Question 1

A reduction in a country's saving rate will tend to cause which of the following in the long run?

Accepted Answer

A)  an increase in the standard of living 
B)  a reduction in economic growth 
C)  an increase in labor productivity 
D)  an increase in per capita real GDP 
A)  an increase in the standard of living 
B)  a reduction in economic growth 
C)  an increase in labor productivity 
D)  an increase in per capita real GDP

Question 2

A constant rate of U.S. economic growth over a given period of years would involve

Accepted Answer

A)  adding the same amount of nominal dollars to real GDP per capita each year. 
B)  adding the same amount of real dollars to real GDP per capita each year. 
C)  compounding the percentage increase in real GDP per capita over the years. 
D)  None of the above are correct. 
A)  adding the same amount of nominal dollars to real GDP per capita each year. 
B)  adding the same amount of real dollars to real GDP per capita each year. 
C)  compounding the percentage increase in real GDP per capita over the years. 
D)  None of the above are correct.

Question 3

A country facing secular stagnation most likely experiences

Accepted Answer

A)  high inflation. 
B)  small changes in economic output over time. 
C)  large increases in government spending. 
D)  very high population growth and private spending growth. 
A)  high inflation. 
B)  small changes in economic output over time. 
C)  large increases in government spending. 
D)  very high population growth and private spending growth.

Question 4

Does economic growth have any negative side effects?

Accepted Answer

A)  No. Every person in a nation experiencing economic growth will benefit. 
B)  No, because where negative side effects do occur, a nation's government is required to neutralize them 
C)  Quite possibly. Some say economic growth puts people on a never-ending quest to satisfy newly created wants, so we always feel disappointed with our lives. 
D)  Yes, but only for the poorest segment of a nation's population 
A)  No. Every person in a nation experiencing economic growth will benefit. 
B)  No, because where negative side effects do occur, a nation's government is required to neutralize them 
C)  Quite possibly. Some say economic growth puts people on a never-ending quest to satisfy newly created wants, so we always feel disappointed with our lives. 
D)  Yes, but only for the poorest segment of a nation's population

Question 5

A key idea of the new growth theory is that

Accepted Answer

A)  technology is not an important determinant of economic growth. 
B)  economic growth is not as important as leisure time growth. 
C)  the greater the rewards for technological advances, the greater the number of technological advances. 
D)  the rewards associated with technological advances have little to do with the actual rate of invention or innovation. 
A)  technology is not an important determinant of economic growth. 
B)  economic growth is not as important as leisure time growth. 
C)  the greater the rewards for technological advances, the greater the number of technological advances. 
D)  the rewards associated with technological advances have little to do with the actual rate of invention or innovation.

Question 6

When a nation's real per capita Gross Domestic Product (GDP) increases, which of the following is TRUE?

Accepted Answer

A)  Every individual in that nation shares in the economic gain. 
B)  A nation must channel most of the economic gains to its poorest citizens. 
C)  Low income people are guaranteed to lose; they never share in their nation's economic gains. 
D)  We don't know who has most benefited from economic growth unless we look at the distribution of income. 
A)  Every individual in that nation shares in the economic gain. 
B)  A nation must channel most of the economic gains to its poorest citizens. 
C)  Low income people are guaranteed to lose; they never share in their nation's economic gains. 
D)  We don't know who has most benefited from economic growth unless we look at the distribution of income.

Question 7

Labor productivity is

Accepted Answer

A)  the average amount produced times the number of workers. 
B)  the average amount produced times the number of people in the labor force. 
C)  the average amount produced per worker. 
D)  the rate of change in the total amount produced per worker. 
A)  the average amount produced times the number of workers. 
B)  the average amount produced times the number of people in the labor force. 
C)  the average amount produced per worker. 
D)  the rate of change in the total amount produced per worker.

Question 8

-Refer to the above table. Which country has the lowest increase in per capita real GDP between 2017 and 2018?

Accepted Answer

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

Question 9

According to new growth theorists, more technological improvements can be brought about by

Accepted Answer

A)  a government policy that encourages increased consumption. 
B)  government policies that lead to increases in human capital. 
C)  tougher immigration laws. 
D)  the government taking a more active role in regulating industries. 
A)  a government policy that encourages increased consumption. 
B)  government policies that lead to increases in human capital. 
C)  tougher immigration laws. 
D)  the government taking a more active role in regulating industries.

Question 10

The study of factors that contribute to the economic growth of a country is known as

Accepted Answer

A)  natural resource economics. 
B)  entrepreneurial economics. 
C)  development economics. 
D)  savings economics. 
A)  natural resource economics. 
B)  entrepreneurial economics. 
C)  development economics. 
D)  savings economics.

