Question 1

The idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the:

Accepted Answer

A) East Asian miracle. 
B) Industrial Revolution. 
C) sustainable development hypothesis. 
D) convergence hypothesis. 
A) East Asian miracle. 
B) Industrial Revolution. 
C) sustainable development hypothesis. 
D) convergence hypothesis.

Question 2

Between 1980 and 1994, real per capita GDP in sub-Saharan Africa:

Accepted Answer

A) fell by 13%. 
B) fell by 50%. 
C) increased by 10%. 
D) increased by 7% per year. 
A) fell by 13%. 
B) fell by 50%. 
C) increased by 10%. 
D) increased by 7% per year.

Question 3

According to conditional convergence, the real GDP per capita of poor nations will never catch up to that of wealthy nations because of the condition of the military in poor nations.

Accepted Answer

A) True 
 B)False

Question 4

The main source of Kuwait's wealth is _____, while the main source of Germany's wealth is_____ .

Accepted Answer

A) oil; manufacturing 
B) manufacturing; oil 
C) tourism; manufacturing 
D) information technology; tourism 
A) oil; manufacturing 
B) manufacturing; oil 
C) tourism; manufacturing 
D) information technology; tourism

Question 5

Productivity is equal to:

Accepted Answer

A) real GDP divided by the number of workers. 
B) real GDP divided by the population. 
C) the number of workers per machine. 
D) the total output produced. 
A) real GDP divided by the number of workers. 
B) real GDP divided by the population. 
C) the number of workers per machine. 
D) the total output produced.

Question 6

Growth accounting estimates the:

Accepted Answer

A) increase in the population rate over time. 
B) increase in the inflation rate over time. 
C) contribution of each major factor in the aggregate production function to economic growth. 
D) contribution of the technology factor in the aggregate production function to economic growth. 
A) increase in the population rate over time. 
B) increase in the inflation rate over time. 
C) contribution of each major factor in the aggregate production function to economic growth. 
D) contribution of the technology factor in the aggregate production function to economic growth.

Question 7

Growth accounting estimates the contribution of each major factor in the aggregate production function to economic growth.

Accepted Answer

A) True 
 B)False

Question 8

Throughout the twentieth century, nations in Latin America had disappointing growth rates primarily due to:

Accepted Answer

A) low rates of national savings, political instability, and little emphasis on education. 
B) low rates of investment in physical capital that offset a strong emphasis on education. 
C) abundant natural resources, rapid technological progress, and political instability. 
D) low rates of national savings, a scarcity of natural resources, and political instability. 
A) low rates of national savings, political instability, and little emphasis on education. 
B) low rates of investment in physical capital that offset a strong emphasis on education. 
C) abundant natural resources, rapid technological progress, and political instability. 
D) low rates of national savings, a scarcity of natural resources, and political instability.

Question 9

According to the convergence hypothesis, the poorest countries have the fastest growth rate of real GDP per capita.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following CANNOT properly be called a part of infrastructure?

Accepted Answer

A) power lines 
B) roads and bridges 
C) human capital 
D) seaports 
A) power lines 
B) roads and bridges 
C) human capital 
D) seaports

Question 11

Use the following to answer questions :
Scenario: Technological Progress and Productivity Growth in Techland
In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000.
-(Scenario: Technological Progress and Productivity Growth in Techland) Look at the scenario Technological Progress and Productivity Growth in Techland. What share of the growth rate of real GDP per capita was attributable to increasing physical capital per worker?

Accepted Answer

A) 2.0% 
B) 4.5% 
C) 8.75% 
D) 17.5% 
A) 2.0% 
B) 4.5% 
C) 8.75% 
D) 17.5%

Question 12

To acquire human capital a person would:

Accepted Answer

A) save to buy a printing press. 
B) purchase a printing press rather than a very large television. 
C) learn to use a printing press. 
D) sell the books that the printing press produces. 
A) save to buy a printing press. 
B) purchase a printing press rather than a very large television. 
C) learn to use a printing press. 
D) sell the books that the printing press produces.

Question 13

In 1798, the English economist Thomas Malthus predicted that:

Accepted Answer

A) countries with a large supply of natural resources would always enjoy economic growth. 
B) the recently independent United States would rejoin the British empire out of economic necessity. 
C) the French Revolution would improve the economies of most European countries. 
D) rising population growth would cause productivity per capita to fall. 
A) countries with a large supply of natural resources would always enjoy economic growth. 
B) the recently independent United States would rejoin the British empire out of economic necessity. 
C) the French Revolution would improve the economies of most European countries. 
D) rising population growth would cause productivity per capita to fall.

Question 14

According to the convergence hypothesis, differences in GDP per capita among countries tends to narrow over time because countries that start with a _____ real GDP per capita tend to have _____ growth rates.

