Question 1

Globalization is positively associated with

Accepted Answer

A) poverty. 
B) declining rates of investment. 
C) declining standards of living. 
D) economic growth. 
A) poverty. 
B) declining rates of investment. 
C) declining standards of living. 
D) economic growth.

Question 2

From 1980 to 2014,the average annual growth rate for the Mexican economy has been 0.8 percent.Based on that growth rate and using the rule of 70,the number of years it will take real GDP per capita to double in Mexico is approximately

Accepted Answer

A) 9 years. 
B) 11 years. 
C) 56 years. 
D) 88 years. 
A) 9 years. 
B) 11 years. 
C) 56 years. 
D) 88 years.

Question 3

Which of the following explains the ability of the U.S.economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

Accepted Answer

A) continuing technological change 
B) immigration 
C) additions of a greater amount of capital of the same quality 
D) a decrease in the quality of labor 
A) continuing technological change 
B) immigration 
C) additions of a greater amount of capital of the same quality 
D) a decrease in the quality of labor

Question 4

Empirical evidence from 1960 to 2011 shows that convergence in economic growth is occurring in which of the following cases?

Accepted Answer

A) Low-income industrial countries are catching up to high-income industrial countries. 
B) Low-income developing countries are catching up to high-income industrial countries. 
C) Low-income industrial countries are catching up to high-income developing countries. 
D) All low-income countries are catching up to all high-income countries. 
A) Low-income industrial countries are catching up to high-income industrial countries. 
B) Low-income developing countries are catching up to high-income industrial countries. 
C) Low-income industrial countries are catching up to high-income developing countries. 
D) All low-income countries are catching up to all high-income countries.

Question 5

Knowledge capital is ________ in production and ________.As a result,firms ________ free ride.

Accepted Answer

A) nonrival;nonexcludable;can 
B) nonrival;excludable;can 
C) rival;nonexcludable;cannot 
D) nonrival;nonexcludable;cannot 
A) nonrival;nonexcludable;can 
B) nonrival;excludable;can 
C) rival;nonexcludable;cannot 
D) nonrival;nonexcludable;cannot

Question 6

Table 22-1
 $$\begin{array} { | l | c | c | } 
\hline \text { Country } & \begin{array} { c } 
G D P \
\text { (billions of dollars) }
\end{array} & \begin{array} { c } 
\text { Population } \
\text { (millions of people) }
\end{array} \
\hline \text { Sweden } & \$ 3.85 & 9.05 \
\hline \text { Ireland } & 2.23 & 4.21 \
\hline
\end{array}$$
-Refer to Table 22-1.Based on the table above,which country has a higher standard of living and why?

Accepted Answer

A) Sweden has a higher standard of living because their GDP is higher. 
B) Ireland has a higher standard of living because their GDP per capita is higher. 
C) Sweden has a higher standard of living because their GDP per capita is higher. 
D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden. 
A) Sweden has a higher standard of living because their GDP is higher. 
B) Ireland has a higher standard of living because their GDP per capita is higher. 
C) Sweden has a higher standard of living because their GDP per capita is higher. 
D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.

Question 7

What is human capital?

Accepted Answer

A) labor productivity 
B) buildings,equipment,and machinery owned by individuals rather than firms 
C) buildings,equipment,and machinery owned by firms 
D) the accumulated knowledge and skills that workers acquire from education,training,and their life experiences 
A) labor productivity 
B) buildings,equipment,and machinery owned by individuals rather than firms 
C) buildings,equipment,and machinery owned by firms 
D) the accumulated knowledge and skills that workers acquire from education,training,and their life experiences

Question 8

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an example of foreign portfolio investment?

Accepted Answer

A) the purchase of a U.S.stock by a U.S.citizen 
B) the purchase of a U.S.Treasury bond by a German citizen 
C) the purchase of a U.S.mutual fund by a U.S.citizen 
D) the purchase of a Japanese factory by a Korean citizen 
A) the purchase of a U.S.stock by a U.S.citizen 
B) the purchase of a U.S.Treasury bond by a German citizen 
C) the purchase of a U.S.mutual fund by a U.S.citizen 
D) the purchase of a Japanese factory by a Korean citizen

Question 10

Until recently,many developing countries

Accepted Answer

A) were quite open to foreign investment. 
B) encouraged foreign direct investment but discouraged foreign portfolio investment. 
C) sealed themselves off from foreign investment. 
D) encouraged foreign portfolio investment but discouraged foreign direct investment. 
A) were quite open to foreign investment. 
B) encouraged foreign direct investment but discouraged foreign portfolio investment. 
C) sealed themselves off from foreign investment. 
D) encouraged foreign portfolio investment but discouraged foreign direct investment.

Question 11

According to the World Bank,Albania does one of the worst jobs as a country enforcing the rule of law.The consequence of a weak rule of law is

Accepted Answer

A) difficulty in attracting investment and low economic growth. 
B) a decrease in cash transactions and increased efficiency. 
C) more risk taking on the part of entrepreneurs and greater economic investment. 
D) strong property rights enforcement leading to greater investment. 
A) difficulty in attracting investment and low economic growth. 
B) a decrease in cash transactions and increased efficiency. 
C) more risk taking on the part of entrepreneurs and greater economic investment. 
D) strong property rights enforcement leading to greater investment.

