Question 1

Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by

Accepted Answer

A) reducing physical capital. 
B) reducing human capital. 
C) increasing labor productivity. 
D) increasing technological change. 
A) reducing physical capital. 
B) reducing human capital. 
C) increasing labor productivity. 
D) increasing technological change.

Question 2

According to the World Bank,in 2006,China's GDP was approximately $2.7 trillion (or $2,700 billion).That same year,India's GDP was approximately $906.3 billion.With which of the following populations would China's standard of living have been considered higher than India's that year?

Accepted Answer

A) China's population = 1.3 billion; India's population = 1.1 billion 
B) China's population = 8.3 billion; India's population = 1.1 billion 
C) China's population = 500 million; India's population = 125 million 
D) China's population = 3.5 billion; India's population = 1.1 billion 
A) China's population = 1.3 billion; India's population = 1.1 billion 
B) China's population = 8.3 billion; India's population = 1.1 billion 
C) China's population = 500 million; India's population = 125 million 
D) China's population = 3.5 billion; India's population = 1.1 billion

Question 3

The rapid growth of China's economy relative to the United States has benefitted U.S.consumers because

Accepted Answer

A) competition from China has made jobs harder to find in the United States. 
B) U.S.consumers can purchase more lower-priced goods made in China. 
C) the United States has comparative advantage in more goods than China does. 
D) goods made in China are always of higher quality than goods made in the United States. 
A) competition from China has made jobs harder to find in the United States. 
B) U.S.consumers can purchase more lower-priced goods made in China. 
C) the United States has comparative advantage in more goods than China does. 
D) goods made in China are always of higher quality than goods made in the United States.

Question 4

Knowledge capital is nonrival in the sense that

Accepted Answer

A) two people can use the same knowledge to develop and produce a product. 
B) firms do not compete to be the first to develop new technologies. 
C) no single company can be excluded from the benefits of new technologies. 
D) firms can benefit from the research and development of rival firms without paying for that benefit. 
A) two people can use the same knowledge to develop and produce a product. 
B) firms do not compete to be the first to develop new technologies. 
C) no single company can be excluded from the benefits of new technologies. 
D) firms can benefit from the research and development of rival firms without paying for that benefit.

Question 5

Which of the following countries had the lowest GDP per capita in 2012?

Accepted Answer

A) France 
B) Mexico 
C) Democratic Republic of the Congo 
D) Argentina 
A) France 
B) Mexico 
C) Democratic Republic of the Congo 
D) Argentina

Question 6

Of all industrialized nations,real GDP per capita was the highest in Japan in 2012.

Accepted Answer

A) True 
 B)False

Question 7

Figure 11-3  
-Refer to Figure 11-3.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

Accepted Answer

A) an improvement in technology 
B) a decrease in capital per hour worked 
C) an increase in capital per hour worked 
D) a technological regression 
A) an improvement in technology 
B) a decrease in capital per hour worked 
C) an increase in capital per hour worked 
D) a technological regression

Question 8

Why do some economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s?

Accepted Answer

A) The average level of education of citizens of the United States rose dramatically during this period of time. 
B) The skill level required to perform many jobs increased during this period of time,although the skills of the labor force did not increase as quickly. 
C) Scores on standardized tests during that period of time began to rise. 
D) Increases in the amount of capital available reduced labor quality. 
A) The average level of education of citizens of the United States rose dramatically during this period of time. 
B) The skill level required to perform many jobs increased during this period of time,although the skills of the labor force did not increase as quickly. 
C) Scores on standardized tests during that period of time began to rise. 
D) Increases in the amount of capital available reduced labor quality.

