Question 1

Limiting protectionism means

Accepted Answer

A)  reducing trade barriers. 
B)  reducing corruption. 
C)  reducing consumer fraud. 
D)  reducing political dishonesty. 
A)  reducing trade barriers. 
B)  reducing corruption. 
C)  reducing consumer fraud. 
D)  reducing political dishonesty.

Question 2

The benefits from research and development activities

Accepted Answer

A)  are limited to the firm winning a patent. 
B)  are limited to the firms investing in similar research and development projects. 
C)  are limited to the nation in which the research and development is taking place. 
D)  spill over to others, including foreign residents. 
A)  are limited to the firm winning a patent. 
B)  are limited to the firms investing in similar research and development projects. 
C)  are limited to the nation in which the research and development is taking place. 
D)  spill over to others, including foreign residents.

Question 3

Many countries find it difficult to achieve economic growth. This is because economic growth

Accepted Answer

A)  is not understood well by economists, so it is difficult to advise policy makers on the best policies to pursue. 
B)  requires saving, and saving means less consumption today. A poor country may find it difficult to consume less today. 
C)  appears to be predetermined and not subject to factors that policy makers can have any affect on. 
D)  depends on technological change and technological change depends on noneconomic factors such as the growth rate of scientific knowledge. 
A)  is not understood well by economists, so it is difficult to advise policy makers on the best policies to pursue. 
B)  requires saving, and saving means less consumption today. A poor country may find it difficult to consume less today. 
C)  appears to be predetermined and not subject to factors that policy makers can have any affect on. 
D)  depends on technological change and technological change depends on noneconomic factors such as the growth rate of scientific knowledge.

Question 4

All of the following will cause the reported growth rate in a country to change EXCEPT

Accepted Answer

A)  population changes. 
B)  changes in the number of poor people in the country. 
C)  a shift of the production possibilities curve. 
D)  changes in productivity. 
A)  population changes. 
B)  changes in the number of poor people in the country. 
C)  a shift of the production possibilities curve. 
D)  changes in productivity.

Question 5

Would one expect economic growth to be higher or lower in a country that had poorly defined property rights? Why?

Accepted Answer

Lower, because entrepreneurs are more li

Question 6

Which of the following is an example of a measure of labor productivity?

Accepted Answer

A)  Factory workers produce 100 units of TVs per worker per day. 
B)  Autos get 20 gallons to the mile. 
C)  A household's income increased by 3 percent last year. 
D)  Wages increase by 3 percent per year for 5 years. 
A)  Factory workers produce 100 units of TVs per worker per day. 
B)  Autos get 20 gallons to the mile. 
C)  A household's income increased by 3 percent last year. 
D)  Wages increase by 3 percent per year for 5 years.

Question 7

Creative destruction refers to

Accepted Answer

A)  the destruction of the government system which limits economic growth. 
B)  the movement from an agricultural society to a service economy. 
C)  the mechanism for establishing property rights. 
D)  the creation of new jobs and economic growth after destroying old jobs. 
A)  the destruction of the government system which limits economic growth. 
B)  the movement from an agricultural society to a service economy. 
C)  the mechanism for establishing property rights. 
D)  the creation of new jobs and economic growth after destroying old jobs.

Question 8

There has been some concern in the United States that people are NOT saving enough. This is a concern because

Accepted Answer

A)  decreases in saving lead to decreases in labor productivity. 
B)  decreases in saving lead to decreases in investment. 
C)  decreases in saving lead to increases in the capital stock. 
D)  decreases in saving lead to increases in consumption in the future. 
A)  decreases in saving lead to decreases in labor productivity. 
B)  decreases in saving lead to decreases in investment. 
C)  decreases in saving lead to increases in the capital stock. 
D)  decreases in saving lead to increases in consumption in the future.

Question 9

The reason that the government offers inventors exclusive rights to their product for a period of time is to

Accepted Answer

A)  reduce market concentration. 
B)  increase profits of certain companies. 
C)  maximize consumer utility. 
D)  promote innovation. 
A)  reduce market concentration. 
B)  increase profits of certain companies. 
C)  maximize consumer utility. 
D)  promote innovation.

Question 10

According to the text, a person born in the United State in 1960 would have observed

Accepted Answer

A)  a 20 percent decrease in U.S. real GDP per capita by the end of 1980. 
B)  an 80 percent increase in U.S. real GDP per capita by the end of 1980. 
C)  nearly no change in U.S. real GDP per capita by the end of 1980. 
D)  an average annual rate of 8 percent growth in U.S. real GDP through 1980. 
A)  a 20 percent decrease in U.S. real GDP per capita by the end of 1980. 
B)  an 80 percent increase in U.S. real GDP per capita by the end of 1980. 
C)  nearly no change in U.S. real GDP per capita by the end of 1980. 
D)  an average annual rate of 8 percent growth in U.S. real GDP through 1980.

Exam 9: Global Economic Growth and Development

Limiting protectionism means

The benefits from research and development activities

Many countries find it difficult to achieve economic growth. This is because economic growth

All of the following will cause the reported growth rate in a country to change EXCEPT

Would one expect economic growth to be higher or lower in a country that had poorly defined property rights? Why?

Which of the following is an example of a measure of labor productivity?

Creative destruction refers to

There has been some concern in the United States that people are NOT saving enough. This is a concern because

The reason that the government offers inventors exclusive rights to their product for a period of time is to

According to the text, a person born in the United State in 1960 would have observed

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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