Question 1

New growth theory

Accepted Answer

A) states that the rate of technological change is determined outside the working of the market system. 
B) does not adequately explain the factors that determine productivity. 
C) states that the rate of technological change is caused by economic incentives. 
D) states that the rate of technological change is unaffected by economic incentives. 
A) states that the rate of technological change is determined outside the working of the market system. 
B) does not adequately explain the factors that determine productivity. 
C) states that the rate of technological change is caused by economic incentives. 
D) states that the rate of technological change is unaffected by economic incentives.

Question 2

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 3

The term "brain drain" refers to

Accepted Answer

A) highly educated individuals who leave developing countries for high-income countries. 
B) the diminishing returns to studying for an exam. 
C) the negative impact on brain function of an individual's overinvestment in human capital. 
D) the decreased quality of the college-educated workforce. 
A) highly educated individuals who leave developing countries for high-income countries. 
B) the diminishing returns to studying for an exam. 
C) the negative impact on brain function of an individual's overinvestment in human capital. 
D) the decreased quality of the college-educated workforce.

Question 4

The per-worker production function has a ________ slope,indicating that increases in capital per hour worked ________ real GDP.

Accepted Answer

A) negative;increase 
B) positive;increase 
C) negative;decrease 
D) positive;decrease 
A) negative;increase 
B) positive;increase 
C) negative;decrease 
D) positive;decrease

Question 5

Figure 11-4  
-Refer to Figure 11-4.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 6

In a small Asian country,it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600.Based on this information,what is the slope of the per-worker production function in this range?

Accepted Answer

A) 0.06 
B) 6.6 
C) 66.6 
D) 666 
A) 0.06 
B) 6.6 
C) 66.6 
D) 666

Question 7

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

Accepted Answer

A) the failure to enforce the rule of law. 
B) persistent wars between Mexico and its neighboring countries. 
C) poor public education and health. 
D) low rates of saving and investment. 
A) the failure to enforce the rule of law. 
B) persistent wars between Mexico and its neighboring countries. 
C) poor public education and health. 
D) low rates of saving and investment.

Question 8

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 9

What are some of the reasons used to explain improvements in health,education,democracy,and political stability in many low-income countries?

Accepted Answer

Reasons include increases in technology

Question 10

The economic growth model predicts that

Accepted Answer

A) GDP per capita of rich countries will grow more rapidly than in poor countries. 
B) GDP per capita of poor countries will grow more rapidly than in rich countries. 
C) Governments must centrally direct the economy for growth to occur. 
D) GDP per capita of poor countries will never change. 
A) GDP per capita of rich countries will grow more rapidly than in poor countries. 
B) GDP per capita of poor countries will grow more rapidly than in rich countries. 
C) Governments must centrally direct the economy for growth to occur. 
D) GDP per capita of poor countries will never change.

Question 11

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 12

The rapid growth of the Chinese economy should

Accepted Answer

A) benefit U.S.consumers as they have access to less-expensive consumer goods. 
B) make it more difficult for citizens of the United States to find jobs. 
C) not affect the mix of jobs available to citizens of the United States. 
D) A and B 
A) benefit U.S.consumers as they have access to less-expensive consumer goods. 
B) make it more difficult for citizens of the United States to find jobs. 
C) not affect the mix of jobs available to citizens of the United States. 
D) A and B

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

An economic growth model

Accepted Answer

A) explains changes in nominal GDP per capita in the long run. 
B) explains changes in real GDP per capita in the long run. 
C) explains changes in nominal GDP per capita in the short run. 
D) explains changes in real GDP per capita in the short run. 
A) explains changes in nominal GDP per capita in the long run. 
B) explains changes in real GDP per capita in the long run. 
C) explains changes in nominal GDP per capita in the short run. 
D) explains changes in real GDP per capita in the short run.

Question 15

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

Question 16

Significant economic growth did not begin in the world until

Accepted Answer

A) 1000 A.D. 
B) 1750 A.D. 
C) 1820 A.D. 
D) the 20th century A.D. 
A) 1000 A.D. 
B) 1750 A.D. 
C) 1820 A.D. 
D) the 20th century A.D.

Question 17

High-income countries have ________ and ________ as compared to developing countries.

Accepted Answer

A) low rates of savings;high rates of growth 
B) low rates of savings;low rates of growth 
C) high rates of savings;high rates of growth 
D) high rates of savings;low rates of growth 
A) low rates of savings;high rates of growth 
B) low rates of savings;low rates of growth 
C) high rates of savings;high rates of growth 
D) high rates of savings;low rates of growth

Question 18

Refer to the Article Summary.If,after the outflow of educated workers in Mexico,it now takes more capital per hour worked to get the same amount of GDP per hour worked,this indicates ________ the per-worker production function in Mexico.

Accepted Answer

A) a movement up 
B) a movement down 
C) an upward shift of 
D) a downward shift of 
A) a movement up 
B) a movement down 
C) an upward shift of 
D) a downward shift of

Question 19

List four types of government policies which can aid economic growth.

Accepted Answer

Governments can aid economic growth thro

Question 20

Robert Lucas,a Nobel laureate in economics,argues that there are ________ returns to human capital.

Accepted Answer

A) increasing 
B) decreasing 
C) constant 
D) negative 
A) increasing 
B) decreasing 
C) constant 
D) negative

New growth theory

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

The term "brain drain" refers to

The per-worker production function has a slope,indicating that increases in capital per hour worked real GDP.

Figure 11-4 -Refer to Figure 11-4.Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in the figure above by the movement from

In a small Asian country,it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600.Based on this information,what is the slope of the per-worker production function in this range?

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

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

What are some of the reasons used to explain improvements in health,education,democracy,and political stability in many low-income countries?

The economic growth model predicts that

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

The rapid growth of the Chinese economy should

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

An economic growth model

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

Significant economic growth did not begin in the world until

High-income countries have and as compared to developing countries.

Refer to the Article Summary.If,after the outflow of educated workers in Mexico,it now takes more capital per hour worked to get the same amount of GDP per hour worked,this indicates ________ the per-worker production function in Mexico.

List four types of government policies which can aid economic growth.

Robert Lucas,a Nobel laureate in economics,argues that there are ________ returns to human capital.

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

New growth theory

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

The term "brain drain" refers to

The per-worker production function has a ________ slope,indicating that increases in capital per hour worked ________ real GDP.

Figure 11-4 -Refer to Figure 11-4.Suppose the economy gains more capital per hour worked and experiences technological change.This is shown in the figure above by the movement from

In a small Asian country,it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600.Based on this information,what is the slope of the per-worker production function in this range?

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

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

What are some of the reasons used to explain improvements in health,education,democracy,and political stability in many low-income countries?

The economic growth model predicts that

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

The rapid growth of the Chinese economy should

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

An economic growth model

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

Significant economic growth did not begin in the world until

High-income countries have ________ and ________ as compared to developing countries.

Refer to the Article Summary.If,after the outflow of educated workers in Mexico,it now takes more capital per hour worked to get the same amount of GDP per hour worked,this indicates ________ the per-worker production function in Mexico.

List four types of government policies which can aid economic growth.

Robert Lucas,a Nobel laureate in economics,argues that there are ________ returns to human capital.

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

The per-worker production function has a slope,indicating that increases in capital per hour worked real GDP.

High-income countries have and as compared to developing countries.