Question 1

A country that grows at an average rate of 5% will double its living standard every 10 years.

Accepted Answer

A) True 
 B)False

Question 2

Technological knowledge is the stock of tools,including machines,structures,and equipment,used to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 3

Property rights are important institutions for encouraging investment because:

Accepted Answer

A)  they eliminate corruption. 
B)  they increase the average return to investing,thus increasing the overall level of investment in the economy. 
C)  people won't invest if they feel their property is at risk and that they may not realize a return on their investment. 
D)  they tend to support industrial sectors more than agricultural sectors. 
A)  they eliminate corruption. 
B)  they increase the average return to investing,thus increasing the overall level of investment in the economy. 
C)  people won't invest if they feel their property is at risk and that they may not realize a return on their investment. 
D)  they tend to support industrial sectors more than agricultural sectors.

Question 4

Knowledge of the computer software used by a business 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 5

Between 1978 and 1983,food production in China rose by 50% and 170 million people rose above the international poverty line.This occurred because of the:

Accepted Answer

A)  rising popularity of free-riding behavior in China. 
B)  the return to private property rights in farming. 
C)  the fall of communism in China. 
D)  the teaching of Mao Zedong. 
A)  rising popularity of free-riding behavior in China. 
B)  the return to private property rights in farming. 
C)  the fall of communism in China. 
D)  the teaching of Mao Zedong.

Question 6

Pure good luck can be an ultimate cause of economic growth.

Accepted Answer

A) True 
 B)False

Question 7

If real GDP per capita in a country was $14,000 in year 1 and $14,420 in year 2,then the economic growth rate for this country from year 1 to year 2 was:

Accepted Answer

A)  1%. 
B)  2%. 
C)  3%. 
D)  4%. 
A)  1%. 
B)  2%. 
C)  3%. 
D)  4%.

Question 8

Figure: Understanding the Wealth of Nations   Explain the role "organization" plays in determining the wealth of nations,as shown in Figure 7.5 (27.5)in the text.

Accepted Answer

Better organization of resources ensures

Question 9

Which country had a growth miracle beginning in the late 1970s?

Accepted Answer

A)  United States 
B)  Japan 
C)  North Korea 
D)  China 
A)  United States 
B)  Japan 
C)  North Korea 
D)  China

Question 10

Discuss China's agricultural productivity from 1949 to 1984.In your discussion,state the main factor(s)that altered its productivity during the 1949-1978 and 1978-1984 time periods.

Accepted Answer

This is a clear example of how

Question 11

Money is an example of physical capital.

Accepted Answer

A) True 
 B)False

Question 12

Economic growth has occurred during most of recorded human history.

Accepted Answer

A) True 
 B)False

Question 13

GDP per capita varies enormously among nations.

Accepted Answer

A) True 
 B)False

Question 14

Most of the world's population:

Accepted Answer

A)  is poor relative to the United States. 
B)  is about as well off as the average person in the United States. 
C)  is wealthy relative to the United States. 
D)  cannot be compared to the United States. 
A)  is poor relative to the United States. 
B)  is about as well off as the average person in the United States. 
C)  is wealthy relative to the United States. 
D)  cannot be compared to the United States.

Question 15

China's recent growth miracle is a result of institutional changes that began in the late 1970s.

Accepted Answer

A) True 
 B)False

Question 16

Which is considered an ultimate cause of economic growth?

Accepted Answer

A)  technological knowledge 
B)  physical capital 
C)  human capital 
D)  institutions 
A)  technological knowledge 
B)  physical capital 
C)  human capital 
D)  institutions

Question 17

Which statement explains why China experienced a dramatic increase in agricultural productivity after the 1970s?

Accepted Answer

A)  China started exporting its agricultural products to other countries. 
B)  China lifted the import restrictions on agricultural products. 
C)  China changed its institutions from collective farming to individual farming. 
D)  China changed its institutions from individual farming to collective farming. 
A)  China started exporting its agricultural products to other countries. 
B)  China lifted the import restrictions on agricultural products. 
C)  China changed its institutions from collective farming to individual farming. 
D)  China changed its institutions from individual farming to collective farming.

Question 18

Higher GDP per capita tends to be correlated with higher life expectancy,lower infant mortality,and better nutrition.

Accepted Answer

A) True 
 B)False

Question 19

The difference between human capital and physical capital is that human capital measures the intelligence we are born with and physical capital refers to the machines that we create with our intelligence.

Accepted Answer

A) True 
 B)False

Question 20

Wealthier nations have more conflicts than do poorer nations.

Accepted Answer

A) True 
 B)False

Exam 7: The Wealth of Nations and Economic Growth

A country that grows at an average rate of 5% will double its living standard every 10 years.

Technological knowledge is the stock of tools,including machines,structures,and equipment,used to produce goods and services.

Property rights are important institutions for encouraging investment because:

Knowledge of the computer software used by a business is an example of:

Between 1978 and 1983,food production in China rose by 50% and 170 million people rose above the international poverty line.This occurred because of the:

Pure good luck can be an ultimate cause of economic growth.

If real GDP per capita in a country was $14,000 in year 1 and $14,420 in year 2,then the economic growth rate for this country from year 1 to year 2 was:

Figure: Understanding the Wealth of Nations Explain the role "organization" plays in determining the wealth of nations,as shown in Figure 7.5 (27.5)in the text.

Which country had a growth miracle beginning in the late 1970s?

Discuss China's agricultural productivity from 1949 to 1984.In your discussion,state the main factor(s)that altered its productivity during the 1949-1978 and 1978-1984 time periods.

Money is an example of physical capital.

Economic growth has occurred during most of recorded human history.

GDP per capita varies enormously among nations.

Most of the world's population:

China's recent growth miracle is a result of institutional changes that began in the late 1970s.

Which is considered an ultimate cause of economic growth?

Which statement explains why China experienced a dramatic increase in agricultural productivity after the 1970s?

Higher GDP per capita tends to be correlated with higher life expectancy,lower infant mortality,and better nutrition.

The difference between human capital and physical capital is that human capital measures the intelligence we are born with and physical capital refers to the machines that we create with our intelligence.

Wealthier nations have more conflicts than do poorer nations.

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