Question 1

The difference between per capita GDP in North Korea and South Korea is due to:

Accepted Answer

A)  human capital. 
B)  culture. 
C)  geography. 
D)  institutions. 
A)  human capital. 
B)  culture. 
C)  geography. 
D)  institutions.

Question 2

Countries with high GDP per capita tend to have a lot of:

Accepted Answer

A)  physical capital per worker. 
B)  human capital per worker. 
C)  technological knowledge per worker. 
D)  physical capital,human capital,and technological knowledge per worker. 
A)  physical capital per worker. 
B)  human capital per worker. 
C)  technological knowledge per worker. 
D)  physical capital,human capital,and technological knowledge per worker.

Question 3

Technical knowledge is considered an immediate cause of national wealth.

Accepted Answer

A) True 
 B)False

Question 4

What is a result of a high level of government corruption?

Accepted Answer

A)  There are few entrepreneurs. 
B)  Government officials have a low standard of living. 
C)  Politicians hold little power over the market. 
D)  The form of government tends toward Communism. 
A)  There are few entrepreneurs. 
B)  Government officials have a low standard of living. 
C)  Politicians hold little power over the market. 
D)  The form of government tends toward Communism.

Question 5

Which of the following does NOT lead to economic growth?

Accepted Answer

A)  property rights 
B)  a dependable legal system 
C)  political instability 
D)  competitive and open markets 
A)  property rights 
B)  a dependable legal system 
C)  political instability 
D)  competitive and open markets

Question 6

Today,real GDP per capita is about _____ as large in the richest countries as in the poorest countries.

Accepted Answer

A)  twice 
B)  10 times 
C)  20 times 
D)  50 times 
A)  twice 
B)  10 times 
C)  20 times 
D)  50 times

Question 7

Why is it important to remember that all countries used to be poor,that some countries remain poor today while others are rich,and that the difference between the rich and poor today is vast?

Accepted Answer

These facts are important because they t

Question 8

High-income economies generally have _____ that incentivize individuals' self-interest by using _____.

Accepted Answer

A)  institutions;profit-seeking motives 
B)  government mandates;legal penalties 
C)  central planners;profit-seeking motives 
D)  institutions;legal penalties 
A)  institutions;profit-seeking motives 
B)  government mandates;legal penalties 
C)  central planners;profit-seeking motives 
D)  institutions;legal penalties

Question 9

Technological knowledge is the:

Accepted Answer

A)  stock of tools,including machines,structures,and equipment,used to produce output. 
B)  productive knowledge and skills that workers acquire through education,training,and experience. 
C)  knowledge about how the world works that is used to produce goods and services. 
D)  organizational skills of business owners. 
A)  stock of tools,including machines,structures,and equipment,used to produce output. 
B)  productive knowledge and skills that workers acquire through education,training,and experience. 
C)  knowledge about how the world works that is used to produce goods and services. 
D)  organizational skills of business owners.

Question 10

Physical capital is the:

Accepted Answer

A)  stock of tools,including machines,structures,and equipment,used to produce output. 
B)  productive knowledge and skills that workers acquire through education,training,and experience. 
C)  knowledge about how the world works that is used to produce goods and services. 
D)  financial resources available to business owners. 
A)  stock of tools,including machines,structures,and equipment,used to produce output. 
B)  productive knowledge and skills that workers acquire through education,training,and experience. 
C)  knowledge about how the world works that is used to produce goods and services. 
D)  financial resources available to business owners.

Question 11

From 1950 to 1970 Japan's growth rate was:

Accepted Answer

A)  high and positive. 
B)  low and positive. 
C)  approximately zero. 
D)  negative. 
A)  high and positive. 
B)  low and positive. 
C)  approximately zero. 
D)  negative.

Question 12

A FedEx truck is an example of:

Accepted Answer

A)  human capital. 
B)  physical capital. 
C)  production technology. 
D)  technical knowledge. 
A)  human capital. 
B)  physical capital. 
C)  production technology. 
D)  technical knowledge.

Question 13

For most of recorded history,there was long-run growth in real per-capita GDP.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a kind of institution that encourages investment and the efficient organization of resources?

Accepted Answer

A)  private property rights 
B)  political stability 
C)  a dependable legal system 
D)  closed markets 
A)  private property rights 
B)  political stability 
C)  a dependable legal system 
D)  closed markets

Question 15

Someone who consumes a resource without contributing to its upkeep is referred to as a:

Accepted Answer

A)  nonsubscriber. 
B)  freeloader. 
C)  nonpayer. 
D)  free rider. 
A)  nonsubscriber. 
B)  freeloader. 
C)  nonpayer. 
D)  free rider.

Question 16

Institutions ultimately come from:

Accepted Answer

A)  luck. 
B)  culture. 
C)  geography. 
D)  luck,culture,and geography. 
A)  luck. 
B)  culture. 
C)  geography. 
D)  luck,culture,and geography.

Question 17

Use the following to answer questions 
Figure: The Distribution of World Income  
-(Figure: The Distribution of World Income)Refer to the figure.Based on the data in the figure,living standards in the United States are about how many times higher than the world average?

Accepted Answer

A)  4 times 
B)  10 times 
C)  40 times 
D)  50 times 
A)  4 times 
B)  10 times 
C)  40 times 
D)  50 times

Question 18

Use the following to answer questions 
Figure: The Distribution of World Income  
-(Figure: The Distribution of World Income)Refer to the figure.Based on the data in the figure,about how many times wealthier is the richest country when compared to the poorest countries in the world?

Accepted Answer

A)  500 times 
B)  100 times 
C)  10 times 
D)  30 times 
A)  500 times 
B)  100 times 
C)  10 times 
D)  30 times

Question 19

For most of human history,essentially everyone was poor by today's standards.

Accepted Answer

A) True 
 B)False

Question 20

For most of recorded human history,there was no long-run growth in real per capita GDP.

Accepted Answer

A) True 
 B)False

Exam 7: The Wealth of Nations and Economic Growth

The difference between per capita GDP in North Korea and South Korea is due to:

Countries with high GDP per capita tend to have a lot of:

Technical knowledge is considered an immediate cause of national wealth.

What is a result of a high level of government corruption?

Which of the following does NOT lead to economic growth?

Today,real GDP per capita is about _____ as large in the richest countries as in the poorest countries.

Why is it important to remember that all countries used to be poor,that some countries remain poor today while others are rich,and that the difference between the rich and poor today is vast?

High-income economies generally have _____ that incentivize individuals' self-interest by using _____.

Technological knowledge is the:

Physical capital is the:

From 1950 to 1970 Japan's growth rate was:

A FedEx truck is an example of:

For most of recorded history,there was long-run growth in real per-capita GDP.

Which of the following is NOT a kind of institution that encourages investment and the efficient organization of resources?

Someone who consumes a resource without contributing to its upkeep is referred to as a:

Institutions ultimately come from:

Use the following to answer questions Figure: The Distribution of World Income -(Figure: The Distribution of World Income)Refer to the figure.Based on the data in the figure,living standards in the United States are about how many times higher than the world average?

Use the following to answer questions Figure: The Distribution of World Income -(Figure: The Distribution of World Income)Refer to the figure.Based on the data in the figure,about how many times wealthier is the richest country when compared to the poorest countries in the world?

For most of human history,essentially everyone was poor by today's standards.

For most of recorded human history,there was no long-run growth in real per capita GDP.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

High-income economies generally have _ that incentivize individuals' self-interest by using _.