Question 1

There has been catch-up among ________,but there has not been catch-up among ________.

Accepted Answer

A) developing countries such as Niger; industrialized countries such as Japan 
B) industrialized countries such as Japan; all countries of the world 
C) developing countries such as Niger; all countries of the world 
D) all countries of the world together; industrialized countries such as Japan 
A) developing countries such as Niger; industrialized countries such as Japan 
B) industrialized countries such as Japan; all countries of the world 
C) developing countries such as Niger; all countries of the world 
D) all countries of the world together; industrialized countries such as Japan

Question 2

Significant economic growth did not begin in the world until

Accepted Answer

A) 1000 A.D. 
B) 1750 A.D. 
C) 1820 A.D. 
D) the 20th century A.D. 
A) 1000 A.D. 
B) 1750 A.D. 
C) 1820 A.D. 
D) the 20th century A.D.

Question 3

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

Question 4

According to Joseph Schumpeter,the theory of creative destruction describes a process by which

Accepted Answer

A) some new products unleash a gale of destruction that drive other new products out of the market. 
B) new products unleash a gale of destruction that drives old products out of the market. 
C) new products are created by the destruction of capital. 
D) the creation of new products never involves the destruction of old products. 
A) some new products unleash a gale of destruction that drive other new products out of the market. 
B) new products unleash a gale of destruction that drives old products out of the market. 
C) new products are created by the destruction of capital. 
D) the creation of new products never involves the destruction of old products.

Question 5

By offering more generous unemployment insurance programs,European countries can expect

Accepted Answer

A) to pay less in taxes than in the United States. 
B) workers to gain new skills quickly in response to fluctuations in the labor market. 
C) shorter periods of unemployment for their workers. 
D) longer periods of unemployment for their workers. 
A) to pay less in taxes than in the United States. 
B) workers to gain new skills quickly in response to fluctuations in the labor market. 
C) shorter periods of unemployment for their workers. 
D) longer periods of unemployment for their workers.

Question 6

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Accepted Answer

A) True 
 B)False

Question 7

Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by

Accepted Answer

A) reducing physical capital. 
B) reducing human capital. 
C) increasing labor productivity. 
D) increasing technological change. 
A) reducing physical capital. 
B) reducing human capital. 
C) increasing labor productivity. 
D) increasing technological change.

Question 8

Explain how advances in technology are critical to sustaining economic growth,even if capital per hour worked is consistently increasing.Provide a graph of a per-worker production function to illustrate how increases in capital per hour worked,without advances in technology,are not enough to sustain economic growth.

Accepted Answer

As the level of capital per hour worked

Question 9

Figure 11-4  
-Refer to Figure 11-4.Within a country,the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

Accepted Answer

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

Question 10

Productivity growth in the United States has steadily increased since 1995.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following policies would not help promote economic growth?

Accepted Answer

A) a law requiring that the funds in an individual retirement account be taxed 
B) a law restricting elected officials from accepting expensive gifts and trips from private individuals 
C) a law that funds prenatal care for all expectant mothers 
D) a law that subsidizes research in nanotechnology 
A) a law requiring that the funds in an individual retirement account be taxed 
B) a law restricting elected officials from accepting expensive gifts and trips from private individuals 
C) a law that funds prenatal care for all expectant mothers 
D) a law that subsidizes research in nanotechnology

Question 12

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

Accepted Answer

In a centrally planned economy,decisions

Question 13

Which of the following is an example of the way the financial markets in the United States can encourage technological progress more efficiently than other countries?

Accepted Answer

A) Even when entrepreneurs cannot secure sufficient funding for projects from banks,venture capital firms may be willing to lend money. 
B) The level of legal protection for investors in the United States is relatively low. 
C) Because the financial market in the United States is so large,the quantity of trading in corporate stocks and bonds makes those investments less liquid. 
D) Banks in the United States are more willing to take on risk because the government guarantees each bank cannot lose more than $100,000 on any given loan that defaults. 
A) Even when entrepreneurs cannot secure sufficient funding for projects from banks,venture capital firms may be willing to lend money. 
B) The level of legal protection for investors in the United States is relatively low. 
C) Because the financial market in the United States is so large,the quantity of trading in corporate stocks and bonds makes those investments less liquid. 
D) Banks in the United States are more willing to take on risk because the government guarantees each bank cannot lose more than $100,000 on any given loan that defaults.

