Question 1

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Accepted Answer

A) True 
 B)False

Question 2

According to a study by economists Raymond Fisman and Edward Miguel,as the level of corruption in a country increases,

Accepted Answer

A)  so does the number of parking violations by the country's United Nations delegates. 
B)  so does the size of the country's population. 
C)  the levels of foreign direct investment and foreign portfolio investment decrease. 
D)  the levels of real GDP per capita and real income per capita increase. 
A)  so does the number of parking violations by the country's United Nations delegates. 
B)  so does the size of the country's population. 
C)  the levels of foreign direct investment and foreign portfolio investment decrease. 
D)  the levels of real GDP per capita and real income per capita increase.

Question 3

According to new growth theory,

Accepted Answer

A)  physical capital is nonexcludable. 
B)  knowledge capital is excludable. 
C)  knowledge capital is subject to increasing returns. 
D)  knowledge capital is rival and excludable. 
A)  physical capital is nonexcludable. 
B)  knowledge capital is excludable. 
C)  knowledge capital is subject to increasing returns. 
D)  knowledge capital is rival and excludable.

Question 4

Growth in the United States from 1800 to 1900 can be characterized as

Accepted Answer

A)  positive and increasing. 
B)  positive and flat. 
C)  positive and decreasing. 
D)  negative. 
A)  positive and increasing. 
B)  positive and flat. 
C)  positive and decreasing. 
D)  negative.

Question 5

Consider two countries,Alpha and Beta.In Alpha,real GDP per capita is $6,000.In Beta,real GDP per capita is $9,000.Based on the economic growth model,what would you predict about the growth rates in real GDP per capita across these two countries?

Accepted Answer

A)  The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. 
B)  The growth rate of real GDP per capita will be higher in Alpha than it is in Beta. 
C)  The growth rate of real GDP per capita in Alpha and Beta will be the same. 
D)  The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries. 
A)  The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. 
B)  The growth rate of real GDP per capita will be higher in Alpha than it is in Beta. 
C)  The growth rate of real GDP per capita in Alpha and Beta will be the same. 
D)  The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries.

Question 6

In the United States,the annual growth rate of real GDP per hour worked between 1995 and 2010 averaged

Accepted Answer

A)  -0.3%. 
B)  2.1%. 
C)  6.9%. 
D)  10.2%. 
A)  -0.3%. 
B)  2.1%. 
C)  6.9%. 
D)  10.2%.

Question 7

According to the World Bank,GDP per capita ________ in the least corrupt countries than in the most corrupt countries.

Accepted Answer

A)  is more than 50 percent less 
B)  is roughly the same 
C)  is twice as high 
D)  is more than 10 times higher 
A)  is more than 50 percent less 
B)  is roughly the same 
C)  is twice as high 
D)  is more than 10 times higher

Question 8

Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because

Accepted Answer

A)  spending on new government regulations such as the Clean Air Act increased output dramatically without increasing the standard of living of Americans. 
B)  significant improvements in the quality of services occurred, although the quantity of these services did not increase much during this time. 
C)  changes in well-being are accurately reflected in statistics measuring economic growth. 
D)  higher production costs from higher oil prices raised production and transportation costs and reduced output. 
A)  spending on new government regulations such as the Clean Air Act increased output dramatically without increasing the standard of living of Americans. 
B)  significant improvements in the quality of services occurred, although the quantity of these services did not increase much during this time. 
C)  changes in well-being are accurately reflected in statistics measuring economic growth. 
D)  higher production costs from higher oil prices raised production and transportation costs and reduced output.

Question 9

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

Accepted Answer

The British Parliament had just gained c

Question 10

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

Accepted Answer

A) True 
 B)False

Question 11

Provide examples of three kinds of government policies that can help increase the accumulation of knowledge capital and explain why government policies are often necessary to encourage the accumulation of knowledge capital.

