Question 1

Which of the following variables is used to measure economic growth?

Accepted Answer

A)  nominal GDP 
B)  nominal GDP per capita 
C)  real GDP 
D)  real GDP per capita 
A)  nominal GDP 
B)  nominal GDP per capita 
C)  real GDP 
D)  real GDP per capita

Question 2

Countries are concerned about small changes in their average annual growth rates in per capita income because

Accepted Answer

A)  growth rates tend to decline over time. 
B)  the power of compounding means small changes have large effects over time. 
C)  the faster a country grows today, the less it will be able to consume in the future. 
D)  growth rates are a factor in U.N. participation. 
A)  growth rates tend to decline over time. 
B)  the power of compounding means small changes have large effects over time. 
C)  the faster a country grows today, the less it will be able to consume in the future. 
D)  growth rates are a factor in U.N. participation.

Question 3

Thomas Robert Malthus believed

Accepted Answer

A)  that food supplies would always be more than sufficient to feed the world's population. 
B)  that the world's population would eventually exceed the amount food supplies can support. 
C)  that population growth was good for the world. 
D)  that population growth would eventually lead to an increase in the quality of life for everyone. 
A)  that food supplies would always be more than sufficient to feed the world's population. 
B)  that the world's population would eventually exceed the amount food supplies can support. 
C)  that population growth was good for the world. 
D)  that population growth would eventually lead to an increase in the quality of life for everyone.

Question 4

Labor productivity can be increased if

Accepted Answer

A)  people spend less time developing skills before entering the workforce. 
B)  the government mandates it. 
C)  there is an increase in capital goods. 
D)  the standard of living declines. 
A)  people spend less time developing skills before entering the workforce. 
B)  the government mandates it. 
C)  there is an increase in capital goods. 
D)  the standard of living declines.

Question 5

The study of development economics is to understand

Accepted Answer

A)  why some products are successful in the market as soon as they are developed, whereas others do not catch on for years. 
B)  why most of the patents on record have been given to men rather than to women. 
C)  why some countries are rich and others are poor. 
D)  the personality factors that lead people to become entrepreneurs. 
A)  why some products are successful in the market as soon as they are developed, whereas others do not catch on for years. 
B)  why most of the patents on record have been given to men rather than to women. 
C)  why some countries are rich and others are poor. 
D)  the personality factors that lead people to become entrepreneurs.

Question 6

Graphically, economic growth is represented as

Accepted Answer

A)  a movement along the production possibilities curve. 
B)  a movement from a point inside the production possibilities curve to a point on the curve itself. 
C)  an inward shift of the production possibilities curve. 
D)  an outward shift of the production possibilities curve. 
A)  a movement along the production possibilities curve. 
B)  a movement from a point inside the production possibilities curve to a point on the curve itself. 
C)  an inward shift of the production possibilities curve. 
D)  an outward shift of the production possibilities curve.

Question 7

-Refer to the above table. Which country had the highest growth rate of real Gross Domestic Product (GDP) from 2017 to 2018?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
A)  A 
B)  B 
C)  C 
D)  D

Question 8

The variable used to measure economic growth is

Accepted Answer

A)  the growth of the money supply. 
B)  the trade surplus. 
C)  the growth in per capita real GDP. 
D)  the number of new jobs created. 
A)  the growth of the money supply. 
B)  the trade surplus. 
C)  the growth in per capita real GDP. 
D)  the number of new jobs created.

Question 9

A patent is

Accepted Answer

A)  a government protection that gives an inventor the exclusive right to the invention for a limited time period. 
B)  a government protection that gives an inventor the exclusive right to the invention for an unlimited time period. 
C)  the right to make a product and sell it at a reasonable price. 
D)  a recognizable right to the profits associated with a new product or new way of making goods granted by business associations. 
A)  a government protection that gives an inventor the exclusive right to the invention for a limited time period. 
B)  a government protection that gives an inventor the exclusive right to the invention for an unlimited time period. 
C)  the right to make a product and sell it at a reasonable price. 
D)  a recognizable right to the profits associated with a new product or new way of making goods granted by business associations.

Question 10

A one percentage point in the growth rate

Accepted Answer

A)  does not make much difference in the long run per capita real GDP. 
B)  will not influence the real standard of living in a country. 
C)  can make a big difference in the per capita real GDP because of urban congestion. 
D)  can make a big difference in the per capita real GDP because of compounding. 
A)  does not make much difference in the long run per capita real GDP. 
B)  will not influence the real standard of living in a country. 
C)  can make a big difference in the per capita real GDP because of urban congestion. 
D)  can make a big difference in the per capita real GDP because of compounding.

