Question 1

Paul Romer,an economist at Stanford University,is most closely associated with what economic theory?

Accepted Answer

A) new growth theory 
B) labor productivity theory 
C) the process of creative destruction 
D) the Communist Manifesto 
A) new growth theory 
B) labor productivity theory 
C) the process of creative destruction 
D) the Communist Manifesto

Question 2

By offering less generous unemployment insurance programs,the United States can expect

Accepted Answer

A) citizens to pay more in taxes than citizens pay in Europe. 
B) workers to be slow in gaining new skills 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) citizens to pay more in taxes than citizens pay in Europe. 
B) workers to be slow in gaining new skills 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 3

Human capital refers to the percentage of the working-age population in the labor force.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

Accepted Answer

Any two of the following three explanati

Question 6

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 7

Technological change allows the economy to produce more output with the same amount of capital and labor.

Accepted Answer

A) True 
 B)False

Question 8

If real GDP per capita in the United States is $8,000,what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?

Accepted Answer

A) $8,520 
B) $9,280 
C) $9,365 
D) $10,560 
A) $8,520 
B) $9,280 
C) $9,365 
D) $10,560

Question 9

If real GDP per capita in Ireland is estimated to be $7,400 in 2014,what will real GDP per capita be in 2019 if real GDP per capita grows at an annual rate of 2.8%?

Accepted Answer

A) $7,607 
B) $8,496 
C) $9,472 
D) $20,720 
A) $7,607 
B) $8,496 
C) $9,472 
D) $20,720

Question 10

List two ways the labor force experience is different between workers in Europe and in the United States.How do these differences influence productivity?

Accepted Answer

It is harder to fire workers in many Eur

Question 11

According to Nobel laureate Douglass North,one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government.

Accepted Answer

A) True 
 B)False

Question 12

Figure 11-4  
-Refer to Figure 11-4.Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in the figure above by the movement from

Accepted Answer

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

Question 13

In the long run,________ differences in economic growth rates result in ________ differences in GDP per capita.

Accepted Answer

A) large; small 
B) large; no 
C) small; large 
D) small; no 
A) large; small 
B) large; no 
C) small; large 
D) small; no

Question 14

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 15

The purchase of stocks and bonds issued in another country is known as foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?

Accepted Answer

A) The United States invests more in research and development.than does China. 
B) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. 
C) Because of the low birth rate in China,the labor force will soon decline. 
D) The Chinese migration of rural workers to more productive urban jobs. 
A) The United States invests more in research and development.than does China. 
B) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. 
C) Because of the low birth rate in China,the labor force will soon decline. 
D) The Chinese migration of rural workers to more productive urban jobs.

Question 17

A copyright grants the creator of a book,film,or piece of software exclusive legal rights to use the creation for how long?

Accepted Answer

A) 10 years 
B) 20 years 
C) 50 years 
D) the creator's lifetime plus 70 years for the creator's heirs 
A) 10 years 
B) 20 years 
C) 50 years 
D) the creator's lifetime plus 70 years for the creator's heirs

Question 18

When firms benefit from the results of research and development they didn't pay for,we say firms

Accepted Answer

A) are litigious. 
B) free ride. 
C) invest in knowledge capital. 
D) maintain a level playing field. 
A) are litigious. 
B) free ride. 
C) invest in knowledge capital. 
D) maintain a level playing field.

Question 19

Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?

Accepted Answer

A) The growth model predicts that poor countries should catch up with rich countries,but developing countries are not catching up to lower-income industrialized countries as a group. 
B) The growth model predicts that poor countries will never catch up with rich countries,but lower-income industrialized countries are catching up to higher-income industrialized countries as a group. 
C) The growth model predicts that poor countries will catch up with rich countries,but lower-income industrialized countries are not catching up to higher-income industrialized countries as a group. 
D) The growth model predicts that poor countries will catch up with rich countries,and this is what we observe across all developmental categories of countries. 
A) The growth model predicts that poor countries should catch up with rich countries,but developing countries are not catching up to lower-income industrialized countries as a group. 
B) The growth model predicts that poor countries will never catch up with rich countries,but lower-income industrialized countries are catching up to higher-income industrialized countries as a group. 
C) The growth model predicts that poor countries will catch up with rich countries,but lower-income industrialized countries are not catching up to higher-income industrialized countries as a group. 
D) The growth model predicts that poor countries will catch up with rich countries,and this is what we observe across all developmental categories of countries.

Question 20

According to a study by economists Raymond Fisman and Edward Miguel,as the ________ increases,so does the number of parking violations by the country's United Nations delegates.

Accepted Answer

A) level of corruption in a country 
B) population of a country 
C) per capita income of a country 
D) rate of investment in a country 
A) level of corruption in a country 
B) population of a country 
C) per capita income of a country 
D) rate of investment in a country

Paul Romer,an economist at Stanford University,is most closely associated with what economic theory?

By offering less generous unemployment insurance programs,the United States can expect

Human capital refers to the percentage of the working-age population in the labor force.

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?

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

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

Technological change allows the economy to produce more output with the same amount of capital and labor.

If real GDP per capita in the United States is $8,000,what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?

If real GDP per capita in Ireland is estimated to be $7,400 in 2014,what will real GDP per capita be in 2019 if real GDP per capita grows at an annual rate of 2.8%?

List two ways the labor force experience is different between workers in Europe and in the United States.How do these differences influence productivity?

According to Nobel laureate Douglass North,one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government.

Figure 11-4 -Refer to Figure 11-4.Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in the figure above by the movement from

In the long run, differences in economic growth rates result in differences in GDP per capita.

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

The purchase of stocks and bonds issued in another country is known as foreign direct investment.

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?

A copyright grants the creator of a book,film,or piece of software exclusive legal rights to use the creation for how long?

When firms benefit from the results of research and development they didn't pay for,we say firms

Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?

According to a study by economists Raymond Fisman and Edward Miguel,as the ________ increases,so does the number of parking violations by the country's United Nations delegates.

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

Paul Romer,an economist at Stanford University,is most closely associated with what economic theory?

By offering less generous unemployment insurance programs,the United States can expect

Human capital refers to the percentage of the working-age population in the labor force.

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?

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

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

Technological change allows the economy to produce more output with the same amount of capital and labor.

If real GDP per capita in the United States is $8,000,what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?

If real GDP per capita in Ireland is estimated to be $7,400 in 2014,what will real GDP per capita be in 2019 if real GDP per capita grows at an annual rate of 2.8%?

List two ways the labor force experience is different between workers in Europe and in the United States.How do these differences influence productivity?

According to Nobel laureate Douglass North,one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government.

Figure 11-4 -Refer to Figure 11-4.Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in the figure above by the movement from

In the long run,________ differences in economic growth rates result in ________ differences in GDP per capita.

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

The purchase of stocks and bonds issued in another country is known as foreign direct investment.

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?

A copyright grants the creator of a book,film,or piece of software exclusive legal rights to use the creation for how long?

When firms benefit from the results of research and development they didn't pay for,we say firms

Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?

According to a study by economists Raymond Fisman and Edward Miguel,as the ________ increases,so does the number of parking violations by the country's United Nations delegates.

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

In the long run, differences in economic growth rates result in differences in GDP per capita.