Question 12

Foreign direct investment in the United States declined 42 percent in the first quarter of 2009.This means that

Accepted Answer

A) people or firms in other countries reduced their purchases of stocks and bonds in the United States by 42 percent in the first quarter of 2009. 
B) people or firms in the United States reduced their purchases of stocks and bonds in foreign countries by 42 percent in the first quarter of 2009. 
C) people or firms in other countries reduced their building of facilities or purchases of facilities in the United States by 42 percent in the first quarter of 2009. 
D) people or firms in the United States reduced their building of facilities or purchases of facilities in foreign countries by 42 percent in the first quarter of 2009. 
A) people or firms in other countries reduced their purchases of stocks and bonds in the United States by 42 percent in the first quarter of 2009. 
B) people or firms in the United States reduced their purchases of stocks and bonds in foreign countries by 42 percent in the first quarter of 2009. 
C) people or firms in other countries reduced their building of facilities or purchases of facilities in the United States by 42 percent in the first quarter of 2009. 
D) people or firms in the United States reduced their building of facilities or purchases of facilities in foreign countries by 42 percent in the first quarter of 2009.

Question 13

The owner of a firm wants some advice on how to increase productivity.Suggest three ways the entrepreneur could increase labor productivity through improving technology.

Accepted Answer

There are three main ways to improve tec

Question 14

There has been catch-up among ________,but there has not been catch-up among ________.

Accepted Answer

A) developing countries such as Niger;industrialized countries such as Japan 
B) industrialized countries such as Japan;all countries of the world 
C) developing countries such as Niger;all countries of the world 
D) all countries of the world together;industrialized countries such as Japan 
A) developing countries such as Niger;industrialized countries such as Japan 
B) industrialized countries such as Japan;all countries of the world 
C) developing countries such as Niger;all countries of the world 
D) all countries of the world together;industrialized countries such as Japan

Question 15

Figure 22-4  
-Refer to Figure 22-4.The movement from E to B to D in the figure above illustrates

Accepted Answer

A) an improvement in technology. 
B) a decline in capital per worker. 
C) diminishing returns to capital. 
D) diminishing returns to labor. 
A) an improvement in technology. 
B) a decline in capital per worker. 
C) diminishing returns to capital. 
D) diminishing returns to labor.

Question 16

Foreign direct investment occurs when a Chinese corporation

Accepted Answer

A) purchases stock issued in China. 
B) opens a new Chinese factory. 
C) purchases 1,000 shares of stock issued by an American company. 
D) opens a new factory in France. 
A) purchases stock issued in China. 
B) opens a new Chinese factory. 
C) purchases 1,000 shares of stock issued by an American company. 
D) opens a new factory in France.

Question 17

High-income countries are also referred to as

Accepted Answer

A) developing countries. 
B) industrial countries. 
C) growing countries. 
D) agrarian countries. 
A) developing countries. 
B) industrial countries. 
C) growing countries. 
D) agrarian countries.

Question 18

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can

Accepted Answer

A) increase infant mortality. 
B) increase standards of living. 
C) increase the level of poverty. 
D) lower life expectancy. 
A) increase infant mortality. 
B) increase standards of living. 
C) increase the level of poverty. 
D) lower life expectancy.

Question 19

Which of the following countries actually experienced negative economic growth from 1960 to 2011?

Accepted Answer

A) Israel 
B) Singapore 
C) Niger 
D) Malaysia 
A) Israel 
B) Singapore 
C) Niger 
D) Malaysia

Question 20

Over the past 50 years,deaths among children have

Accepted Answer

A) declined in most high-income countries and have risen in most low-income countries. 
B) declined in nearly all countries,including most low-income countries. 
C) remained relatively unchanged in most high-income countries and have declined in most low-income countries. 
D) declined in most high-income countries and have remained relatively unchanged in most low-income countries. 
A) declined in most high-income countries and have risen in most low-income countries. 
B) declined in nearly all countries,including most low-income countries. 
C) remained relatively unchanged in most high-income countries and have declined in most low-income countries. 
D) declined in most high-income countries and have remained relatively unchanged in most low-income countries.

Exam 22: Long-Run Economic Growth: Sources and Policies

Globalization is positively associated with

From 1980 to 2014,the average annual growth rate for the Mexican economy has been 0.8 percent.Based on that growth rate and using the rule of 70,the number of years it will take real GDP per capita to double in Mexico is approximately

Which of the following explains the ability of the U.S.economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

Empirical evidence from 1960 to 2011 shows that convergence in economic growth is occurring in which of the following cases?

Knowledge capital is ________ in production and ________.As a result,firms ________ free ride.

Table 22-1 Country GDP (billions of dollars) Population (millions of people) Sweden \ 3.85 9.05 Ireland 2.23 4.21 -Refer to Table 22-1.Based on the table above,which country has a higher standard of living and why?

What is human capital?

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Which of the following is an example of foreign portfolio investment?

Until recently,many developing countries

According to the World Bank,Albania does one of the worst jobs as a country enforcing the rule of law.The consequence of a weak rule of law is

Foreign direct investment in the United States declined 42 percent in the first quarter of 2009.This means that

The owner of a firm wants some advice on how to increase productivity.Suggest three ways the entrepreneur could increase labor productivity through improving technology.

There has been catch-up among ________,but there has not been catch-up among ________.

Figure 22-4 -Refer to Figure 22-4.The movement from E to B to D in the figure above illustrates

Foreign direct investment occurs when a Chinese corporation

High-income countries are also referred to as

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can

Which of the following countries actually experienced negative economic growth from 1960 to 2011?

Over the past 50 years,deaths among children have

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology,production,and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Knowledge capital is in production and .As a result,firms free ride.

There has been catch-up among ,but there has not been catch-up among .