Question 1

Not enforcing property rights in an economy will

Accepted Answer

A) cause the market system to work efficiently. 
B) not change the level of investment. 
C) lower the level of investment. 
D) raise the level of investment. 
A) cause the market system to work efficiently. 
B) not change the level of investment. 
C) lower the level of investment. 
D) raise the level of investment. C

Question 2

An explanation for the productivity slowdown from 1974 through 1995 is

Accepted Answer

A) measurement problems. 
B) creative destruction. 
C) a decline in oil prices. 
D) an increase in labor quality. 
A) measurement problems. 
B) creative destruction. 
C) a decline in oil prices. 
D) an increase in labor quality. A

Question 3

In the early 1900s,Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line.What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?

Accepted Answer

A) It became flatter. 
B) It shifted up. 
C) It shifted down. 
D) It became linear. 
A) It became flatter. 
B) It shifted up. 
C) It shifted down. 
D) It became linear. B

Question 4

The best measure of a country's standard of living is

Accepted Answer

A) GDP per labor hour. 
B) GDP per unit of capital. 
C) GDP per capita. 
D) total nominal GDP. 
A) GDP per labor hour. 
B) GDP per unit of capital. 
C) GDP per capita. 
D) total nominal GDP.

Question 5

The purchase by an individual or firm of stock or bonds issued in another country is called

Accepted Answer

A) foreign exchange arbitrage. 
B) foreign direct investment. 
C) foreign portfolio investment. 
D) global stock exchange. 
A) foreign exchange arbitrage. 
B) foreign direct investment. 
C) foreign portfolio investment. 
D) global stock exchange.

Question 6

For how long does a patent give a firm the exclusive legal right to a product?

Accepted Answer

A) 10 years 
B) 17 years 
C) 20 years 
D) 50 years 
A) 10 years 
B) 17 years 
C) 20 years 
D) 50 years

Question 7

You have been hired as an economic advisor for a developing country.You have been asked to focus on education as a means for the country's development.Explain to the prime minister how improving education and training can contribute to his country's economic growth,and why it is important for the government to take a proactive role in promoting education.

Accepted Answer

Education raises the level of human capi

Question 8

The easiest way for a country to obtain access to technology is through

Accepted Answer

A) subsidizing education and training. 
B) promoting foreign direct investment. 
C) promoting policies to enhance saving. 
D) enacting policies to promote property rights. 
A) subsidizing education and training. 
B) promoting foreign direct investment. 
C) promoting policies to enhance saving. 
D) enacting policies to promote property rights.

Question 9

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 10

The question of whether economic growth is desirable is a positive question,easily settled by economic analysis.

Accepted Answer

A) True 
 B)False

Question 11

Is knowledge capital subject to the law of diminishing returns? Explain.

Accepted Answer

The law of diminishing returns states th

Question 12

In the United States,the number of hours worked per person has decreased since 1800.How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?

Accepted Answer

Because the number of hours worked per p

Question 13

If the per-worker production function shifts down,

Accepted Answer

A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. 
B) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. 
C) the per-worker production function becomes steeper. 
D) positive technological change has occurred in the economy. 
A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. 
B) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. 
C) the per-worker production function becomes steeper. 
D) positive technological change has occurred in the economy.

Question 14

________ save a ________ of their income.This ________ capital in their economy and raises economic growth.

Accepted Answer

A) Developing countries;large proportion;decreases 
B) Developing countries;small proportion;increases 
C) High-income countries;large proportion;increases 
D) High-income countries;small proportion;increases 
A) Developing countries;large proportion;decreases 
B) Developing countries;small proportion;increases 
C) High-income countries;large proportion;increases 
D) High-income countries;small proportion;increases

Question 15

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 16

Globalization is defined as the process of countries becoming ________ open to foreign trade and ________ open to foreign investment.

Accepted Answer

A) more;less 
B) more;more 
C) less;more 
D) less;less 
A) more;less 
B) more;more 
C) less;more 
D) less;less

Question 17

What is "brain drain"?

Accepted Answer

A) the tendency for highly educated workers in high-income countries to move to low-income countries to volunteer their services 
B) increased recruiting efforts that attempt to raise the average level of education in developed nations 
C) foreign direct investment that flows from a developed country to a developing country 
D) the loss of highly educated people from a low-income country as they move to higher-income opportunities in foreign countries 
A) the tendency for highly educated workers in high-income countries to move to low-income countries to volunteer their services 
B) increased recruiting efforts that attempt to raise the average level of education in developed nations 
C) foreign direct investment that flows from a developed country to a developing country 
D) the loss of highly educated people from a low-income country as they move to higher-income opportunities in foreign countries

Question 18

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Accepted Answer

Convergence is a term that describes a p

Question 19

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 20

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2014?

Accepted Answer

A) Canada 
B) Japan 
C) Germany 
D) the United Kingdom 
A) Canada 
B) Japan 
C) Germany 
D) the United Kingdom

Not enforcing property rights in an economy will

An explanation for the productivity slowdown from 1974 through 1995 is

In the early 1900s,Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line.What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?

The best measure of a country's standard of living is

The purchase by an individual or firm of stock or bonds issued in another country is called

For how long does a patent give a firm the exclusive legal right to a product?

The easiest way for a country to obtain access to technology is through

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

The question of whether economic growth is desirable is a positive question,easily settled by economic analysis.

Is knowledge capital subject to the law of diminishing returns? Explain.

In the United States,the number of hours worked per person has decreased since 1800.How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?

If the per-worker production function shifts down,

save a of their income.This capital in their economy and raises economic growth.

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

Globalization is defined as the process of countries becoming open to foreign trade and open to foreign investment.

What is "brain drain"?

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

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

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2014?

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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

Exam 11: Long-Run Economic Growth: Sources and Policies

Not enforcing property rights in an economy will

An explanation for the productivity slowdown from 1974 through 1995 is

In the early 1900s,Henry Ford revolutionized the automotive manufacturing industry by instituting the assembly line.What impact did the assembly line method for producing automobiles have on the per-worker production function for Ford?

The best measure of a country's standard of living is

The purchase by an individual or firm of stock or bonds issued in another country is called

For how long does a patent give a firm the exclusive legal right to a product?

The easiest way for a country to obtain access to technology is through

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

The question of whether economic growth is desirable is a positive question,easily settled by economic analysis.

Is knowledge capital subject to the law of diminishing returns? Explain.

In the United States,the number of hours worked per person has decreased since 1800.How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?

If the per-worker production function shifts down,

________ save a ________ of their income.This ________ capital in their economy and raises economic growth.

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

Globalization is defined as the process of countries becoming ________ open to foreign trade and ________ open to foreign investment.

What is "brain drain"?

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

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

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2014?

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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

save a of their income.This capital in their economy and raises economic growth.

Globalization is defined as the process of countries becoming open to foreign trade and open to foreign investment.

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