Question 1

Which of the following is not considered a factor that contributes to economic growth?

Accepted Answer

A)  increased labor productivity 
B)  increased infant mortality rates 
C)  technological advances 
D)  the migration of resources from areas of low productivity to areas of high productivity 
A)  increased labor productivity 
B)  increased infant mortality rates 
C)  technological advances 
D)  the migration of resources from areas of low productivity to areas of high productivity B

Question 2

When an economy experiences significant economic growth:

Accepted Answer

A)  a negative relationship exists between output per capita and adult literacy rates. 
B)  an indirect relationship exists between output per capita and adult literacy rates. 
C)  a direct relationship exists between output per capita and adult literacy rates. 
D)  no observed relationship exists between output per capita and adult literacy rates. 
A)  a negative relationship exists between output per capita and adult literacy rates. 
B)  an indirect relationship exists between output per capita and adult literacy rates. 
C)  a direct relationship exists between output per capita and adult literacy rates. 
D)  no observed relationship exists between output per capita and adult literacy rates. C

Question 3

Which one of the following will determine the size of the production possibilities curve?

Accepted Answer

A)  amount of labor 
B)  amount of capital 
C)  entrepreneurship 
D)  all of the above 
A)  amount of labor 
B)  amount of capital 
C)  entrepreneurship 
D)  all of the above D

Question 4

Exhibit 20-1   Refer to Exhibit 20-1.Nation B is expected to double its output in:

Accepted Answer

A)  5 years. 
B)  7 years. 
C)  10 years. 
D)  14 years. 
A)  5 years. 
B)  7 years. 
C)  10 years. 
D)  14 years.

Question 5

Generally there is an inverse relationship between the level of savings and the level of long-term economic growth.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following countries is lacking an abundance of natural resources?

Accepted Answer

A)  Australia 
B)  Japan 
C)  Brazil 
D)  United States 
A)  Australia 
B)  Japan 
C)  Brazil 
D)  United States

Question 7

There are several factors that nearly everyone agrees have contributed to economic growth in some or all countries.They do not include which of the following?

Accepted Answer

A)  Growth in the quantity and quality of labor resources used 
B)  Increase in the use of inputs provided by the land 
C)  Growth in physical capital inputs 
D)  All of the above are included. 
A)  Growth in the quantity and quality of labor resources used 
B)  Increase in the use of inputs provided by the land 
C)  Growth in physical capital inputs 
D)  All of the above are included.

Question 8

Rapid population increase in which of the following economies may threaten and deter economic growth the most?

Accepted Answer

A)  highly industrialized countries 
B)  an agriculture based economy 
C)  developed economies 
D)  a technology driven economy 
A)  highly industrialized countries 
B)  an agriculture based economy 
C)  developed economies 
D)  a technology driven economy

Question 9

An increase in the stock of capital:

Accepted Answer

A)  causes a movement from a point on an economy's production possibilities curve to a point inside the curve. 
B)  causes an economy's production possibilities curve to shift inward over time. 
C)  causes an economy's production possibilities curve to shift outward over time. 
D)  has no effect on the position of an economy's production possibilities curve over time. 
A)  causes a movement from a point on an economy's production possibilities curve to a point inside the curve. 
B)  causes an economy's production possibilities curve to shift inward over time. 
C)  causes an economy's production possibilities curve to shift outward over time. 
D)  has no effect on the position of an economy's production possibilities curve over time.

Question 10

Thomas Malthus believed that in the long run,the growth rates of real GDP would not exceed population growth.

Accepted Answer

A) True 
 B)False

Question 11

To achieve a high standard of living,a nation should:

Accepted Answer

A)  increase welfare payments to the poor. 
B)  use less capital and more labor in the production process. 
C)  promote economic growth. 
D)  increase the tax deduction for child dependents. 
A)  increase welfare payments to the poor. 
B)  use less capital and more labor in the production process. 
C)  promote economic growth. 
D)  increase the tax deduction for child dependents.

Question 12

Allowing free trade can lead to greater output because of the principle of:

Accepted Answer

A)  absolute advantage. 
B)  rule of 70. 
C)  comparative advantage. 
D)  scarcity. 
A)  absolute advantage. 
B)  rule of 70. 
C)  comparative advantage. 
D)  scarcity.

