Question 1

Which of the following describes the Soviet Union's economy through most of the second half of the 20th century?

Accepted Answer

A) The Soviet economy grew rapidly in the latter half of the 20th century. 
B) The Soviet economy increased capital per worker very slowly from 1950 through 1980. 
C) The Soviet economy grew slowly because of the slow rate of technological change. 
D) The Soviet economy grew because it added labor through immigration policy in the 1950s. 
A) The Soviet economy grew rapidly in the latter half of the 20th century. 
B) The Soviet economy increased capital per worker very slowly from 1950 through 1980. 
C) The Soviet economy grew slowly because of the slow rate of technological change. 
D) The Soviet economy grew because it added labor through immigration policy in the 1950s.

Question 2

Unemployment insurance is usually available to workers in ________ for a shorter period of time than it is in ________.

Accepted Answer

A) the United States;Canada 
B) Canada and some Western European countries;the United States 
C) Canada;some Western European countries 
D) some Western European countries;the United States 
A) the United States;Canada 
B) Canada and some Western European countries;the United States 
C) Canada;some Western European countries 
D) some Western European countries;the United States

Question 3

According to new growth theory,the accumulation of ________ capital is subject to diminishing returns at the ________ level,but not at the level of the economy as a whole.

Accepted Answer

A) physical;firm 
B) technological;personal 
C) knowledge;firm 
D) physical;production 
A) physical;firm 
B) technological;personal 
C) knowledge;firm 
D) physical;production

Question 4

Technological change allows the economy to produce more output with the same amount of capital and labor.

Accepted Answer

A) True 
 B)False

Question 5

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

Accepted Answer

Any two of the following three explanati

Question 6

Figure 22-4  
-Refer to Figure 22-4.Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in the figure above by the movement from

Accepted Answer

A) E to B to D. 
B) A to B to C. 
C) A to E. 
D) A to D. 
A) E to B to D. 
B) A to B to C. 
C) A to E. 
D) A to D.

Question 7

Table 22-3
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Real GDP per Capita } \
\text { (2009 prices) }
\end{array} & \begin{array} { c } 
\text { Growth Rate in Real } \
\text { GDP per Capita }
\end{array} \
\hline 2013 & \$ 28,000 & \
\hline 2014 & 29,000 & \
\hline 2015 & 30,000 & \
\hline 2016 & 31,000 & \
\hline
\end{array}$$
-Refer to Table 22-3.Use the table above to calculate the annual growth rate in GDP.Also calculate the total percentage change in the growth from 2013 through 2016.Explain the difference between the average annual growth rate in real per capita GDP from 2013 through 2016 and the total percentage change in growth from 2013 and 2016.

Accepted Answer

One calculates the average annual percen

Question 8

Of the following countries,which had the highest level of GDP per capita in 2014?

Accepted Answer

A) Japan 
B) France 
C) Italy 
D) the United States 
A) Japan 
B) France 
C) Italy 
D) the United States

Question 9

Because firms can free ride on the research and development of other firms

Accepted Answer

A) firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research. 
B) firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research. 
C) firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research. 
D) firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research. 
A) firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research. 
B) firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research. 
C) firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research. 
D) firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research.

Question 10

Foreign investment can give a low-income country

Accepted Answer

A) access to funds for investment and access to technology. 
B) the means to slow down growth. 
C) a path to dependency and low growth. 
D) no hope to break the vicious cycle of poverty. 
A) access to funds for investment and access to technology. 
B) the means to slow down growth. 
C) a path to dependency and low growth. 
D) no hope to break the vicious cycle of poverty.

Question 11

Which of the following is not one of the three sources of technological change?

Accepted Answer

A) additional amounts of existing capital 
B) better machinery and equipment 
C) increases in human capital 
D) better means of organizing and managing production 
A) additional amounts of existing capital 
B) better machinery and equipment 
C) increases in human capital 
D) better means of organizing and managing production

Question 12

A copyright grants the creator of a book,film,or piece of software exclusive legal rights to use the creation for how long?

Accepted Answer

A) 10 years 
B) 20 years 
C) 50 years 
D) the creator's lifetime plus 70 years for the creator's heirs 
A) 10 years 
B) 20 years 
C) 50 years 
D) the creator's lifetime plus 70 years for the creator's heirs

Question 13

Using the points on the diagram below,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

Accepted Answer

The movement from A to B to C illustrate

Question 14

Which of the following is not a reason why low-income countries might experience low economic growth?

Accepted Answer

A) The country has endured extended periods of war. 
B) The country fails to enforce a rule of law. 
C) The country has a good education system. 
D) The country has a low rate of saving and investment. 
A) The country has endured extended periods of war. 
B) The country fails to enforce a rule of law. 
C) The country has a good education system. 
D) The country has a low rate of saving and investment.

Question 15

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century.Has output per hour worked consistently increased at the same rate? Explain.

Accepted Answer

Growth in real GDP per hour worked avera

Question 16

Foreign direct investment declined worldwide during the recession of 2007-2009.The decline in foreign direct investment in developing countries can make it more difficult for these countries to break out of the vicious cycle of low economic growth and

Accepted Answer

A) overpopulation. 
B) low saving and investment. 
C) a low import/export ratio. 
D) low government spending. 
A) overpopulation. 
B) low saving and investment. 
C) a low import/export ratio. 
D) low government spending.

Question 17

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of economic growth.

Accepted Answer

A) True 
 B)False

Question 18

If GDP per capita rises by 2% between 2015 and 2016,which of the following is necessarily true?

Accepted Answer

A) Real GDP has risen by more than 2%. 
B) The population has decreased. 
C) The population has increased,but by less than 2%. 
D) None of the above is necessarily true. 
A) Real GDP has risen by more than 2%. 
B) The population has decreased. 
C) The population has increased,but by less than 2%. 
D) None of the above is necessarily true.

Question 19

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

Accepted Answer

A) True 
 B)False

Question 20

Growth in real GDP per hour worked in the United States was slowest during what period of time?

Accepted Answer

A) 1900-1949 
B) 1950-1973 
C) 1974-1995 
D) 2006-2014 
A) 1900-1949 
B) 1950-1973 
C) 1974-1995 
D) 2006-2014

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

Which of the following describes the Soviet Union's economy through most of the second half of the 20th century?

Unemployment insurance is usually available to workers in ________ for a shorter period of time than it is in ________.

According to new growth theory,the accumulation of ________ capital is subject to diminishing returns at the ________ level,but not at the level of the economy as a whole.

Technological change allows the economy to produce more output with the same amount of capital and labor.

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

Figure 22-4 -Refer to Figure 22-4.Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in the figure above by the movement from

Of the following countries,which had the highest level of GDP per capita in 2014?

Because firms can free ride on the research and development of other firms

Foreign investment can give a low-income country

Which of the following is not one of the three sources of technological change?

A copyright grants the creator of a book,film,or piece of software exclusive legal rights to use the creation for how long?

Using the points on the diagram below,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

Which of the following is not a reason why low-income countries might experience low economic growth?

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century.Has output per hour worked consistently increased at the same rate? Explain.

Foreign direct investment declined worldwide during the recession of 2007-2009.The decline in foreign direct investment in developing countries can make it more difficult for these countries to break out of the vicious cycle of low economic growth and

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of economic growth.

If GDP per capita rises by 2% between 2015 and 2016,which of the following is necessarily true?

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

Growth in real GDP per hour worked in the United States was slowest during what period of time?

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

Unemployment insurance is usually available to workers in for a shorter period of time than it is in .

According to new growth theory,the accumulation of capital is subject to diminishing returns at the level,but not at the level of the economy as a whole.