Question 1

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

Accepted Answer

A) True 
 B)False

Question 2

One explanation for recent productivity growth rates appearing worse than they actually are is

Accepted Answer

A) measurement problems. 
B) creative destruction. 
C) a decline in oil prices. 
D) an increase in labor quality. 
A) measurement problems. 
B) creative destruction. 
C) a decline in oil prices. 
D) an increase in labor quality.

Question 3

From 1990-2016,productivity growth in the United States was ________ the growth rates of other high-income countries.

Accepted Answer

A) greater than 
B) less than 
C) equal to 
D) greater than for the first 15 years,then less than 
A) greater than 
B) less than 
C) equal to 
D) greater than for the first 15 years,then less than

Question 4

Over the past 50 years,deaths among children have

Accepted Answer

A) declined in most high-income countries and have risen in most low-income countries. 
B) declined in nearly all countries,including most low-income countries. 
C) remained relatively unchanged in most high-income countries and have declined in most low-income countries. 
D) declined in most high-income countries and have remained relatively unchanged in most low-income countries. 
A) declined in most high-income countries and have risen in most low-income countries. 
B) declined in nearly all countries,including most low-income countries. 
C) remained relatively unchanged in most high-income countries and have declined in most low-income countries. 
D) declined in most high-income countries and have remained relatively unchanged in most low-income countries.

Question 5

If real GDP per capita in the United States is $8,000 in 2018,and if real GDP per capita is $12,000 in 2028,what is the approximate average annual percent change in the growth rate of GDP per capita between 2018 and 2028?

Accepted Answer

A) 3.33% 
B) 5% 
C) 33% 
D) 50% 
A) 3.33% 
B) 5% 
C) 33% 
D) 50%

Question 6

Which of the following is a normative statement about economic growth?

Accepted Answer

A) Economic growth is associated with higher labor productivity growth. 
B) Economic growth increases GDP per capita. 
C) Economic growth hurts developing countries. 
D) Foreign direct investment stimulates economic growth. 
A) Economic growth is associated with higher labor productivity growth. 
B) Economic growth increases GDP per capita. 
C) Economic growth hurts developing countries. 
D) Foreign direct investment stimulates economic growth.

Question 7

Globalization refers to

Accepted Answer

A) the process of establishing a common world currency. 
B) the willingness of individuals within a given country to share knowledge with one another. 
C) the process of countries becoming more open to foreign trade and investment. 
D) the reduction in growth rates of real GDP per capita as a result of trade with foreign countries. 
A) the process of establishing a common world currency. 
B) the willingness of individuals within a given country to share knowledge with one another. 
C) the process of countries becoming more open to foreign trade and investment. 
D) the reduction in growth rates of real GDP per capita as a result of trade with foreign countries.

Question 8

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?

Accepted Answer

A) Information and communication innovations are increasingly geared toward improving business processes and not consumer products. 
B) Faster computers have sped up data processing. 
C) Internet use has increased the efficiency of how firms buy and sell to each other and to consumers. 
D) Cell phones and wireless Internet access have increased worker flexibility. 
A) Information and communication innovations are increasingly geared toward improving business processes and not consumer products. 
B) Faster computers have sped up data processing. 
C) Internet use has increased the efficiency of how firms buy and sell to each other and to consumers. 
D) Cell phones and wireless Internet access have increased worker flexibility.

Question 9

As predicted by the catch-up prediction in economic growth models,countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Accepted Answer

A) True 
 B)False

Question 10

Suppose that in 2018,real GDP grew in Estonia by 3% and the population increased by 5%.Therefore,in 2018,Estonia experienced

Accepted Answer

A) economic growth,but not an increase in living standards. 
B) economic growth and an increase in living standards. 
C) no economic growth,but an increase in living standards. 
D) no economic growth and no increase in living standards. 
A) economic growth,but not an increase in living standards. 
B) economic growth and an increase in living standards. 
C) no economic growth,but an increase in living standards. 
D) no economic growth and no increase in living standards.

Question 11

Policies to promote growth by increasing saving and investment work through

Accepted Answer

A) decreasing the supply of loanable funds,lowering the interest rate,raising the level of investment in physical capital. 
B) increasing the supply of loanable funds,increasing the interest rate,raising the level of investment in physical capital. 
C) increasing the supply of loanable funds,lowering the interest rate,lowering the level of investment in physical capital. 
D) increasing the supply of loanable funds,lowering the interest rate,raising the level of investment in physical capital. 
A) decreasing the supply of loanable funds,lowering the interest rate,raising the level of investment in physical capital. 
B) increasing the supply of loanable funds,increasing the interest rate,raising the level of investment in physical capital. 
C) increasing the supply of loanable funds,lowering the interest rate,lowering the level of investment in physical capital. 
D) increasing the supply of loanable funds,lowering the interest rate,raising the level of investment in physical capital.

Question 12

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 
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

Question 13

Technological change is the key to sustaining economic growth.