Question 11

Suppose that Country A and Country B each had the same per capita real Gross Domestic Product (GDP) of $10,000 in 2013. Country A's per capital real Gross Domestic Product (GDP) had a growth rate of 3 percent per year and Country B's per capital real Gross Domestic Product (GDP) had a growth rate of 4 percent per year. By 2018, the per-capita real Gross Domestic Product (GDP) for the two countries, respectively, were

Accepted Answer

A)  $11,941 and $12,653. 
B)  $11,593 and $12,167. 
C)  $10,300 and $10,400. 
D)  $14,000 and $16,000. 
A)  $11,941 and $12,653. 
B)  $11,593 and $12,167. 
C)  $10,300 and $10,400. 
D)  $14,000 and $16,000.

Question 12

Which of the following do development economists NOT recommend to nations seeking to increase their rates of economic growth?

Accepted Answer

A)  protecting home producers from international competition 
B)  letting creative destruction run its course 
C)  promoting increased education 
D)  promoting private property rights 
A)  protecting home producers from international competition 
B)  letting creative destruction run its course 
C)  promoting increased education 
D)  promoting private property rights

Question 13

Of the following nations, the country with the highest saving rate is

Accepted Answer

A)  the United States. 
B)  Japan. 
C)  Mexico. 
D)  Ethiopia. 
A)  the United States. 
B)  Japan. 
C)  Mexico. 
D)  Ethiopia.

Question 14

Explain Paul Romer's ideas concerning economic growth.

Accepted Answer

Romer argues that knowledge is a factor

Question 15

When looking at economic growth in a country, the distribution of output and income

Accepted Answer

A)  generally follows predictable patterns. 
B)  is not taken into consideration. 
C)  is skewed toward the lowest quintile of the population. 
D)  is shared equally. 
A)  generally follows predictable patterns. 
B)  is not taken into consideration. 
C)  is skewed toward the lowest quintile of the population. 
D)  is shared equally.

Question 16

The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from

Accepted Answer

A)  capital accumulation. 
B)  increased gross investment. 
C)  technological progress. 
D)  an increase in per capita real income. 
A)  capital accumulation. 
B)  increased gross investment. 
C)  technological progress. 
D)  an increase in per capita real income.

Question 17

Which of the following is most likely to reduce the rate of economic growth?

Accepted Answer

A)  a high domestic saving rate 
B)  investment in human capital 
C)  subsidies for R&D activities 
D)  slow technological progress 
A)  a high domestic saving rate 
B)  investment in human capital 
C)  subsidies for R&D activities 
D)  slow technological progress

Question 18

An outward shift of the production possibilities curve represents

Accepted Answer

A)  economic contraction. 
B)  economic growth. 
C)  economic recession. 
D)  economic inflation. 
A)  economic contraction. 
B)  economic growth. 
C)  economic recession. 
D)  economic inflation.

Question 19

According to the text, data supports the conclusion that lower trade barriers

Accepted Answer

A)  help boost per capita real Gross Domestic Product (GDP) growth. 
B)  help to increase welfare payments. 
C)  decrease the standard of living in the country. 
D)  decrease life expectancy. 
A)  help boost per capita real Gross Domestic Product (GDP) growth. 
B)  help to increase welfare payments. 
C)  decrease the standard of living in the country. 
D)  decrease life expectancy.

Question 20

In the United States, a patent lasts

Accepted Answer

A)  7 years. 
B)  14 years. 
C)  20 years. 
D)  forever. 
A)  7 years. 
B)  14 years. 
C)  20 years. 
D)  forever.

Exam 9: Global Economic Growth and Development

Which of the following variables is used to measure economic growth?

Countries are concerned about small changes in their average annual growth rates in per capita income because

Thomas Robert Malthus believed

Labor productivity can be increased if

The study of development economics is to understand

Graphically, economic growth is represented as

-Refer to the above table. Which country had the highest growth rate of real Gross Domestic Product (GDP) from 2017 to 2018?

The variable used to measure economic growth is

A patent is

A one percentage point in the growth rate

Which of the following do development economists NOT recommend to nations seeking to increase their rates of economic growth?

Of the following nations, the country with the highest saving rate is

Explain Paul Romer's ideas concerning economic growth.

When looking at economic growth in a country, the distribution of output and income

The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from

Which of the following is most likely to reduce the rate of economic growth?

An outward shift of the production possibilities curve represents

According to the text, data supports the conclusion that lower trade barriers

In the United States, a patent lasts

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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