Question 1

The question of whether economic growth is desirable is a positive question,easily settled by economic analysis.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following best explains why productivity growth in the United States has been faster than in other leading industrialized nations?

Accepted Answer

A)  There are fewer government regulations in the United States regarding the way firms can hire and fire workers. 
B)  The financial systems of foreign countries are generally more efficient than those in the United States. 
C)  European countries have more flexible policies regarding the number of hours employees are permitted to work. 
D)  Job mobility in the United States is more restricted than it is in many foreign countries. 
A)  There are fewer government regulations in the United States regarding the way firms can hire and fire workers. 
B)  The financial systems of foreign countries are generally more efficient than those in the United States. 
C)  European countries have more flexible policies regarding the number of hours employees are permitted to work. 
D)  Job mobility in the United States is more restricted than it is in many foreign countries.

Question 3

Technological change is the key to sustaining economic growth.

Accepted Answer

A) True 
 B)False

Question 4

A patent grants an inventor exclusive rights to a product for how long?

Accepted Answer

A)  14 years 
B)  17 years 
C)  20 years 
D)  the lifetime of the product 
A)  14 years 
B)  17 years 
C)  20 years 
D)  the lifetime of the product

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Figure 22-1  
-Refer to Figure 22-1.Within a country,the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from
A) A to B.
B) B to C.
C) B to A.
D) C to A.

Accepted Answer

The answer of Figure 22-1  
-Refer to Figure 22-1.Within...

Question 7

Figure 22-2  
-Refer to Figure 22-2.Assuming no technological change,if the United States increases capital per hour worked by $40,000 every year between 2010 and 2014,we would expect to see

Accepted Answer

A)  real GDP per hour worked will increase by the same increment each year between 2010 and 2014. 
B)  real GDP per hour worked will be lower in 2014 than it was in 2010. 
C)  the per-worker production function will get flatter over time. 
D)  the per-worker production function will shift up every year there is increase in capital per hour worked. 
A)  real GDP per hour worked will increase by the same increment each year between 2010 and 2014. 
B)  real GDP per hour worked will be lower in 2014 than it was in 2010. 
C)  the per-worker production function will get flatter over time. 
D)  the per-worker production function will shift up every year there is increase in capital per hour worked.

Question 8

If the per-worker production function shifts down,

Accepted Answer

A)  it now takes more capital per hour worked to get the same amount of real GDP per hour worked. 
B)  an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. 
C)  the per-worker production function becomes steeper. 
D)  positive technological change has occurred in the economy. 
A)  it now takes more capital per hour worked to get the same amount of real GDP per hour worked. 
B)  an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. 
C)  the per-worker production function becomes steeper. 
D)  positive technological change has occurred in the economy.

Question 9

The purchase by an individual or firm of stock or bonds issued in another country is called

Accepted Answer

A)  foreign exchange arbitrage. 
B)  foreign direct investment. 
C)  foreign portfolio investment. 
D)  global stock exchange. 
A)  foreign exchange arbitrage. 
B)  foreign direct investment. 
C)  foreign portfolio investment. 
D)  global stock exchange.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

According to new growth theory,

Accepted Answer

A)  technological change is influenced by economic incentives. 
B)  centrally-planned economies are the most efficient. 
C)  growth in real GDP per capita occurs only if there are increasing returns. 
D)  economic growth is determined by forces outside the control of the market system. 
A)  technological change is influenced by economic incentives. 
B)  centrally-planned economies are the most efficient. 
C)  growth in real GDP per capita occurs only if there are increasing returns. 
D)  economic growth is determined by forces outside the control of the market system.

Question 12

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 13

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 14

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

Accepted Answer

A)  Canada 
B)  the United States 
C)  France 
D)  the United Kingdom 
A)  Canada 
B)  the United States 
C)  France 
D)  the United Kingdom

Question 15

Figure 22-1  
-Refer to Figure 22-1.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 double its support of university research,this would cause a movement from
A) A to B.
B) B to C.
C) B to A.
D) D to C.

Accepted Answer

The answer of Figure 22-1  
-Refer to Figure 22-1.Suppose...

Question 16

If real GDP per capita in the United States is $8,000 in 2011,and if real GDP per capita is $12,000 in 2021,what is the total percent change in the growth rate of GDP per capita between 2011 and 2021?

Accepted Answer

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

Question 17

What are some of the reasons used to explain improvements in health,education,democracy,and political stability in many low-income countries?

Accepted Answer

Reasons include increases in technology

Question 18

Table 22-2
  
-Refer to Table 22-2.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 19

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 20

Globalization refers to

Accepted Answer

A)  the process of establishing a common world currency. 
B)  the willingness of individuals within a given country to share knowledge with one another. 
C)  the process of countries becoming more open to foreign trade and investment. 
D)  the reduction in growth rates of real GDP per capita as a result of trade with foreign countries. 
A)  the process of establishing a common world currency. 
B)  the willingness of individuals within a given country to share knowledge with one another. 
C)  the process of countries becoming more open to foreign trade and investment. 
D)  the reduction in growth rates of real GDP per capita as a result of trade with foreign countries.

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

The question of whether economic growth is desirable is a positive question,easily settled by economic analysis.

Which of the following best explains why productivity growth in the United States has been faster than in other leading industrialized nations?

Technological change is the key to sustaining economic growth.

A patent grants an inventor exclusive rights to a product for how long?

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

Figure 22-1 -Refer to Figure 22-1.Within a country,the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from A) A to B. B) B to C. C) B to A. D) C to A.

Figure 22-2 -Refer to Figure 22-2.Assuming no technological change,if the United States increases capital per hour worked by $40,000 every year between 2010 and 2014,we would expect to see

If the per-worker production function shifts down,

The purchase by an individual or firm of stock or bonds issued in another country is called

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

According to new growth theory,

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

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

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

If real GDP per capita in the United States is $8,000 in 2011,and if real GDP per capita is $12,000 in 2021,what is the total percent change in the growth rate of GDP per capita between 2011 and 2021?

What are some of the reasons used to explain improvements in health,education,democracy,and political stability in many low-income countries?

Table 22-2 -Refer to Table 22-2.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

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

Globalization refers to

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

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