Question 1

According to new growth theory,firms accumulate the efficient level of both physical and knowledge capital.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

Accepted Answer

A) Countries with a strong rule of law have faster economic growth. 
B) Countries with a weak rule of law have faster economic growth. 
C) Countries that enforce property rights through lawsuits have slower economic growth. 
D) Countries where favoritism and bribery are common have stronger rates of growth. 
A) Countries with a strong rule of law have faster economic growth. 
B) Countries with a weak rule of law have faster economic growth. 
C) Countries that enforce property rights through lawsuits have slower economic growth. 
D) Countries where favoritism and bribery are common have stronger rates of growth.

Question 3

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 4

When an economy faces diminishing returns,

Accepted Answer

A) the slope of the per-worker production function becomes steeper as capital per hour worked increases. 
B) the slope of the per-worker production function becomes flatter as capital per hour worked increases. 
C) the per-worker production function shifts to the left. 
D) the per-worker production function shifts to the right. 
A) the slope of the per-worker production function becomes steeper as capital per hour worked increases. 
B) the slope of the per-worker production function becomes flatter as capital per hour worked increases. 
C) the per-worker production function shifts to the left. 
D) the per-worker production function shifts to the right.

Question 5

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

Accepted Answer

A) human capital investment. 
B) technological change. 
C) an increase in labor productivity. 
D) a movement along a given per-worker production function. 
A) human capital investment. 
B) technological change. 
C) an increase in labor productivity. 
D) a movement along a given per-worker production function.

Question 6

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?

Accepted Answer

A) the flexibility of U.S.labor markets and the efficiency of the U.S.financial system 
B) the strict government rules in the United States that regulate a firm's ability to hire and fire workers 
C) the low rate of job mobility in the United States 
D) the high level of unemployment benefits the United States pays relative to other countries like Canada 
A) the flexibility of U.S.labor markets and the efficiency of the U.S.financial system 
B) the strict government rules in the United States that regulate a firm's ability to hire and fire workers 
C) the low rate of job mobility in the United States 
D) the high level of unemployment benefits the United States pays relative to other countries like Canada

Question 7

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?

Accepted Answer

A) The United States invests more in research and development than does China. 
B) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. 
C) Because of the low birth rate in China,the labor force will soon decline. 
D) The Chinese migration of rural workers to more productive urban jobs. 
A) The United States invests more in research and development than does China. 
B) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. 
C) Because of the low birth rate in China,the labor force will soon decline. 
D) The Chinese migration of rural workers to more productive urban jobs.

Question 8

Figure 11-1  
-Refer to Figure 11-1.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

Accepted Answer

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

Question 9

Table 11-7
  
-Refer to Table 11-7.Consider the statistics in the table above in describing the following industrialized and developing countries.Are these consistent with the economic growth model? Briefly explain.

Accepted Answer

These statistics combine industrialized

Question 10

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen,but just "appeared" to happen because

Accepted Answer

A) exports were becoming a less important part of the economy,and it was hard to measure decreases in output from exports. 
B) new environmental laws had passed and forced firms to spend to reduce pollution,and this spending did not raise output. 
C) increased spending on health and safety raised worker productivity. 
D) of the high inflation levels of the 1970s. 
A) exports were becoming a less important part of the economy,and it was hard to measure decreases in output from exports. 
B) new environmental laws had passed and forced firms to spend to reduce pollution,and this spending did not raise output. 
C) increased spending on health and safety raised worker productivity. 
D) of the high inflation levels of the 1970s.

Question 11

As predicted by the economic growth model,countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Accepted Answer

A) True 
 B)False

Question 12

The key factors in raising standards of living in low-income countries have been increases in

Accepted Answer

A) capital accumulation and the money supply. 
B) technology and knowledge. 
C) foreign aid and population. 
D) income and government ownership of resources. 
A) capital accumulation and the money supply. 
B) technology and knowledge. 
C) foreign aid and population. 
D) income and government ownership of resources.

Question 13

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

Accepted Answer

A) no sustained economic growth. 
B) slow and steady economic growth. 
C) moderate economic growth. 
D) rapid and sustained economic growth. 
A) no sustained economic growth. 
B) slow and steady economic growth. 
C) moderate economic growth. 
D) rapid and sustained economic growth.

Question 14

According to new growth theory,

Accepted Answer

A) physical capital is nonexcludable. 
B) knowledge capital is excludable. 
C) knowledge capital is subject to increasing returns. 
D) knowledge capital is rival and excludable. 
A) physical capital is nonexcludable. 
B) knowledge capital is excludable. 
C) knowledge capital is subject to increasing returns. 
D) knowledge capital is rival and excludable.

Question 15

The Industrial Revolution began in

Accepted Answer

A) England around 1750. 
B) the United States around 1820. 
C) France around 1680. 
D) Germany around 1780. 
A) England around 1750. 
B) the United States around 1820. 
C) France around 1680. 
D) Germany around 1780.

Question 16

Refer to the Article Summary.In Mexico,many educated workers are leaving the country,but in some countries,less-educated workers are the primary workers who leave.Should an outflow of workers leave a country with a smaller but more productive workforce and the capital per hour worked does not change,there would be ________ the per-worker production function in that country.

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 17

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 18

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 19

A patent grants an inventor exclusive rights to a product for how long?

Accepted Answer

A) 14 years 
B) 17 years 
C) 20 years 
D) the lifetime of the product 
A) 14 years 
B) 17 years 
C) 20 years 
D) the lifetime of the product

Question 20

Corruption

Accepted Answer

A) curtails economic growth. 
B) raises the rate of growth as bribes enhance income. 
C) is eliminated by foreign direct investment. 
D) acts as a magnet for foreign direct investment. 
A) curtails economic growth. 
B) raises the rate of growth as bribes enhance income. 
C) is eliminated by foreign direct investment. 
D) acts as a magnet for foreign direct investment.

According to new growth theory,firms accumulate the efficient level of both physical and knowledge capital.

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

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.

When an economy faces diminishing returns,

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?

Figure 11-1 -Refer to Figure 11-1.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

Table 11-7 -Refer to Table 11-7.Consider the statistics in the table above in describing the following industrialized and developing countries.Are these consistent with the economic growth model? Briefly explain.

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen,but just "appeared" to happen because

As predicted by the economic growth model,countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

The key factors in raising standards of living in low-income countries have been increases in

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

According to new growth theory,

The Industrial Revolution began in

Until recently,many developing countries

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

A patent grants an inventor exclusive rights to a product for how long?

Corruption

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

According to new growth theory,firms accumulate the efficient level of both physical and knowledge capital.

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

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.

When an economy faces diminishing returns,

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?

Figure 11-1 -Refer to Figure 11-1.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

Table 11-7 -Refer to Table 11-7.Consider the statistics in the table above in describing the following industrialized and developing countries.Are these consistent with the economic growth model? Briefly explain.

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen,but just "appeared" to happen because

As predicted by the economic growth model,countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

The key factors in raising standards of living in low-income countries have been increases in

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

According to new growth theory,

The Industrial Revolution began in

Until recently,many developing countries

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

A patent grants an inventor exclusive rights to a product for how long?

Corruption

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

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