Question 1

Many economists agree that environmental damage from economic growth:

Accepted Answer

A) is minimal and not serious enough to address through economic channels. 
B) occurs but can be contained with market-based incentives and concerted government action. 
C) results in a lack of growth in some countries. 
D) occurs only in poorer countries. 
A) is minimal and not serious enough to address through economic channels. 
B) occurs but can be contained with market-based incentives and concerted government action. 
C) results in a lack of growth in some countries. 
D) occurs only in poorer countries.

Question 2

In 1798 the English economist Thomas Malthus predicted that a growing population and a fixed supply of land would eventually cause productivity to fall.

Accepted Answer

A) True 
 B)False

Question 3

It took India more than 40 years to exhibit high economic growth after it gained independence from British rule in 1947. This faster rate of growth resulted from:

Accepted Answer

A) a more stable government. 
B) better infrastructure. 
C) higher investment in human capital. 
D) a reduction in the burden of corruption. 
A) a more stable government. 
B) better infrastructure. 
C) higher investment in human capital. 
D) a reduction in the burden of corruption.

Question 4

Use the following to answer questions :
Scenario: Growth Rates
Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year. Real GDP per capita of China is $4,000, and its annual growth rate is 7%.
-(Scenario: Growth Rates) Look at the scenario Growth Rates. How long will it take China's real GDP per capita to double?

Accepted Answer

A) 14 years 
B) 10 years 
C) 35 years 
D) 50 years 
A) 14 years 
B) 10 years 
C) 35 years 
D) 50 years

Question 5

Over the course of the twentieth century, real GDP per capita in the United States rose mostly as a result of:

Accepted Answer

A) rising population. 
B) rising employment. 
C) rising productivity. 
D) reduced vacation time. 
A) rising population. 
B) rising employment. 
C) rising productivity. 
D) reduced vacation time.

Question 6

The convergence hypothesis helps explain why:

Accepted Answer

A) highly educated people converge in high-income countries. 
B) high-income individuals marry other high-income individuals. 
C) high-income countries continue their high growth rates. 
D) the income of high-income and lower-income countries get closer. 
A) highly educated people converge in high-income countries. 
B) high-income individuals marry other high-income individuals. 
C) high-income countries continue their high growth rates. 
D) the income of high-income and lower-income countries get closer.

Question 7

Economies with high growth rates tend to be those that have:

Accepted Answer

A) large amounts of natural resources. 
B) a stable government that protects property rights. 
C) high levels of government regulation. 
D) a large defense budget. 
A) large amounts of natural resources. 
B) a stable government that protects property rights. 
C) high levels of government regulation. 
D) a large defense budget.

Question 8

The best available measure of the standard of living in a country is:

Accepted Answer

A) nominal GDP per capita. 
B) real GDP per capita. 
C) the unemployment rate. 
D) the growth rate of productivity. 
A) nominal GDP per capita. 
B) real GDP per capita. 
C) the unemployment rate. 
D) the growth rate of productivity.

Question 9

Long-run economic growth is:

Accepted Answer

A) higher in countries with a weak rule of law and excessive government intervention. 
B) lower in countries with a strong government and independent judiciary. 
C) lower in countries whose courts enforce property rights and whose government protects its citizens. 
D) higher in countries with a strong rule of law and political stability. 
A) higher in countries with a weak rule of law and excessive government intervention. 
B) lower in countries with a strong government and independent judiciary. 
C) lower in countries whose courts enforce property rights and whose government protects its citizens. 
D) higher in countries with a strong rule of law and political stability.

Question 10

Which of the following contributes to economic development?

Accepted Answer

A) low saving and investment rates 
B) a command socialist economic system 
C) investment in infrastructure 
D) complete absence of government involvement 
A) low saving and investment rates 
B) a command socialist economic system 
C) investment in infrastructure 
D) complete absence of government involvement

Question 11

Which country had the lowest growth rate of real GDP per capita between 1980 and 2010?

Accepted Answer

A) Ireland 
B) France 
C) Argentina 
D) Zimbabwe 
A) Ireland 
B) France 
C) Argentina 
D) Zimbabwe

Question 12

Between 1980 and 1994, growth rates of real GDP per capita in sub-Saharan Africa fell by more than 10%.

Accepted Answer

A) True 
 B)False

Question 13

Total factor productivity:

Accepted Answer

A) is the amount of output produced from a given amount of factor inputs. 
B) is not an essential element in long-run growth. 
C) is less important than technological progress. 
D) cannot be used to explain how contributions of factors of production affect a country's growth. 
A) is the amount of output produced from a given amount of factor inputs. 
B) is not an essential element in long-run growth. 
C) is less important than technological progress. 
D) cannot be used to explain how contributions of factors of production affect a country's growth.

