Question 1

Which is considered an immediate cause of economic growth?

Accepted Answer

A)  good incentives 
B)  the extent of government support in free markets 
C)  physical capital 
D)  good luck 
A)  good incentives 
B)  the extent of government support in free markets 
C)  physical capital 
D)  good luck

Question 2

Compared to workers in most of the world,U.S.workers have:

Accepted Answer

A)  a relatively large amount of physical capital. 
B)  a relatively small amount of physical capital. 
C)  roughly the same amount of physical capital. 
D)  an unlimited supply of physical capital. 
A)  a relatively large amount of physical capital. 
B)  a relatively small amount of physical capital. 
C)  roughly the same amount of physical capital. 
D)  an unlimited supply of physical capital.

Question 3

Institutions ultimately come from:

Accepted Answer

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

Question 4

Which would be most effective in ensuring sustained long-term economic growth?

Accepted Answer

A)  increasing technological knowledge 
B)  increasing human capital 
C)  increasing government control of land use 
D)  increasing physical capital 
A)  increasing technological knowledge 
B)  increasing human capital 
C)  increasing government control of land use 
D)  increasing physical capital

Question 5

The most important factor that contributed to China's rapid growth at the end of the 1970s and early 1980s was:

Accepted Answer

A)  improvements in physical capital. 
B)  increases in human capital. 
C)  advances in technology. 
D)  institutional reforms. 
A)  improvements in physical capital. 
B)  increases in human capital. 
C)  advances in technology. 
D)  institutional reforms.

Question 6

Countries with low levels of GDP per capita tend to have lower rates of death caused by contagious disease.

Accepted Answer

A) True 
 B)False

Question 7

Countries that have corrupt governments tend to have lower real GDP per capita.

Accepted Answer

A) True 
 B)False

Question 8

One measure of student output is number of completed math problems produced.Using pen and paper only,a student can complete 50 math problems in 2 hours.Using pen,paper,and a calculator,the same student can complete 100 math problems in 2 hours.(The student is already familiar with,and knows how to use,the calculator. )This scenario illustrates the use of which factor of production?

Accepted Answer

A)  physical capital 
B)  human capital 
C)  technological knowledge 
D)  both human capital and technological knowledge 
A)  physical capital 
B)  human capital 
C)  technological knowledge 
D)  both human capital and technological knowledge

Question 9

For most of recorded history,economic growth has been:

Accepted Answer

A)  about the same as today. 
B)  virtually nonexistent. 
C)  a source of continuously rising living standards. 
D)  a way to equalize the distribution of wealth around the world. 
A)  about the same as today. 
B)  virtually nonexistent. 
C)  a source of continuously rising living standards. 
D)  a way to equalize the distribution of wealth around the world.

Question 10

A tractor 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 11

Relative to South Korea,Argentina was _____ in 1950 and _____ in 2000.

Accepted Answer

A)  poor;poor 
B)  rich;rich 
C)  poor;rich 
D)  rich;poor 
A)  poor;poor 
B)  rich;rich 
C)  poor;rich 
D)  rich;poor

Question 12

The world's average level of GDP per capita is $10,515 as of 2011.This is about the same as the living standard in which nation?

Accepted Answer

A)  China 
B)  Mexico 
C)  Nigeria 
D)  India 
A)  China 
B)  Mexico 
C)  Nigeria 
D)  India

Question 13

China's impressive growth in recent decades is a result of institutional changes that provided secure property rights and the ownership of private land.

Accepted Answer

A) True 
 B)False

Question 14

Two thousand years ago,per capita GDP (in 2010 dollars)was:

Accepted Answer

A)  less than $1,000. 
B)  about $10,000. 
C)  more than $50,000. 
D)  about the same as today. 
A)  less than $1,000. 
B)  about $10,000. 
C)  more than $50,000. 
D)  about the same as today.

Question 15

Use the following to answer questions 
Figure: Economic Growth in Major World Regions  
-(Figure: Economic Growth in Major World Regions)Refer to the figure,which shows real GDP per capita over time in different regions of the world.The chart shows that living standards in different regions began to _____ at the beginning of the nineteenth century.

Accepted Answer

A)  diverge 
B)  converge 
C)  equalize 
D)  fall 
A)  diverge 
B)  converge 
C)  equalize 
D)  fall

Question 16

Which best describes the growth process from its ultimate to its immediate causes?

