Question 1

Increased foreign direct investment in India has contributed to its recent economic growth.

Accepted Answer

A) True 
 B)False

Question 2

Figure 11-4  
-Refer to Figure 11-4.The movement from A to B to C 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 3

What is the difference between foreign direct investment and foreign portfolio investment?

Accepted Answer

A) Foreign direct investment involves purchases of foreign stock or bonds by individuals or firms,while foreign portfolio investment involves a firm purchasing or building a facility in a foreign country. 
B) Individuals engage in foreign portfolio investment,but only firms can engage in foreign direct investment. 
C) Foreign direct investment only takes place when governments make official purchases or foreign investments,while foreign portfolio investment takes place when firms,individuals,or the government purchase foreign investments. 
D) Foreign direct investment can give a low-income country access to funds and technology it would not otherwise have,but foreign portfolio investment does not expand that access. 
A) Foreign direct investment involves purchases of foreign stock or bonds by individuals or firms,while foreign portfolio investment involves a firm purchasing or building a facility in a foreign country. 
B) Individuals engage in foreign portfolio investment,but only firms can engage in foreign direct investment. 
C) Foreign direct investment only takes place when governments make official purchases or foreign investments,while foreign portfolio investment takes place when firms,individuals,or the government purchase foreign investments. 
D) Foreign direct investment can give a low-income country access to funds and technology it would not otherwise have,but foreign portfolio investment does not expand that access.

Question 4

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Accepted Answer

A) True 
 B)False

Question 5

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

Accepted Answer

A) Canada 
B) the United States 
C) France 
D) the United Kingdom 
A) Canada 
B) the United States 
C) France 
D) the United Kingdom

Question 6

Table 11-1
  
-Refer to Table 11-1.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

During which of the following periods was growth in GDP per capita the strongest?

Accepted Answer

A) prior to 500 A.D. 
B) 500 A.D.to 1800 A.D. 
C) 1800-1900 A.D. 
D) 1900-2000 A.D. 
A) prior to 500 A.D. 
B) 500 A.D.to 1800 A.D. 
C) 1800-1900 A.D. 
D) 1900-2000 A.D.

Question 8

The economic growth model predicts that ________ across countries will converge over time.

Accepted Answer

A) income levels 
B) GDP per capita 
C) foreign direct investment rates 
D) growth rates 
A) income levels 
B) GDP per capita 
C) foreign direct investment rates 
D) growth rates

Question 9

Figure 11-4  
-Refer to Figure 11-4.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to cut its support of university research in half,this would cause a movement from

Accepted Answer

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

Question 10

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The percentage change in GDP was

Accepted Answer

A) 4%. 
B) 7%. 
C) 10%. 
D) 40%. 
A) 4%. 
B) 7%. 
C) 10%. 
D) 40%.

Question 11

Table 11-5
  
-Refer to Table 11-5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

Accepted Answer

These statistics for selected industrial

Question 12

Productivity gains in the United States since 1990 have been ________ productivity gains in other leading industrial nations.

Accepted Answer

A) the same as 
B) lower than 
C) higher than 
D) more variable than 
A) the same as 
B) lower than 
C) higher than 
D) more variable than

Question 13

Which of the following is a normative statement about economic growth?

Accepted Answer

A) Economic growth is associated with higher labor productivity growth. 
B) Economic growth increases GDP per capita. 
C) Economic growth hurts developing countries. 
D) Foreign direct investment stimulates economic growth. 
A) Economic growth is associated with higher labor productivity growth. 
B) Economic growth increases GDP per capita. 
C) Economic growth hurts developing countries. 
D) Foreign direct investment stimulates economic growth.

Question 14

If real GDP per capita in the United States is $8,000 in 2016,and if real GDP per capita is $12,000 in 2026,what is the average annual percent change in the growth rate of GDP per capita between 2016 and 2026?