Accepted Answer

A) lower; higher 
B) lower; lower 
C) higher; higher 
D) higher; negative 
A) lower; higher 
B) lower; lower 
C) higher; higher 
D) higher; negative

Question 15

In general, the growth in real GDP per capita:

Accepted Answer

A) was smaller than the growth of per capita oil consumption before 1973. 
B) fluctuated above and below the growth of per capita oil consumption before 1973. 
C) was greater than the growth of per capita oil consumption after 1973. 
D) was smaller than the growth of per capita oil consumption after oil prices began to increase in 2004. 
A) was smaller than the growth of per capita oil consumption before 1973. 
B) fluctuated above and below the growth of per capita oil consumption before 1973. 
C) was greater than the growth of per capita oil consumption after 1973. 
D) was smaller than the growth of per capita oil consumption after oil prices began to increase in 2004.

Question 16

Investment in human capital shifts the aggregate production function:

Accepted Answer

A) downward. 
B) leftward. 
C) upward. 
D) rightward. 
A) downward. 
B) leftward. 
C) upward. 
D) rightward.

Question 17

Long-run growth is sustainable if:

Accepted Answer

A) it can continue in the face of limited natural resources and the impact of growth on the environment. 
B) people continue to buy enough goods and services. 
C) energy prices are low. 
D) environmental concerns are ignored during global recessions. 
A) it can continue in the face of limited natural resources and the impact of growth on the environment. 
B) people continue to buy enough goods and services. 
C) energy prices are low. 
D) environmental concerns are ignored during global recessions.

Question 18

More than 50% of the world's population lives in countries whose population is poorer than the United States population was a century ago.

Accepted Answer

A) True 
 B)False

Question 19

Economists generally agree that ____ are the best way for governments to reduce greenhouse gases to address climate change.

Accepted Answer

A) military actions 
B) market-based incentives 
C) direct pollution controls 
D) subsidies for offshore oil exploration 
A) military actions 
B) market-based incentives 
C) direct pollution controls 
D) subsidies for offshore oil exploration

Question 20

As a result of the long-term growth between 1900 and 2010, the output per person in the United States was about twice as large in 2010 as it was in 1900.

Accepted Answer

A) True 
 B)False

The idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the:

Between 1980 and 1994, real per capita GDP in sub-Saharan Africa:

According to conditional convergence, the real GDP per capita of poor nations will never catch up to that of wealthy nations because of the condition of the military in poor nations.

The main source of Kuwait's wealth is _, while the main source of Germany's wealth is_ .

Productivity is equal to:

Growth accounting estimates the:

Growth accounting estimates the contribution of each major factor in the aggregate production function to economic growth.

Throughout the twentieth century, nations in Latin America had disappointing growth rates primarily due to:

According to the convergence hypothesis, the poorest countries have the fastest growth rate of real GDP per capita.

Which of the following CANNOT properly be called a part of infrastructure?

To acquire human capital a person would:

In 1798, the English economist Thomas Malthus predicted that:

According to the convergence hypothesis, differences in GDP per capita among countries tends to narrow over time because countries that start with a _ real GDP per capita tend to have _ growth rates.

In general, the growth in real GDP per capita:

Investment in human capital shifts the aggregate production function:

Long-run growth is sustainable if:

More than 50% of the world's population lives in countries whose population is poorer than the United States population was a century ago.

Economists generally agree that ____ are the best way for governments to reduce greenhouse gases to address climate change.

As a result of the long-term growth between 1900 and 2010, the output per person in the United States was about twice as large in 2010 as it was in 1900.

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Unemployment and Inflation

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Exam 9: Long-Run Economic Growth

The idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the:

Between 1980 and 1994, real per capita GDP in sub-Saharan Africa:

According to conditional convergence, the real GDP per capita of poor nations will never catch up to that of wealthy nations because of the condition of the military in poor nations.

The main source of Kuwait's wealth is _____, while the main source of Germany's wealth is_____ .

Productivity is equal to:

Growth accounting estimates the:

Growth accounting estimates the contribution of each major factor in the aggregate production function to economic growth.

Throughout the twentieth century, nations in Latin America had disappointing growth rates primarily due to:

According to the convergence hypothesis, the poorest countries have the fastest growth rate of real GDP per capita.

Which of the following CANNOT properly be called a part of infrastructure?

To acquire human capital a person would:

In 1798, the English economist Thomas Malthus predicted that:

According to the convergence hypothesis, differences in GDP per capita among countries tends to narrow over time because countries that start with a _____ real GDP per capita tend to have _____ growth rates.

In general, the growth in real GDP per capita:

Investment in human capital shifts the aggregate production function:

Long-run growth is sustainable if:

More than 50% of the world's population lives in countries whose population is poorer than the United States population was a century ago.

Economists generally agree that ____ are the best way for governments to reduce greenhouse gases to address climate change.

As a result of the long-term growth between 1900 and 2010, the output per person in the United States was about twice as large in 2010 as it was in 1900.

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Unemployment and Inflation

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

The main source of Kuwait's wealth is _, while the main source of Germany's wealth is_ .

According to the convergence hypothesis, differences in GDP per capita among countries tends to narrow over time because countries that start with a _ real GDP per capita tend to have _ growth rates.