Accepted Answer

Knowledge capital is a result of researc

Question 12

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Accepted Answer

A) True 
 B)False

Question 13

Compared to the previous 20 years,productivity growth in the United States increased between 1995 and 2010.

Accepted Answer

A) True 
 B)False

Question 14

The Industrial Revolution began in

Accepted Answer

A)  England around 1750. 
B)  the United States around 1820. 
C)  France around 1680. 
D)  Germany around 1780. 
A)  England around 1750. 
B)  the United States around 1820. 
C)  France around 1680. 
D)  Germany around 1780.

Question 15

Developing countries with low saving rates and poor levels of health and education are likely to experience

Accepted Answer

A)  high levels of foreign direct investment. 
B)  easy access to financial backing from banks. 
C)  rapid growth in household incomes. 
D)  low rates of growth in real GDP per capita. 
A)  high levels of foreign direct investment. 
B)  easy access to financial backing from banks. 
C)  rapid growth in household incomes. 
D)  low rates of growth in real GDP per capita.

Question 16

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Question 19

If the slope of the per-worker production function is 1/2 in a given range,how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?

Accepted Answer

A)  Real GDP per hour worked will increase by $5,000. 
B)  Real GDP per hour worked will increase by $20,000. 
C)  Real GDP per hour worked will increase by $10,000. 
D)  Real GDP per hour worked will decrease by $20.000. 
A)  Real GDP per hour worked will increase by $5,000. 
B)  Real GDP per hour worked will increase by $20,000. 
C)  Real GDP per hour worked will increase by $10,000. 
D)  Real GDP per hour worked will decrease by $20.000.

Question 20

Foreign direct investment in the United States declined 42 percent in the first quarter of 2009.This means that

Accepted Answer

A)  people or firms in other countries reduced their purchases of stocks and bonds in the United States by 42 percent in the first quarter of 2009. 
B)  people or firms in the United States reduced their purchases of stocks and bonds in foreign countries by 42 percent in the first quarter of 2009. 
C)  people or firms in other countries reduced their building of facilities of purchases of facilities in the United States by 42 percent in the first quarter of 2009. 
D)  people or firms in the United States reduced their building of facilities or purchases of facilities in foreign countries by 42 percent in the first quarter of 2009. 
A)  people or firms in other countries reduced their purchases of stocks and bonds in the United States by 42 percent in the first quarter of 2009. 
B)  people or firms in the United States reduced their purchases of stocks and bonds in foreign countries by 42 percent in the first quarter of 2009. 
C)  people or firms in other countries reduced their building of facilities of purchases of facilities in the United States by 42 percent in the first quarter of 2009. 
D)  people or firms in the United States reduced their building of facilities or purchases of facilities in foreign countries by 42 percent in the first quarter of 2009.

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

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

According to a study by economists Raymond Fisman and Edward Miguel,as the level of corruption in a country increases,

According to new growth theory,

Growth in the United States from 1800 to 1900 can be characterized as

Consider two countries,Alpha and Beta.In Alpha,real GDP per capita is $6,000.In Beta,real GDP per capita is $9,000.Based on the economic growth model,what would you predict about the growth rates in real GDP per capita across these two countries?

In the United States,the annual growth rate of real GDP per hour worked between 1995 and 2010 averaged

According to the World Bank,GDP per capita ________ in the least corrupt countries than in the most corrupt countries.

Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

Provide examples of three kinds of government policies that can help increase the accumulation of knowledge capital and explain why government policies are often necessary to encourage the accumulation of knowledge capital.

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Compared to the previous 20 years,productivity growth in the United States increased between 1995 and 2010.

The Industrial Revolution began in

Developing countries with low saving rates and poor levels of health and education are likely to experience

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Knowledge capital is nonrival in the sense that

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

If the slope of the per-worker production function is 1/2 in a given range,how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?

Foreign direct investment in the United States declined 42 percent in the first quarter of 2009.This means that

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

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