Accepted Answer

A) 3.33% 
B) 5% 
C) 33% 
D) 50% 
A) 3.33% 
B) 5% 
C) 33% 
D) 50%

Question 15

According to Joseph Schumpeter,economic growth is achieved through

Accepted Answer

A) focusing only on making old products better rather than inventing new ones. 
B) centralizing economic production. 
C) a process termed "creative destruction." 
D) removing the entrepreneur from the production function. 
A) focusing only on making old products better rather than inventing new ones. 
B) centralizing economic production. 
C) a process termed "creative destruction." 
D) removing the entrepreneur from the production function.

Question 16

The United States

Accepted Answer

A) currently is one of the most corrupt countries. 
B) has never had a significant problem with corruption. 
C) had a significant problem with corruption in the 1930s. 
D) currently ranks among the least corrupt countries. 
A) currently is one of the most corrupt countries. 
B) has never had a significant problem with corruption. 
C) had a significant problem with corruption in the 1930s. 
D) currently ranks among the least corrupt countries.

Question 17

The small group of East Asian countries that experienced high rates of growth in the 1980s and 1990s are referred to as

Accepted Answer

A) newly industrializing countries. 
B) countries with low standards of living. 
C) education-deprived countries. 
D) industrial countries. 
A) newly industrializing countries. 
B) countries with low standards of living. 
C) education-deprived countries. 
D) industrial countries.

Question 18

The industrialized group of countries has growth rates that are consistent with the findings of the economic growth model.That is,Taiwan,Korea,and Singapore had ________ incomes in 1960 than the United States and Switzerland,and Taiwan,Korea,and Singapore grew ________ than the United States and Switzerland between 1960 and 2010.

Accepted Answer

A) lower;more rapidly 
B) greater;less rapidly 
C) lower;less rapidly 
D) greater;more rapidly 
A) lower;more rapidly 
B) greater;less rapidly 
C) lower;less rapidly 
D) greater;more rapidly

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

The economic growth model predicts that

Accepted Answer

A) the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B) the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C) lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D) economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries. 
A) the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B) the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C) lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D) economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries.

Increased foreign direct investment in India has contributed to its recent economic growth.

Figure 11-4 -Refer to Figure 11-4.The movement from A to B to C illustrates

What is the difference between foreign direct investment and foreign portfolio investment?

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

Table 11-1 -Refer to Table 11-1.Based on the table above,which country has a higher standard of living and why?

During which of the following periods was growth in GDP per capita the strongest?

The economic growth model predicts that ________ across countries will converge over time.

Figure 11-4 -Refer to Figure 11-4.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to cut its support of university research in half,this would cause a movement from

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The percentage change in GDP was

Table 11-5 -Refer to Table 11-5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

Productivity gains in the United States since 1990 have been ________ productivity gains in other leading industrial nations.

Which of the following is a normative statement about economic growth?

If real GDP per capita in the United States is $8,000 in 2016,and if real GDP per capita is $12,000 in 2026,what is the average annual percent change in the growth rate of GDP per capita between 2016 and 2026?

According to Joseph Schumpeter,economic growth is achieved through

The United States

The small group of East Asian countries that experienced high rates of growth in the 1980s and 1990s are referred to as

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

The economic growth model predicts that

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

Increased foreign direct investment in India has contributed to its recent economic growth.

Figure 11-4 -Refer to Figure 11-4.The movement from A to B to C illustrates

What is the difference between foreign direct investment and foreign portfolio investment?

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

Table 11-1 -Refer to Table 11-1.Based on the table above,which country has a higher standard of living and why?

During which of the following periods was growth in GDP per capita the strongest?

The economic growth model predicts that ________ across countries will converge over time.

Figure 11-4 -Refer to Figure 11-4.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to cut its support of university research in half,this would cause a movement from

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The percentage change in GDP was

Table 11-5 -Refer to Table 11-5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

Productivity gains in the United States since 1990 have been ________ productivity gains in other leading industrial nations.

Which of the following is a normative statement about economic growth?

If real GDP per capita in the United States is $8,000 in 2016,and if real GDP per capita is $12,000 in 2026,what is the average annual percent change in the growth rate of GDP per capita between 2016 and 2026?

According to Joseph Schumpeter,economic growth is achieved through

The United States

The small group of East Asian countries that experienced high rates of growth in the 1980s and 1990s are referred to as

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

The economic growth model predicts that

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