Question 1

Describe the process of "creative destruction" using a specific example.

Accepted Answer

Creative destruction,based on the ideas

Question 2

In 2016,South America had a lower average GDP per capita than any other continent.

Accepted Answer

A) True 
 B)False

Question 3

According to Joseph Schumpeter,economic growth is achieved through

Accepted Answer

A) focusing only on making old products better rather than inventing new ones. 
B) centralizing economic production. 
C) a process termed "creative destruction." 
D) removing the entrepreneur from the production function. 
A) focusing only on making old products better rather than inventing new ones. 
B) centralizing economic production. 
C) a process termed "creative destruction." 
D) removing the entrepreneur from the production function.

Question 4

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 5

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century.Has output per hour worked consistently increased at the same rate? Explain.

Accepted Answer

Growth in real GDP per hour worked avera

Question 6

Which of the following is an example of foreign direct investment?

Accepted Answer

A) You purchase a plane ticket to China on American Airlines. 
B) American Airlines builds a hub in China. 
C) You buy a plane that was made in China. 
D) A stock broker from China sells you a Chinese government savings bond. 
A) You purchase a plane ticket to China on American Airlines. 
B) American Airlines builds a hub in China. 
C) You buy a plane that was made in China. 
D) A stock broker from China sells you a Chinese government savings bond.

Question 7

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 8

The catch-up prediction of economic growth models predicts that ________ across countries will converge over time.

Accepted Answer

A) income levels 
B) GDP per capita 
C) foreign direct investment rates 
D) growth rates 
A) income levels 
B) GDP per capita 
C) foreign direct investment rates 
D) growth rates

Question 9

You are an economic advisor to the president.You are asked to recommend a policy to promote long-term economic growth in the economy.Which of the following policies would you choose?

Accepted Answer

A) a reduction in sales taxes 
B) an investment tax credit 
C) a reduction in taxes on luxury yachts 
D) all of the above 
A) a reduction in sales taxes 
B) an investment tax credit 
C) a reduction in taxes on luxury yachts 
D) all of the above

Question 10

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

Accepted Answer

Countries with low saving rates and low

Question 11

The economic growth model predicts that

Accepted Answer

A) the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B) the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C) lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D) economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries. 
A) the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B) the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C) lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D) economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries.

Question 12

Between 1990 and 2016,which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

Accepted Answer

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

Question 13

Technological change will

Accepted Answer

A) shift the per-worker production function up. 
B) shift the per-worker production function down. 
C) move the economy to a point beneath the per-worker production function. 
D) move the economy along a given per-worker production function. 
A) shift the per-worker production function up. 
B) shift the per-worker production function down. 
C) move the economy to a point beneath the per-worker production function. 
D) move the economy along a given per-worker production function.

Question 14

Globalization is defined as the process of countries becoming ________ open to foreign trade and ________ open to foreign investment.

Accepted Answer

A) more; less 
B) more; more 
C) less; more 
D) less; less 
A) more; less 
B) more; more 
C) less; more 
D) less; less

Question 15

If property rights are not enforced in a country,then

Accepted Answer

A) the market system will still work smoothly. 
B) entrepreneurs are unlikely to risk their own funds investing in such an economy. 
C) that country's growth rate will not be affected. 
D) that country will grow more rapidly because of the reduction of law suits. 
A) the market system will still work smoothly. 
B) entrepreneurs are unlikely to risk their own funds investing in such an economy. 
C) that country's growth rate will not be affected. 
D) that country will grow more rapidly because of the reduction of law suits.

Question 16

An economy can improve its standard of living by

Accepted Answer

A) organizing production so that the quantity of goods produced per hour will decrease. 
B) reducing the amount of human capital workers have. 
C) increasing the amount of capital available per hour worked. 
D) all of the above 
A) organizing production so that the quantity of goods produced per hour will decrease. 
B) reducing the amount of human capital workers have. 
C) increasing the amount of capital available per hour worked. 
D) all of the above

Question 17

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Accepted Answer

Convergence is a term that describes a p

Question 18

In the long run,small differences in economic growth rates result in small differences in living standards.

Accepted Answer

A) True 
 B)False

Question 19

The rapid growth of the Chinese economy should

Accepted Answer

A) benefit U.S.consumers as they have access to less-expensive consumer goods. 
B) make it more difficult for citizens of the United States to find jobs. 
C) not affect the mix of jobs available to citizens of the United States. 
D) A and B 
A) benefit U.S.consumers as they have access to less-expensive consumer goods. 
B) make it more difficult for citizens of the United States to find jobs. 
C) not affect the mix of jobs available to citizens of the United States. 
D) A and B

Question 20

If the Commerce Department adjusts the growth rate of GDP downward for the first quarter of 2018,and the Bureau of Labor Statistics adjusts the number of hours worked upward for the first quarter of 2018,what will the Bureau of Labor Statistics do in terms of revising the figures on the growth rate of labor productivity for the first quarter of 2018?

Accepted Answer

A) The BLS will adjust the growth rate downwards. 
B) The BLS will adjust the growth rate upwards. 
C) The BLS will not change the growth rate of productivity. 
D) The BLS will adjust the level of labor productivity upward and the growth rate downward. 
A) The BLS will adjust the growth rate downwards. 
B) The BLS will adjust the growth rate upwards. 
C) The BLS will not change the growth rate of productivity. 
D) The BLS will adjust the level of labor productivity upward and the growth rate downward.

Describe the process of "creative destruction" using a specific example.

In 2016,South America had a lower average GDP per capita than any other continent.

According to Joseph Schumpeter,economic growth is achieved through

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.

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century.Has output per hour worked consistently increased at the same rate? Explain.

Which of the following is an example of foreign direct investment?

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

The catch-up prediction of economic growth models predicts that ________ across countries will converge over time.

You are an economic advisor to the president.You are asked to recommend a policy to promote long-term economic growth in the economy.Which of the following policies would you choose?

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

The economic growth model predicts that

Between 1990 and 2016,which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

Technological change will

Globalization is defined as the process of countries becoming open to foreign trade and open to foreign investment.

If property rights are not enforced in a country,then

An economy can improve its standard of living by

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

In the long run,small differences in economic growth rates result in small differences in living standards.

The rapid growth of the Chinese economy should

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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 Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 11: Long-Run Economic Growth: Sources and Policies

Describe the process of "creative destruction" using a specific example.

In 2016,South America had a lower average GDP per capita than any other continent.

According to Joseph Schumpeter,economic growth is achieved through

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.

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century.Has output per hour worked consistently increased at the same rate? Explain.

Which of the following is an example of foreign direct investment?

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

The catch-up prediction of economic growth models predicts that ________ across countries will converge over time.

You are an economic advisor to the president.You are asked to recommend a policy to promote long-term economic growth in the economy.Which of the following policies would you choose?

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

The economic growth model predicts that

Between 1990 and 2016,which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

Technological change will

Globalization is defined as the process of countries becoming ________ open to foreign trade and ________ open to foreign investment.

If property rights are not enforced in a country,then

An economy can improve its standard of living by

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

In the long run,small differences in economic growth rates result in small differences in living standards.

The rapid growth of the Chinese economy should

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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 Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Globalization is defined as the process of countries becoming open to foreign trade and open to foreign investment.