability. 
D)  long-term development and growth. 
A)  short-term assistance when a nation experiences a financial crisis. 
B)  so-called stand-by arrangements and credits. 
C)  financial stability. 
D)  long-term development and growth.

Question 4

A nation's account with the International Monetary Fund is measured in an international unit known as

Accepted Answer

A)  international reserves. 
B)  special drawing rights. 
C)  monetary rights. 
D)  monetary deposits. 
A)  international reserves. 
B)  special drawing rights. 
C)  monetary rights. 
D)  monetary deposits.

Question 5

Both the International Monetary Fund and the World Bank were established

Accepted Answer

A)  at the end of World War I. 
B)  at the end of World War II. 
C)  in the 1960s. 
D)  in the 1970s. 
A)  at the end of World War I. 
B)  at the end of World War II. 
C)  in the 1960s. 
D)  in the 1970s.

Question 6

Each country's IMF quota subscription is determined by

Accepted Answer

A)  the relative size of its national income. 
B)  the size of its population. 
C)  the size of world trade. 
D)  how much a country wants to contribute. 
A)  the relative size of its national income. 
B)  the size of its population. 
C)  the size of world trade. 
D)  how much a country wants to contribute.

Question 7

If the average annual growth rate in real GDP for a nation during the last decade was 4 percent per year and the average annual population growth rate was 3 percent per year during the same period, then the average annual growth rate of per capita GDP was

Accepted Answer

A)  1.00 percent. 
B)  -1.00 percent. 
C)  0.75 percent. 
D)  1.33 percent. 
A)  1.00 percent. 
B)  -1.00 percent. 
C)  0.75 percent. 
D)  1.33 percent.

Question 8

It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to

Accepted Answer

A)  promote the increase of dead capital. 
B)  make more loans. 
C)  focus on basic market foundations of guaranteeing property and contract rights. 
D)  join forces and merge into one unit. 
A)  promote the increase of dead capital. 
B)  make more loans. 
C)  focus on basic market foundations of guaranteeing property and contract rights. 
D)  join forces and merge into one unit.

Question 9

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 10

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 11

The international unit of accounting used by the International Monetary Fund (IMF) is called

Accepted Answer

A)  the Eurodollar. 
B)  the IMF dollar. 
C)  the quota subscription. 
D)  special drawing rights. 
A)  the Eurodollar. 
B)  the IMF dollar. 
C)  the quota subscription. 
D)  special drawing rights.

Question 12

Recently the largest form of international investment funds for developing countries has been

Accepted Answer

A)  bank loans. 
B)  portfolio investments. 
C)  foreign direct investments. 
D)  World Bank loans. 
A)  bank loans. 
B)  portfolio investments. 
C)  foreign direct investments. 
D)  World Bank loans.

Question 13

What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4 percent per year and the annual rate of population growth is 3 percent?

Accepted Answer

A)  1 percent 
B)  3 percent 
C)  4 percent 
D)  87 percent 
A)  1 percent 
B)  3 percent 
C)  4 percent 
D)  87 percent

Question 14

Most of the loanable funds available to the World Bank to lend to developing nations come from

Accepted Answer

A)  the sale of oil. 
B)  developing nations. 
C)  the world's wealthiest nations. 
D)  the sale of international bonds that are issued by the World Bank. 
A)  the sale of oil. 
B)  developing nations. 
C)  the world's wealthiest nations. 
D)  the sale of international bonds that are issued by the World Bank.

Question 15

The following are obstacles to international investment EXCEPT

Accepted Answer

A)  population growth. 
B)  asymmetric information. 
C)  adverse selection. 
D)  moral hazard. 
A)  population growth. 
B)  asymmetric information. 
C)  adverse selection. 
D)  moral hazard.

Question 16

When an international financial crisis occurs

Accepted Answer

A)  financial lenders protect their investments by pouring money into the ailing country. 
B)  investors sell off bonds and restrict loans as a mechanism to help the country recover. 
C)  financial flows can slow to a trickle, influencing economic growth. 
D)  there are no serious financial effects that last more than a few months. 
A)  financial lenders protect their investments by pouring money into the ailing country. 
B)  investors sell off bonds and restrict loans as a mechanism to help the country recover. 
C)  financial flows can slow to a trickle, influencing economic growth. 
D)  there are no serious financial effects that last more than a few months.

Question 17

When government inefficiencies exist,

Accepted Answer

A)  a country tends to grow at a slower rate. 
B)  a country tends to grow at a faster rate. 
C)  economic growth is not influenced. 
D)  dead capital is usually not a problem. 
A)  a country tends to grow at a slower rate. 
B)  a country tends to grow at a faster rate. 
C)  economic growth is not influenced. 
D)  dead capital is usually not a problem.

Question 18

The official mission of the World Bank is to

Accepted Answer

A)  fight global inflation. 
B)  advise member nations on the appropriate levels of taxation. 
C)  establish exchange rates between the currencies of member nations. 
D)  provide funding for needed development projects that would have difficulty attracting private investment. 
A)  fight global inflation. 
B)  advise member nations on the appropriate levels of taxation. 
C)  establish exchange rates between the currencies of member nations. 
D)  provide funding for needed development projects that would have difficulty attracting private investment.

Question 19

If the government of a developing country is having difficulty selling bonds to build an irrigation system, it could go to the

Accepted Answer

A)  World Bank. 
B)  Federal Reserve Bank. 
C)  United Nations International Bank. 
D)  International Monetary Organization. 
A)  World Bank. 
B)  Federal Reserve Bank. 
C)  United Nations International Bank. 
D)  International Monetary Organization.

Question 20

If population growth occurs while jobs are difficult to obtain or labor force participation does not increase,

Accepted Answer

A)  there may be little or no increase in a nation's labor resources. 
B)  a nation's labor resources will still continue to increase in both quality and quantity. 
C)  economic growth will be robust because any population gain is a plus. 
D)  per capita GDP is likely to increase sharply. 
A)  there may be little or no increase in a nation's labor resources. 
B)  a nation's labor resources will still continue to increase in both quality and quantity. 
C)  economic growth will be robust because any population gain is a plus. 
D)  per capita GDP is likely to increase sharply.

Exam 18: 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?

Countries with the highest degrees of governmental bureaucratic inefficiency index

The World Bank specializes in making loans to promote

A nation's account with the International Monetary Fund is measured in an international unit known as

Both the International Monetary Fund and the World Bank were established

Each country's IMF quota subscription is determined by

If the average annual growth rate in real GDP for a nation during the last decade was 4 percent per year and the average annual population growth rate was 3 percent per year during the same period, then the average annual growth rate of per capita GDP was

It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to

Which one of the following statements is true?

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

The international unit of accounting used by the International Monetary Fund (IMF) is called

Recently the largest form of international investment funds for developing countries has been

What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4 percent per year and the annual rate of population growth is 3 percent?

Most of the loanable funds available to the World Bank to lend to developing nations come from

The following are obstacles to international investment EXCEPT

When an international financial crisis occurs

When government inefficiencies exist,

The official mission of the World Bank is to

If the government of a developing country is having difficulty selling bonds to build an irrigation system, it could go to the

If population growth occurs while jobs are difficult to obtain or labor force participation does not increase,

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

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

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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