Question 1

The purchase or building by a corporation of a facility in a foreign country is called

Accepted Answer

A)  foreign direct investment. 
B)  foreign portfolio investment. 
C)  foreign capital depreciation. 
D)  globally-directed investment. 
A)  foreign direct investment. 
B)  foreign portfolio investment. 
C)  foreign capital depreciation. 
D)  globally-directed investment.

Question 2

Technological change will

Accepted Answer

A)  shift the per-worker production function up. 
B)  shift the per-worker production function down. 
C)  move the economy to a point beneath the per-worker production function. 
D)  move the economy along a given per-worker production function. 
A)  shift the per-worker production function up. 
B)  shift the per-worker production function down. 
C)  move the economy to a point beneath the per-worker production function. 
D)  move the economy along a given per-worker production function.

Question 3

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 4

________ save a ________ of their income. This ________ capital in their economy and raises economic growth.

Accepted Answer

A)  Developing countries; large proportion; decreases 
B)  Developing countries; small proportion; increases 
C)  High-income countries; large proportion; increases 
D)  High-income countries; small proportion; increases 
A)  Developing countries; large proportion; decreases 
B)  Developing countries; small proportion; increases 
C)  High-income countries; large proportion; increases 
D)  High-income countries; small proportion; increases

Question 5

Between 1960 and 2010, deaths among children have

Accepted Answer

A)  declined in most high-income countries and have risen in most low-income countries. 
B)  declined in nearly all countries, including most low-income countries. 
C)  remained relatively unchanged in most high-income countries and have declined in most low-income countries. 
D)  declined in most high-income countries and have remained relatively unchanged in most low-income countries. 
A)  declined in most high-income countries and have risen in most low-income countries. 
B)  declined in nearly all countries, including most low-income countries. 
C)  remained relatively unchanged in most high-income countries and have declined in most low-income countries. 
D)  declined in most high-income countries and have remained relatively unchanged in most low-income countries.

Question 6

Does globalization promote economic growth, and how does globalization affect the welfare of a given country's citizens?

Accepted Answer

More globalized countries generally expe

Question 7

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 8

High-income countries are also referred to as

Accepted Answer

A)  developing countries. 
B)  industrial countries. 
C)  growing countries. 
D)  agrarian countries. 
A)  developing countries. 
B)  industrial countries. 
C)  growing countries. 
D)  agrarian countries.

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

According to Joseph Schumpeter, the theory of creative destruction describes a process by which

Accepted Answer

A)  some new products unleash a gale of destruction that drive other new products out of the market. 
B)  new products unleash a gale of destruction that drives old products out of the market. 
C)  new products are created by the destruction of capital. 
D)  the creation of new products never involves the destruction of old products. 
A)  some new products unleash a gale of destruction that drive other new products out of the market. 
B)  new products unleash a gale of destruction that drives old products out of the market. 
C)  new products are created by the destruction of capital. 
D)  the creation of new products never involves the destruction of old products.

Question 13

Which of the following policies are designed specifically to directly promote technological change in an economy?

Accepted Answer

A)  government subsidization of research and development 
B)  tax incentives to promote investment in 401K plans 
C)  laws to strengthen property rights 
D)  a vaccination program to combat infectious diseases 
A)  government subsidization of research and development 
B)  tax incentives to promote investment in 401K plans 
C)  laws to strengthen property rights 
D)  a vaccination program to combat infectious diseases

Question 14

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should ________ the equilibrium level of loanable funds and ________ the rate of long-term growth.

Accepted Answer

A)  decrease; increase 
B)  increase; decrease 
C)  decrease; decrease 
D)  increase; increase 
A)  decrease; increase 
B)  increase; decrease 
C)  decrease; decrease 
D)  increase; increase

Question 15

Table 22-5
  
-Refer to Table 22-5. 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 16

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 17

How might have the educational system of the United States contributed to the productivity slowdown of the mid-1970s to the mid-1990s?

Accepted Answer

If the educational system was not prepar

Question 18

Relative to productivity growth in the United States, which of the following countries experienced the largest decline in productivity growth from 1990 to 2012?

Accepted Answer

A)  Canada 
B)  Japan 
C)  Germany 
D)  the United Kingdom 
A)  Canada 
B)  Japan 
C)  Germany 
D)  the United Kingdom

Question 19

The productivity slowdown of the mid-1970s can be explained by which of the following?

Accepted Answer

A)  excessive use of fiscal policy 
B)  large increases in research and development 
C)  a decline in labor quality 
D)  diminishing marginal returns 
A)  excessive use of fiscal policy 
B)  large increases in research and development 
C)  a decline in labor quality 
D)  diminishing marginal returns

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

Exam 22: Long-Run Economic Growth: Sources and Policies

The purchase or building by a corporation of a facility in a foreign country is called

Technological change will

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

________ save a ________ of their income. This ________ capital in their economy and raises economic growth.

Between 1960 and 2010, deaths among children have

Does globalization promote economic growth, and how does globalization affect the welfare of a given country's citizens?

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

High-income countries are also referred to as

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

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

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

According to Joseph Schumpeter, the theory of creative destruction describes a process by which

Which of the following policies are designed specifically to directly promote technological change in an economy?

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should ________ the equilibrium level of loanable funds and ________ the rate of long-term growth.

Table 22-5 -Refer to Table 22-5. Consider the statistics in the table above in describing the industrialized countries. Are these consistent with the economic growth model? Briefly explain.

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

How might have the educational system of the United States contributed to the productivity slowdown of the mid-1970s to the mid-1990s?

Relative to productivity growth in the United States, which of the following countries experienced the largest decline in productivity growth from 1990 to 2012?

The productivity slowdown of the mid-1970s can be explained by which of the following?

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

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

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

save a of their income. This capital in their economy and raises economic growth.

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should the equilibrium level of loanable funds and the rate of long-term growth.