Question 11

According to the text, the term "Eurosclerosis" refers to

Accepted Answer

A)  stagnant economic growth in Europe. 
B)  the cumulative effects of high productivity growth in Europe. 
C)  the differing views about the growth rates of European countries. 
D)  a long period of higher growth rates among European countries than the growth rates of the United rates. 
A)  stagnant economic growth in Europe. 
B)  the cumulative effects of high productivity growth in Europe. 
C)  the differing views about the growth rates of European countries. 
D)  a long period of higher growth rates among European countries than the growth rates of the United rates.

Question 12

Patents stimulate technological advance by

Accepted Answer

A)  making capital more productive. 
B)  enabling the government to determine which potential technological advances firms should pursue. 
C)  providing information about the status of technical knowledge in the economy. 
D)  allowing inventors to capture the economic rewards of their inventions. 
A)  making capital more productive. 
B)  enabling the government to determine which potential technological advances firms should pursue. 
C)  providing information about the status of technical knowledge in the economy. 
D)  allowing inventors to capture the economic rewards of their inventions.

Question 13

-Refer to the above table (all figures in millions). Which country experienced the greatest economic growth from 2017 to 2018?

Accepted Answer

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

Question 14

Economic growth tends to be higher in a country that

Accepted Answer

A)  has a low saving rate. 
B)  has an open economy that encourages the rapid spread of technology. 
C)  has an undeveloped system of property rights. 
D)  does not grant patents to investors. 
A)  has a low saving rate. 
B)  has an open economy that encourages the rapid spread of technology. 
C)  has an undeveloped system of property rights. 
D)  does not grant patents to investors.

Question 15

When considering international trade, which of the following would be most conducive to domestic economic growth?

Accepted Answer

A)  a closed economy 
B)  an economy in which its domestic industries are protected by tariffs 
C)  an economy with free and open markets to the outside world 
D)  an economy in which most decisions are made by a central governmental authority 
A)  a closed economy 
B)  an economy in which its domestic industries are protected by tariffs 
C)  an economy with free and open markets to the outside world 
D)  an economy in which most decisions are made by a central governmental authority

Question 16

When examining the growth record of any nation

Accepted Answer

A)  all that must be examined is increases in per capital real GDP. 
B)  no consideration should be given to the change in the average amount of leisure time in the nation. 
C)  increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted. 
D)  we must consider which income groups have benefited most from the growth. 
A)  all that must be examined is increases in per capital real GDP. 
B)  no consideration should be given to the change in the average amount of leisure time in the nation. 
C)  increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted. 
D)  we must consider which income groups have benefited most from the growth.

Question 17

Why are economic growth and saving related?

Accepted Answer

To consume more in the future

Question 18

Labor productivity measures

Accepted Answer

A)  the growth of per capita real GDP. 
B)  the growth of real output. 
C)  real output per labor hour. 
D)  the growth in the quantity of labor. 
A)  the growth of per capita real GDP. 
B)  the growth of real output. 
C)  real output per labor hour. 
D)  the growth in the quantity of labor.

Question 19

Labor productivity can be increased with

Accepted Answer

A)  education and training of the workforce. 
B)  an increase in capital goods used. 
C)  improvements in management. 
D)  all of the above 
A)  education and training of the workforce. 
B)  an increase in capital goods used. 
C)  improvements in management. 
D)  all of the above

Question 20

In the United States, the main contributor to economic growth is due to the growth in

Accepted Answer

A)  physical capital. 
B)  education (human capital). 
C)  labor resources. 
D)  capital and labor productivity. 
A)  physical capital. 
B)  education (human capital). 
C)  labor resources. 
D)  capital and labor productivity.

Exam 9: Global Economic Growth and Development

A reduction in a country's saving rate will tend to cause which of the following in the long run?

A constant rate of U.S. economic growth over a given period of years would involve

A country facing secular stagnation most likely experiences

Does economic growth have any negative side effects?

A key idea of the new growth theory is that

When a nation's real per capita Gross Domestic Product (GDP) increases, which of the following is TRUE?

Labor productivity is

-Refer to the above table. Which country has the lowest increase in per capita real GDP between 2017 and 2018?

According to new growth theorists, more technological improvements can be brought about by

The study of factors that contribute to the economic growth of a country is known as

According to the text, the term "Eurosclerosis" refers to

Patents stimulate technological advance by

-Refer to the above table (all figures in millions). Which country experienced the greatest economic growth from 2017 to 2018?

Economic growth tends to be higher in a country that

When considering international trade, which of the following would be most conducive to domestic economic growth?

When examining the growth record of any nation

Why are economic growth and saving related?

Labor productivity measures

Labor productivity can be increased with

In the United States, the main contributor to economic growth is due to the growth in

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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