Question 1

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Accepted Answer

A) True 
 B)False

Question 2

Because knowledge capital is nonexcludable and nonrival,firms have an incentive to ________ the research and development of other firms.

Accepted Answer

A) make bids on 
B) not use 
C) ignore 
D) free ride on 
A) make bids on 
B) not use 
C) ignore 
D) free ride on

Question 3

The United States

Accepted Answer

A) currently is one of the most corrupt countries. 
B) has never had a significant problem with corruption. 
C) had a significant problem with corruption in the 1930s. 
D) currently ranks among the least corrupt countries. 
A) currently is one of the most corrupt countries. 
B) has never had a significant problem with corruption. 
C) had a significant problem with corruption in the 1930s. 
D) currently ranks among the least corrupt countries.

Question 4

Not enforcing property rights in an economy will

Accepted Answer

A) cause the market system to work efficiently. 
B) not change the level of investment. 
C) lower the level of investment. 
D) raise the level of investment. 
A) cause the market system to work efficiently. 
B) not change the level of investment. 
C) lower the level of investment. 
D) raise the level of investment.

Question 5

How does government support of health and education programs foster economic growth?

Accepted Answer

As the health of the people in a nation

Question 6

Of the following countries,which had the highest level of GDP per capita in 2016?

Accepted Answer

A) Japan 
B) France 
C) Italy 
D) the United States 
A) Japan 
B) France 
C) Italy 
D) the United States

Question 7

Figure 11-2  
-Refer to Figure 11-2.Assuming no technological change,if the United States increases capital per hour worked by $40,000 every year between 2014 and 2018,we would expect to see

Accepted Answer

A) real GDP per hour worked will increase by the same increment each year between 2014 and 2018. 
B) real GDP per hour worked will be lower in 2018 than it was in 2014. 
C) the per-worker production function will get flatter over time. 
D) the per-worker production function will shift up every year there is increase in capital per hour worked. 
A) real GDP per hour worked will increase by the same increment each year between 2014 and 2018. 
B) real GDP per hour worked will be lower in 2018 than it was in 2014. 
C) the per-worker production function will get flatter over time. 
D) the per-worker production function will shift up every year there is increase in capital per hour worked.

Question 8

In the United States,the number of hours worked per person has decreased since 1800.How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?

Accepted Answer

Because the number of hours worked per p

Question 9

The Industrial Revolution

Accepted Answer

A) marked the beginning of significant economic growth in the world. 
B) started in France around the year 1750. 
C) produced goods exclusively using human or animal power. 
D) had no impact on standards of living in the world. 
A) marked the beginning of significant economic growth in the world. 
B) started in France around the year 1750. 
C) produced goods exclusively using human or animal power. 
D) had no impact on standards of living in the world.

Question 10

Table 11-2
  
-Refer to Table 11-2.Calculate the GDP per capita for each country in the table.Which country has the highest standard of living? Why?

Accepted Answer

key: $186,200,000 / 90,700 = $

Question 11

If the slope of the per-worker production function is 1/4 in a given range,how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?

Accepted Answer

A) Real GDP per hour worked will increase by $2,500. 
B) Real GDP per hour worked will increase by $40,000. 
C) Real GDP per hour worked will increase by $10,000. 
D) Real GDP per hour worked will decrease by $40.000. 
A) Real GDP per hour worked will increase by $2,500. 
B) Real GDP per hour worked will increase by $40,000. 
C) Real GDP per hour worked will increase by $10,000. 
D) Real GDP per hour worked will decrease by $40.000.

Question 12

Productivity gains in the United States since 1990 have been ________ the productivity gains in other leading industrial nations.

Accepted Answer

A) the same as 
B) lower than 
C) higher than 
D) more variable than 
A) the same as 
B) lower than 
C) higher than 
D) more variable than

Question 13

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

Accepted Answer

A) True 
 B)False

Question 14

What is the difference between foreign direct investment and foreign portfolio investment?

Accepted Answer

A) Foreign direct investment involves purchases of foreign stock or bonds by individuals or firms,while foreign portfolio investment involves a firm purchasing or building a facility in a foreign country. 
B) Individuals engage in foreign portfolio investment,but only firms can engage in foreign direct investment. 
C) Foreign direct investment only takes place when governments make official purchases or foreign investments,while foreign portfolio investment takes place when firms,individuals,or the government purchase foreign investments. 
D) Foreign direct investment can give a low-income country access to funds and technology it would not otherwise have,but foreign portfolio investment does not expand that access. 
A) Foreign direct investment involves purchases of foreign stock or bonds by individuals or firms,while foreign portfolio investment involves a firm purchasing or building a facility in a foreign country. 
B) Individuals engage in foreign portfolio investment,but only firms can engage in foreign direct investment. 
C) Foreign direct investment only takes place when governments make official purchases or foreign investments,while foreign portfolio investment takes place when firms,individuals,or the government purchase foreign investments. 
D) Foreign direct investment can give a low-income country access to funds and technology it would not otherwise have,but foreign portfolio investment does not expand that access.