Question 13

Rapid population growth can threaten sustained economic growth if it:

Accepted Answer

A)  leads to diminishing marginal returns in production. 
B)  remains unmonitored by government agencies. 
C)  enables economies of scale in production to be exploited. 
D)  leads to increased capital formation. 
A)  leads to diminishing marginal returns in production. 
B)  remains unmonitored by government agencies. 
C)  enables economies of scale in production to be exploited. 
D)  leads to increased capital formation.

Question 14

Changes in the growth rate of real GDP per capita do not reflect which of the following?

Accepted Answer

A)  changes in the total production of final goods in the economy 
B)  changes in the production of final services in the economy 
C)  changes in the distribution of income 
D)  changes in the size of the population 
A)  changes in the total production of final goods in the economy 
B)  changes in the production of final services in the economy 
C)  changes in the distribution of income 
D)  changes in the size of the population

Question 15

In countries with low levels of income:

Accepted Answer

A)  the opportunity cost of an education is higher than in high-income countries. 
B)  illiteracy rates are higher than in high-income countries. 
C)  economies are primarily agricultural-based. 
D)  all of the above tend to be true. 
A)  the opportunity cost of an education is higher than in high-income countries. 
B)  illiteracy rates are higher than in high-income countries. 
C)  economies are primarily agricultural-based. 
D)  all of the above tend to be true.

Question 16

What is the relationship between savings,capital formation,and consumption?

Accepted Answer

One of the most important determinants o

Question 17

Given a constant rate of growth of real GDP,what would lead to an increasing real GDP per capita?

Accepted Answer

A)  a rate of population growth that is less than the rate of growth of real GDP 
B)  a rate of population growth that is greater than the rate of growth of real GDP 
C)  an increase in the size of the labor force 
D)  an increase in the capital stock 
A)  a rate of population growth that is less than the rate of growth of real GDP 
B)  a rate of population growth that is greater than the rate of growth of real GDP 
C)  an increase in the size of the labor force 
D)  an increase in the capital stock

Question 18

If real GDP is increasing more rapidly than the population,then:

Accepted Answer

A)  interest rates must be falling. 
B)  the economy must be experiencing inflation. 
C)  per capita real GDP will be increasing. 
D)  per capita real GDP will be decreasing. 
A)  interest rates must be falling. 
B)  the economy must be experiencing inflation. 
C)  per capita real GDP will be increasing. 
D)  per capita real GDP will be decreasing.

Question 19

Exhibit 20-1   Refer to Exhibit 20-1.Nation D is expected to double its output in:

Accepted Answer

A)  5 years. 
B)  35 years. 
C)  10 years. 
D)  14 years. 
A)  5 years. 
B)  35 years. 
C)  10 years. 
D)  14 years.

Question 20

According to the rule of 70,

Accepted Answer

A)  if a country is growing at 14% per year, its output will double in approximately 5 years. 
B)  if a country is growing at 10% per year, its output will double in approximately 7 years. 
C)  if a country is growing at 2% per year, its output will double in approximately 35 years. 
D)  all of the above are true. 
A)  if a country is growing at 14% per year, its output will double in approximately 5 years. 
B)  if a country is growing at 10% per year, its output will double in approximately 7 years. 
C)  if a country is growing at 2% per year, its output will double in approximately 35 years. 
D)  all of the above are true.

Exam 20: Economic Growth in the Global Economy

Which of the following is not considered a factor that contributes to economic growth?

When an economy experiences significant economic growth:

Which one of the following will determine the size of the production possibilities curve?

Exhibit 20-1 Refer to Exhibit 20-1.Nation B is expected to double its output in:

Generally there is an inverse relationship between the level of savings and the level of long-term economic growth.

Which of the following countries is lacking an abundance of natural resources?

There are several factors that nearly everyone agrees have contributed to economic growth in some or all countries.They do not include which of the following?

Rapid population increase in which of the following economies may threaten and deter economic growth the most?

An increase in the stock of capital:

Thomas Malthus believed that in the long run,the growth rates of real GDP would not exceed population growth.

To achieve a high standard of living,a nation should:

Allowing free trade can lead to greater output because of the principle of:

Rapid population growth can threaten sustained economic growth if it:

Changes in the growth rate of real GDP per capita do not reflect which of the following?

In countries with low levels of income:

What is the relationship between savings,capital formation,and consumption?

Given a constant rate of growth of real GDP,what would lead to an increasing real GDP per capita?

If real GDP is increasing more rapidly than the population,then:

Exhibit 20-1 Refer to Exhibit 20-1.Nation D is expected to double its output in:

According to the rule of 70,

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty, and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

Filters