Question 1

All of the following policies are ways for a country to promote long-run economic growth except

Accepted Answer

A) increasing vaccinations against infectious diseases. 
B) undergoing political reform to decrease corruption. 
C) enacting stronger laws to protect property rights. 
D) imposing stricter regulations to limit foreign direct investment. 
A) increasing vaccinations against infectious diseases. 
B) undergoing political reform to decrease corruption. 
C) enacting stronger laws to protect property rights. 
D) imposing stricter regulations to limit foreign direct investment.

Question 2

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 3

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 4

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 5

The economic growth model predicts that ________ across countries will converge over time.

Accepted Answer

A) income levels 
B) GDP per capita 
C) foreign direct investment rates 
D) growth rates 
A) income levels 
B) GDP per capita 
C) foreign direct investment rates 
D) growth rates

Question 6

The economic growth model predicts that

Accepted Answer

A) the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B) the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C) lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D) economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries. 
A) the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B) the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C) lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D) economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries.

Question 7

Corruption

Accepted Answer

A) curtails economic growth. 
B) raises the rate of growth as bribes enhance income. 
C) is eliminated by foreign direct investment. 
D) acts as a magnet for foreign direct investment. 
A) curtails economic growth. 
B) raises the rate of growth as bribes enhance income. 
C) is eliminated by foreign direct investment. 
D) acts as a magnet for foreign direct investment.

Question 8

According to new growth theory,firms accumulate the efficient level of both physical and knowledge capital.

Accepted Answer

A) True 
 B)False

Question 9

Increased foreign direct investment in India has contributed to its recent economic growth.

Accepted Answer

A) True 
 B)False

Question 10

Article Summary
Unlike in many nations, when the financial crisis hit in 2008 the Polish economy continued to grow, but due to a current slowdown in exports and domestic demand, Poland is expecting a large outflow of workers. Unemployment was expected to grow to 14 percent in Poland in 2013, and according to Krystyna Iglicka, a demographer at Lazarski University in Warsaw, "…Poles have always treated emigration as a way of improving their lot." Despite earning relatively low salaries in Western European countries, on average just over €2,000 (about $2,660) a month according to the National Bank of Poland, this is still four times more than workers would earn on average by staying in Poland. Iglicka predicts that between 500,000 and 800,000 Poles will emigrate from Poland over the next five years.
Source: Jan Cienski, "Poland braces for fresh exodus of workers," Washington Post, January 22, 2013.

-Refer to the Article Summary.If an outflow of workers leaves Poland with a smaller but more productive workforce and the capital per hour worked does not change,there will be ________ the per-worker production function in Poland.

Accepted Answer

A) a movement up 
B) a movement down 
C) an upward shift of 
D) a downward shift of 
A) a movement up 
B) a movement down 
C) an upward shift of 
D) a downward shift of

Question 11

According to Douglass North,the Industrial Revolution occurred in England because

Accepted Answer

A) the British Parliament took control of the government and could credibly commit to upholding property rights. 
B) the British monarchy took control of the government and pledged not to raise taxes arbitrarily. 
C) the British courts became tied to the king and began to refuse to enforce property rights. 
D) the British Parliament instituted a command economy structure and implemented a planned economy. 
A) the British Parliament took control of the government and could credibly commit to upholding property rights. 
B) the British monarchy took control of the government and pledged not to raise taxes arbitrarily. 
C) the British courts became tied to the king and began to refuse to enforce property rights. 
D) the British Parliament instituted a command economy structure and implemented a planned economy.

Question 12

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

Accepted Answer

A) human capital investment. 
B) technological change. 
C) an increase in labor productivity. 
D) a movement along a given per-worker production function. 
A) human capital investment. 
B) technological change. 
C) an increase in labor productivity. 
D) a movement along a given per-worker production function.

Question 13

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked,holding ________ constant.

Accepted Answer

A) labor; real GDP; technology 
B) capital; real GDP; technology 
C) labor; capital; real GDP 
D) capital; labor; real GDP 
A) labor; real GDP; technology 
B) capital; real GDP; technology 
C) labor; capital; real GDP 
D) capital; labor; real GDP

Question 14

Of the following countries,which had the highest level of GDP per capita in 2012?

Accepted Answer

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

Question 15

If real GDP per capita in the United States is $8,000 in 2013,and if real GDP per capita is $12,000 in 2023,what is the average annual percent change in the growth rate of GDP per capita between 2013 and 2023?

Accepted Answer

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

Question 16

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 17

Figure 11-1  
-Refer to Figure 11-1.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

Accepted Answer

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

Question 18

Small differences in economic growth rates result in small differences in living standards.

Accepted Answer

A) True 
 B)False

Question 19

In a small Asian country,it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $5 million to $6 million.If the number of hours worked in the labor force does not change,what does this information tell you about the slope of the per-worker production function in this range?

Accepted Answer

A) The slope is -4. 
B) The slope is 1/4. 
C) The slope is 4. 
D) The slope is 8. 
A) The slope is -4. 
B) The slope is 1/4. 
C) The slope is 4. 
D) The slope is 8.

Question 20

Which of the following countries actually experienced negative economic growth from 1960 to 2010?

Accepted Answer

A) Israel 
B) Singapore 
C) Niger 
D) Malaysia 
A) Israel 
B) Singapore 
C) Niger 
D) Malaysia

All of the following policies are ways for a country to promote long-run economic growth except

The Industrial Revolution

Not enforcing property rights in an economy will

Countries that are more globalized tend to have

The economic growth model predicts that ________ across countries will converge over time.

The economic growth model predicts that

Corruption

According to new growth theory,firms accumulate the efficient level of both physical and knowledge capital.

Increased foreign direct investment in India has contributed to its recent economic growth.

According to Douglass North,the Industrial Revolution occurred in England because

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

The per-worker production function shows the relationship between per hour worked and per hour worked,holding constant.

Of the following countries,which had the highest level of GDP per capita in 2012?

If real GDP per capita in the United States is $8,000 in 2013,and if real GDP per capita is $12,000 in 2023,what is the average annual percent change in the growth rate of GDP per capita between 2013 and 2023?

Foreign direct investment occurs when a Chinese corporation

Figure 11-1 -Refer to Figure 11-1.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

Small differences in economic growth rates result in small differences in living standards.

Which of the following countries actually experienced negative economic growth from 1960 to 2010?

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

All of the following policies are ways for a country to promote long-run economic growth except

The Industrial Revolution

Not enforcing property rights in an economy will

Countries that are more globalized tend to have

The economic growth model predicts that ________ across countries will converge over time.

The economic growth model predicts that

Corruption

According to new growth theory,firms accumulate the efficient level of both physical and knowledge capital.

Increased foreign direct investment in India has contributed to its recent economic growth.

According to Douglass North,the Industrial Revolution occurred in England because

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked,holding ________ constant.

Of the following countries,which had the highest level of GDP per capita in 2012?

If real GDP per capita in the United States is $8,000 in 2013,and if real GDP per capita is $12,000 in 2023,what is the average annual percent change in the growth rate of GDP per capita between 2013 and 2023?

Foreign direct investment occurs when a Chinese corporation

Figure 11-1 -Refer to Figure 11-1.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

Small differences in economic growth rates result in small differences in living standards.

Which of the following countries actually experienced negative economic growth from 1960 to 2010?

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

The per-worker production function shows the relationship between per hour worked and per hour worked,holding constant.