Question 1

When there is a building that is used for production, but no one has clear property rights to it

Accepted Answer

A)  resources are guided to their best use by "the invisible hand." 
B)  this is known as "dead capital" and causes efficient production. 
C)  this is known as "dead capital" and causes no production. 
D)  this is known as "dead capital" and causes inefficient production. 
A)  resources are guided to their best use by "the invisible hand." 
B)  this is known as "dead capital" and causes efficient production. 
C)  this is known as "dead capital" and causes no production. 
D)  this is known as "dead capital" and causes inefficient production.

Question 2

Political freedom seems to be ________ important to growth than economic freedom.

Accepted Answer

A)  less 
B)  more 
C)  equally 
D)  critically 
A)  less 
B)  more 
C)  equally 
D)  critically

Question 3

The international unit of accounting used by the IMF is the

Accepted Answer

A)  euro. 
B)  gold standard. 
C)  special drawing right. 
D)  dollar. 
A)  euro. 
B)  gold standard. 
C)  special drawing right. 
D)  dollar.

Question 4

Suppose that the real Gross Domestic Product (GDP) growth rate for a country was 3 percent and the population growth rate was 3 percent. What would the per capital real Gross Domestic Product (GDP) growth rate be for this country?

Accepted Answer

A)  6 percent 
B)  -6 percent 
C)  0 percent 
D)  None of the above 
A)  6 percent 
B)  -6 percent 
C)  0 percent 
D)  None of the above

Question 5

According to the text, population growth in many poor countries does NOT generally result in increased labor resources because

Accepted Answer

A)  many people do not join the labor force. 
B)  most people are not productive in their work. 
C)  many people work two jobs. 
D)  most jobs are for middle-age workers. 
A)  many people do not join the labor force. 
B)  most people are not productive in their work. 
C)  many people work two jobs. 
D)  most jobs are for middle-age workers.

Question 6

For foreign direct investment to occur, the purchase has to be more than

Accepted Answer

A)  2 percent but less than 5 percent of shares in a business located abroad. 
B)  5 percent but less than 10 percent of shares in a business located abroad. 
C)  8 percent but less than 10 percent of shares in a business located abroad. 
D)  10 percent of shares in a business located abroad. 
A)  2 percent but less than 5 percent of shares in a business located abroad. 
B)  5 percent but less than 10 percent of shares in a business located abroad. 
C)  8 percent but less than 10 percent of shares in a business located abroad. 
D)  10 percent of shares in a business located abroad.

Question 7

The role that dead capital plays in a country's economic growth is that

Accepted Answer

A)  growth increases because the dead capital is replaced with more technologically efficient capital. 
B)  growth increases since the firms using the dead capital are using it for free. 
C)  growth neither increases nor is impaired by dead capital. 
D)  growth is impaired since the capital cannot be allocated to its most efficient use. 
A)  growth increases because the dead capital is replaced with more technologically efficient capital. 
B)  growth increases since the firms using the dead capital are using it for free. 
C)  growth neither increases nor is impaired by dead capital. 
D)  growth is impaired since the capital cannot be allocated to its most efficient use.

Question 8

According to the text, a country with a considerable amount of economic freedom will experience

Accepted Answer

A)  positive rates of per capita income growth. 
B)  negative rates of per capita income growth. 
C)  low levels of political freedom. 
D)  dead capital. 
A)  positive rates of per capita income growth. 
B)  negative rates of per capita income growth. 
C)  low levels of political freedom. 
D)  dead capital.

Question 9

If the World Bank makes loans to nations that can attract private funds

Accepted Answer

A)  the increase in growth in that nation will spill over to other nations that are developing. 
B)  these loans will interfere in the private market for capital goods and can lead to inefficient investment. 
C)  the World Bank's loans will crowd out the private funds made to developing nations to encourage economic growth. 
D)  the presence of the World Bank's loans will lead to even more private funds being attracted to that country. 
A)  the increase in growth in that nation will spill over to other nations that are developing. 
B)  these loans will interfere in the private market for capital goods and can lead to inefficient investment. 
C)  the World Bank's loans will crowd out the private funds made to developing nations to encourage economic growth. 
D)  the presence of the World Bank's loans will lead to even more private funds being attracted to that country.

Question 10

According to the text, the average annual growth rate of real GDP during the 2000-2017 period was about ________ for advanced nations and about ________ for emerging and developing nations.

Accepted Answer

A)  5%; 4% 
B)  7%; 2% 
C)  4.5%; 4.5% 
D)  3%; 6% 
A)  5%; 4% 
B)  7%; 2% 
C)  4.5%; 4.5% 
D)  3%; 6%

Question 11

The World Bank was formed in

Accepted Answer

A)  1919. 
B)  1945. 
C)  1960. 
D)  1980. 
A)  1919. 
B)  1945. 
C)  1960. 
D)  1980.

Question 12

Dead capital is

Accepted Answer

A)  machinery that fails to operate properly. 
B)  machinery that requires constant maintenance. 
C)  a capital resource that lacks clear title of ownership. 
D)  a capital resource that depreciates rapidly. 
A)  machinery that fails to operate properly. 
B)  machinery that requires constant maintenance. 
C)  a capital resource that lacks clear title of ownership. 
D)  a capital resource that depreciates rapidly.