Question 14

Research and development is what we call spending to develop and implement new technologies.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following factors is NOT necessary for convergence between two countries?

Accepted Answer

A) equal access to education 
B) equal access to infrastructure 
C) a common language between the two countries 
D) similar levels of political stability 
A) equal access to education 
B) equal access to infrastructure 
C) a common language between the two countries 
D) similar levels of political stability

Question 16

During the 1990s:

Accepted Answer

A) high oil prices encouraged consumers to buy small, fuel-efficient cars. 
B) low oil prices encouraged consumers to buy large cars and SUVs that were generally not fuel-efficient. 
C) high oil prices encouraged the development of alternative energy sources. 
D) low oil prices led to decreases in real GDP. 
A) high oil prices encouraged consumers to buy small, fuel-efficient cars. 
B) low oil prices encouraged consumers to buy large cars and SUVs that were generally not fuel-efficient. 
C) high oil prices encouraged the development of alternative energy sources. 
D) low oil prices led to decreases in real GDP.

Question 17

The convergence hypothesis states that international differences in real GDP per capita tend to _____ over time.

Accepted Answer

A) diverge 
B) fluctuate 
C) remain constant 
D) narrow 
A) diverge 
B) fluctuate 
C) remain constant 
D) narrow

Question 18

According to Jeff Sachs of Columbia University, Africa is politically unstable because Africa is poor and not the other way around.

Accepted Answer

A) True 
 B)False

Question 19

Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as:

Accepted Answer

A) tax rebates to those causing negative externalities. 
B) a reduction in the amount of gasoline that each person is allowed to purchase. 
C) a carbon tax or a cap and trade system. 
D) a reduction in the price of green cars and appliances. 
A) tax rebates to those causing negative externalities. 
B) a reduction in the amount of gasoline that each person is allowed to purchase. 
C) a carbon tax or a cap and trade system. 
D) a reduction in the price of green cars and appliances.

Question 20

If real GDP doubles in 12 years, its average annual growth rate is approximately:

Accepted Answer

A) 6%. 
B) 5%. 
C) 4%. 
D) 3%. 
A) 6%. 
B) 5%. 
C) 4%. 
D) 3%.

Many economists agree that environmental damage from economic growth:

In 1798 the English economist Thomas Malthus predicted that a growing population and a fixed supply of land would eventually cause productivity to fall.

It took India more than 40 years to exhibit high economic growth after it gained independence from British rule in 1947. This faster rate of growth resulted from:

Over the course of the twentieth century, real GDP per capita in the United States rose mostly as a result of:

The convergence hypothesis helps explain why:

Economies with high growth rates tend to be those that have:

The best available measure of the standard of living in a country is:

Long-run economic growth is:

Which of the following contributes to economic development?

Which country had the lowest growth rate of real GDP per capita between 1980 and 2010?

Between 1980 and 1994, growth rates of real GDP per capita in sub-Saharan Africa fell by more than 10%.

Total factor productivity:

Research and development is what we call spending to develop and implement new technologies.

Which of the following factors is NOT necessary for convergence between two countries?

During the 1990s:

The convergence hypothesis states that international differences in real GDP per capita tend to _____ over time.

According to Jeff Sachs of Columbia University, Africa is politically unstable because Africa is poor and not the other way around.

Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as:

If real GDP doubles in 12 years, its average annual growth rate is approximately:

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

Many economists agree that environmental damage from economic growth:

In 1798 the English economist Thomas Malthus predicted that a growing population and a fixed supply of land would eventually cause productivity to fall.

It took India more than 40 years to exhibit high economic growth after it gained independence from British rule in 1947. This faster rate of growth resulted from:

Over the course of the twentieth century, real GDP per capita in the United States rose mostly as a result of:

The convergence hypothesis helps explain why:

Economies with high growth rates tend to be those that have:

The best available measure of the standard of living in a country is:

Long-run economic growth is:

Which of the following contributes to economic development?

Which country had the lowest growth rate of real GDP per capita between 1980 and 2010?

Between 1980 and 1994, growth rates of real GDP per capita in sub-Saharan Africa fell by more than 10%.

Total factor productivity:

Research and development is what we call spending to develop and implement new technologies.

Which of the following factors is NOT necessary for convergence between two countries?

During the 1990s:

The convergence hypothesis states that international differences in real GDP per capita tend to _____ over time.

According to Jeff Sachs of Columbia University, Africa is politically unstable because Africa is poor and not the other way around.

Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as:

If real GDP doubles in 12 years, its average annual growth rate is approximately:

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