Question 15

In the early 1900s,Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line.What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?

Accepted Answer

A) It became flatter. 
B) It shifted up. 
C) It shifted down. 
D) It became linear. 
A) It became flatter. 
B) It shifted up. 
C) It shifted down. 
D) It became linear.

Question 16

Countries that are more globalized tend to have

Accepted Answer

A) lower levels of real GDP per capita. 
B) a higher likelihood of war or revolution. 
C) higher growth rates in real GDP per capita. 
D) lower levels of foreign direct investment. 
A) lower levels of real GDP per capita. 
B) a higher likelihood of war or revolution. 
C) higher growth rates in real GDP per capita. 
D) lower levels of foreign direct investment.

Question 17

High-income countries have ________ and ________ as compared to developing countries.

Accepted Answer

A) low rates of savings; high rates of growth 
B) low rates of savings; low rates of growth 
C) high rates of savings; high rates of growth 
D) high rates of savings; low rates of growth 
A) low rates of savings; high rates of growth 
B) low rates of savings; low rates of growth 
C) high rates of savings; high rates of growth 
D) high rates of savings; low rates of growth

Question 18

Foreign direct investment occurs when a Chinese corporation

Accepted Answer

A) purchases stock issued in China. 
B) opens a new Chinese factory. 
C) purchases 1,000 shares of stock issued by an American company. 
D) opens a new factory in France. 
A) purchases stock issued in China. 
B) opens a new Chinese factory. 
C) purchases 1,000 shares of stock issued by an American company. 
D) opens a new factory in France.

Question 19

Which of the following accurately describes growth rates in the United States from 1900 to the present?

Accepted Answer

A) Growth rates rose until the 1970s and then fell until the present. 
B) Growth rates have risen continuously from 1900 to the present. 
C) Growth rates rose until the 1970s,slowed until the 1990s,rose again until 2005,and then slowed again to the present. 
D) Growth rates have fallen continuously from 1900 to the present. 
A) Growth rates rose until the 1970s and then fell until the present. 
B) Growth rates have risen continuously from 1900 to the present. 
C) Growth rates rose until the 1970s,slowed until the 1990s,rose again until 2005,and then slowed again to the present. 
D) Growth rates have fallen continuously from 1900 to the present.

Question 20

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Accepted Answer

A) True 
 B)False

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Because knowledge capital is nonexcludable and nonrival,firms have an incentive to ________ the research and development of other firms.

The United States

Not enforcing property rights in an economy will

How does government support of health and education programs foster economic growth?

Of the following countries,which had the highest level of GDP per capita in 2016?

Figure 11-2 -Refer to Figure 11-2.Assuming no technological change,if the United States increases capital per hour worked by $40,000 every year between 2014 and 2018,we would expect to see

In the United States,the number of hours worked per person has decreased since 1800.How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?

The Industrial Revolution

Table 11-2 -Refer to Table 11-2.Calculate the GDP per capita for each country in the table.Which country has the highest standard of living? Why?

If the slope of the per-worker production function is 1/4 in a given range,how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?

Productivity gains in the United States since 1990 have been ________ the productivity gains in other leading industrial nations.

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

What is the difference between foreign direct investment and foreign portfolio investment?

In the early 1900s,Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line.What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?

Countries that are more globalized tend to have

High-income countries have and as compared to developing countries.

Foreign direct investment occurs when a Chinese corporation

Which of the following accurately describes growth rates in the United States from 1900 to the present?

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those 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 drawback of the patent system is that firms must disclose to the public information about the product or process.

Because knowledge capital is nonexcludable and nonrival,firms have an incentive to ________ the research and development of other firms.

The United States

Not enforcing property rights in an economy will

How does government support of health and education programs foster economic growth?

Of the following countries,which had the highest level of GDP per capita in 2016?

Figure 11-2 -Refer to Figure 11-2.Assuming no technological change,if the United States increases capital per hour worked by $40,000 every year between 2014 and 2018,we would expect to see

In the United States,the number of hours worked per person has decreased since 1800.How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?

The Industrial Revolution

Table 11-2 -Refer to Table 11-2.Calculate the GDP per capita for each country in the table.Which country has the highest standard of living? Why?

If the slope of the per-worker production function is 1/4 in a given range,how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?

Productivity gains in the United States since 1990 have been ________ the productivity gains in other leading industrial nations.

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

What is the difference between foreign direct investment and foreign portfolio investment?

In the early 1900s,Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line.What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?

Countries that are more globalized tend to have

High-income countries have ________ and ________ as compared to developing countries.

Foreign direct investment occurs when a Chinese corporation

Which of the following accurately describes growth rates in the United States from 1900 to the present?

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those 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

High-income countries have and as compared to developing countries.