Question 13

Since 2000, the overall growth rates among emerging countries have been

Accepted Answer

A)  positive but lower than the overall growth rates among advanced nations. 
B)  higher than the overall growth rates among advanced nations. 
C)  negative every year. 
D)  lower than the overall growth rates among other developing nations. 
A)  positive but lower than the overall growth rates among advanced nations. 
B)  higher than the overall growth rates among advanced nations. 
C)  negative every year. 
D)  lower than the overall growth rates among other developing nations.

Question 14

An international financial crisis will likely occur when

Accepted Answer

A)  the rate of money supply growth is not the same in all nations. 
B)  many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country. 
C)  newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition. 
D)  there is an increase in portfolio investment. 
A)  the rate of money supply growth is not the same in all nations. 
B)  many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country. 
C)  newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition. 
D)  there is an increase in portfolio investment.

Question 15

A multinational agency that specializes solely in making loans to promote long-term development and growth in developing countries is the

Accepted Answer

A)  Federal Reserve System. 
B)  World Bank. 
C)  International Monetary Fund. 
D)  International World Fund. 
A)  Federal Reserve System. 
B)  World Bank. 
C)  International Monetary Fund. 
D)  International World Fund.

Question 16

A nation's account with the International Monetary Fund is known as

Accepted Answer

A)  a quota subscription. 
B)  special drawing rights. 
C)  gold standard. 
D)  international reserves. 
A)  a quota subscription. 
B)  special drawing rights. 
C)  gold standard. 
D)  international reserves.

Question 17

If population growth occurs while labor force participation does NOT increase,

Accepted Answer

A)  there may be no increase in labor resources or economic growth. 
B)  a nation's labor resources will still continue to increase in both quality and quantity. 
C)  economic growth will still continue because any population gain is a plus. 
D)  per capita GDP is likely to increase sharply. 
A)  there may be no increase in labor resources or economic growth. 
B)  a nation's labor resources will still continue to increase in both quality and quantity. 
C)  economic growth will still continue because any population gain is a plus. 
D)  per capita GDP is likely to increase sharply.

Question 18

Emerging nations refer to

Accepted Answer

A)  developed countries that have continued to experience high economic growth. 
B)  developing countries that has never experienced economic growth despite their potential. 
C)  developing countries that has experienced high economic growth so that they are closer to advanced-nation status. 
D)  countries that have per capita real GDP (Gross Domestic Product) levels beyond those of advanced nations. 
A)  developed countries that have continued to experience high economic growth. 
B)  developing countries that has never experienced economic growth despite their potential. 
C)  developing countries that has experienced high economic growth so that they are closer to advanced-nation status. 
D)  countries that have per capita real GDP (Gross Domestic Product) levels beyond those of advanced nations.

Question 19

It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to

Accepted Answer

A)  promote the increase of dead capital. 
B)  make more loans. 
C)  focus on basic market foundations of guaranteeing property and contract rights. 
D)  join forces and merge into one unit. 
A)  promote the increase of dead capital. 
B)  make more loans. 
C)  focus on basic market foundations of guaranteeing property and contract rights. 
D)  join forces and merge into one unit.

Question 20

One of the most significant barriers to economic growth in the world's poorest nations is

Accepted Answer

A)  environmental issues. 
B)  political freedom. 
C)  dead capital. 
D)  foreign government interference. 
A)  environmental issues. 
B)  political freedom. 
C)  dead capital. 
D)  foreign government interference.

Exam 18: Policies and Prospects for Global Economic Growth

When there is a building that is used for production, but no one has clear property rights to it

Political freedom seems to be ________ important to growth than economic freedom.

The international unit of accounting used by the IMF is the

Suppose that the real Gross Domestic Product (GDP) growth rate for a country was 3 percent and the population growth rate was 3 percent. What would the per capital real Gross Domestic Product (GDP) growth rate be for this country?

According to the text, population growth in many poor countries does NOT generally result in increased labor resources because

For foreign direct investment to occur, the purchase has to be more than

The role that dead capital plays in a country's economic growth is that

According to the text, a country with a considerable amount of economic freedom will experience

If the World Bank makes loans to nations that can attract private funds

According to the text, the average annual growth rate of real GDP during the 2000-2017 period was about ________ for advanced nations and about ________ for emerging and developing nations.

The World Bank was formed in

Dead capital is

Since 2000, the overall growth rates among emerging countries have been

An international financial crisis will likely occur when

A multinational agency that specializes solely in making loans to promote long-term development and growth in developing countries is the

A nation's account with the International Monetary Fund is known as

If population growth occurs while labor force participation does NOT increase,

Emerging nations refer to

It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to

One of the most significant barriers to economic growth in the world's poorest nations is

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

Global Economic Growth and Development

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

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

Filters

According to the text, the average annual growth rate of real GDP during the 2000-2017 period was about for advanced nations and about for emerging and developing nations.