Accepted Answer

A)  incentives F1F1F1S1F1F1F10 institutions F1F1F1S1F1F1F10 factors of production F1F1F1S1F1F1F10 real GDP per capita 
B)  institutions F1F1F1S1F1F1F10 incentives F1F1F1S1F1F1F10 factors of production F1F1F1S1F1F1F10 real GDP per capita 
C)  factors of production F1F1F1S1F1F1F10 incentivesF1F1F1S1F1F1F10 institutions F1F1F1S1F1F1F10 real GDP per capita 
D)  factors of production F1F1F1S1F1F1F10 institutionsF1F1F1S1F1F1F10 incentives F1F1F1S1F1F1F10 real GDP per capita 
A)  incentives F1F1F1S1F1F1F10 institutions F1F1F1S1F1F1F10 factors of production F1F1F1S1F1F1F10 real GDP per capita 
B)  institutions F1F1F1S1F1F1F10 incentives F1F1F1S1F1F1F10 factors of production F1F1F1S1F1F1F10 real GDP per capita 
C)  factors of production F1F1F1S1F1F1F10 incentivesF1F1F1S1F1F1F10 institutions F1F1F1S1F1F1F10 real GDP per capita 
D)  factors of production F1F1F1S1F1F1F10 institutionsF1F1F1S1F1F1F10 incentives F1F1F1S1F1F1F10 real GDP per capita

Question 17

The least corrupt countries tend to be located on which continent?

Accepted Answer

A)  Asia 
B)  North America 
C)  South America 
D)  Europe 
A)  Asia 
B)  North America 
C)  South America 
D)  Europe

Question 18

Two countries that may be considered examples of growth miracles are:

Accepted Answer

A)  Mexico and China. 
B)  the United States and Spain. 
C)  Denmark and Luxembourg. 
D)  South Korea and Japan. 
A)  Mexico and China. 
B)  the United States and Spain. 
C)  Denmark and Luxembourg. 
D)  South Korea and Japan.

Question 19

Every year,1.8 million children in poor countries die of diarrhea.Which is most effective in preventing these deaths?

Accepted Answer

A)  government subsidies 
B)  political reform 
C)  economic growth 
D)  humanitarian aid 
A)  government subsidies 
B)  political reform 
C)  economic growth 
D)  humanitarian aid

Question 20

Which of the following has the greatest potential for solving free-rider problems?

Accepted Answer

A)  property rights 
B)  a stable political system 
C)  an honest government 
D)  the rule of law 
A)  property rights 
B)  a stable political system 
C)  an honest government 
D)  the rule of law

Which is considered an immediate cause of economic growth?

Compared to workers in most of the world,U.S.workers have:

Institutions ultimately come from:

Which would be most effective in ensuring sustained long-term economic growth?

The most important factor that contributed to China's rapid growth at the end of the 1970s and early 1980s was:

Countries with low levels of GDP per capita tend to have lower rates of death caused by contagious disease.

Countries that have corrupt governments tend to have lower real GDP per capita.

For most of recorded history,economic growth has been:

A tractor is an example of:

Relative to South Korea,Argentina was _ in 1950 and _ in 2000.

The world's average level of GDP per capita is $10,515 as of 2011.This is about the same as the living standard in which nation?

China's impressive growth in recent decades is a result of institutional changes that provided secure property rights and the ownership of private land.

Two thousand years ago,per capita GDP (in 2010 dollars)was:

Which best describes the growth process from its ultimate to its immediate causes?

The least corrupt countries tend to be located on which continent?

Two countries that may be considered examples of growth miracles are:

Every year,1.8 million children in poor countries die of diarrhea.Which is most effective in preventing these deaths?

Which of the following has the greatest potential for solving free-rider problems?

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

Exam 7: The Wealth of Nations and Economic Growth

Which is considered an immediate cause of economic growth?

Compared to workers in most of the world,U.S.workers have:

Institutions ultimately come from:

Which would be most effective in ensuring sustained long-term economic growth?

The most important factor that contributed to China's rapid growth at the end of the 1970s and early 1980s was:

Countries with low levels of GDP per capita tend to have lower rates of death caused by contagious disease.

Countries that have corrupt governments tend to have lower real GDP per capita.

For most of recorded history,economic growth has been:

A tractor is an example of:

Relative to South Korea,Argentina was _____ in 1950 and _____ in 2000.

The world's average level of GDP per capita is $10,515 as of 2011.This is about the same as the living standard in which nation?

China's impressive growth in recent decades is a result of institutional changes that provided secure property rights and the ownership of private land.

Two thousand years ago,per capita GDP (in 2010 dollars)was:

Which best describes the growth process from its ultimate to its immediate causes?

The least corrupt countries tend to be located on which continent?

Two countries that may be considered examples of growth miracles are:

Every year,1.8 million children in poor countries die of diarrhea.Which is most effective in preventing these deaths?

Which of the following has the greatest potential for solving free-rider problems?

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

Relative to South Korea,Argentina was _ in 1950 and _ in 2000.