Question 9

From 1990-2012,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 10

Figure 11-4  
-Refer to Figure 11-4.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to cut its support of university research in half,this would cause a movement from

Accepted Answer

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

Question 11

Under the Soviet system of communism,

Accepted Answer

A) managerial pay was determined by the extent to which managers could lower the per-unit costs of production. 
B) technological progress was slow because managers had little incentive to develop new technologies. 
C) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world. 
D) the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries. 
A) managerial pay was determined by the extent to which managers could lower the per-unit costs of production. 
B) technological progress was slow because managers had little incentive to develop new technologies. 
C) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world. 
D) the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries.

Question 12

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

Accepted Answer

Countries with low saving rates and low

Question 13

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

Accepted Answer

A) Countries with a strong rule of law have faster economic growth. 
B) Countries with a weak rule of law have faster economic growth. 
C) Countries that enforce property rights through lawsuits have slower economic growth. 
D) Countries where favoritism and bribery are common have stronger rates of growth. 
A) Countries with a strong rule of law have faster economic growth. 
B) Countries with a weak rule of law have faster economic growth. 
C) Countries that enforce property rights through lawsuits have slower economic growth. 
D) Countries where favoritism and bribery are common have stronger rates of growth.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The "new economy" that emerged in the mid-1990s is based on

Accepted Answer

A) manufacturing. 
B) financial services. 
C) information technology. 
D) retail sales. 
A) manufacturing. 
B) financial services. 
C) information technology. 
D) retail sales.

Question 16

Table 11-5
  
-Refer to Table 11-5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

Accepted Answer

These statistics for selected industrial

Question 17

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

Accepted Answer

A) no sustained economic growth. 
B) slow and steady economic growth. 
C) moderate economic growth. 
D) rapid and sustained economic growth. 
A) no sustained economic growth. 
B) slow and steady economic growth. 
C) moderate economic growth. 
D) rapid and sustained economic growth.

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

The best measure of a country's standard of living is

Accepted Answer

A) GDP per labor hour. 
B) GDP per unit of capital. 
C) GDP per capita. 
D) total nominal GDP. 
A) GDP per labor hour. 
B) GDP per unit of capital. 
C) GDP per capita. 
D) total nominal GDP.

Question 20

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

Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by

According to the World Bank,in 2006,China's GDP was approximately $2.7 trillion (or $2,700 billion).That same year,India's GDP was approximately $906.3 billion.With which of the following populations would China's standard of living have been considered higher than India's that year?

The rapid growth of China's economy relative to the United States has benefitted U.S.consumers because

Knowledge capital is nonrival in the sense that

Which of the following countries had the lowest GDP per capita in 2012?

Of all industrialized nations,real GDP per capita was the highest in Japan in 2012.

Figure 11-3 -Refer to Figure 11-3.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

Why do some economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s?

From 1990-2012,productivity growth in the United States was ________ the growth rates of other high-income countries.

Figure 11-4 -Refer to Figure 11-4.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to cut its support of university research in half,this would cause a movement from

Under the Soviet system of communism,

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

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

The "new economy" that emerged in the mid-1990s is based on

Table 11-5 -Refer to Table 11-5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

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.

The best measure of a country's standard of living is

High-income countries have and as compared to developing 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

Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by

According to the World Bank,in 2006,China's GDP was approximately $2.7 trillion (or $2,700 billion).That same year,India's GDP was approximately $906.3 billion.With which of the following populations would China's standard of living have been considered higher than India's that year?

The rapid growth of China's economy relative to the United States has benefitted U.S.consumers because

Knowledge capital is nonrival in the sense that

Which of the following countries had the lowest GDP per capita in 2012?

Of all industrialized nations,real GDP per capita was the highest in Japan in 2012.

Figure 11-3 -Refer to Figure 11-3.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

Why do some economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s?

From 1990-2012,productivity growth in the United States was ________ the growth rates of other high-income countries.

Figure 11-4 -Refer to Figure 11-4.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to cut its support of university research in half,this would cause a movement from

Under the Soviet system of communism,

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

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

The "new economy" that emerged in the mid-1990s is based on

Table 11-5 -Refer to Table 11-5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

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.

The best measure of a country's standard of living is

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