Accepted Answer

A) True 
 B)False

Question 14

The U.S.economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of 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 Western European countries. 
B) U.S.government regulations impose stricter work rules as compared to government regulations in Western Europe. 
C) The United States has a higher rate of job mobility than do many Western European countries. 
D) U.S.workers can obtain unemployment insurance for a longer period of time as compared to workers in most Western European countries. 
A) U.S.unions impose stricter work rules as compared to unions in Western European countries. 
B) U.S.government regulations impose stricter work rules as compared to government regulations in Western Europe. 
C) The United States has a higher rate of job mobility than do many Western European countries. 
D) U.S.workers can obtain unemployment insurance for a longer period of time as compared to workers in most Western European countries.

Question 15

Figure 11-1  
-Refer to Figure 11-1.Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement

Accepted Answer

A) up along any of the production functions. 
B) from Production function 1 to Production function 2. 
C) from Production function 1 to Production function 3. 
D) from Production function 2 to Production function 1. 
A) up along any of the production functions. 
B) from Production function 1 to Production function 2. 
C) from Production function 1 to Production function 3. 
D) from Production function 2 to Production function 1.

Question 16

Consider two countries,Alpha and Beta.In Alpha,real GDP per capita is $6,000.In Beta,real GDP per capita is $9,000.Based on the economic growth model,what would you predict about the growth rates in real GDP per capita across these two countries?

Accepted Answer

A) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. 
B) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta. 
C) The growth rate of real GDP per capita in Alpha and Beta will be the same. 
D) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries. 
A) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. 
B) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta. 
C) The growth rate of real GDP per capita in Alpha and Beta will be the same. 
D) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries.

Question 17

Would you expect to see higher or lower growth rates for countries that start out with a relatively low level of real GDP per capita? Explain using the concept of "catch-up" and support your answer with a graph.

Accepted Answer

The economic growth model predicts that

Question 18

Using the points on the diagram below,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

Accepted Answer

The movement from A to B to C illustrate

Question 19

Lack of investment in strong education and health care systems

Accepted Answer

A) causes a deterioration in human capital and a decline in labor productivity. 
B) causes a decline in physical capital and a decline in labor productivity. 
C) increases human capital and cause a decline in labor productivity. 
D) causes a deterioration in human capital and an increase in physical capital. 
A) causes a deterioration in human capital and a decline in labor productivity. 
B) causes a decline in physical capital and a decline in labor productivity. 
C) increases human capital and cause a decline in labor productivity. 
D) causes a deterioration in human capital and an increase in physical capital.

Question 20

Most of the countries of Africa are considered newly industrializing countries.

Accepted Answer

A) True 
 B)False

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

One explanation for recent productivity growth rates appearing worse than they actually are is

From 1990-2016,productivity growth in the United States was ________ the growth rates of other high-income countries.

Over the past 50 years,deaths among children have

If real GDP per capita in the United States is $8,000 in 2018,and if real GDP per capita is $12,000 in 2028,what is the approximate average annual percent change in the growth rate of GDP per capita between 2018 and 2028?

Which of the following is a normative statement about economic growth?

Globalization refers to

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?

As predicted by the catch-up prediction in economic growth models,countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Suppose that in 2018,real GDP grew in Estonia by 3% and the population increased by 5%.Therefore,in 2018,Estonia experienced

Policies to promote growth by increasing saving and investment work through

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

Technological change is the key to sustaining economic growth.

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

Figure 11-1 -Refer to Figure 11-1.Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement

Consider two countries,Alpha and Beta.In Alpha,real GDP per capita is $6,000.In Beta,real GDP per capita is $9,000.Based on the economic growth model,what would you predict about the growth rates in real GDP per capita across these two countries?

Would you expect to see higher or lower growth rates for countries that start out with a relatively low level of real GDP per capita? Explain using the concept of "catch-up" and support your answer with a graph.

Using the points on the diagram below,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

Lack of investment in strong education and health care systems

Most of the countries of Africa are considered newly industrializing countries.

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

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

One explanation for recent productivity growth rates appearing worse than they actually are is

From 1990-2016,productivity growth in the United States was ________ the growth rates of other high-income countries.

Over the past 50 years,deaths among children have

If real GDP per capita in the United States is $8,000 in 2018,and if real GDP per capita is $12,000 in 2028,what is the approximate average annual percent change in the growth rate of GDP per capita between 2018 and 2028?

Which of the following is a normative statement about economic growth?

Globalization refers to

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?

As predicted by the catch-up prediction in economic growth models,countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Suppose that in 2018,real GDP grew in Estonia by 3% and the population increased by 5%.Therefore,in 2018,Estonia experienced

Policies to promote growth by increasing saving and investment work through

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

Technological change is the key to sustaining economic growth.

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

Figure 11-1 -Refer to Figure 11-1.Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement

Consider two countries,Alpha and Beta.In Alpha,real GDP per capita is $6,000.In Beta,real GDP per capita is $9,000.Based on the economic growth model,what would you predict about the growth rates in real GDP per capita across these two countries?

Would you expect to see higher or lower growth rates for countries that start out with a relatively low level of real GDP per capita? Explain using the concept of "catch-up" and support your answer with a graph.

Using the points on the diagram below,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

Lack of investment in strong education and health care systems

Most of the countries of Africa are considered newly industrializing countries.

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