Question 14

Foreign investment can give a low-income country

Accepted Answer

A) access to funds for investment and access to technology. 
B) the means to slow down growth. 
C) a path to dependency and low growth. 
D) no hope to break the vicious cycle of poverty. 
A) access to funds for investment and access to technology. 
B) the means to slow down growth. 
C) a path to dependency and low growth. 
D) no hope to break the vicious cycle of poverty.

Question 15

In a small European country,it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $300.Based on this information,what is the slope of the per-worker production function in this range?

Accepted Answer

A) 0.03 
B) 3.3 
C) 33.3 
D) 333 
A) 0.03 
B) 3.3 
C) 33.3 
D) 333

Question 16

Table 11-6
  
-Refer to Table 11-6.Consider the statistics in the table above in describing the developing countries.Are these consistent with the economic growth model? Briefly explain.

Accepted Answer

These statistics for developing countrie

Question 17

Which factors explain labor productivity?

Accepted Answer

A) technological change; the quantity of labor per hour worked 
B) diminishing returns; the quantity of labor per hour worked 
C) diminishing returns; the quantity of capital per hour worked 
D) technological change; the quantity of capital per hour worked 
A) technological change; the quantity of labor per hour worked 
B) diminishing returns; the quantity of labor per hour worked 
C) diminishing returns; the quantity of capital per hour worked 
D) technological change; the quantity of capital per hour worked

Question 18

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Accepted Answer

A) True 
 B)False

Question 19

Figure 11-4  
-Refer to Figure 11-4.Which of the following combinations of points illustrates changes in the Soviet Union's economy from 1950 to 1980?

Accepted Answer

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

Question 20

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

Accepted Answer

A) the failure to fully establish the rule of law. 
B) persistent wars between Mexico and its neighboring countries. 
C) poor public education and health. 
D) low rates of saving and investment. 
A) the failure to fully establish the rule of law. 
B) persistent wars between Mexico and its neighboring countries. 
C) poor public education and health. 
D) low rates of saving and investment.

There has been catch-up among ,but there has not been catch-up among .

Significant economic growth did not begin in the world until

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

According to Joseph Schumpeter,the theory of creative destruction describes a process by which

By offering more generous unemployment insurance programs,European countries can expect

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by

Figure 11-4 -Refer to Figure 11-4.Within a country,the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

Productivity growth in the United States has steadily increased since 1995.

Which of the following policies would not help promote economic growth?

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

Which of the following is an example of the way the financial markets in the United States can encourage technological progress more efficiently than other countries?

Foreign investment can give a low-income country

In a small European country,it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $300.Based on this information,what is the slope of the per-worker production function in this range?

Table 11-6 -Refer to Table 11-6.Consider the statistics in the table above in describing the developing countries.Are these consistent with the economic growth model? Briefly explain.

Which factors explain labor productivity?

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Figure 11-4 -Refer to Figure 11-4.Which of the following combinations of points illustrates changes in the Soviet Union's economy from 1950 to 1980?

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

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

There has been catch-up among ________,but there has not been catch-up among ________.

Significant economic growth did not begin in the world until

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

According to Joseph Schumpeter,the theory of creative destruction describes a process by which

By offering more generous unemployment insurance programs,European countries can expect

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by

Figure 11-4 -Refer to Figure 11-4.Within a country,the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

Productivity growth in the United States has steadily increased since 1995.

Which of the following policies would not help promote economic growth?

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

Which of the following is an example of the way the financial markets in the United States can encourage technological progress more efficiently than other countries?

Foreign investment can give a low-income country

In a small European country,it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $300.Based on this information,what is the slope of the per-worker production function in this range?

Table 11-6 -Refer to Table 11-6.Consider the statistics in the table above in describing the developing countries.Are these consistent with the economic growth model? Briefly explain.

Which factors explain labor productivity?

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Figure 11-4 -Refer to Figure 11-4.Which of the following combinations of points illustrates changes in the Soviet Union's economy from 1950 to 1980?

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

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

There has been catch-up among ,but there has not been catch-up among .